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AUTO
REPAIR LAGUNA HILLS, LEISURE WORLD, LAGUNA WOODS
TIRES, BRAKES, LUBE -
TOYOTA, NISSAN, HONDA, ACURA, LEXUS, INFINITI, VW, GM,
FORD
CHECK ENGINE LIGHT, FLEET SERVICES,
OIL CHANGES, STRUTS, SHOCKS, ALIGNMENT, DIAGNOSTICS,
ENGINE REPAIR, TRANSMISSION
"You Found a
Great Mechanic, Your Dealer Alternative!
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Services Auto
RepairTiresLubeOil
Changes
BrakesCheck
Engine LightStruts
ShocksAlignmentDiagnostics
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"Selfishness
only causes trouble."
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Car
Repair Prices: Why Your Oil Change Is Never "Just An Oil Change"
Author:
Theodore Olson
For a repair
shop, there is little profit in the $29.95 oil change. By the
time a shop pays its technician, pays for the oil, the filter,
and the hazardous waste disposal fees, there's no money left.
This low profit margin is worsened by the extremely competitive
"Quick Lube" business, which forces local repair shops to refrain
from raising prices, despite rising costs.
This all begs the question: If oil change specials, which range
from $15.95 to $29.95, clearly produce very low profits, then
why do so many service facilities advertise oil change specials?
The answer is actually very simple: It gets you in the door.
Service centers know that once they have your vehicle, they
can sell you additional work.
Suggesting additional work is called up-selling, and it's a
primary profit tactic of every service facility.
Here's a typical example. You drop your vehicle off for "just
an oil change." Upon completion your service representative
smiles and proudly states, "We noticed that your air filter
was dirty; so we popped in a new one." You may think "Great;
what wonderful service!"
What really occurred is that you were casually up-sold an air
filter. It probably wasn't needed; it certainly wasn't replaced
according to any factory recommendation, and you were definitely
overcharged for what was most likely a poorly-fitting, after-market,
inferior air filter.
Here's a real-life example that occurred recently. This particular
vehicle had 54,000 miles on it, and was dropped off at a local
shop for "just an oil change." Upon paying the bill, the customer
was handed an estimate for $199 to replace his air filter and
top radiator hose.
Shocked at the price, he called me.
After review, I found that the air filter suggestion was premature.
It didn't need replacement until the manufacturer's recommended
60,000-mile service interval. The top hose was also premature.
In fact, it did not need replacement at all, despite a very
minor problem easily addressed during the factory maintenance
schedule—at no extra cost.
Check out the after-market part prices quoted below (including
the unnecessary radiator hose). Compare these to the manufacturer's
suggested retail price (MSRP) for the factory OEM parts (Original
Equipment Manufacturer).
Local Shop After-market Air Filter: $32
Manufacturer OEM Filter, MSRP: $17
Local Shop After-market Top Hose: $36
Manufacturer OEM Top Hose, MSRP: $19
Notice that this local shop was doubling the price of the OEM
parts with its inferior after-market parts.
Now, let's look at the labor time quoted.
Local Shop Labor Time: 2.0 $60 per hour = $120
Manufacturer Labor Time: 0.9 $60 per hour = $81
Notice that the shop labor time estimate for the repairs was
2 hours. This is more than "twice" the manufacturer's recommendations
(even after calculating manufacturer times against the industry
standard multiplier).
Had the local shop abided by the vehicle's particular maintenance
intervals instead of trying to make a quick buck, it should
have recommended a 60,000-mile service at the next visit. This
would have better served the client, saved him $199, and maintained
the vehicle properly.
Instead, the service center lost a customer, forever!
What needs to be made crystal clear is that this type of price-gouging
occurs every day in every type of service facility in one form
or another across the automotive service industry.
This type of price-gouging is considered normal!
About
the Author:
Theodore
P. Olson (Ted) holds extensive certifications from Mercedes-Benz,
Toyota, GM, and ASE. He is the author of eight books and numerous
articles on the automotive service industry.
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AUTO
REPAIR LAGUNA HILLS, LEISURE WORLD, LAGUNA WOODS
TIRES, BRAKES, LUBE - TOYOTA,
NISSAN, HONDA, ACURA, LEXUS, INFINITI, VW, GM, FORD
CHECK ENGINE LIGHT, FLEET SERVICES,
OIL CHANGES, STRUTS, SHOCKS, ALIGNMENT, DIAGNOSTICS, ENGINE
REPAIR, TRANSMISSION
"You Found a Great
Mechanic, Your Dealer Alternative!
FREE SHUTTLE SERVICE" |
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ServicesAuto
RepairTiresLubeOil
Changes
BrakesCheck
Engine LightStruts
ShocksAlignmentDiagnostics
|
"Selfishness
only causes trouble."
AUTOREPAIRLUBELAGUNAHILLS.COM
AUTOREPAIRLAGUNAHILLSLUBETIRESBRAKESTOYOTAHONDANISSANFORDFLEET.COM
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Copyright
© Mechanical Mann, 22701-A Granite Way, Laguna Hills, CA 92653
AUTO
REPAIR LAGUNA HILLS, LUBE, TIRES, BRAKES, MECHANIC, AUTO REPAIR
LEISURE WORLD, AUTO REPAIR LAGUNA WOODS, AUTO REPAIR LAKE
FOREST, TOYOTA, NISSAN, HONDA, ACURA, LEXUS, INFINITI, AUDI,
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Providing auto repair and oil, lube, and tire rotation in
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and Imports
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