Posted by Kai Hall in Uncategorized on
One of the hardest things for many to accept is the breadth and scope that the automotive service industry is ripping people off. They just don’t think it’s possible.
It’s not just possible, it’s EASY! It’s extremely difficult to even know it’s happening. While many of the abuses are blatant, it’s the subtle charges that occur daily that slip under the wire.
To be clear, local studies and two decades of close scrutiny from a network of industry professionals have revealed that 98% of all repair shops: dealerships, local shops, and franchises are price-gouging their service customers!
What is price-gouging?
Price-gouging in the automotive service industry simply means “paying too much for car repair prices.” The automotive service industry has been price-gouging for decades, and it’s getting worse.
Due to the unique nature of service industry scams and tactics, following is a dictionary-style definition to clarify its abuses.
- Price-gouging is the process by which a service center charges a service customer in excess of industry standards or manufacturer guidelines for repairs and/or services. This includes parts, labor, services, miscellaneous charges, or any combination of these.
- Industry standards are understood to mean the commonly accepted practices of using vehicle manufacturer guidelines to determine pricing.
- Price-gouging is also defined as charging the customer for repairs or services which are unnecessary, done poorly, incorrectly, and/or cause damage–(immediately or at a future point) that would not otherwise have been the client’s responsibility.
In short, price-gouging is charging above industry guidelines. What’s really scary is that many service centers don’t even know that guidelines exist.
How often does this happen?
Industry guidelines are ignored, abused, and manipulated to maximize profits every day.
Price-gouging is an accepted practice! It’s hardly questioned, and rarely noticed.
-Theodore P. Olson (Ted)
http://repairtrust.com/”>Common Auto Repairs Price Guide
Ted holds extensive certifications from Mercedes-Benz, Toyota, General Motors, ASE (Automotive Service Excellence) and more. Over a twenty-year period in the automotive service industry, he has served as a technician, shop foreman, shop manager, shop owner, service advisor, service manager, and service industry consultant.
Other Works by Ted Olson Include:
- ARREST the Automotive Service Industry!
- Maintenance Myths: A Step-by-Step Guide to STOP Getting Ripped Off!
- Auto Repair: The Shocking Truth About Who’s Ripping You Off and Why!
- Automotive Service Pricing Strategies?a fair pricing guide for service centers
- Being the Best?a comprehensive customer service handbook for service advisors
- Service Center Personnel?an auto repair informational for general service staff
- Service Mission Statement?a philosophical proposal to improve customer service