Wednesday, October 3, 2012
Are Our Strategy Gurus Missing Something? Why Can’t A DRP Strategy Work For Customer Pay?
AmazonSupply.com. The list goes on and on. Mitt, Staples really needs you now. Where’s the giant sucking sound taking us? So, how does the giant sucking sound drag our aftersales customers from local stores to price-driven large stores to technology-enabled convenience? I think the answer can be seen in the collision DRPs. Look at our dealers as being the high cost local stores … because, that’s what they are. A disruptive innovator might come along and develop a DRP-like model for customer pay maintenance and repair. They’d need to focus on all aspects of customer pay work for which dealers charge $95 an hour. They would have to do better than dealers on the stuff that customers value most (see chart on Tier-1 customer values – thumbs down are values where independents are seen as being “better” than dealers). This should be a lay-up for them. Number one on that list is having the vehicle ready when promised, and number two is charging a reasonable labor rate. Hmmm. $40 an hour vs. $95 an hour? Heck, that’s a lot of money.