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The automotive industry sluggish 4S shop to turn to sell services

April 12, 2023
The automotive industry is sluggish 4S stores turn to sell services This year the entire automotive industry is in the doldrums. Many dealers call for pressure on the stock market. However, the profit model of 4S stores is not only based on vehicle sales. Some industry experts analyzed that despite the market downturn, most of the profit of 4S stores comes from sales of after-sales services and automotive supplies, and they rely on these revenues to maintain the operating costs of the entire store.

Automotive supplies are twice as expensive as online stores. The reporter went to a 4S shop in a certain automobile brand in Huizhou and carefully watched the 4S shop auto supplies sales area. The price of a car seat called "Tiansi" is 1,550 yuan, while the price of the reporter from Taobao is 699 yuan. The former is twice the price of the latter. The price of "Star" car front and rear viewing systems at Taobao is less than 700 yuan, and the price of the shop is 1750 yuan; and the price of Iraqi love GPS shop is 2800, or the price after the price reduction, and outside the maintenance The market price of the shop is around 2,000 yuan. The store sales staff told reporters that online goods can not be guaranteed to be genuine original, in the 4S shop outside the market, some brands of large quantities of fake goods, but here can guarantee that it is genuine.

However, some relevant sources told reporters that online sources for maintenance supplies and automotive supplies are relatively wide, and they are provided by some manufacturers of automotive products. There is no provision for franchise rights for 4S stores. Except for some auto parts and accessories that are exclusively provided by the manufacturers to the auto 4S shop, others can be purchased from online or repair shops. "Conservatively, the gross profit of 4S shop auto supplies is nearly 50%."

According to Master Lin, who had worked at the 4S shop in Huizhou's Weiyuan Buick, many of the 4S shop's after-sales revenue is used to cover the operating costs of the entire store, including daily expenses, promotion costs, water and electricity, financial expenses, and personnel. Wages and so on.

The general increase in the price of accessories Many car owners should know that cars are now moving towards the civilian population. Buying cars is not a distant matter. However, there is a saying that “you can afford to buy a car and you cannot raise a car”, which also reflects the high cost of car maintenance.

The reporter visited some 4S stores and found that all 4S stores will publicize the maintenance price list. Among them, the maintenance and repair projects are close to 50, and the maintenance cost of the project ranges from 100 yuan to 10,000 yuan. Some of the 4S stores have full models. Car paint is 10,000 yuan.

Many consumers reflect: Why only sell 100 yuan in the outer market, but in the 4S store, they have to sell 300 yuan? According to the person in charge of a 4S shop in Dongfeng Brand of Huizhou, nearly 30% to 40% of the expenses for repairing and maintaining vehicles paid by the owner are service fees, while the purchase of accessories may be 25% higher than the genuine price sold in the outside market. about. As for the profits of accessories, they must be sold as part of factory regulations and cannot be purchased externally, giving about 25% of room for fare increase. It is understood that most car brand manufacturers to dealers to increase the rate of accessories is generally 20% to 30% or so. Insiders accounted for 2,000 seats of 4S shop revenue and expenditure can be basically flat, a person in charge of a 4S shop in Huizhou, a 4S Most of the operation of the shop now depends on after-sales service, which is already an open secret in the industry. One of the rules can refer to: According to the scale of a joint-venture mid-range brand (the main sales of about 100,000 models), the monthly arrival timetable reached 900 to 1,000, that is, the production value reached 700,000 to 800,000 can basically meet the in-store Operation, at least to ensure that the sale of this piece will not be a loss; the same grade of a 4S shop opened more than 3 years, the monthly arrivals need to reach 1,500 cars will be able to meet the balance of payments, and an opening more than 5 years old shop need to do 2000 to 2500 vehicles will be implemented.

In addition, he believes that the current sluggish sales of the automotive industry has led each dealer to pay more attention to the after-sale service revenue. After-sales revenue is a "base salary" for a 4S store. "For dealers, the profit after sale is the most stable. The daily operation of a store depends mainly on this part of the revenue, and it is usually said to be flat, so the sales amount is the net profit of a dealer, but this one As the market cycle fluctuates, there are many unclear factors."

Dealers' voice costs are too high and maintenance costs are difficult to drop. Since manufacturers must give distributors nearly 30% of the space for parts to increase prices, why do dealers not adjust their own prices to attract more customers?

A person in charge of the Huizhou Auto Circulation Association believes that in a new store, since the sales volume is limited, this piece of sale is definitely a loss. In the first two years, sales is the main support for a store. For some relatively good brands, 2 A slight profit after the year is considered a good situation. It takes at least 4 years for a real after-sale to support a store, but for many stores, after-sales income can cover 70%-80% of daily operating expenses. It is very good, and some of the expenses need sales to make up for it. He believes that the current after-sales profit margin is nearing the bottom of many 4S stores and is difficult to squeeze.

In addition, an owner of an Ashkenazi 4S shop in Huizhou told reporters that after-sales service at a 4S shop is not a matter of two days. In addition to investment in plots and buildings, there must be high-quality after-sales service, as well as a lot of investment in personnel training and equipment. The initial investment for a 4S shop is generally around 65 million. This line generally has a rule: For a newly opened store, the sales and after-sales income ratio is 8:2. After 5 years, a relatively successful old store sales and after-sales income ratio can reach 4:6. But usually it is 6:4.
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