Ferrari Service Price increase to $295/hr

$295/hr (about $600k year) is a ridiculous amount of money to bill a tech at.

 

Is this based on your in depth understanding of overhead and overall operation costs at a Ferrari dealer?

I was just thinking it was on the low side. Austin is a less expensive market place than Philly and the Porsche dealer is at $350 or $360.

 

I thought I’d blocked you! Silly me. Let me rectify that. Thanks for letting me know!

 

What maintenance was required? A $20K bill is like 20-25% of the value of the car. Seems like a really big number.

 

Since when has there ever been, in the history of cars, a correlation between the value of a car and its maintenance requirements?

 

I'm confused...... are you going to at least answer his valid questions... ?
or no...since you blocked him?

;-)

For grins, what do you think the numbers are or should be for the following, per year:

$XXX,XXX Shop Overhead ( Building, utilities, insurance, maintenance and corporate identity required by Ferrari SpA )
$XXX,XXX Special Equipment as required by Ferrari to work on each model of Ferrari
$XX,XXX Special tools required to inventory by Ferrari to work on each model of Ferrari
$XXX,XXX Cost to train a technician to Certified or Master technician standards ( Classiche & Hybrid are additional )
$X,XXX Did you want your Ferrari washed after service?
$X,XXX Did you want your Ferrari picked up or delivered on the Dealerships dime?
$XX,XXX Do you expect to be invited to special events, product launches, F1 watching parties
$XX,XXX Does your local FCA Chapter want the Dealer to partner with them?
I could go on...

At the end of the year, if any Fixed Operations department in the FNA network clears 2%-3% net profit I would be surprised.


S

 

Full annual service
Carbon Cleaning intake system
Motor mounts
Rear Shocks
4 Wheel repairs
4 Tires
Alignment
add in RHT repairs or paint repairs

I could see it getting close to $20k

Leather repairs, soft touch sticky repairs, or DCT repairs could add to that quickly as well..

S

 

Thanks. I guess this is why I don't own a Ferrari. I can see justifying the purchase price but a $20K repair bill for something that seems like routine maintenance is something else.

 

Maybe this is just me but it is one thing if there are major repairs, its another when it is routine maintenance we are talking about.

 

Routine maintenance in my experience, having owned a California & being the one whose department services them day in and day out, runs closer to $2,500 a year.
It's usually after years of deferred service/repair that a visit is $20k ( or higher )
Having the dash leather replaced or refinishing all the soft touch buttons, that's another story, usually happens all at once. But that's not limited to Ferrari...

S

 

Good to know

 

7 year free maintenance.....if i owned a Ferrari dealer, and I was billing Ferrari for customer's maintenances and warranty repairs, then I would bill them as much as I could per hour

Sent from my SM-G977U using FerrariChat.com mobile app

 

10-12 years ago, when it was still Algar, they were billing at $195 an hour for Ferrari service, and a little less for Maserati.

With inflation over the last 12 years, that $195 is currently $275.00, and I'd guess the mechanics aren't making $75/hour anymore, either.

As I recall, Algar had 5 or 6 mechanics, all of whom spent many hours each year getting training from Ferrari. Every couple years, they sent a couple of them to the factory for retraining as well. They had 3 or 4 support guys who jockeyed cars, washed them, cleaned parts for the mechanics and otherwise assisted them all day long. A parts manager and a parts assistant, a service manager and assistant manager, a job service writer, a receptionist, a billing clerk, and probably a couple more folks I never saw when I was there. Not to mention the equipment that Algar bought from Ferrari on a regular basis to properly do maintenance on these cars, or the tens of thousands of dollars the mechanics invested in their own tools. They also had a multi million dollar parts inventory that they carried for Ferraris old and new.

So am I shocked it's $295 an hour now? Nope, although I have to admit at first blush it seemed a bit pricey. Once I looked at the components involved, and inflation, it seems right in line. Tag on to this the overhead expense for the square footage eaten up by there service department, add carrying costs on the purchase of the business from the prior owner in and I'm actually a little surprised it isn't higher.

D

 

I remember Ferrari of Washington was charging $95 an hour back in 2006.
Cost go up

 

Do not forget Ferraris ever more expensive facilities requirements. Just because your flagship store was the pride of the national network 10 yeas ago has nothing to do with current requirements. They have taken away franchises, good large volume franchises because they refused to spend big money for a new facility or a more upscale location meaning land as well as a new structure. And many times the service/parts department takes up the biggest slice of the foot print so has to carry a disproportionate part of the overhead. Costs are driven by a lot of things and Ferrari corporate is one of the big ones.

 

I'll have to give myself a raise. When I finish my car I'll drink 2 beers.

 

The physical plant that Ferrari of Philadelphia is moving to is going to be a big change to overhead. It's much larger, modern, located on a busy four lane main road. I'm sure they'll get some good dough for the old location but the jump to a new facility a few miles up the road will no doubt raise their overhead and capitalized costs as it's a pricier facility that will still require the Ferrari facelift to get up to "Ferrari Code." I've only been in that building a couple times but my recollection is it's a big parking lot, big building, and probably 2-3X as large a service department.

The building they are in now had the required Ferrari facility overhaul about ten years ago, maybe a little more, so that's already built in to the current pricing.

 

Thats actually quite funny.

 

Nope. But maybe the hours spent on each task might come down a bit. Less research and tinkering to get to a solution, but higher tech skills required to decode with the computer is telling you and then execute on those tasks.

Auto technicians are really that now. Oh, and there are lots and lots of older cars that don't provide a lot of digital age input to the tech/mechanic and that's where the old school skills come in VERY handy.

D

 

The computers dont tell us whats wrong. They do not point to a broken part anymore than a thermometer tells a doctor what is making you sick. Its a data collection device just like vacuum gauges and oscilloscopes were in the old days.
The most expensive data collection devices we have ever had I might ad and you can thank Ferrari for that. What Ford or Toyota might charge a few hundred or a thousand for, Ferrari gets many thousands for. Then the updates or subscription fees are beyond what many can justify. Dealers have to do it, along with every goofy, useless 5 figure tool that UPS delivers out of the blue and you have an overhead requiring $300-$400 an hour.
Ferrari was going to auto ship a $30 or $40,000 tool to set up the ring and pinion gears in a 360. When they told us that I exploded in the NJ headquarters. In a really loud voice I told them they wanted to force a tool on the dealers most will never use and best case basis it only save 2 or 3 hours of labor on a job we did 2 time a year in a larger dealer? I told them to their faces they were not only crazy, they were F'ing crooks. Dealers are as big a cash cow to Ferrari as any car of the month club retail buyer.

Its all SOP with Ferrari.

 

I think its cute you think that can be done. Retail labor rate and warranty rate are two different things. One has to be applied for and approved by Ferrari. Guess which one. The other is set where it is partially to cover shortfalls in the first.