Manufacturers set to adopt wider menu pricing schemes to stop fleet defection to independents
Motor manufacturers are set to extend their franchise dealer menu pricing initiatives in 2010 to stop fleets sending their older vehicles to independent garages.
Motor industry e-commerce specialist epyx says that as the recession sees fleets operate increasing numbers of four and even five year vehicles, independent servicing becomes more attractive.
Ken Trinder, head of business development for epyx, explained: “A fleet that runs its vehicles on a three year cycle is likely to stay with franchise dealers because a proper manufacturer service history is an important factor in strong residual values and also because the vehicle is probably covered by a three year warranty.
“However, as fleets extend their cycles, these factors become less important and turning to independent garages for service and maintenance becomes a strong option for reasons of cost.”
Several manufacturers already operate menu pricing schemes using 1link e-commerce technology and Trinder explained that some of these, as well as potential new customers, were aware of this issue and were examining the potential for offering a wider scope of work within their menu pricing programmes.
He explained: “Menu pricing is the obvious way for manufacturers to help their franchise dealers fight back against any potential ‘defections’ to independent garages. By offering value for money, fixed cost SMR for older vehicles, they can retain fleet business.”
Trinder added that 1link technology offered a fast and easy means for manufacturers to change their menu pricing schemes.
He said: “Before e-commerce technology was available, menu pricing initiatives were very administration intensive and tended to be limited to a few items, such as major services.
“However, manufacturers are now able to put thousands of different maintenance actions on their fleet menu pricing lists. Crucially, they can also change prices across their network in moments, reacting rapidly in what is currently a very dynamic fleet SMR sector.”
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