High Price Award?

[Vernon B]

What do you think of this? I’ve just had an annual Water Ingress Inspection and Habitation Service carried out by a dealer that received a prestigious award for customer service earlier this year. On completion I was handed a bill exactly 50% more than last year – for the same work which involved no materials or parts. On questioning the huge mark-up I was told “we’ve found that we’ve been charging much less than others so we’ve increased our rates”. Nice one; and apart from other dismissive responses that’s as far as I got.

 

I suspect the dealership now sees itself up with the big boys and is entitled to charge premium service prices. Certainly they are free to do what they like but in matching prices I would venture to suggestion they should also match the services package offered by those they are attempting to emulate. And in terms of openness and transparency they are currently falling well short.

 

 

Vernon

 

[Mel E]

I guess the lesson to us is always to ask for an estimate first. I also ask what the hourly rate is inc VAT - just in case something needs doing.

 

I discovered a month ago that my local Citroen dealer now charges £90.50 per hour despite working from an ancient, beat-up garage. Hardly any margin in new cars, so they must make up the profits some other way.

 

There's loads of examples: my credit card supplier, in common with all the others, has had certain charges cut by the FSA - because they bore no relation to the cost. But now we all suffer - not just those who cannot manage their card accounts properly - as they've just cut the free credit period by a week to claw back the loss of revenue.

 

Businesses are entitled to make a fair profit but these days, everyone going into business seems to expect to become another Bill Gates in 18 months!

 

Bleet over!!

 

Mel E

====

 

[Dave Newell]

Not quite everyone Mel *-) .

 

D.

[Mike Chapman]

Mel E - 2007-04-24 10:12 AM

 

I guess the lesson to us is always to ask for an estimate first. I also ask what the hourly rate is inc VAT - just in case something needs doing.

 

 

 

Bleet over!!

 

Mel E

====

 

Hello Mel,

 

Better to ask for a quotation which is a fixed price than an estimate which can be price varied, the rest I totally agree with.

 

Regards,

 

Mike.

[Vernon B]

I agree with your basic observations Mel other than the comment "businesses are entitled to make a profit". In a true market "profit" has to be "earned" by providing a competitive service and in that respect the size of the motor trade will ensure that there is less profiteering than in the motorhome sector. My dealer can load his prices because that degree of competition doesn't exist, particularly if you have to satisfy warranty requirements. Having said that I think, as you imply, there is more competition now in motorhome sales so margins have reduced and dealerships are seeking to recover these elsewhere in their operations.

 

But I think my dealer's actions are not quite the same as those of your garage. Although your Citroen dealer is charging out at a very high rate competition has resulted in greatly increased service intervals and greatly reduced service times. Hence although labour rates have increased substantially I would hazard a guess that service costs have probably gone down in real or even absolute terms over the last few years. So in this situation everyone is happy. As far as caravans and motorhomes are concerned the trend is in the opposite direction.

 

As my final "bleet" there is another distinction. When you have your car serviced there is generally clear evidence of what has, or has not, been done. You can see that the oil has been changed, that other fluids have been topped up, and (if you have a mind to) that filters have been changed and generally the performance of the vehicle feels better. The best you get with a habitation service is a ticked checklist and you have to trust that what you see on that piece of paper is what you've got. If the bloke at the top is happy to screw his customers what chance have you got of his employees being trustworthy?

 

Having said all that I accept that if I aint happy I need to go elsewhere

 

Vernon

[Brian Kirby]

Don't know if you'd find this link (for which we are indebted to Don Madge, thanks Don), useful.

http://www.ukmotorhomes.net/annualcheck.shtml

Might be worth keeping it for next year, to be sure you get the whole job done!  If you have a choice locally, I'd also suggest enquiring of, and possibly visiting, more than one firm, to be sure you're happy before you agree terms.

[fjmike]

Its not just the outrageous prices charged its the fact that half the stuff isn't even looked at let alone done. My last hab service was with a large motorhome dealers in Nottingham (van purchased from them) and after I cleared out the garge so that they could get at the boiler they never even so much as looked at it. My next hab service will be done by a certain gent in Telford, I will know then that a proper job will be done

[Dave Newell]

Thanks for that Mike. A couple of my customers stopped with me while I did their hab inspections and about half way through both of them commented, in rather surprised tones, that I was being "very thorough". My reply was "well yes I am being thorough, I'm doing a full hab inspection". Both commented that their previous hab inspections had been done in less than an hour. Frankly this is impossible, the half way through point I mentioned earlier was about 1 and 1/2 hours into the job. It takes me very nearly three hours to do a full inspection.

 

The sad thing is that because I am not currently a member of the NCC Approved Workshop Scheme my inspections will not be any use for maintaining warranty.

 

D.

[Wingpete]

When I first enquired of services on offer from "Southdowns" they sent a list of the full range of services available, together with a sensible listing of prices, proportionate to the work being undertaken.

All I had to do was request various works to be done, and knew in advance, roughly what I would be paying.

This has worked for me over past 18 months, which is why I recommend "Southdowns" as good people to do business with.