MB tooting, now closed

[aka$h]

MB have said they were not making enough profit.
Ive also head about a MBworld dealership opening in Brooklands, with a track so you can have a real drive before buying . Should be good if it happens.

 

[JFleming]

Looking good!

http://www.mercedes-benzworld.co.uk/

 

[racall]

Which Branch is closed Tooting or Mitcham service??

There was a good parts guy in tooting .I suppose i will have to go to those dummys at Wandsworth bridge for spares.

 

[C240Sport97]

MB Canary Wharf and MB City of London both closed as well.

Maybe MB will realise soon that their cars are overpriced, and 'essential' options too expensive ...

 

[GregE240]

C240,

I sort of agree with you.

The main bugbear for me is now the huge prices paid for servicing. OK, so they introduced 3+ for cars out of warranty. But the labour charge is either close to or over £100 p/h, which is ridiculous given an indie would charge you a rate of nearly half that, less in some cases.

Let me give you an example: my E240 had an A service and MOT recently. It failed the MOT on front ball joints. MB quoted me nigh on £500 to replace them. My mechanic (ex MB) charged me £80 for parts and 2 hours labour @£30 p/h, so £140 instead of £500. Go figure.

So from now on I've decided its oil and filter at MB, get the book stamped and everything else done by my man.

They've priced themselves out of the market. Simple as that.

Greg

 

[SportsCoupeRich]

Mayfair MB still open down the road from me!

 

[aka$h]

Which Branch is closed Tooting or Mitcham service??

There was a good parts guy in tooting .I suppose i will have to go to those dummys at Wandsworth bridge for spares.

Its Tooting thats closed, the guy your probably talking a bout is the parts manager, Gary, top bloke. He is probably going to be be in woking now.

 

[C240Sport97]

exactly what happened to me last week!!!

My mechanic (ex MB) charged me £80 for parts and 2 hours labour @£30 p/h, so £140 instead of £500. Go figure.

 

[clegsr]

I live midway between Tooting and Dulwich Dealerships- both of which were very convenient - i.e. walking distance to tubes or mainline train stations, both Dealers now closed - and I am directed to sunny Mitcham or the Purley Way in Croydon, in the middle of nowhere...great customer service.

Both Tooting and Dulwich were always busy and as I understand it MB did not renew their franchise.

I might be a bit slow on the concept of dealerships-but shouldn't they be here to provide customer service? -

If MB extended this concept they would have us all driving (in our work time of course) miles out of our way to massive out of town windswept warehouses just so that we could be overcharged at MB's convenience and queue up to get our log-book stamped...great.

...oh wait a minute, thats what is already happening...

 

[Tony M]

MB Have bought up most of the London Dealerships. The South has 4 dealerships owned by H R Owen. There are a few independents,(but for how long) heading towards the SW, but as far as Southern England is concerned, it is a MB stitch up

 

[aka$h]

Tooting was owned by Geyfords, Dulwich and the one in Crystal Palace were owned by SG Smith. They bought the dealerships back, i guess mercedes want more money back for their investment. The quality of service has suffered already, it will only get worse if they carry on closing dealerships.

And Mitchem is a leased unit, so i doubt thats permanent.

 

[DC_insider]

I live midway between Tooting and Dulwich Dealerships- both of which were very convenient - i.e. walking distance to tubes or mainline train stations, both Dealers now closed - and I am directed to sunny Mitcham or the Purley Way in Croydon, in the middle of nowhere...great customer service.

Both Tooting and Dulwich were always busy and as I understand it MB did not renew their franchise.

I might be a bit slow on the concept of dealerships-but shouldn't they be here to provide customer service? -

If MB extended this concept they would have us all driving (in our work time of course) miles out of our way to massive out of town windswept warehouses just so that we could be overcharged at MB's convenience and queue up to get our log-book stamped...great.

...oh wait a minute, thats what is already happening...

As you have pointed out Tooting was a busy dealership - yet despite charging £100/hour for labour they weren't making money. What does that tell you?

If you wish to have conveniently located dealerships in London you are going to have to pay significantly more then £100 per hour.

 

[C240Sport97]

or alternatively, they have insufficient work, have loads of assets/people not utilised productively and hence make a loss.

and they have insufficient work because of (a) too expensive hourly rate; and (b) very high and often excessive time charges.

You can only overcharge a limited number of times!

As you have pointed out Tooting was a busy dealership - yet despite charging £100/hour for labour they weren't making money. What does that tell you?

If you wish to have conveniently located dealerships in London you are going to have to pay significantly more then £100 per hour.

 

[DC_insider]

or alternatively, they have insufficient work, have loads of assets/people not utilised productively and hence make a loss.

and they have insufficient work because of (a) too expensive hourly rate; and (b) very high and often excessive time charges.

You can only overcharge a limited number of times!

