Fixed Ops Journal - February 2021 - F6

FIXED OPS JOURNAL

FEEDBACK

Customers seek discounts,
should lower expectations

N

early 6 in 10 customers said they expect some sort of discount when
they bring their vehicle to a dealership service department for maintenance or repair work, according to a January DealerRater survey
conducted for Fixed Ops Journal. Luxury consumers had a slightly
higher expectation of a discount than mass-market customers.
Haphazard discounting by service advisers is a common cause of unprofitable
shops, fixed ops experts say. (See story, Page 16.) If service advisers feel a discount is necessary, then the price is likely too high.
Customers in some cases have come to expect a discount when they bring their
vehicle in. But expectations most often don't match reality. In fact, 60 percent of
surveyed customers told DealerRater that they did not receive any discount for
work done on their vehicle. Slightly more luxury customers reported receiving a
discount than mass-market consumers. 

Price break
Q: When you take your vehicle to a dealership service
department, do you expect a price discount on parts or
labor?
ALL CUSTOMERS

MASS-MARKET

LUXURY

57%
43%

56%
44%

59%
41%

Yes
No

Q: Have you been given a discount on parts or labor
during a recent visit to a dealership service department?
ALL CUSTOMERS

MASS-MARKET

LUXURY

40%
60%

39%
61%

42%
58%

Yes
No

Source: DealerRater survey conducted Jan. 6-12 of 11,509 consumers who visit
new-vehicle dealerships

SERVICE COUNTER
 Service pick-me-up

Older dealership service customers are, in general, less interested in mobile repairs
and pickup and delivery than younger customers, according to the 2021 Deloitte
Global Automotive Consumer Study. A closer look:
Consumers interested in having their vehicle picked up from their home or
workplace when it needs service
AGES 18-34

 Yes and would pay a reasonable fee
 Yes if it were free
 Not interested

22%
55%
22%

AGES 35-54

22%
50%
28%

AGES 55+

7%
39%
54%

OVERALL

16%
46%
38%

Consumers interested in having a technician come to their home or workplace to
perform required service
AGES 18-34

 Yes and would pay a reasonable fee
 Yes if it were free
 Not interested
Note: Columns may not total 100 because of rounding.

 Body blows

State-mandated stay-at-home orders and employees
working from home during the pandemic significantly
decreased the number of vehicles on the road,
resulting in fewer accidents and body shop repairs.
Rate of decline in repairable appraisal counts,
excluding comprehensive losses, by quarter:
Q1

Q2

Q3

Q4

--- 10.2%

--- 35%

--- 20.2%

--- 19.7%

Source: CCC

PAGE 6

FEBRUARY 2021

OVERALL

--- 21.3%

32%
46%
21%

AGES 35-54

AGES 55+

27%
50%
23%

8%
32%
60%

OVERALL

20%
41%
39%
Fixed Ops Journal - February 2021

Table of Contents for the Digital Edition of Fixed Ops Journal - February 2021
