310 Billion

Denim Simkins
NADA indicates that the automotive repair opportunity is a $310 Billion industry and dealers are only capturing 26% to 27%. This means there is $226 Billion going to the aftermarket and others. What are your thoughts as to why the dealers are missing so much of the business??? What is a realistic capture goal?
mark rask
the customers perception of the dealerships service dept is not a good one
Denim Simkins
Mark - I agree "perception" has a lot to do with it. Is it a realistic perception and how does the dealer improve this?
Brian Amberg
Hi Denim ! The perception is realistic because that is how the consumer sees it. Fair or not to specific dealers or service personnel. Aftermarket services aren't held in much higher esteem than dealers, but they often are lower enough in price to overcome the negative perceptions and take the non warranty service away from the dealer. If dealers want to change the public's perception in sales and service, they must adopt a customer first attitude at all cost. Zig Ziglar said (and lived it) "You can have everything in life you want, if you will just help enough other people get what they want."It's a matter of heart and living the "golden rule" . At least that's what I've learned and believe. You could start with a series of service customer focus groups. Set up customer appreciation nights, food and feedback, etc. They'll be happy to vent and even praise where it's due.
Mark Miller
Having been on both sides of the coin, my thoughts have been that independent repair shops go further to connect with customers and come across (maybe falsely) to care more. The dealerships I've worked in have a air of entitlement that they will get a certain amount of work because they are the "expert" on that car line. Independents have come a long way in training and technology to compete for the repair dollars out there. In my area they also try hard to connect to the local community they are in and I think that makes a difference here. It used to be hours and accessibility, I think dealers have started to open more hours to overcome this, but in Colorado, dealers can't be open Sunday, so by default some independents are able to capitalize on that. As previously pointed out, perception is an issue as well, one that may be tough to overcome in some areas.
Lauren Moses
I think the perception is a big part of just because of the "Dealership" stigma. People in general (in my opinion) fear they are going to be ripped off at a dealership. I think, Like Mark Miller said, hours and accessibility are another issue. Customers want the comfort and convenience of knowing that they can get in and out quickly (depending on the service) and that they aren't going to be put on "hold" and forgotten about. I think this is where smaller independents really come forward. Better hours, offering pick up and delivery, rental vehicles, early drop off and late pickup, are all things that for the most part are simple to do that can give customers a much better experience and help capture the other $226 Billion we are missing out on.

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