But what if, like at Tooting, they were running at full capacity?

 

[Dieselman]

As you have pointed out Tooting was a busy dealership - yet despite charging £100/hour for labour they weren't making money. What does that tell you?
.

That they were incredibly inneficient....!!!

Technicians wages and costs £30 per hour max.
Backup staff, possibly but shouldn't be £25 per hour.

Buildings and equipment (workshop only) say £10k per month, say 10 bays = £6.25 per tech per hour using 40 hour week and ten bays.

Additional usage costs £2k per month = £1.25 per hour.

Total = 30+25+6.25+1.25 = £62.50 per hour. That leaves approx £38 per hour.

This has probably been swallowed up by overheads not connected with the Service department. This is what makes Service departments appear unprofitable.

In addition the Service dept would have been making GP on every part it sold / fitted to a customers car.

If the working hours were over 40 per week (which of course they were), then fixed costs reduce per hour, likewise if there were more than ten working bays.

If the dealer service departments cant function on £100 per hour, with all the throughput of work and addittions such as warranty etc, then how can an indy survive on £50 per hour??

 

[jeremytaylor]

The dealerships are between a rock and a hard place.

Manufacturers demand they invest in premises, equipment, etc. Joe Bloggs wants affordable servicing, especially on cars 3+ years old. Without the fleet/lease cars the service bays would be very quiet.

Factor in high land values in London, parking costs, congestion charge, etc. and 'traditional' dealer locations haven't a hope of survival.

BMW's boss reckons there won't be any dealerships left in Central London by the time the Olympics are staged. Make that the whole of London if places like Tooting are now uneconomic.

 

[DC_insider]

If the dealer service departments cant function on £100 per hour, with all the throughput of work and addittions such as warranty etc, then how can an indy survive on £50 per hour??

An independent does not have to meet the requirements that MB set down in order to have a franchise. Nor (as you can see below) do they take up a huge amount of time with warranty work.

A dodgy independent cam further cut corners by not bothering with things like PAYE, National Insurance, VAT proper disposal of waste etc.




In truth the real answer was in this bit:

Technicians wages and costs £30 per hour max.
Backup staff, possibly but shouldn't be £25 per hour.

Buildings and equipment (workshop only) say £10k per month, say 10 bays = £6.25 per tech per hour using 40 hour week and ten bays.

Additional usage costs £2k per month = £1.25 per hour.

Total = 30+25+6.25+1.25 = £62.50 per hour.

Bad news if you only get £40 per hour from DCUK for warranty work and more than 50% of all work is warranty...

 

[DC_insider]

The dealerships are between a rock and a hard place.

Manufacturers demand they invest in premises, equipment, etc. Joe Bloggs wants affordable servicing, especially on cars 3+ years old. Without the fleet/lease cars the service bays would be very quiet.

Factor in high land values in London, parking costs, congestion charge, etc. and 'traditional' dealer locations haven't a hope of survival.

BMW's boss reckons there won't be any dealerships left in Central London by the time the Olympics are staged. Make that the whole of London if places like Tooting are now uneconomic.

HR Owen have been very vocal about this as well. In their opinion there will be no dealerships in the whole of the South East within a few years.

One answer is for manufacturers to take over the dealers in order to keep representation.

As most here already know DCUK have already done this. However, DCUK insist that the sites make a profit which defeats the object of buying them in the first place...

 

[Dieselman]

An independent does not have to meet the requirements that MB set down in order to have a franchise. Nor (as you can see below) do they take up a huge amount of time with warranty work.

A dodgy independent cam further cut corners by not bothering with things like PAYE, National Insurance, VAT proper disposal of waste etc.

...

We are not talking about dodgy back street garages. There are some apparently MB authorised idependants that appear to do quite well and still charge much less than £100 per hour.
To blame it on not running a business properly is a bit of a red herring.
Typical commercial garages charge in the region of £30 per hour and still make it pay, including warranty work.

It would be interesting to see an unmolested ballance sheet and technician and building utillisation record from a workshop that can't make ends meet.

In truth the real answer was in this bit:



Bad news if you only get £40 per hour from DCUK for warranty work and more than 50% of all work is warranty...

50% of ALL the work done is warranty? I am sure you know your figures but doesn't that seem a rather high proportion, what about all those services and brake disks, etc.

How do dealers ever manage to pay their Tech bonuses?????

 

[Will]

MB have said they were not making enough profit.
Ive also head about a MBworld dealership opening in Brooklands, with a track so you can have a real drive before buying . Should be good if it happens.

Think I saw you earlier on in the CLK?

You were in Hammersmith on the Fulham Palace Rd - looking under the bonnet?

Recognised the MAE? wheels.

Looked very clean, nice colour too.

I was having lunch with a few people so didn't get a chance to say hello.

Will