16th May 2016

Dealer Smart Repairs: the rising cost of Smart Repairs (Part 1)

How Smart Repairs started as a low cost option and is now developing costs with legs!

Continuing our theme of dealer smart repairs we turn to look at the costs involved. Initially the service was used as an outsourced service that dealt solely with vehicle preparation and more specifically used car prep – ensuring cars were presented in the best possible way for sale.

Well the cost of not getting things right can be significant. Trained employees leave – staff retention rates are low and the cost of both recruitment and ongoing management should not be ignored. Working with strong Smart Repair partners can negate cost and indeed bring both an income stream to the business and an added value service to the dealer’s customers.

Outsourced costs

Obviously at this time the cost was similarly outsourced and many dealers saw an increase in vehicle prep costs – but it became clear over time that there was a new accepted level of vehicle preparation almost expected by customers buying a car. Customers were more likely to buy cars that were well presented without the scuffs and scrapes of wear and tear.

Certainly the feedback from dealers who sold high volumes of cars was that they could not afford to lose a sale by having a car with minor damage be repaired post sale and it seems that many dealerships adopted a clear preparation standard measured by the number of days it took to get new stock onto the pitch.

Increased costs?

The latest addition to the Smart Repair portfolio has been the implant of the repair pod structures which bring with them huge cost implications. With rentals over £1,000 a month and sometimes two technicians on site the breakeven seems to be around £10,000 – £12,000 which represents a huge number of Smart Repairs.

The dealer Smart Repairs have gone full circle – starting off with minor repairs and small costs – going in house with perceived savings but often the sales team paying more for their repairs – to having single booth Bodyshops on site with significant costs!

Revive! provides a national service for minor repair damage – being able to book most national jobs in within 7 days. This saves big headaches when a car is delivered nationally and picks up a scuff on route.

To contact Revive! about dealership smart repair solutions please call 01788820193 or email dealersolutions@revive-uk.com.

For more information about Revive!, please get in touch with our team here.

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