RENDEZVOUS RHONDA

October 19, 2007

Dear Local Buick Dealer,

It was a pleasure meeting you at the Chamber of Commerce’s Gala Affair last week. As a fellow Chamber member, I thought you might be interested in my buying and repair experience with my 2002 Rendezvous.

In July, 2002 I purchased a Buick Rendezvous from a dealer forty miles from my home. I made an attempt at that time to purchase the vehicle from your dealership, but we just couldn’t put the deal together. We were about $300 apart. However, because your dealership is approximately five miles from my home, I decided to have the Rendezvous serviced at your dealership.

In September, 2002 it was time for the first oil change. I called your service department and asked if an appointment was necessary and what the price for an oil change would be. I was told that an appointment wasn’t necessary and the price for the oil change would be $29.95. Well, as I was driving to the grocery store later that day, I noticed that Speedy Oil was advertising an oil change for $25.95 and I found a $4.00 discount coupon in the local newspaper when I got home. I couldn’t pass up the deal at Speedy Oil. After applying the coupon, the oil change was only $21.95. That is $8.00 less than what your service advisor quoted me.

Over the years I continued to have oil changes done at Speedy Oil, except on one occasion. In December, 2003 I did come to your dealership for an oil change and an air filter replacement. I was charged $29.95 for the oil change and $26.41 to replace the air filter; total spent $55.96.

In August, 2006 I went to Speedy Oil for an oil change and to replace the air filter. The total price was $39.19. Huh, I thought, that is $16.77 less than what I was charged at your dealership for the same work. I might add that Speedy Oil also rotated the tires at no charge. I found out later that it was standard procedure at Speedy Oil to rotate the tires with an oil change. When I did have the one oil change at your dealership, I was told there was a separate charge to rotate the tires.

Well, since the first oil change for the Rendezvous in September, 2002, there were more oil changes and repairs as the mileage increased and the Rendezvous aged. I thought you might be interested to see the maintenance and repair history for the Rendezvous.

Quick Fix $2,848

Speedy Oil $975

Dealer $106

Total $3,931

As you can see, I have spent $3,931 for repairs and maintenance over the last five years of which $106 was at your dealership. I would like to add that most of my repairs were done at Quick Fix. I did have your service advisor quote on the repairs and found your pricing far exceeded Quick Fix’s price. As an example in July, 2007 your advisor quoted $1,100 to replace the rear knuckles and bushings, Quick Fix did the work for $838 a difference of $262. As much as I would like to have done business with you, your pricing tends to be 30% to 40% higher than non-dealership repair facilities. My best guess is that if I had all my repairs and maintenance done at your dealership, I would have spent an additional $1,000.

It sure would be convenient if I could do one stop shopping rather than have oil changes done at Speedy Oil, repairs at Quick Fix, and warranty at your dealership. However, when your prices are 30% to 40% higher I do not see how that is possible. I don’t see the value in paying higher prices for the same work.

The Rendezvous mileage is 104,000 miles and I am going to be in the market for a new vehicle in the near future, probably in the Spring of 2008. Buying a vehicle and having it serviced at the same dealership is a convenience that would be very appealing to me.

Sincerely,

Rendezvous Rhonda

DEALER RESPONSE

October 23, 2007

Dear Rendezvous Rhonda,

I am in receipt of your letter and find your comments eye opening. It looks like I have not been on top of my game and I have some work to do.

Our dealership family has grown from two to four dealerships over the past three years and I am afraid I have dropped the ball and lost sight of our business model. Ninety days ago I hired Ace, as Vice-President of Operations, to assist me with the business. One of his primary assignments is to review all areas of our service operation and to come up with a plan to be more competitive, provide value and to make our service friendlier for our customers. It is our objective not only to sell our customers their vehicle but also to service their vehicle.

From one local businessperson to another, I would like to thank you for your letter and appreciate you taking the time to bring to my attention the “non-experience” you have had with our organization. I would like the opportunity to be your dealer of choice and offer you one stop shopping that you mentioned in your letter.

When you decide it is time for your next vehicle, please free to contact me. I personally will assist you so it won’t be necessary to drive forty miles to purchase your next vehicle and have it serviced at Speedy Oil and Quick Fix.

Sincerely,

Your Local Buick Dealer

ACE MEMORANDUM

MEMORANDUM

To: Ace, Vice President of Operations

From: Dealer

Subject: Rendezvous Rhonda Letter

Date: October 25, 2007

Ace, take a look at this letter I received from this lady. First, she drives forty miles to another dealership to buy a Rendezvous when she lives in our backyard. Second, she spends almost $4,000 for maintenance and repairs and we get a whopping $106 of the pie. Thirdly, she is looking to replace the Rendezvous in the near future. Find out what we are doing wrong.

Once we sell a customer a vehicle, I want the customer coming to our service department for repair and maintenance work. This is a classic example of the customer bolting to the independents for service work. My math tells me that we lost an opportunity to gross about $6,000 from this lady; $2,000 for the lost 2002 Rendezvous sale and about $4,000 for the lost service business. And when she does buy another vehicle in the future, that could be another $2,000 lost if we don’t close the deal. How many more Rhonda’s are out there. Get on this, it is top priority. “I DON’T GET IT.”

SOUND FAMILIAR?