Would you use that new car servcing company ?
Discussion
A new company is trying to muscle its way into the car servicing market.
This concept is popular at the moment and basically involves skimming a profit off the cost of providing a service in return for marketing that service.
Another similar company is hungryhouse.com - which is doing the same thing for take-away food.
As the owner of an independent specialist vehicle servicing company I am interested in becoming a supplier to this new car servicing company - they won't be doing the servicing themselves. Just taking the bookings and sending your car to a local garage.
The problem is that the new company want to completely own the customer. As such they seek to establish a contract between the supplier (my garage) and themselves which revolves around the idea of using me to complete the service while providing me with absolutely nothing except a very small payment for each service done. Something like £30 to £40 per service. It's not really worth bothering with. We also have to get the car washed and vacuumed which also has to come out of that £30 or £40 we would get. They want a member of staff from my garage to go and collect the customers car from their house or office pretending to be from the call-centre company (showing id card and using their paperwork and announcing ourselves as being from the firm) using our insurance to drive the customers car. They want all phone calls with the customer to come from the call centre so we are not allowed to speak with the customer. The result is that every time you want something done on your car they are hoping you will call them to arrange it so they can skim off the booking before transferring the job to a local garage.
I have a feeling trying to corporatise a reality based business like servicing cars is going to end in disaster on far too many occasions. No doubt everyone on here will have experienced the pain of getting your car serviced by the dealer or the pain of having your car serviced by the likes of large firms with blue and yellow colours in the corporate logo.
The economics don't stack up. Far from it. They want us to spend the extra hour collecting and washing the vehicle which normally wouldn't be part of the service. They want us to limit the price of synthetic engine oil to an unrealistic maximum figure meaning you can't actually have the right oil for your car because we would have to sell it for less than we bought it. You can't speak to the mechanic or know who the mechanic or garage is. That is going to be annoying if there is a problem. All technical details have to be communicated through the call centre so a lot of things like 'niggles' you want sorted or advice going back the other way from the mechanic will get lost or badly translated. The evidence that they don't understand the business is everywhere. They say things like 'timing-belt' when the engine in question has a 'timing chain' and as mentioned previously seem unaware of the real cost of engine oil. Assuming we spend a total of two hours servicing, washing, collecting and delivering the vehicle how would we pay a mechanic, pay for the materials, pay for the consumables, rent on the workshop, insurance, electricity, council rates, etc, etc...
They are advertising like crazy to promote themselves as the people to use if you want your car serviced. Based on what I have seen so far I think I'm going to have to say - "I'm out!" - they have already sent me a cheap rubber stamp for stamping service books but I'm seriously considering sending it back.
I have deliberately not named them because I think you will know who they are and I want this topic to be left here for comments so not going to do anything which might cause it to be deleted.
This concept is popular at the moment and basically involves skimming a profit off the cost of providing a service in return for marketing that service.
Another similar company is hungryhouse.com - which is doing the same thing for take-away food.
As the owner of an independent specialist vehicle servicing company I am interested in becoming a supplier to this new car servicing company - they won't be doing the servicing themselves. Just taking the bookings and sending your car to a local garage.
The problem is that the new company want to completely own the customer. As such they seek to establish a contract between the supplier (my garage) and themselves which revolves around the idea of using me to complete the service while providing me with absolutely nothing except a very small payment for each service done. Something like £30 to £40 per service. It's not really worth bothering with. We also have to get the car washed and vacuumed which also has to come out of that £30 or £40 we would get. They want a member of staff from my garage to go and collect the customers car from their house or office pretending to be from the call-centre company (showing id card and using their paperwork and announcing ourselves as being from the firm) using our insurance to drive the customers car. They want all phone calls with the customer to come from the call centre so we are not allowed to speak with the customer. The result is that every time you want something done on your car they are hoping you will call them to arrange it so they can skim off the booking before transferring the job to a local garage.
I have a feeling trying to corporatise a reality based business like servicing cars is going to end in disaster on far too many occasions. No doubt everyone on here will have experienced the pain of getting your car serviced by the dealer or the pain of having your car serviced by the likes of large firms with blue and yellow colours in the corporate logo.
The economics don't stack up. Far from it. They want us to spend the extra hour collecting and washing the vehicle which normally wouldn't be part of the service. They want us to limit the price of synthetic engine oil to an unrealistic maximum figure meaning you can't actually have the right oil for your car because we would have to sell it for less than we bought it. You can't speak to the mechanic or know who the mechanic or garage is. That is going to be annoying if there is a problem. All technical details have to be communicated through the call centre so a lot of things like 'niggles' you want sorted or advice going back the other way from the mechanic will get lost or badly translated. The evidence that they don't understand the business is everywhere. They say things like 'timing-belt' when the engine in question has a 'timing chain' and as mentioned previously seem unaware of the real cost of engine oil. Assuming we spend a total of two hours servicing, washing, collecting and delivering the vehicle how would we pay a mechanic, pay for the materials, pay for the consumables, rent on the workshop, insurance, electricity, council rates, etc, etc...
