Overheard: Value doesn’t just mean price

One important thing service departments must focus on is “providing value. And I’m saying value not necessarily price because value is more than just price. The first thing that comes [to a customer’s] mind when [they] are being offered some additional [repair] service is the value of time. There is a certain type of value in doing it then and there instead of having to say, ‘OK, I’m going to go and look maybe for a better deal someplace else’ and having to bring it there. So there’s value there. And also customers appreciate the value the franchised dealer brings because of the parts they’re using, original equipment, the training the technicians go through, the technology, the tools and those things. It doesn’t necessarily mean [you have] to be the cheapest, but at the same time you need to be careful now especially when it comes to pricing. You have to look at it from the point of view of what type of recommendation or suggested services you are recommending. If it has to do more with more advanced [repairs] … you don’t have to necessarily be as competitive because you have that advanced know-how. But at the same time you don’t want to create buyer’s remorse. [The customer may] do it the one time, but they don’t come back. Items that are definitely more price competitive and easier in this day and age to cross-compare are [things like] brake jobs, batteries or tires. Those are easy ones that you can go and compare because those are not OEM parts, necessarily. In that case, you need to be more [price] aware.” — Piermichele Robazza, global practice director of after-sales performance at research firm Urban Science, on the “Retention Roadmap” podcast hosted by Bill Springer.

Overheard: Value doesn’t just mean price

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