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Buick going upscale--restoring the prestige of the 30s-40s w/ a 21st century slant?


Reatta Man

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A Jan. 10th article states Audi, Mercedes, Lexus and Land Rover owners are coming into Buick showrooms. GM says it is upgrading facilities, salespeople training and loaner cars....finally!

It looks like this is a trend to make Buick into a true premium brand and not an upsell Pontiac or Oldsmobile.

Buick plans dealership training blitz

Personally, I will be glad when sales people drop the "what would it take to get you into this car today?" mentality and start treating customers as if they have a brain! I liked the comment about the Audi owner asking the dealer to turn down the country and western music (towards the end of the article).

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As more "different"-brand vehicle owners come into GM dealerships, the choice of background music CAN become an issue. I was amused at the Audi owner's comments.

In another article I saw recently, it mentioned that Cadillac will target a part of the Lexus product line as Buick hits the other end. With Cadillac becoming "bolder" in their orientation.

For MANY years, GM has had dealership training initiatives for most dealership employees, but there are costs involved for each employee to be a part of the training, so some who might like to get it don't as those that are requested to do it complain about having to do it. Dealers ALSO get "Customer Focus Incentive" money for their participation AND compliance with "Standards For Excellence" criteria. For a larger dealership. CFI money can be significant in the grand scheme of things. Not just training for salespeople, but parts, service, office people, too. The basic franchise agreement has (what might be termed) "minimum standards of compliance", but CFI and SFE combined with Mark of Excellence and GM Common Training are supposed to ensure these standards are met or exceeded.

The observed problem is that a dealership might have plenty of newly-remodeled-to-current standards facilities, BUT it's still the people in those buildings which determine the success (at whatever level) of the store, ultimately. Just meeting "the standards" (as other similar dealerships do) ensures not only "the same" experiences for the customer, it also gives the particular dealership "no compelling reason to do business here rather than the other dealership across town (or where ever the closest similar dealership might now be!)." These are my own observations . . .

Another observed situation is that many dealerships perceive that if the "Doc Sheet" figures look good, then the operations are equally "good". Just because profits are being made does not always ensure that customers have a great experience at the dealership--OR that the employees making everything "work" are pleased with how they are having to do things (at all levels). Making profits is good and necessary to keep the mounting overhead costs "paid", BUT only if the customers perceive a compelling reason to return to the particular dealership, they might only utilize the dealership for ONLY things which the dealership has to do rather than for all of their automotive needs (vehicle purchase/trade-in, service work, body shop repairs, and parts purchases).

GM's customer service surveys are now available for dealership operatives to view online, with specific repair order references. This allows dealership operatives to, IF motivated to do so, investigate why a not "Completely Satisfied" score was given to the dealership's operatives. Many perceive the "Completely Satisfied" score to be non-attainable, but it IS and can be! If you consider "Completely Satisfied" to equal "Compelling Reason to Return", then it makes complete sense . . . but many have not made that connection, unfortunately.

Unfortunately, in many dealerships which have department heads which are more concerned about their own departmental profits than really taking care of the customer, it all goes back to the emphasis of "Living and dying by the Doc Sheet" orientation. There can be a great deal of dysfunctionality in such situations, further proving that this industry seems to tolerate a higher level of "comfortable mediocrity" than other customer-focused/retail sales situations. Lets define "comfortable mediocrity" as having operations which are at or near "zone average" in all aspects--doing as good of a job as everybody else is--which is not a really bad place to be, BUT it also means that dealership employees are not really giving the customer enough "compelling reasons" to return for future business. A "Satisfied" score can mean that they might return, or they might not, just depending upon how they might feel that particular day and how that might affect where they go to get their vehicular sales/service needs taken care of.

Giving the customer . . . at which ever dealership operations' department they might be in . . . a compelling reason to return AND recommend the particular dealership to others is VERY doable and does not really cost much money to implement. It is more about how the dealership employees view what they do, HOW they do it, with an eye to taking better care of the customer in the process . . . with an eye toward "continuous improvement" at all times. In many cases, by observation, it might take a little more effort, but it can ALSO decrease down-stream dealeship internal costs of doing business, thereby producing more gross profits, higher degrees of customer satisfaction AND retention, AND higher Customer Satisfaction Index scores. Once these policies and processes are put in place, they can become much more "natural" and "second nature"--NO rocket science, either.

