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Originally Posted by MNBoxster
Hi,
Then, you look at whom has benefitted from such low-maintenance cars. Toyota certainly benefits from greater reliability by increasing Market Share. The Buyer benefits from low costs. But, the Dealer's Service Dept. suffers because they have a much lower potential R&R revenue from each unit sold, while their overhead remains stagnant or actually increases what with annually increased Labor Costs, etc.
In order to maintain a quality Facility and Staff, they have to meet these costs somewhere. Either they Service a lot of cars (with stiff competition from Independents doing everything from Tune-ups, Oil changes, Brakes, Exhaust, Tires and more), or they increase their mark-up on the parts and services they provide. It's actually a combination of both.
Happy Motoring!... Jim'99
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Your model assumes all dealer repair shops are similarly staffed and equipped. If Toyota needs to service 50% fewer vehicles than Chevy (example data), we would expect their repair shop to be set up with 50% less staffing and equipment (50% less costs). If the cost of parts and labor goes up, it is the same percentage across the board, regardless of the size of the shop. This would not justify a markup on parts in excess of markups by other dealers. How does this figure into your argument?