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Dealers should offer menu pricing to keep fleet business, says epyx

Motor manufacturers are set to extend their franchise dealer menu pricing initiatives in 2010 to stop fleets sending their older vehicles to independent garages.

Motor industry e-commerce specialist epyx says that as the recession sees fleets operate increasing numbers of four and even five year vehicles, independent servicing becomes more attractive.

Ken Trinder, head of business development for epyx, said: “A fleet that runs its vehicles on a three year cycle is likely to stay with franchise dealers because a proper manufacturer service history is an important factor in strong residual values and also because the vehicle is probably covered by a three year warranty.

“However, as fleets extend their cycles, these factors become less important and turning to independent garages for service and maintenance becomes a strong option for reasons of cost.”

Trinder suggests menu pricing through e-commerce technology is an obvious way for franchised dealers to fight back against independent competition. It allows dealers to include all service items and adjust prices across the network if needed.

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