Unfortunately, by observation, FEW dealer principals OR managers understand how it all can work . . . being too focused on their beloved daily Doc Sheets to even seeming care or understand . . . afterall, they've done things (the "old or current way") this way for years and it's worked for them AND it's how the "big city dealers" do it, so what they're doing MUST be the right way. WRONG!

Another side issue mentioned in the Cadillac article I saw noted the average earning demographic of Cadillac, Mercedes-Benz, and BMW owners. This is going to take some getting used to and make it work as well as it needs to as Cadillac starts to chase BMW owners, much less Lexus owners! As you might expect, the expectations of people making $100K/year might be quite different from those making $250K/year or $75K/year. Of course, the default mode is to treat EVERYBODY as if they made the higher wages--which can take some significant mental re-orientations for some. The observed orientation of dealership operatives "giving" customer service as they desire rather than how the CUSTOMER might desire might be difficult to alter.

You might already have noticed that "Mr Goodwrench" has been replaced by "Certified Service" signage at the dealerships. Just one part of future upgrades, I suspect.

Some thoughts and observations . . .

NTX5467

Edited by NTX5467 (see edit history)
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Willis,

I appreciate your observations, but I keep hearing the same terminology used when talking about dealerships. Words like profits and surveys seem to drive everything at dealerships these days.

However, as other articles have cited when talking about a MUCH higher level of customer service and efforts to make them comfortable at high end dealers, the focus is on the CUSTOMER, not the spread sheet that shows this week's profits.

When I take my Toyota into North Park Toyota here in San Antonio, here is what I see: a snack bar that offers free water, soft drinks, chips, popcorn, and for a very reasonable price, ice cream, sandwiches and other food items. They have different screens showing news channels, a movie channel and a documentary channel. The windows overlook a spotless service bay where you can watch your car worked on. There is free Wi-Fi, a computer terminal, a courtesy phone, leather chairs and several sofas. When my car is returned, it has been washed, the paper mat on the floorboard is removed and it is ready to go.

When I took my Chrysler into Ingram Park Chrysler with an appointment for recall work, the job took twice as long as they promised, there were NO refreshments except some overpriced vending machines, the chairs were vinyl-covered steel chairs, no computer, no WiFi, and the TV was screaming the latest Jerry Springer or some other version of the latest display of human stupidity. When the car came back (finally) the paper mat was filthy and still in the car. And Chrysler is trying to compete with upscale brands? Not after visiting that waiting room that resembled a Greyhound bus station!

And, it is not just domestic brands; so many dealerships are STILL operating on techniques that were used 30 or even 40 years ago to high pressure people into buying a car. Some dealers get it and are improving their attitude as well as their facilities, while others are stuck in the mode of "as long as we are making money, who cares?"

And, some of the customers are saying the exact same thing...who cares....about them?

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When I take my Toyota into North Park Toyota here in San Antonio, here is what I see: a snack bar that offers free water, soft drinks, chips, popcorn, and for a very reasonable price, ice cream, sandwiches and other food items. They have different screens showing news channels, a movie channel and a documentary channel. The windows overlook a spotless service bay where you can watch your car worked on. There is free Wi-Fi, a computer terminal, a courtesy phone, leather chairs and several sofas. When my car is returned, it has been washed, the paper mat on the floorboard is removed and it is ready to go.

You get soft drinks and popcorn!!!!:eek: Man, I have to make do with just 16 varieties of free coffee, and donuts (but only sometimes). Everything else is the same, though.:)

I'll bet they have a masseur at the Lexus dealers!;)

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I believe the snack bars at the Toyota dealerships were option in the latest remodeling program. Some have them, others don't.

One thing about the "fast" Toyota recall . . . the dealers were told to take care of the customers, even to fund extended service hours to get things done as soon as possible. I thought that was good, but not publicized tooo much. But when the first-production, current generation, GM TrailBlazer--platform vehicles were shown to have some possible suspension issues, the customers were told to park the vehicle and a roll-back wrecker would be there with a courtesy vehicle and to pickup their vehicle to get it to the dealership for the repair. In other words, "Do NOT drive the vehicle!" That worked pretty well, too.