They are advertising like crazy to promote themselves as the people to use if you want your car serviced. Based on what I have seen so far I think I'm going to have to say - "I'm out!" - they have already sent me a cheap rubber stamp for stamping service books but I'm seriously considering sending it back.
I have deliberately not named them because I think you will know who they are and I want this topic to be left here for comments so not going to do anything which might cause it to be deleted.
The Crack Fox said:
This can't work. It won't work.
The reason is that aside from the most simple replacement jobs (the Kwik Fit market), most car related jobs don't/can't have a fixed price. You might get a verbal quote or estimate from the garage, but a middle-man can't work with that, he needs a fixed price to manage his business. Another problem is trust. I trust my local garage, I know his skills and that he won't rip the missus off if she takes a car in. I will miss this trust when dealing with a middle man. I want to deal with the garage.
I'm sick of the middle men culture in the UK, from crappy insurance comparison sites, to re-sellers of someone else's hard work, I prefer to deal with the man with muck under his finger nails and think he'd rather deal with me than with someone who adds little/no value to the buying process other than a website with a catchy name and a call centre in Timbuktu taking your money.
Tell 'em to stick it.
Agreed. The reason is that aside from the most simple replacement jobs (the Kwik Fit market), most car related jobs don't/can't have a fixed price. You might get a verbal quote or estimate from the garage, but a middle-man can't work with that, he needs a fixed price to manage his business. Another problem is trust. I trust my local garage, I know his skills and that he won't rip the missus off if she takes a car in. I will miss this trust when dealing with a middle man. I want to deal with the garage.
I'm sick of the middle men culture in the UK, from crappy insurance comparison sites, to re-sellers of someone else's hard work, I prefer to deal with the man with muck under his finger nails and think he'd rather deal with me than with someone who adds little/no value to the buying process other than a website with a catchy name and a call centre in Timbuktu taking your money.
Tell 'em to stick it.
And I suppose if...
Mattt said:
Are any of your competitors doing it?
Do you see yourself as a quality garage providing a quality service, or are happy to knock out cheap & quick services?
... then I can always sign up later. Do you see yourself as a quality garage providing a quality service, or are happy to knock out cheap & quick services?
The worry is with so much money to spend on marketing they could easily start to take away my customers. There are people out there far less intelligent than the crack fox who wouldn't see the difference. I believe the business in question is investor-backed so they won’t give up easily. May even be spawn from the ‘Dragons Den’ - ? Can’t remember...
I really abhor companies like this that seem to thrive on the laziness/stupidity of members of the public. Where's the value that they're adding?
I'd steer well clear if it were me. That they'd be forcing you to make a loss on engine oil or use the wrong type says it all. Forget quality, reputation, doing a good job - it's all about the ££s.
If their business takes off to such a degree that you'd be losing customers if you didn't sign up, then I'd be inclined to think that there's no hope for us any more and that the feckless and stupid that can't see through the sham really have taken over.
Edit to add:
well said
I'd steer well clear if it were me. That they'd be forcing you to make a loss on engine oil or use the wrong type says it all. Forget quality, reputation, doing a good job - it's all about the ££s.
If their business takes off to such a degree that you'd be losing customers if you didn't sign up, then I'd be inclined to think that there's no hope for us any more and that the feckless and stupid that can't see through the sham really have taken over.
Edit to add:
The Crack Fox said:
I'm sick of the middle men culture in the UK, from crappy insurance comparison sites, to re-sellers of someone else's hard work, I prefer to deal with the man with muck under his finger nails and think he'd rather deal with me than with someone who adds little/no value to the buying process other than a website with a catchy name and a call centre in Timbuktu taking your money.
Tell 'em to stick it.
Tell 'em to stick it.
well saidMattt said:
Are any of your competitors doing it?
Do you see yourself as a quality garage providing a quality service, or are happy to knock out cheap & quick services?
Actually, let me try again with this one... I have not checked with the guy in the garage round the corner. I should probably do that. As my firm specialises in servicing one type of car I see us as specialists who would not be prepared to compromise on standards or quality. But at the end of the day we have to stay in business. No good being fantastic if all our customers are going to one of the middle-mans suppliers instead of us. Do you see yourself as a quality garage providing a quality service, or are happy to knock out cheap & quick services?
The other think they're trying to do is give dealer-level service for unbelievably low prices. That's what all the stuff about collecting the car and washing it and all that stuff is all about.
People will be drawn in by the lower price.
They won’t think about what it costs for materials or how much labour can actually be put into the job for what they’re paying. With the prices as low as they want them and their ‘skim’ gone out of the job (which would normally go to us to pay for holidays in Bali (not)) I think we would end up actually losing money. With us not being able to contact the customer directly we wouldn’t get any repeat business either.
People will be drawn in by the lower price.
They won’t think about what it costs for materials or how much labour can actually be put into the job for what they’re paying. With the prices as low as they want them and their ‘skim’ gone out of the job (which would normally go to us to pay for holidays in Bali (not)) I think we would end up actually losing money. With us not being able to contact the customer directly we wouldn’t get any repeat business either.
ejenner said:
LeeMad said:
in all seriousness, i dont know who youre talking about.
