Capped Price Servicing Vs Variable Price Servicing
Capped price servicing Vs Variable price Servicing
This is attention to detail will make you a very good fleet manager or where it will make you the single car owner a master of detail.
I have been noticing the tricks of the trade, and there are many
You maybe considering the acquisition of a fleet vehicle or a single purchase as a family vehicle and you have decided to leave no stone unturned, right ?
The past known tricks of the trade are the following.
Prolonged service scheduling
The elimination of transmission servicing
Now the new potential trick on the block is fixed or capped price servicing, as apposed to the traditional variable price servicing.
This is more applicable to the fleet manager always looking at ways to minimise the cost of motor vehicle maintenance, you know to look good in front of the boss.
Private buyers this is applicable to you so don’t discard what6 I’m about to explain ok.
Now lets pick a typical capped price service, if you read carefully it will indicate if you do not achieve the kilometres within a certain time you will be required to have the vehicle serviced every 6 months so this would suit a high kilometre user right ?
Well half right lets take a closer look at the detail
Will your capped price service cover the following items
Drive belts
Wiper blades
Front end alignment
Globes
Etc etc
So why do they call this a capped price service when you get to pay full retail price on the items above.
The question is who made up this marketing proposal, and did this person or team ever think that people would see through the misalignment of the true costs.
Anyone who reads this will clearly understand that a variable service schedule performed within a fair kilometre distance will determine a more realistic analyses of service maintenance cost.
So before you commit to a capped price service, you will need to understand the kilometres travelled per vehicle per year.
You don’t need to understand much about accounting, actuary to know when a service centre paints the floor white, that there is where the revenue is generated.
A vehicle sold from a dealership is not the only way to generate a profile in this competitive market, the real profit is in the lifetime of servicing.
Registration and insurance are the other key stake holders to erode your bottom line.
By Darren Gow-Brown