Profits for dealerships are necessary to have, but it's how you get the profits and maintain them which can be easy to do, yet hard to financially justify other than in keeping what customers you have and get others in the future. It's a well-mentioned orientation that satisfied customers CAN be your best "cheerleaders", for any business . . . but it can quickly go the other way very quickly, too! Unfortunately, a dissatisfied customer is said to tell about 9 people of their displeasure, but completely satisfied customers don't tell nearly that many, according to the surveys and accumulated information.

About 20 years ago, I came upon the concept of "advance damage control". I don't know if I coined that phrase back then or if I just understood what it was and how it relates to businesses . . . especially car dealerships. This was part of an orientation to keep customers focused upon what their parts needs were and always trying to find a way of conveying information in a positive manner (one of my little trade secrets) when there might not be many posistives in the situation. In the course of the conversation, it's easy to notice if the customer is upset with the product or the manufacturer for allegedly not "taking care of it". Therefore, keeping focused upon what I was trying to find for them is necessary so that they might not try to get into a conversational orientation of "BAD product", where other satisfied (hopefully) customers might hear--no need to "make a scene, as some are want to do". Therefore, once you can determine their orientation, I would phrase my comments to avoid anything which might get them into an area I didn't want it to be (another little trade secret--NO antagonistic orientations). To me, this kept things moving forward in a good manner, whereas some others might engage them in a conversation which was not necessary or in a place where it would be inappropriate. Selling parts in an enjoyable and helpful atmosphere was what I was charged with doing, not causing latent issues to resurface in the customer. There were others there that they could "get excited" with . . . NOT me and NOT at the front parts counter.

About 10 years ago, I found a printed document which was a survey which GM had done to see what customers felt was important to them at dealerships when they got their cars serviced. At this time, many of the higher-end brand dealerships were starting to advertise that they had computer hookups and WiFi with "business centers" for customers. Unfortunately, but not surprisingly, those new amenities were toward the bottom of the list of "important" things. What was at the top, for ALL GM carlines, was "free coffee".

By observation, as dealerships have had to look at things in the downturned economy to justify costs and expenditures, one area is the cost of "fancy coffees" over regular coffee. Kind of goes back to my observation of "Give them customer service as the dealership operatives want to give it to them rather than how the customer might want it ." In many cases, the customer (with all due respect) might not know any better OR is happy with whatever they are getting, even if it might not be as great as it could be. Be that as it may.

The only way that customers can make their feelings known is to contact somebody that "should care". If you like the way your service experiences happen at particular dealerships, then write the dealership and send a copy to the manufacturer's local zone office. Similar if you "have issues" that things are not as good as they might or should be. You might also include like "To date, I've been extremely satisfied with how things have gone when I've used (dealership name). Service had been prompt, efficient, and the vehicle is returned in very good condition. This could change with my next transaction there, but prior history tends to lead me to believe that it will NOT change. It has been a pleasure to do business with (dealership name) and I look forward to future visits, as necessary."

For the letters/communications you might send to "disapproved" dealerships, you might mention your (better) experiences at other dealerships as a method of letting the particular dealership know just HOW they are being measured by you and other customers . . . rather than just by the manufacturer's surveys. You might continue that . . . although you like the product they represent very much, your next vehicle purchase could be influenced by "the other dealership" and your more positive experiences there.

Take care,

NTX5467

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.....and just WHO really pays for the "FREE" amenities at the Toyota dealership??

Not Toyota, and Not the dealership.....at least in the long run......

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Marty,

Yeah, there is no free lunch. But, at $90 per hour (typical shop labor rate) there is a LOT of room for smart dealers to roll over some of those profits into future customer satisfaction.

It is the same reason why department stores change signage, shelves, layout and other things customers see--to keep the store looking fresh and interesting to current and future customers. Meanwhile, too many dealerships have great looking facades facing the freeway, but inside the showroom and the service waiting area, it looks like a 1960s Greyhound bus station.

Here are some examples of how SMART dealerships are KEEPING their customers coming back to their dealerships AND their brand:

- Mercedes: •While you wait, enjoy the complimentary AMG café with a courtesy workstation (phones, computers, & WiFi), bagels and coffee, and three HD televisions tuned to popular news, cultural, and sports programs.

