Auto Dealerships To Do Battle with Pep Boys, et. al.

10 June 1998
Auto Dealerships To Do Battle with Pep Boys, et. al.
    LAS VEGAS, June 9 -- Over 300 dealership service managers,
parts managers, dealers and factory representatives completed a two-day summit
devoted to presentations designed to help them recapture the service work lost
to independent aftermarket repair facilities.  The Las Vegas gathering drew
delegates from 40 states and Canada.  They came from Hawaii, Alaska, Florida,
Ontario and all points in between.
    Eighteen speakers presented strategies for survival in the face of reduced
warranty sales and gross profit.  With this current and projected loss, summit
delegates realized that to survive in the next decade, they would have to do a
better job in retaining their new and used car customers as patrons of their
service and parts operations.
    The keynote speech was delivered by Joe Ivers of J.D. Power and Associates
and highlighted the results of their recently completed J. D. Power Service
Usage and Retention Study.  The study revealed that dealers are losing the
battle with aftermarket service providers.  According to Mr. Ivers, "The
resulting loss to dealerships from one model year alone (1993) was more than
$376 million."
    He also indicated that a combination of convenience, speedy service and
price is prompting more and more customers to take their vehicles to
independent service providers.  By specifically pointing out the issues on
which dealerships are losing the battle, Mr. Ivers set the stage for the other
speakers who offered solutions to overcome those weaknesses.
    The general mood of the two-day event was similar to a "Pattonesque" call
to arms.
    Speaker after speaker, representing most of the recognized experts in
dealership service operations, mapped out strategies designed to win back
these customers, and to keep their shops full of high profit vehicle light
repair and maintenance work well into the future.
    The Summit organizers, WD&S Publishing of Metuchen NJ, stated that this is
the first time that dealership service professionals have gathered with the
express purpose of plotting a course for recapturing the repair sales lost to
Pep Boys, Auto Zone, etc.  It is also the first time that so many of the
industry experts have come together, to speak from the same platform, with
very similar messages.
    Speaker after speaker told the delegates that the work now being performed
by aftermarket service providers can be reclaimed if dealership service staff
were progressive, and aggressive enough to fight for it.
    The delegates left charged up, with a binder full of notes and ideas to
help them do battle in their individual markets.
    Also of note, were the over 30 representatives from manufacturers,
including GM, Ford, Nissan, Mazda, Mercedes-Benz, American Honda, and Toyota.
Clearly, they too are interested in seeing dealers compete and win for these
here-to-fore lost service customers.
    With billions of dollars in aftermarket repair sales at stake, the
competition appears to be heating up.  Dealerships are no longer content to
allow the independent and mega-chain aftermarket suppliers free reign in this
important business segment.
    The summit was organized by WD&S Publishing, a provider of information
products and services for the automobile dealership.  The company publishes
the industry newsletters Dealer's Edge, Fixed Coverage, The Parts Manager and
Warranty Dollars & Sense.
    Additional conference information, including speaker biographies and
topics, are available at http://www.dealersedge.com