Dealerships

Really not sure where to post this question but thought it best here since I'm trying to buy a 2017 SR5. My question is this, say you own a dealership in huh?..........Tacoma. What percentage of that income is coming from car sales versus service sales?

Why ask this question? Simply does ones loyalty and service records read cost amount to anything when negotiating a price for a new vehicle at that same dealership you have done your original vehicle purchase and service there?

 

When I worked for Toyota I was always told that service brought in more money. I always done service myself when worked there now I take it to my dealer for it. Even tho I'm a mechanic I rather just have them do it. If you bought even one vehicle from a dealer they usually have your name and customer number and alot of time I have noticed they give some kind of discount. I got 1,000 dollar off for my Tacoma for being a loyal customer and the fact my family always bought a vehicle from them. I know a few other non Toyota dealers that do that also.

 

This is really dealer dependent. Some dealerships are great and will treat their regular customers especially if you have a good relationship with the service department. Some just don't care and are looking at the dollar figure and wouldn't even give their immediate family a discount.

I can't speak for a toyota dealership or even a car dealership for that matter, but my boat dealership always brings more in from service than sales.

To say if they will give you a better deal because you are a regular service customer really depends on how they operate.

Remeber, a dealership is just a franchise, and each one can be run differently, that's why some people get a vehicle for invoice price and some pay msrp.

 

I'm gonna give you a solid no. Simply put when I worked in retail the prices rise and fall with the market, but over head never falls and they, like other businesses need to cover that over head.

I had a discussion with a manager about a customer who "said" they spend a lot of money with us, his response; "no such thing as a good customer discount". Harsh as it is to say, it's the truth.

If customers spend a ton of money at once place its usually the service, not the price, they come back for. Because if it came to the money the business wouldn't stay open because they'd be cutting deals every two minutes and their overhead would plummet.

All in all, dealerships look to make between $3000-5000, if you fall somewhere in that range you're doing pretty good, if you bust the 3k range, they are probably doing well on sales over all and could afford to push you a little discount.

Don't ever be mistaken, the almighty dollars rules the world and its up to the sales folks to make it happen.

 

See, your example is one of those that is focusing on the dollar and don't give discounts to anyone.
We had a member join here yesterday that stated he can let a taco go at invoice unless its a Pro. I believe he was @stefanthetoyotaguy , maybe we can get him to chime in here.

 

Won't matter one bit on the price of a new truck. Separate departments, that are paid separately. The Sales Manager working your deal does not care how much service you've done there.

 

Buy from dealership who offers you the lowest price. Any dealer will service you. Toyota is super hard on its dealers when it comes to the service departments and making sure its customers (Toyota owners) are happy.

 

I agree. I worked in retail for years. We upgraded computers, and the new system told us the lifetime value of any customer. The dollars they had spent there, plus the profit. We had a customer that we thought was a good customer. He negotiated hard, bought a lot of cars from us, and spent a lot in service. When I looked at his profile, we had a net loss on a guy that had purchased 8 cars from us. He always brought in some other dealers' ad that we matched, because he was a "good customer", and he only did service with us when he had a coupon. We stopped loosing money on him, and he started costing another dealership money. Some customers need to be fired. If you provide a good product, and good service, you deserve to make a profit. If a customer doesn't understand that, then they aren't a good customer. At a dealership, the happiest customers are the ones that you made good money on.

 

....and use the least Vaseline.

 

Nothing wrong with making a profit. No one would get that paycheck at the end of the week, if the company they work for didn't make a profit. Making an unfair profit with bad service, that should be a sin.

 

Negotiating a price of a vehicle to me is not a "discount" that's just negotiating. My Tacoma was the first vehicle I paid invoice for, all others have been well below invoice.

To the OP's question, he can use his loyal service to help negotiate a better price but it won't make much of a difference. At the end fo the day, you make an offer and they either sell or don't. When prices are negotiable there is no such thing as incentives, rebates, or discounts.