•Silver Star also has an onsite Mercedes-Benz boutique, capable of turning any auto owner into a fan.

•Rather than wait, owners can also take advantage of Silver Star’s shuttle service, which will take you anywhere in the city.

- Lexus:Yet, Lexus of Henderson doesn't skimp on luxury. There are seven customer lounges outfitted with oversized leather chairs and artwork, 60-inch televisions and refrigerators. There is Wi-Fi access, a children's play area and a café.

"Every customer -- both new and repeat -- is a part of our Valley Automall's growing family," said Staley. "We're dedicated to top-quality performance and service. We have built our reputation on happy, repeat customers."

The fact is, we are all busy, and don't mind being catered to on some level in order to retain our business. So it is not unusual or out of the ordinary for a person that can AFFORD to buy a $40,000 Buick to need to work on their computer to do the things that give them the income to buy that $40K car while we wait on an oil change or a part to be replaced.

I hope all of this is creating an attitude at GM and Buick to think of Buick customers in a different light. If so, they will do well as more and more products come out. If not, their is a Mercedes, Lexus or BMW dealership out there waiting to welcome us.....

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Marty, there are serveral of the "Lexus Level" amenities that I have not determined how they are expensed to which department or if they are part of the total dealership expenses as such. Any way, they are an "overhead" situation which I suspect few can back away from in these troublesome economic times.

BUT, we've to got remember that "the rich" will seemingly always have the funds to fund their vehicular purchases or leases. THAT can generate profits even in otherwise poor economic periods. Of course, that level of customer has unique needs and desires from customers of lesser-priced vehicles. That was what one of the Cadillac articles I read noted. What can "derail" such situations in many USA-brand dealerships is the mindset of dealers AND employees of "giving them something they don't need or deserve" (from the particular dealership person's perspective--which means that much more money that doesn't go into MY pocket to pay my bills at the end of the week"). That pesky "Doc Sheet Mentality" at work! So much focus on the "right now" rather than getting the guts to look farther down the road, with all due respect.

With any business entity, there will always be "overhead" items. Many will be on the weekly/monthly basis, which must be considered. There will be others which must be funded lest another dealership gain some momentum (i.e., advertising) and to attempt to maintain market position, for example. There will be others which must be planned for in the short and mid-term situations. But there must also be some expenses which are considered "Investments in Long-Term/Future Operations"--which might come from profit surplusses, but which should NOT be forgotten about. Some of these things are discretionary as others are mandatory . . . how they are prioritized can be very important.

Many of the things mentioned about the Mercedes store and such really don't cost that much if you do them when the remodeling project is done. Some might have additional employee costs, which some might term "an unnecessary drain", but they can ALSO provide additional customer contact opportunities which can (and should) generate short-term cash flow and ensure repeat business in the future.

One trend I've seen locally is that few of these high-end brand dealerships (Mercedes and BMW, for example) do not have any person continually staffing their front parts counters. Relying on two things . . . "A Bell" to ring and possibly nearby cashiers to summon an employee to the front parts counter. A disturbing trend, but also one which puts particular employees in places where more consistent income is generated. Seemingly, the high-end brand customers have come to expect this and have no problems with it. Or possibly there are some side issues of "being catered to"?

As with other "come-ons", many of these amenities cost very little to make happen, even it's a few additional service dept employees to transport service dept customers and/or their vehicles. If these are considered in "investments in customer satisfaction AND future business", they need to be sure that such is really happening. In other words, make sure these investments are yielding dividends, or possibly modifying them until they do while not motivating customers to go elsewhere. Staffed snack and drink bars, Saturday parts and service hours, extended parts and service hours . . . these are just a few.

ONE of the seemingly-landmark books on vehicle dealership customer service was Carl Sewell's Book "Customers For Life". In the 1990s, when dealership customer service surveys were in their infancy, with Honda haivng the highest manufacturer's CSI rating, Mr. Sewell's dealerships scored higher than Honda by a few percentage points. It's an interesting book which reveals many "different" mindsets and how they are all interfaced together to achieve "the end result".

