Servicing (at least in UK, I have no experience elsewhere) is fantastically profitable - I waited while daughter's Golf had its first service. Car was in the workshop 20mins. In the rush to bundle me out of the place they accidentally gave me the service plan invoice they send to VW - it was for £68, inc parts labour and VAT. If you were a paying customer is would be almost 3x that. Same service on a Mercedes (same work, same dealer group, just a different car) would be 4 to 5x.
MB dealers here used to be up for a discussion on cost - I've had some very reasonable cost major service work inc ATF changes etc. But these days you generally get connected to a call centre and you can't get to anyone with the authority or interest to discuss cost. It was when that happened that I switched to using an indie.
Rory
Thanks for the post and the profit angle .
20 minutes is the magic number across the board.
I hired a Lube Tech yesterday from our local Lexus dealer, a 19 year old wanting to spread his wings .
Doing basic A service on Lexus platforms, the book shop time is
1,5 hours.
A raw entry level Lube Tech is shown how to do the job, plus brakes and tyre rotations.
The target to be given a full time position on legal minimum wage is that the tech
MUST do the service job in 20 minutes when the hood/bonnet is slammed shut.
Most crankcase oil is slurped out by vacuum pump and a measured dispense gun completes
the oiling part done in 3 minutes.
As for certification! That is done by the dealer .
The MB dealer we work with closely charges $220 /hr rack rate, but a quick service is discounted by 45% because we
"Love our returning MB customers".
Now everyone loves a discount and made to be felt "special" . Its part of sales & marketing.
Now a big Honda dealer in the Denver metro area does on average
900 A & B services weekly over two 8 hours shifts in a 24 hour period.
With volume discounts on materials like oil & filters, the price can be driven down to very small overheads, so profits can be maximized.
Normally the standard uplift index on say a filter from a recognized trade price out of the parts counter to workshop bench retail is 1,5 minimum factor , but with volume discounts of say 900 filters /week we are talking pennies for that filter.
Cheers
Tuercas Viejas