$86.44 for oil change? I feel screwed

[YarisSedan]

Originally Posted by SilverGlow

This is A BIG LIE!

They in fact made a profit. If you look at what the dealership pays for the parts, and oil, and the fact that the labor is just minutes, so if you factor all this in THE PROFIT IS BIG!

You must work at a dealership and buy all their BS...this is FAR from being a loss leader!

I guess you cant really understand what overhead is if you never owned a business or taken a business class in school. The dealership has the biggest overhead of any shop. Which is why they have the highest labor rate to cover it. Compared to a smaller independent.

You are not just paying for the lube tech. You are paying for the secretary that answers the phone. You are paying for the so called free coffe in the fancy waiting room. The food for the fish in the fish tank. The people that come and mop the floor every night. The security guard that walks the lot at night. The massive rent i could go on and on. They are not making some massive profit. put it this way if the dealership did ONLY oil changes. Nothing else. Do you really realistically think they would be making loads of money.

Yes i agree lots of things the dealership charges people can be very high. But you have to understand their overhead is so so high. If you dont want to pay a lot i have suggested time and time again find a good local mechanic that you can trust just like your doctor or dentist. My shop is in a complex with about 4 other shops. Two of the shops out of the 4 are 1 man operation 1 bay facility. Very little overhead. The owner is also the mechanic. Of course if the dealership may charge 400 dollars for a particular service he can do the same service for 200. because he has almost no overhead. He may be even willing to do it for 150. You can even find someone on craigslist to do the same service for 75. But guess what the guy on craigslist has zero overhead so he dosnt care.

But yet theres people that go to my shop cause they prefer the professionalism, appreciate the service and the fact that we use only OEM factory parts and have a 1 year warranty just like work done at the dealership but yet we are cheaper than them.

If they were only concerned with price they would probably find a mechanic on craigslist and go the cash no receipt gig and pray to god nothing happens to their car when they are done. But to me that is just insane. Thats like looking in the pennysaver ad for a coupon for laser eye surgery.

[SilverGlow]

Originally Posted by YarisSedan

I guess you cant really understand what overhead is if you never owned a business or taken a business class in school. The dealership has the biggest overhead of any shop. Which is why they have the highest labor rate to cover it. Compared to a smaller independent.

You are not just paying for the lube tech. You are paying for the secretary that answers the phone. You are paying for the so called free coffe in the fancy waiting room. The food for the fish in the fish tank. The people that come and mop the floor every night. The security guard that walks the lot at night. The massive rent i could go on and on. They are not making some massive profit. put it this way if the dealership did ONLY oil changes. Nothing else. Do you really realistically think they would be making loads of money.

Yes i agree lots of things the dealership charges people can be very high. But you have to understand their overhead is so so high. If you dont want to pay a lot i have suggested time and time again find a good local mechanic that you can trust just like your doctor or dentist. My shop is in a complex with about 4 other shops. Two of the shops out of the 4 are 1 man operation 1 bay facility. Very little overhead. The owner is also the mechanic. Of course if the dealership may charge 400 dollars for a particular service he can do the same service for 200. because he has almost no overhead. He may be even willing to do it for 150. You can even find someone on craigslist to do the same service for 75. But guess what the guy on craigslist has zero overhead so he dosnt care.

But yet theres people that go to my shop cause they prefer the professionalism, appreciate the service and the fact that we use only OEM factory parts and have a 1 year warranty just like work done at the dealership but yet we are cheaper than them.

If they were only concerned with price they would probably find a mechanic on craigslist and go the cash no receipt gig and pray to god nothing happens to their car when they are done. But to me that is just insane. Thats like looking in the pennysaver ad for a coupon for laser eye surgery.

I have owned a business since 1983; a California corporation. I have a Stanford MBA, 1998 grad.

It is sad that it is you that is ignorant of how a business works, and you proved it by speaking to a dealership's overhead.

The dealership's overhead is a weak justification for it's screaming way too high prices. What a dealership needs to do is price to compete, and since they often don't they collectively have a very bad reputation in the country. People are just so untrusting of them and what they really are is STEALERSHIPS.

You really need to take a basic finance class and then you might understand.

Using your backward logic, an angry over charged consumer should feel better and be happy once the service writer explains the massive overhead of the dealership....."Oh, I see, in that case, I feel so much better for having been bent over and shafted without lubrication, and no reach-around"....

Get real, dude!

[b_hickman11]

Originally Posted by YarisSedan

I guess you cant really understand what overhead is if you never owned a business or taken a business class in school. The dealership has the biggest overhead of any shop. Which is why they have the highest labor rate to cover it. Compared to a smaller independent.

You are not just paying for the lube tech. You are paying for the secretary that answers the phone. You are paying for the so called free coffe in the fancy waiting room. The food for the fish in the fish tank. The people that come and mop the floor every night. The security guard that walks the lot at night. The massive rent i could go on and on. They are not making some massive profit. put it this way if the dealership did ONLY oil changes. Nothing else. Do you really realistically think they would be making loads of money.

Yes i agree lots of things the dealership charges people can be very high. But you have to understand their overhead is so so high. If you dont want to pay a lot i have suggested time and time again find a good local mechanic that you can trust just like your doctor or dentist. My shop is in a complex with about 4 other shops. Two of the shops out of the 4 are 1 man operation 1 bay facility. Very little overhead. The owner is also the mechanic. Of course if the dealership may charge 400 dollars for a particular service he can do the same service for 200. because he has almost no overhead. He may be even willing to do it for 150. You can even find someone on craigslist to do the same service for 75. But guess what the guy on craigslist has zero overhead so he dosnt care.

But yet theres people that go to my shop cause they prefer the professionalism, appreciate the service and the fact that we use only OEM factory parts and have a 1 year warranty just like work done at the dealership but yet we are cheaper than them.

If they were only concerned with price they would probably find a mechanic on craigslist and go the cash no receipt gig and pray to god nothing happens to their car when they are done. But to me that is just insane. Thats like looking in the pennysaver ad for a coupon for laser eye surgery.

By your standards, no company ever makes any profit. I'm glad you're not the president, everyone would be homeless.