E60 Discussion Anything and everything to do with the E60 5 Series. All are welcome!

Why don't dealerships become competitive with service pricing?

Thread Tools
 
Search this Thread
 
Old Jun 17, 2010 | 11:26 AM
  #1  
Howitzer's Avatar
Thread Starter
Contributors
 
Joined: Jul 2008
Posts: 4,410
Likes: 0
From: Chicago
Default

I just don't understand why dealers don't realize how much more service business they could do if they became competitive in hourly rates / prices as indy shops are? Most customers perfer going to a dealership but many don't because of the stupid and completely jacked up costs. Why are these asinine stealers charging $120 per hour when the guy across the way who has a mechanic just as capable is charging $48 an hour? IT BOGGLES THE MIND. As a business-freak, it astounds me that they don't scoop up market share by doing this.
Reply
Old Jun 17, 2010 | 12:07 PM
  #2  
rctmthouse's Avatar
Senior Members
 
Joined: Apr 2010
Posts: 1,423
Likes: 0
Default

they just assume BMW owners are rich enough and not bother with looking at alternative when it comes to maintenance. That and along with the fact that their overhead cost is way higher than the the guys across the way. Of course it's the SA job to sell the idea that their mechanics are more highly trained especially with all these new electronic gizmos in the newer cars.
Reply
Old Jun 17, 2010 | 12:10 PM
  #3  
rctmthouse's Avatar
Senior Members
 
Joined: Apr 2010
Posts: 1,423
Likes: 0
Default

Howitzer,

I'm still very new to the E60 so I have a newbie question for you. I notice that for your wheels, what does it mean when you stated M6 offset?

Thanks

RCT
Reply
Old Jun 17, 2010 | 12:44 PM
  #4  
xenonrider's Avatar
Contributors
 
Joined: Mar 2010
Posts: 254
Likes: 0
From: SoCal
My Ride: '04 545i '02 SC430 '04 RX330
Default

i think a big part is the overhead. dealerships are usually located on properties that a lot more expensive than indies. they often have newly-built building that are still being paid-for. additionally, they have to paid your SA a salary and commition as well as paying the secretaries, managers, the coffie and donuts, the HDTV in the lobby, the after service car wash and a whole lot of expenses that has nothing to do with servicing the car.

it sucks and i try and stay away from the stealership as much as possible. unfortunately, they seem to be making things more and more difficult so that we have no choice but to go back..
Reply
Old Jun 17, 2010 | 01:07 PM
  #5  
Gene's Avatar
Super Moderator
 
Joined: Jan 2008
Posts: 17,508
Likes: 3
From: So. Cal (SFV)
My Ride: 2011.5 Alpine White E90 M3 | Black Novillo Leather | Carbon Fiber Leather Trim | ZCP | ZP2 | M-DCT | Navigation | Moonroof | 6FL Mods: TMS 12.5mm spacers all around l Hawk HPS Brake Pads l OEM M3 Edition Grills l Paint Matched Side Gills l Key Hole D
Default

Originally Posted by rctmthouse
Howitzer,

I'm still very new to the E60 so I have a newbie question for you. I notice that for your wheels, what does it mean when you stated M6 offset?

Thanks

RCT
166 wheels

M5 offsets: Fronts ET 12, Rears ET 28
M6 offsets: Fronts ET 12, Rears ET 17

M6 offsets sit closer/more flush to the rear fenders than M5 offset 166's...



Howi: +1 with overhead....
Reply
Old Jun 17, 2010 | 01:14 PM
  #6  
redEYEjedi's Avatar
Contributors
 
Joined: Jul 2009
Posts: 1,921
Likes: 0
From: Los Angeles
Default

Originally Posted by xenonrider
i think a big part is the overhead. dealerships are usually located on properties that a lot more expensive than indies. they often have newly-built building that are still being paid-for. additionally, they have to paid your SA a salary and commition as well as paying the secretaries, managers, the coffie and donuts, the HDTV in the lobby, the after service car wash and a whole lot of expenses that has nothing to do with servicing the car.

it sucks and i try and stay away from the stealership as much as possible. unfortunately, they seem to be making things more and more difficult so that we have no choice but to go back..

Sounds like the Apple business model. Once you buy in, you're stuck buying every small component and nickled and dimed, but add a few zero's to those figures.
Reply
Old Jun 17, 2010 | 02:25 PM
  #7  
cleung's Avatar
Contributors
 
Joined: Jun 2008
Posts: 2,696
Likes: 1
From: Saskatchewan Canada
My Ride: 2004 530i premium package/active steering/auto sunshade/tiag/black dakota leather/logic 7 35% tint all around 19' DPE GT7
Default

does bmw USA or bmw Canada have a say in what they are "supposed" to charge as a posted price?
Reply
Old Jun 17, 2010 | 02:33 PM
  #8  
acuteperformance's Avatar
Former Vendor
 
Joined: Apr 2008
Posts: 5,051
Likes: 1
From: SoCal
My Ride: 14 550i
Default

it's overhead. bmw spends more money sponsoring events, advertising, have to include costs for ext. warranties, higher salaries, etc..
Reply
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
jfmartin25
Complete Car Sales
11
Nov 2, 2022 01:42 AM
BrandonSS
E60 Discussion
17
Oct 24, 2019 09:01 AM
i6YouNot
New Member Introductions
2
May 19, 2015 02:40 PM
TexaZ3
Complete Car Sales
17
May 6, 2015 09:54 AM
Quojo
E60 Discussion
5
Apr 1, 2015 04:00 PM




All times are GMT -8. The time now is 10:43 PM.