I recently read a story about an aftermarket repair shop in Vancouver, Wash. that charges a membership fee to customers. Touted as the first of its kind, this type of service allows shop customers to pay an initial fee to join of $100, followed by an annual $50 fee. Customers have said they've seen savings from general maintenance, such as oil changes, to repairs and parts replacements. Customer comments indicate they appreciate they straightforward approach to the maintenance and repairs from the techs, along with the less expensive pricing.
The owner of My Auto Repair Center, Mike Miller, explained, “We proved that it worked, that people like a membership garage and they’re willing to be loyal if you give them good service."
Paying for subscriptions is nothing new to the general consumer, or even the automotive aftermarket (e.g. Mitchell 1 or Identifix). A common theme among many businesses nowadays is a la carte options. Think of the changes in how consumers watch television. Sure, you can still purchase a DVD to watch a movie, or pay a monthly subscription to a cable service provider or streaming service like Netflix. Now, take that a step further: imagine if instead of paying for an entire cable subscription, you could just have access to the channels you watch regularly: ESPN, The Outdoor Channel and FX. Consumers are already on the cusp of these changes with the adoption of Amazon Prime, where they can purchase or watch individual shows, or a show series.
Diagnostic software subscriptions
Back to the shop, diagnostic scan tool manufacturers are beginning to go the same route. Recently introduced at this year's Matco Tools Expo in Orlando, I got a sneak peek at the company's latest diagnostic innovation: the Matco Tools MaxMe scan tool. This tool allows techs to purchase access to specific makes of vehicle, on a monthly basis. (The tool also functions as a regular tablet to check email, go online, download apps and more.)
So what are the benefits of these types of services? Well, according to Matco Tools VP of Marketing John Green, this segment of the market has long been underserved. Many repair shops purchase a full-function scan tool for the shop. While this tool makes sense as a group purchase, it can set an individual technician back thousands of dollars and often isn't a viable option.
"There’s a population of technicians out there that just can’t afford the upfront cost," says Green. Listed under $1,000 for the tool itself, the MaxMe allows techs to select specific make and model diagnostic coverage, paid monthly.
"You can have different subscriptions from month-to-month. It’s to allow (techs) to budget their spending," says Green. "For as low as $20 a month, they can get a car make, and they’ll build it into the cost of the repair." For instance, if you rarely see BMWs in the shop, you can pay to access that coverage only when those vehicles show up in your bay, instead of paying for it monthly.
