auto dealership service departments, question

[steve2470]

At the risk of being mysterious, I don't want to get into the precise details of why I'm asking this question. I already feel stupid enough.

Anyone have a ballpark idea how profitable auto dealership service departments are ? I know they have significant costs. I know, in general, they are not inexpensive places to have work done. Thanks kindly all.

[PoliticAverse]

1. "In many dealerships, service contributes 10 percent of revenue, but up to 35-50 percent of profits"

http://www.dealermarketing.com/bizdev/sales-training-solutions/34-archives/archivesold/955-Parts-And-Service-Department--The-Backbone-Of-Profitability

[steve2470]

2. That makes sense to me

If someone has actually worked in a service department and has ballpark numbers, it would be really interesting. Not a specific dealership of course, but just in general.

[DebJ]

3. I used to work for an insurance company that did insurance for auto dealerships.

the 30-35% number was right, and even higher.

[dipsydoodle]

4. Well to give you pricing example from the UK

One of the headlamps on my Jeep , 7" Hella H4 glass , got chipped so for the time being I stuck clear bonded tape over the small hole. I need to get it changed because its due for an MOT test which covers all lights.

Yesterday, having already tried an auto parts shop, only to be told it was listed as dealer supply only , I 'phoned the local Jeep parts dept.

I was told Jeep only supply those head lamps in pairs. Fuck knows why.

How much ? £200 / $330 EACH.

[steve2470]

5. expensive indeed, good luck nt

[steve2470]

6. any other input on this ? nt

[Fastcars]

7. The brother of the owner of the dealership I worked for told me

Selling cars was a necessary evil to be able to have a manufacturer authorized service center.

I have a friend that owns/owned a Suzuki dealer and he doesn't mind that Suzuki quit selling cars in the US because he still has a manufacturer's authorized service center without the hassle of selling their cars.

[steve2470]

8. ok that tells me a lot, thank you

I don't mind if a dealership makes what I consider to be a fair profit, but gouging ? No thanks.