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Service Menu Package Prices

Recently I was asked how long it takes to put together a service menu.

Realistically, to do all of the required research, to perform any necessary pricing surveys, etc, would take 60-70 hours. Those of you in the midst of creating one will agree, and those of you who need to make one but have not yet started, may disagree, but this is reality.

This may seem like a lot of time, but considering menus are, without a doubt, the number one source for selling maintenance services in your Service Department, you really don't have a choice.

One of the elements of effective service menus is the "Package Price" of the varying mileage interval services. For example, the 30,000-mile Service and the 50, 000 Kilometer service are two of the bigger ones, and typically one of the intervals that warrants a 'savings' or 'discount' than if you performed everything individually.

So, as an extremely simplified example, the interval consists of:

Oil Change - $29.95 (0.3 Flat Rate)
Tire Rotation - $19.95 (0.3 Flat Rate)
Wheel Balance - $49.95 (0.7 Flat Rate)
Coolant Service - $99.95 (1.0 Flat Rate)
Transmission Service - $139.95 (1.3 Flat Rate)
If you simply add all of the above together, the Package would be $339.75 (3.6 Flat Rate).

Is this logical? No obviously the Rotate and Balance are overlap repairs and integrity should dictate the Package price to be $339.75 (less 19.95) = $319.80 (3.3 Flat Rate).

From a marketing perspective, is $319.80 an effective price point?

Ask yourself this, to sell a 3 hour service or repair would you, if needed, discount the amount by $20?

Wouldn't $299.95 prove to be a more effective price point? You maintain your Effective Rate by pricing this at a flat rate of 3.0 hours.

A service Advisor can easily explain the savings by stating, "Considering we are able to save time by performing multiple services at the same time, we at ABC Motors agreed to pass that savings on to you, Mr./Mrs. Customer". If we aren't performing these services at the same time, there is no time savings for us, and unfortunately no savings to pass on; therefore, doesn't it make sense to take advantage of the savings today?"

This is an effective and logical way of presenting the maintenance package. In many cases, unfortunately, I have come across dealers who, when presented with the above circumstances, decided to fill the list of services with "fluff", such as the various checks and inspects that we do at no charge anyway. They would list the service at $399.95. Although when it is sold, there is certainly more revenue taken in, I ask this question, do you really think customers bought this?

Better question - do you think these customers will be back or are these customers who leave, never to return, and maintain "dealers cost too much"?

However you structure your menu, if your service advisors don't buy into its value, they'll never sell it and if it isn't being sold, go ahead and charge $999.95 for it because it won't matter.