Dealership service managers are giving discounts to service customers and their service market share is shrinking. Giving discounts to dealership service customers is not working! In the last four years, dealers' share of the aftermarket service business has declined from over 27% to 21%. Service managers are attempting to regain lost market share by lowering prices. The facts indicate lower prices are not winning back lost customers!
Are you paying your service writers on discounts given to customers? If I was an advisor and my service manager paid me to give discounts to customers, I would offer every customer I wrote up a "discount coupon!"
Larry Edwards, president of Edwards & Associates Consulting, focuses specifically on Fixed Operations and wants to make dealers aware of how much it is costing in lost profits when there is no control over the use of discounts.