MOTORING

Auckland Star, Volume LX, Issue 226, 24 September 1929, Page 16

MOTORING

MOTORING

RIGHT OR WRONG?

TWO TYPES OF "SERVICE."

WHY SOME DEALERS LOSE.

(By AUTOSCEIBE.)

There are many motor dealers who

assert that they cannot make a profit either from their repair departments, or from the resale of used cars. Profits from new car sales have to be offset against losses in these departments, with the result that after a year's trading net profits are small. From what friends in the business have told me, I think the fault lies with the dealers. Every motorist who has travelled afield knows that "service" varies greatly from town to town and from garage to garage. In some places he will get exactly what lie wants in a minimum of time —in others he cannot get it for love or money. The dealer who gives the motoring public what it wants can get a fair profit all

the time on all departments of his business, and at the same time hold all his customers. There is room for tremendous improvement in very many of our

garages. Let me quote the experience of one big firm in one of our centres. This firm was doing a tremendous annual turnover on new car sales, and would have shown handsome profits if other sections of the business had shown the smallest possible margin—but they didn't. Moreover they found that they weren't holding their customers; when new cars were bought, the customer switched to another firm, and another make. They knew their cars were right for value, and could see that it was the "service" that was wrong. Satisfaction Not Given. Complaints were frequent. Customers were not satisfied with the repair work, and yet this department was showing a loss. They decided that only 'one thing could be clone, and secured the best man they could get,'to take charge of the service garage. Naturally they had to pay him well—more than they had been used to paying in fact. There wasn't niuch alteration the first year, although the department almost paid its way. The 'second year it paid a fair profit, and now it is paying as well as any other section of the business. An additional factor is that it is holding the firm's customers. They bring their cars there for repairs, they are well treated, and when they come to buy another car they buy the same make. That 'experience surely ; points the way to success. for many garages. It is a notable fact that in our provincial towns there are usually one or two garages specially not.ed for their service, and the makes of cars which these garages handle are the ones with the biggest sales in these localities. I could drive that point home with several instances, but that, of course, would not be fair. The truth of the matter is that modern cars are all good; there are no "duds" in the field, and the difference between the results achieved with one, and with another, can very often be expressed in the word "service." The Repair Shop. Many dealers look on the repair shop as a necessary evil, and their customers soon get to know this, and stay away. Where they do the job thoroughly the shop should show a profit, and the customers should be satisfied. Motorists know that apparently simple jobs take time, and are prepared to pay the price, provided the job is done properly. Where they grumble is when it has to be done over again, and where further trouble develops through an improperly done job. An initial difficulty sometimes comes about through an over-keen salesman living the impression that the car will need no attention for many thousands of miles.' If the customer were encouraged to bring his car in for little attentions from time to time, the need for major repairs would seldom arise. Some firms now recognise this and see that an expert looks at-the car once every three months. The customer is under no obligation to have the work done, but he knows the state, of Ins car, and is told plainly that if the minor repairs are , not attended to, bigger repairs will be needed. Use'd Car Sales. Some firms now have a used car department entirely separate from their ordinary selling organisation, in which case they do not liMer up their windows

with used cars, but make displays only of the new cars they are handling. There is nothing less attractive than a garage window in which repose- two or three antiquated cars, together with a mass of accessories of a variegated nature. Contrast such a window with one in which there are but two beautifully finished new cars, and you will see why soniD firms sell easily, and why others must make strenuous efforst all the time.' Some firms consider that a profit can never be made from used-car sales, but others do not take a trade-in unless there is a margin of- profit, however small. That is a reasonable stand to take, and provided customers are handled reasonably they can be made to see the dealer's viewpoint. It all rests very largely with the dealer, and although the temptation to take a car at top high a figure may be great, it should be resisted. Every department of the business should pay, and I maintain that it is those firms which make every department pay, that give motorists the best service in the long run. You never get anything for nothing, and provided prices are fixed on a reasonable basis, and good service is given, motorists will have nothing to complain about, and garages will prosper.