On the other hand, I've known of several employees who have worked for a Sewell dealership. They've talked about how great it was, but then they didn't stay there for more than a few years, it seems. "Why?" has never been mentioned. Still, though, if some of the dealers might read and understand why some of these principles work, plus how little it might really cost (here and now) to do them, versus the end result of having a customer do business with them for 20+ years (vehicles, parts, service, etc.), it can make those little "here and now" costs seem highly insignificant to how much profit that satisfied customer might generate in the 20+ years of business patronage. But then others would point to the fact that they, currently, have many customers doing business with them for 20+ years without having done any of the things Mr. Sewell mentioned . . . as if that's justification . . . but then you might ask these same dealers what they did with the money they didn't have to spend (as Mr. Sewell did)?

For the record, that $100.00/hour (approximate) dealership labor rate does not all got to the techs who do the work. Much of it goes to pay for the many additional costs of the service dept to stay open (i.e., government EPA and OSHA regulations, office staff for filing and accounting), with the end result that the service dept has one of the lowest departmental net profit percentages in the typical dealership.

Thanks for the additional information, ReattaMan.

Have a great week!

NTX5467

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I guess my personal experience could be one example. I, like most of us in here, do my own minor maintenance. However, also like many of us in here, I am facing future mobility issues that may eliminate for a while, if not permanently, crawling under a car to do oil changes.

So, where am I going to go? Do I take my Sebring to the Chrysler dealer who has a waiting area that looks like a bus station, and last time took twice as long as promised to perform what should be a 20-minute job? NOOOOOO... Do I take my Toyota to North Park Toyota, that I described earlier, or to the Toyota dealer that looks like it was built in the 1970s and offers nothing, but charges the same price? Hmmmm....let me think.....

So THIS is the issue; not only is Buick competing against BMW, Lexus and Mercedes, they are competing against better, newer, smarter and more comfortable BUICK dealers....

Ain't competition great?

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Go to WalMart (or similar) and buy some genuine Mopar oil filters for the Sebring. THEN you can take it to the nice Toyota dealership for the oil and filter change, if you desire. That way, they can still charge you for the labor and the oil they install. If it works and they are agreeable to do that, you can continue to enjoy the amenities of the nicer Toyota dealership OR whatever brand of non-Chrysler dealership you might desire. If they recognize that you also have a Toyota, all the much better. And . . . you might also do the same with the Chevy pickup.

BUT if there's something else needed than just an oil change or lube job, like air filter or cabin air filter or wiper blades or other light maintenance items, you can opt to do that yourself or make arrangements for them to do that, too. Although it can be better take the vehicle back to a dealership that sells that brand, there's no rule about having to do that, especially if you already have or build a good relationship with a particular dealer's service dept. If it might not work out, then you still have other options to explore.

Enjoy!

NTX5467

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I would offer that any dealership should treat any customer like they would treat a "rich " customer. As Willis noted, dissatisfied customers do way more damage than satisfied ones. And this applies to more than just car dealerships. Customer Service has taken a huge dive in quite a few organizations.

I hope the article quoted is considered seriously by Buick Dealers.

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I'm not sure how long it has been since I've seen the inside of my full line GM dealer...they drop off a loaner and pick up the vehicle and swap back after the work is done.

That way I can hang out at the computer and harass all y'all. Or go to work or some other nonsense.

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I concur, JohnD, EVERY customer should be treated as if they are a "rich" customer. In many cases, the service provider has no way of knowing, therefore the default mode should be "rich" and "valued" rather than otherwise.

Unfortunately, there are STILL way too many in the dealership business that don't understand the wisdom of doing things this way. I've seen some parts salespeople be waiting on a customer that has yet to buy something (or usually spends little and asks many questions), get loose from them as soon as they can to greet and wait on a wholesale customer that they just sold a crate motor to . . . all as the first customer is still in "watching range". Wonder if that customer will be back? Wonder if that customer has purchased vehicles from the dealership for decades, but now he has some motivation to investigate "other alternatives". Which is something that many dealership (sales, parts, and service) people seem to forget is "The CUSTOMER HAS OPTIONS" rather than being bound to spend their money at YOUR dealership.

One time I was doing some paperwork after the front parts counter closed. The phone rang and I had a feeling that I should answer it rather than let it ring (as we were closed, afterall). I answered it and it was a customer who had tried to get an answer from a dealership's parts dept closer to them, where they'd just purchased a used car.