"You need .........stop dot co dot uk" - heard that jingle on your radio recently? had a quick look at the prices and am shocked they only want to pay you £30-40 a time!
Mattt said:
If you're a one-marque specialist, how much promotion do you do with that marque? Owners magazines, forums, mailing list, website etc?
Are you currently fine for business, or needing more custom?
Bearing in mind that all costs are going up for everything (imagine our petrol bill, insurance bill, electricity bill) we always need more customers and now more than ever. But because the economy is on a downhill slope (almost no growth) so we are seeing a fall in numbers of customers rather than an increase which would help balance the books. Now would be a good time to put our prices up but this new servicing company would give us less per service than if we had a direct relationship with the customer and the customer was paying the right money for a service. Are you currently fine for business, or needing more custom?
£40 for a service I would expect them to be supplying you with all of the oil, filters, plugs etc that you require to do said service on car.
even at that, I genuinely do not fathom how they expect you or someone in your company to pick up, service, clean and return for £40?!
if you could do the job, and I mean the whole job, in an hour (and I don't see that you could) and they supplied the parts, I would maybe change my mind.......
Karl
even at that, I genuinely do not fathom how they expect you or someone in your company to pick up, service, clean and return for £40?!
if you could do the job, and I mean the whole job, in an hour (and I don't see that you could) and they supplied the parts, I would maybe change my mind.......
Karl
Mattt said:
How do they deal with any repairs etc that are required?
Same as we normally would. We would normally phone the customer and explain the problem. The customer can then authourise the additional work depending on whether they want it done or not. The difference will be the delay and the fact that the call centre operator won't be able to answer any of the customers questions. ejenner said:
The other think they're trying to do is give dealer-level service for unbelievably low prices. That's what all the stuff about collecting the car and washing it and all that stuff is all about.
People will be drawn in by the lower price.
They won’t think about what it costs for materials or how much labour can actually be put into the job for what they’re paying. With the prices as low as they want them and their ‘skim’ gone out of the job (which would normally go to us to pay for holidays in Bali (not)) I think we would end up actually losing money. With us not being able to contact the customer directly we wouldn’t get any repeat business either.
So why are you interested? Or are you all standing by the window of an empty garage?People will be drawn in by the lower price.
They won’t think about what it costs for materials or how much labour can actually be put into the job for what they’re paying. With the prices as low as they want them and their ‘skim’ gone out of the job (which would normally go to us to pay for holidays in Bali (not)) I think we would end up actually losing money. With us not being able to contact the customer directly we wouldn’t get any repeat business either.
If you really are hard up, you might want to take a good look at your business. There's a mass of people out there who want your skills, so if you're not getting an ample slice of the action you need to ask yourself why.
I do a fair amount of troubleshooting with businesses of all sizes. A year or so ago, I came across a chap who had set himself up as a Merc specialist (because I had a Merc, not through my business). He'd been a time-served MB mechanic and had run his own business for 8 years. I asked him how business was - because I (mentally) wrote an A4 list of things which were wrong between getting out of my car and meeting him - and he said that he covered his costs 'most weeks'.
He was a great mechanic, well located, but an appalling businessman. Well run, he could have sold the business within five years and retired.
The quality of their website is fairly indicative of the quality of servicing most people would get. Numerous 404 page not found errors and grammatical errors that even I can spot.
These people need drowning in cheap oil of the wrong specification.
I hate to think how many calls backwards and forwards it's going to take before authorisation of extra work actually happens. And for that extra work are they going to be taking a large slice on that too?
These people need drowning in cheap oil of the wrong specification.
I hate to think how many calls backwards and forwards it's going to take before authorisation of extra work actually happens. And for that extra work are they going to be taking a large slice on that too?
ikarl said:
£40 for a service I would expect them to be supplying you with all of the oil, filters, plugs etc that you require to do said service on car.
even at that, I genuinely do not fathom how they expect you or someone in your company to pick up, service, clean and return for £40?!
if you could do the job, and I mean the whole job, in an hour (and I don't see that you could) and they supplied the parts, I would maybe change my mind.......
Karl
We would be earning only £40.00 - We would charge the normal price for the materials and they would pass that on but they're asking us to lower our rate and give them the difference. In return they get customers by advertising on the TV and radio. even at that, I genuinely do not fathom how they expect you or someone in your company to pick up, service, clean and return for £40?!
if you could do the job, and I mean the whole job, in an hour (and I don't see that you could) and they supplied the parts, I would maybe change my mind.......
Karl
Typically fully synthetic oil with longlife additives suitable for modern engines costs at least £30 to £35 for enough to fill an engine. Oil filter £5.00, air-filter £10.00, etc, etc, etc... that money isn't for us... it is for the people manufacturing and supplying the parts. Our bit is what we earn for carrying out the service. Out of what we earn for the service we have to pay all the costs associated with being in business. Then there’s 20% VAT on all of these sorts of bills so if it costs £290 for a service then take 20% off straight away. Then remove the cut for the call centre, then remove the cost of materials and see what’s left.
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