Auto Dealers Neglecting Service Operations, Experts Say
Dealerships make the bulk of their profits from service operations, but don’t put enough resources into optimizing them.
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LAS VEGAS – Auto dealers are missing the boat when it comes to exploiting the full potential of their service operations, two industry experts say.
With new-car sales still slowed by the economic downturn, these fixed operations account for the bulk of a store’s profits. Yet most consumers shy away from having their vehicles serviced at a dealership due to the perception they are not trustworthy and likely to charge more than an independent repair facility.
So says Kevin Root, vice president of Driverside.com, a website that provides advice on how to own and operate a vehicle. The site also reviews new and used vehicles.
Speaking at the Driving Sales Executive Summit presented with WardsAuto here, Root says dealership service departments are “under attack” from large chain repair shops such as Pep Boys, and stand-alone mechanics who he generically refers to as “Joe’s Garage.”