Fixed Ops Journal - August 2019 - F13

FIXED OPS JOURNAL

WRENCH

Petersen says Amazon has "without a doubt"
helped expand his company's business, adding that the share of jobs that come from Amazon orders is growing. He declined to say
what he pays Amazon to appear on the site,
but he added that he expects the demand for
mobile mechanics to grow.
"Niche expertise delivered to you is where
things are heading," Petersen says.

continued from Page 11

is geographically spotty, although urban centers are well covered. Adam Goetsch, Amazon's automotive director, says the company
"will continue to explore ways to expand service offerings."

Traveling mechanics
The largest provider of mobile auto repair on
Amazon is Wrench Inc., of Seattle. The company competes with other mobile mechanic outfits such as YourMechanic, of Mountain View,
Calif., and Fiix, of Toronto.
Founded in 2015, Wrench has grown from
25 service technicians and three markets last
year to more than 100 technicians and 20
markets today, says CEO Ed Petersen. He
notes that the company employs its own technicians and service advisers instead of hiring independent contractors.
Petersen says his company's mechanics are able to "complete repairs
north of 95 percent of the time" on-site. Wrench customers' average bill,
he says, is about $450 - on par, he says, with charges for comparable
work by a dealership service department. Wrench offers a
1-year/12,000-mile warranty.
Although most customers contact Wrench through its own website,

Audi at your door
Among automakers, Audi of America agrees.
"The market is going to dictate that we do
more things for our customers to help free up
their time," says Joe Rood, Audi of America's
director of service operations and training.
Rood notes that some Audi dealerships
provide mobile services to preferred customers on an individual basis as an extension of
the automaker's roadside assistance program. Such services include
tire repair, jump-starts, minor trim replacement and other small jobs,
he says.
Audi is looking at setting up a formal home service program as it expands its offerings of electric vehicles, Rood adds.
"Dealing with oil or hazardous materials on-site was something we
didn't want to get into," he says. "But with electric vehicles, remote service makes a lot more sense." 

TIRES

continued from Page 11

the growing competition it poses in service and parts sales.
"Retailing cars is hard because the margins are small," Zanan told
Fixed Ops Journal.
"Getting into used cars is problematic because you have to stock inventory. If I was Amazon, I'd want to get deeper into parts and service
because the margins are much better."
Zanan says dealerships need to pay more attention to tire sales, which
he calls the key to building relationships with service customers. Replacement tires are the first major expense most vehicle owners face, he
notes.
"It's a substantial investment in inventory, training and equipment to
get heavily into the tire business," Zanan says. "But whoever sells the first
set of tires often wins the service game. Are dealers really willing to forgo
that without a fight?"
Amazon's partnerships have big advantages for the online retailer,
which gets brick-and-mortar services at a low cost, says Jim Lang, a parts
marketing consultant in Fort Wayne, Ind. But they often aren't as good a
deal for the installers, Lang notes.
"In this online to offline scenario, the installer doesn't make anything
on the part," says Lang, an adviser to CarParts.com, an online parts retailer. "That's captured by Amazon."
Although the Amazon partnerships dramatically lower the cost to the
installers of acquiring customers, Lang adds, those consumers may not
come back to the store.
"The platform controls the relationship between the customer and the
installer," he says. "Unless you can kindle a relationship with that consumer directly, you haven't gained a new customer. Amazon may send
them to the Monro a mile away next time." 

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AUGUST 2019

PAGE 13

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Fixed Ops Journal - August 2019

Table of Contents for the Digital Edition of Fixed Ops Journal - August 2019