The Ins and Outsourcing of Service Work
[email protected]There is a marketing maxim somewhat jokingly used with clients when discussing parameters for new projects: “Cost. Quality. Speed. Pick two.”
It nicely frames the quandary any service-oriented business faces when trying to meet customer expectations, as one must almost always be excluded for the sake of the other two. Of course, customers demand all three.
It plays out multiple times each day in heavy-duty truck garages throughout North America. The truck needs to be fixed yesterday, it needs to be fixed right the first time and it better be fixed cheap and not a penny above the estimate.
While sometimes these expectations are more realistic than at other times, every shop owner and manager strives to meet them. The risks of not doing so are just too great. You could lose future business from not only that customer, but possibly from others if word unfairly spreads that you’re unreasonable or less than competent.
This month’s cover story, “Driving Decisions (see page 18),” takes a deep-dive look at the factors behind fleets’ service decisions. We take a look at the why’s, where’s and what’s that drive the aftermarket choices of your fleet customers.
We are able to bring this research to you as a joint effort between three publications – Truck Parts & Service, Successful Dealer and CCJ – that fall within the Aftermarket/Dealer/Fleet division of our parent company, Randall-Reilly Publishing Company.
It all comes down to the cost, quality and speed juggling act.
We’re looking at what fleets consider when evaluating both the independent and dealer channels. Knowing where you stand is good; knowing where your competition stands is equally valuable.
The results might surprise you. Fleets are doing the majority of their maintenance and repairs in their own shops, and that doesn’t change when the warranty expires.
While independents and dealers look for ways to gain market share from other dealers and independents, there may be lower-hanging fruit by convincing your customers and prospects of the benefits of outsourcing. While it may be impossible to make a case with larger fleets, chances are your customer base of small and medium fleets are keeping a portion of their work in house.
Learn more of their in-house operations and open a dialogue explaining your capabilities. If the complexity of the repair is the top factor in their choice to outsource, as the survey shows, prove to them you have the expertise and technology to get the job done. If turnaround time is the main criteria in selecting an outside service provider, as the survey shows, find solutions to minimize downtime, such as creating your own rapid repair assessment program (see page 24). Chances are you can do it cheaper, better and faster.
And in gaining the upper hand in customer service, it all comes down to the cost, quality and speed juggling act. n