Seems that they were trying to get an inherited pickup ready for their son to drive and it needed a starter (it was like a '67 Chevy C-10 pickup). They went to PepBoys and got a rebuilt starter and it would not fit. The parts people at PepBoys basically refused to go back to the core bin (where they'd already thrown the core they brought in) and try to find the starter that was their core (not surprising, but it does have some basis in reality, but still not quite what the customer wanted to hear). Then they went to the nearby Chevy dealership's parts department to see if they could tell them anything. As the parts people there had no knowledge of the deal AND didn't sell the part, they felt NO obligation to help them figure out what the problem was. This ticked the husband off as they'd just spent $15K on a used car there. (Something the parts people had no knowledge of OR got any commission off of) The other "reality issue" is that none of them probably knew why the replacement starter would not bolt-up, only knowing what was in the parts book listing (GM or ACDelco).

So, the wife was calling to see if somebody could help them figure it out . . . which ended up being "me". I asked what their concern was and then explained what was going on.

In the world of Delco starters, there are basically two versions, the "long" one which is sometimes termed "heavy duty" and the "short" one which is many times the "normal" one. This sets the basic torque output of the unit. From there, to adapt the unit to various engines, the end ("drive") housing is where that adaptation occurs. As for that earlier vintage of Chevy starter, there were about 8 different end housings depending upon which engine and which transmission it was bolted to (in later years, it also relates to flywheel diameter and the number of teeth on the flywheel's ring gear). This is why some had flat spots on them, different shapes, or otherwise, to clear the bellhousing shapes. Sometimes in the later 1970s, a "universal" end housing began to be used (but with different bolt hole locations due to the different flywheel diameter issues).

In the world of component rebuilders, the starters are completelly disassembled for inspection, testing, and cleaning. This means that all of the end housings would be put into one pile for re-use or replacement. Therefore, unless you got a universal end housing on the unit you purchased, it would probably not fit and NO one at the parts store could tell you why. Just "It's what the book calls for". Not unlike buying a reman distributor and expecting it to have the EXACT same advance curve (springs and weights) as the factory specs for your particular engine/vehicle . . . or reman carburetors.

I explained the situation of the end housings to the wife and then again to the husband (who told me of their recent vehicle purchase at the other dealership, which he felt should have "bought" him better treatment by the parts dept operatives he spoke with). I made sure they understood what was going on and why. I also mentioned that I had some friends in the repair business that always re-used the original end housings when they replaced starters, using ONLY ACDelco units. Not a lot I could do to help them other than to tell them why things happened as they did. Unfortunately, they were going to have to deal with the local PepBoys parts operatives. Not sure how it later turned out, either.

Key thing is that I didn't "slam the door in their face" (so to speak) as many in the parts sales industry have done in the past. I didn't like it when it happened to me 35 years ago, so I understand why customers don't like it, either. Back then, as many customers probably do today, when I felt somebody was not giving me accurate information, I kept on looking (noting who NOT to ask next time I needed something, who felt "bothered", who was helpful) until I found credible sources (in print or in person). Therefore, whenever a customer asked me something, I did what I could to find that answer AND an answer that I was comfortable with--if I wasn't completely sure or it looked "flaky", I told them so as, I felt, I was a dealership employee and THEY expected ME to know. I always looked at my time as an investment in knowledge that could be helpful in the future rather than otherwise. There's no rocket science involved in these things, just that so many parts dept sales people OR dealership operatives who have contact with the public never have appeared to think things through about two additional steps from where they might be, to see how it might be if THEY were the customer being told what THEY were telling them.

Take care,

NTX5467

Edited by NTX5467 (see edit history)
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And so, Willis, you have harkened back to a concept known as CUSTOMER SERVICE!

Too often these days, we are caught in a vicious cycle; if you are expected to do 3 widgets per hour, at the end of an 8-hour day, you had better have done your 24 widgets...or else!

But sometimes, as you have so perfectly explained, sometimes one of those 'widgets' takes time....a lot of time. But that time invested can pay huge dividends later. But, if you are driven by a spread sheet, an accounting ledger or a boss that can't see past the total number of widgets, you are stuck in a huge rut. And, of course in a high-pressure world (usually big cities are the worse) everyone that doesn't keep their widget count up gets replaced by someone who does.

And we ALL end up being treated like widgets.....until someone comes along and decides to do things differently.

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