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Service is a profit center idk why you wouldn’t focus on Selling parts and labor at 200-300% markup vs 10% car margins
by nothercastle 2y ago
Service is a profit center idk why you wouldn’t focus on Selling parts and labor at 200-300% markup vs 10% car margins
- bravetraveler 2y agoAgreed. They've done the hard part, make and sell cars. Ride the gravy train. Money printer: someone at a service desk + small logistics problems. It's usually most optimal to stop fucking around. Gadget stores don't keep us nerds around for our winning personalities, everyone benefits from service.
- trog 2y agoI have heard so much about how electric cars are close to zero maintenance. I suspect they want to ride that wave as long as possible to further that perception.
- nothercastle 2y agoThat might be true but tire rotations and cabin air filter replacements are still high profit. I think it might be more that a large percentage of electric car repairs are for items covered under warranty so until there is a sizable used fleet outside of warranty they want to minimize claims by making it hard to do.