There is a common perception that automotive retailers in the UK are somehow out to fleece their customers.
Franchised retailers will sometimes charge more than independent garages, but there is often a good reason for that difference.
A franchised retailer has to invest in specialist tools, manufacturer diagnostic systems, software subscriptions and ongoing technician training as new products and technologies are introduced. Add branded courtesy vehicles, facilities and manufacturer standards into the equation, and the cost of delivering an aftersales service soon adds up.
Yet somehow, customers can still expect the franchised retailer to operate at the same price as an independent garage without many of those overheads.
Recently, I spoke to a customer who felt he was effectively tied into using us because his local independent couldn’t obtain the parts or access the computer systems required to complete the repair on his car.
From his perspective, we were taking advantage of the situation.
It made me think about the times when I am the customer and feel exactly the same way.
One of my favourite examples is dealing with TV and broadband companies.
The annual process begins when I notice that next month’s bill is going to almost double because the “special offer” I’ve somehow managed to renew every year for the last nine years is about to expire.
Eventually, I find a number, call them, wait to speak to someone, answer the usual security questions and explain that my bill is about to double.
“Ah yes, unfortunately your special offer is finishing.”
No problem. I’ve seen a better offer online. Can I have that one?
“No, Mr Pepper. That’s for new customers.”
And so the dance begins.
I threaten to cancel. I’m offered a small discount. I decline it and confirm that I’d like to leave.
Then, usually about a week later, somebody calls me with a sensible offer.
Sound familiar?
The interesting thing is that my frustration isn’t really about the price. It’s about how the price is communicated and how I’m made to feel as an existing customer.
And I think there is an important lesson here for automotive aftersales.
We shouldn’t assume customers understand why a franchised retailer costs more. We need our service teams to be able to explain the value: the investment in technician training, specialist diagnostic equipment, manufacturer knowledge, genuine parts and the ability to deal with increasingly complex vehicles.
That requires training, but it also requires engagement.
If our people understand the value of what they’re selling, they’re far better equipped to explain it confidently to a customer.
Perhaps the question isn’t, “Why are main dealers so expensive?”
Perhaps it’s, “Are we doing enough to explain why we’re worth it?”
If you’re looking at how recruitment, training and employee engagement can improve the customer experience within your automotive aftersales business, contact me at info@tp-automotive.com.
Leave a Reply