Fixed Ops Journal - October 2021 - F4

FIXED OPS JOURNAL
LET'S TALK PRICING
Transparency can help build loyalty with service customers
Dealers with price transparency - on their websites and in their
service departments - and price validation, through online tools such
as Kelley's repair estimator, are able to demonstrate that they are
competitive on cost.
Why some dealerships are more forward thinking than others when it
comes to these two things is complicated, Flores says.
" Some dealers are very progressive. Some dealers are going to say,
'Th is is what the consumer expects, so I'm going to go ahead and meet
them where they need to be met,' " he says. But " I think for many
dealers, it's a legacy strategy. It's never been a need in the past.
" But the consumer research
indicates customers expect to
get a better sense of how much
they should pay and why they
should pay that amount. "
Moving on
One of the best things about
this job, when I took over as
editor in January 2020, was the
stable of professional freelance
journalists I inherited. Th ey
make my job easier.
Sadly, one of those talented
DAN SHINE
dan.shine@crain.com
Fixed Ops Journal
editor
Blue Book.
For a long time, a customer would drive into the service lane and say
to the service adviser, " Hey, tell me what I need, " Flores says.
, he
g time
ut times ar
e in
But times are changing, he says, whether consumers are shopping for
, "
a $1,000 refrigerator or a $400 brake job. Th ey expect price
transparency and price validation. What are they getting for that $400,
and is that a good price?
Dealerships struggle with customer retention. Vehicle owners,
especially within fi ve years of when their warranty typically expires,
tend to stop frequenting the dealership for service in favor of an
independent repair facility.
" One of the primary reasons that they leave is they are under the
assumption that an independent shop is less expensive than a
dealership, " Flores says.
y le
es s
g for
D
PAGE 4 OCTOBER 2021
ealership service departments
are in a bit of uncharted
territory when it comes to
customer expectations these
days, says Juan Flores, senior
director of product management at Kelley
journalists is retiring. Rick
Popely, who spent 40 years
covering the auto industry, has
decided to put down his pen and
notebook.
Rick has been with us nearly
Dealers with price
transparency - on
their websites and
in their service
departments - and
price validation,
through online tools
such as Kelley's
repair estimator, are
able to demonstrate
that they are
from the start. His byline fi rst
appeared in the third issue back
in August 2016, and his words
have been a fi xture in the pages of FOJ ever since.
Before joining us as a contributor, Rick had several newspaper jobs -
competitive on cost.
most notably as automotive editor of Consumer Guide for more than 15
years and as an auto writer for the Chicago Tribune for eight.
He says he has no immediate plans, but he and his wife might
eventually escape the Windy City for warmer climes.
Rick says he enjoyed writing about fi xed ops because it was a part of
the auto industry he didn't know much about. And his refl ection on his
career mirrors our philosophy here at FOJ.
" One of the things I realized about why I became a journalist, " Rick
told me, " is I enjoyed learning about new things and sharing them with
other people. "
Fixed Ops Journal - October 2021

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