The Polk Blog

Among automakers, I have a perception about how they fund the service business in contrast to supporting new vehicle sales. Can you say "step-child?" 

For years, the parts and service side of the business has been reported to be the most profitable chunk of a dealership's operations. We hear everyone say "gotta' keep fixed ops going because it's where the money is." But does it get the marketing support needed? I don't think so. Reported budgets toward new vehicle launches, tier 1, 2 and 3 advertising and promotions around selling new cars are still admirable, despite scaled back ad budgets in the U.S. But for marketing the value of an OEM's service operations, all I hear is the quiet wind of nothing. 

Next month, there's going to be a rich conversation around this issue at the DrivingSales Executive Summit. I'll be co-presenting some thoughts on how to push the marketing envelope to benefit dealers in this area. More should be done. More can be done. The assault on a dealership's service base is intense. Aftermarket and independent service repair providers want these customers, and quite often, they succeed. Let's see what we can do to keep dealers marketing in a relevant and innovative manner based on insights we'll present at this summit. 

Posted by Lonnie Miller, Director of Industry Analysis, Polk (09.22.09)