 

I've been working in dealerships for almost 10 years now. Porsche, Audi, lexus, and now Harley.
There are sooooo many variables that go into this dynamic you're speaking of.
Each dealer is entirely different; constantly changing as they deal with employee turnover.
Each department is its own island.
Each month, and deal, is different based on cash-flow and standing inventory of the company.
Loyalty rarely helps your bottom-line in the sales department. "You always make more money off your friends and loyal customers".
Sales manager rarely cares about the service manager.

When I buy a car - I do it almost anonymously and never in person. I'm the kind of person that sells myself on a product - I hate hearing from salesmen. I don't need them. I only need them to push paper. So I do everything online, via email and phone. I make things very simple and clear and take up little of their time. I see what kind of number they offer me, and I see what kind of number another dealers offer me. If I like it, then I come in to sign papers. I never negotiate in person. Too many ego and salesmanship dynamics at play. If I'm on the phone and very short, they know they have only a couple minutes to impress me and earn my business. I micromanage and impersonate my friends and family's deals (probably 3-5x a year) this way, always with success.

 

I really do think dealerships count on you using their service departments post purchase. I think they make tons of money and they try and maintain a continued connection with customers. I know this is apples and oranges, but one time I tried to buy a new Harley out of my area with cash in hand and was told thanks but no thanks, "you don't live in our service area" the dipshit sales guy didn't even flinch as I walked out the door with my 20k. Umm I wonder if Modesto Harley Davidson is still in business

 

That was driven by Harley's stupid allocation program, and incredible arrogance. The same thing happened to me. I was told that Harley doesn't want dealers undercutting each others prices, so they base part their allocation of new Harleys on what percentage of a dealers sales are in his market territory. This may be different now. Because of that interaction, and another time when a dealer laughed at me for only offering to pay two grand over sticker, I rode Jap bikes for years, and have never purchased a new Harley. They make great bikes, but the arrogance is incredible. Worse than a Tacoma forum member.

 

and vice versa.

 

it depends on the dealer


I purchased my 4 toyotas from one dealership

but

this dealership is huge,
amazing,
awesome no-bs service,
toyota presidents award 20 years running,
the owner is a bazillionaire [who leases other land to chevy dealerships], and is a community leader

it all depends on who the owner is, and if he/she is a top notch guy, his employees are gonna
get that trickle down feels and act like he does and do what he does, which is make the customer
happy

of course the more you buy from them they recognize you and you can get better deals but like
anything, you have to negotiate

for service, the service dept has STOPPED me from paying more when I was willing to pay more

no you don't need new brakes, no you don't need to flush this and that, no you don't need to
change all fluids...they actually stop me from paying more when I am willing to do so and ..


well, I bought 3 more over the years didn't I ?

---------
anyhow, huge toyota dealerships do not become huge if they are dicks

example: 20 miles away from my dealer is another dealer I went to before trucky, just to look around
and see what other dealers are like. after 3 days of looking and then acting like I want to buy, I went
back to haggle and in 30 minutes ran out of there feeling like this



so, I am sticking with the one dealer I am familiar with, and obviously many others feel the same way. they sell a TON of cars and trucks and have thousands of repeat customers because the owner is just that kind of no-bullshit dude

 

A vehicle has a stated "value" over its lifecycle. Between sales and after sales like warranty work, parts, service and collision....and it's a big number for each car.
You can absolutely negotiate services and loyalty in a deal, but it matters who you're doing it with.

The salesman only cares about the profit on his deal becaue that's how he gets paid.
He's only getting paid off you once, he could care less if you come back.
The sales manager only cares about the profit of his department becaue that's how he gets paid.
Same with the service manager.

The general manager gets paid off the profit of all of them. He will absolutely ok whoring out a car on a sales deal to capture a customers loyalty. knowing he will make up on the backend 10 fold.
All he's doing is spending a dollar from one pocket to make 10 in another.
The car doesn't start making the dealership money untill it's on the road. Smart GMs know this.


BTW are you TP dawnpatrol?

 

Thanks folks for the great input. Greatly appreciated.

JS760, no not TP dawnpatrol.