Fixed Ops Journal - February 2018 - 28
FIXED OPS JOURNAL
COUPON
COUP
Dealerships partner with Costco's program of
auto discounts to boost service and parts sales
C
JESSE SNYDER
jsnyder@crain.com
ostco is working with new-vehicle
dealerships to expand its members-only discount program beyond auto purchases to service and
parts sales.
That effort is working: Costco says the auto
program's transaction volume, including service and parts, increased by 7 percent over the
previous year.
Rick Borg, executive vice president of program operations for the warehouse retail
chain's auto program, credits that growth to
learning from experience what drives participating dealerships' business. More than 900
franchised dealerships are enrolled in the service and parts program, Costco says, along
with 475 independent garages.
"It's a win-win-win," Borg told Fixed Ops
Journal. "It's good for our members, good for
dealers and good for Costco because it helps
us retain our members."
Victory lap
On the retail end, executives at Victory Toyota in Seaside, Calif., say partnering with
Costco has become a major driver of their
business. The dealership has steadily built
service and parts volume through Costco's
coupon program since it started participating
three years ago.
Each month, about 15 service customers redeem Costco coupons for 15 percent off the
PAGE 28
FEBRUARY 2018
cost of service and repairs at Victory Toyota, said Jeremy Carter, vice president of
service and parts for the dealership on
California's Monterey Peninsula.
The coupons also boost sales of parts
- for instance, Costco customers who
bought vehicles through the discount
program can get half off accessories.
"The service program really benefits
the parts and service department,"
Carter says. "Our return on investment
is good because we add new customers. Anytime we make a new customer, that's a lifetime value of $600,000
to $700,000 to the enterprise."
Coupon rate
Club members can go online at Costco.
com, select a local participating dealership or
see COSTCO, Page 29
More than 900 new-vehicle
dealerships accept coupons that give
Costco members service price breaks.
http://costcoauto.com
Table of Contents for the Digital Edition of Fixed Ops Journal - February 2018
Fixed Ops Journal - February 2018
Contents
Editor’s Letter
Service Counter
Legal Lane
Jim Roche
Assembly line
Need for speed
Overcoming hurdles
Coupon clippers
Future market
Saab story
Feedback
Remote start
Richard Truett
Loaner management
Machine learning
Augmented reality
Letters
Shop Talk
Service benefit
Fixed in Time
Fixed Ops Journal - February 2018 - Intro
Fixed Ops Journal - February 2018 - Fixed Ops Journal - February 2018
Fixed Ops Journal - February 2018 - Cover2
Fixed Ops Journal - February 2018 - Contents
Fixed Ops Journal - February 2018 - Editor’s Letter
Fixed Ops Journal - February 2018 - 5
Fixed Ops Journal - February 2018 - Service Counter
Fixed Ops Journal - February 2018 - 7
Fixed Ops Journal - February 2018 - Legal Lane
Fixed Ops Journal - February 2018 - 9
Fixed Ops Journal - February 2018 - 10
Fixed Ops Journal - February 2018 - Jim Roche
Fixed Ops Journal - February 2018 - Assembly line
Fixed Ops Journal - February 2018 - 13
Fixed Ops Journal - February 2018 - 14
Fixed Ops Journal - February 2018 - 15
Fixed Ops Journal - February 2018 - 16
Fixed Ops Journal - February 2018 - 17
Fixed Ops Journal - February 2018 - 18
Fixed Ops Journal - February 2018 - 19
Fixed Ops Journal - February 2018 - 20
Fixed Ops Journal - February 2018 - 21
Fixed Ops Journal - February 2018 - Need for speed
Fixed Ops Journal - February 2018 - 23
Fixed Ops Journal - February 2018 - 24
Fixed Ops Journal - February 2018 - 25
Fixed Ops Journal - February 2018 - Overcoming hurdles
Fixed Ops Journal - February 2018 - 27
Fixed Ops Journal - February 2018 - Coupon clippers
Fixed Ops Journal - February 2018 - 29
Fixed Ops Journal - February 2018 - Future market
Fixed Ops Journal - February 2018 - 31
Fixed Ops Journal - February 2018 - Saab story
Fixed Ops Journal - February 2018 - Feedback
Fixed Ops Journal - February 2018 - Remote start
Fixed Ops Journal - February 2018 - Richard Truett
Fixed Ops Journal - February 2018 - Loaner management
Fixed Ops Journal - February 2018 - 37
Fixed Ops Journal - February 2018 - Machine learning
Fixed Ops Journal - February 2018 - 39
Fixed Ops Journal - February 2018 - Augmented reality
Fixed Ops Journal - February 2018 - 41
Fixed Ops Journal - February 2018 - Letters
Fixed Ops Journal - February 2018 - 43
Fixed Ops Journal - February 2018 - Shop Talk
Fixed Ops Journal - February 2018 - Service benefit
Fixed Ops Journal - February 2018 - Fixed in Time
Fixed Ops Journal - February 2018 - Cover3
Fixed Ops Journal - February 2018 - Cover4
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