Service Department Impact

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The Problem

Service departments are the profit engine of automotive dealerships, yet a single
negative review can potentially destroy years of potential revenue. Here’s why this
matters:

50% of dealership profit comes from the service department
• Customer buys a car and is happy with the sales experience
• Same customer gets their first oil change and has a negative experience
• Result: Bad review that damages BOTH service AND sales departments

Common Review: “Service department tried to upsell me $1,200 in repairs I
didn’t need”

Critical Insight: Service department reviews don’t just hurt the service
department—they destroy your entire sales pipeline by preventing repeat business.

The Numbers: Why One Review Can Potentially Costs $67,500

Let’s break down the actual financial impact of a single negative service department review:

Customer Lifetime Value:

 
Item Value
Initial car purchase $30,000
Service visits over 5 years 15 visits
Average service ticket $250
Total 5-year service revenue $3,750
Service profit margin 50%


Impact of One Negative Review:



Lost Revenue Component Amount
Future service customers lost 20 customers
Lost service profit (20 × $1,875) $37,500
Of those 20, would have bought next car 10 (50%)
Profit per vehicle sale $3,000
Lost sales profit (10 × $3,000) $30,000
TOTAL LOSS FROM ONE REVIEW $67,500

Real Example

“Bought a great car here, but the service department is a ripoff. Tried to charge me $800 for brake pads—took it to an independent shop, they did it for $250. Never going back. 2 stars.”

The Impact:

• This review destroys your service department reputation.
• It damages your sales department by association.
• It costs you repeat business from this customer.
• It discourages 20 other potential service customers from coming to you.

Total Financial Impact: $67,500 Lost

The Bottom Line

Service department reviews are not just about maintaining a good rating—they’re about
protecting your dealership’s most valuable profit center and ensuring repeat business.
Every negative service review has a cascading effect that:

1. Immediately damages your service department’s reputation
2. Prevents future customers from using your service department
3. Destroys your repeat sales pipeline
4. Costs your dealership tens of thousands in lost profit

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