Originally Posted by
johntins
This is a very good point. What is often overlooked in debates around Dealerships is that very little of their actual profit comes from selling cars. Sure, the showroom is all nice and shiny etc, but by the time they have paid the rent, the floorplan for all the cars, the sales commissions, the insurances and all the other overheads there isn't a great deal of money in car sales. Thus, it falls upon the workshop and spare parts departments to bring in the wages. If a dealership charges $220 an hour, how much of that do you think goes the the bloke in the fancy logoed overalls?
Here's another thing. I think I have posted this elsewhere, but for a time I worked as a spare parts bloke at a Datsun dealership. So, I had my own copies of the job cards so I could dig up the parts needed. On a couple of occasions I counted up the total hours that could be booked to customer's cars on a given day ( this doesn't include problems, or breakdowns ) and divided by the number of mechs in the workshop. The conclusion? It was impossible for all that work to be done, by a factor of about 5, in that day, going by the hours allowed for each job.
Ok, allow that some mechs were fast. Also, allow that some items were "overlooked". The thing is, the customer was getting charged for the hours allowed, not the actual hours the car was actually worked on. I don't imagine anything has changed.