Perception vs. Reality: The Fixed Ops Pricing Myth

This article is part of the InteliChek Automotive Brand Partnership.

It all started in 1997.

While collaborating with an OEM, David Swan uncovered a surprising and uncomfortable truth: consumers believed dealership services were twice as expensive as those offered by aftermarket providers. This perception, as he would discover, was both widespread and deeply ingrained.

“This perception has been around for decades, and we see it every day that it’s not true,” says Melissa Marlatt, Chief Operating Officer of InteliChek. Sitting across from me, she speaks with conviction, her passion for the industry evident in every word. “Dealers are competitive. They’re just not advertising it properly. You have to scream it from the rooftops.”

What began as a simple study would grow into InteliChek, a company dedicated to empowering dealerships with the data and tools they need to challenge these misconceptions and reclaim their place in the market.

The Roots of the Misconception

Swan’s initial research confirmed what many in the industry suspected but had never fully quantified.

A misconception of this size does not emerge overnight.

This is deeply rooted in historical practices. In particular, a failure to effectively communicate the unique value of dealership services during a time when dealerships were considered the exclusive providers of vehicle repair and maintenance.

Independent aftermarket providers began to enter the scene and communicate their offering, marketing themselves as the more affordable alternative, aggressively touting their pricing strategies and positioning themselves as the “everyman’s” repair shop. Meanwhile, back at the dealership, the focus was very much on selling vehicles rather than servicing them. Fixed operations—the service and parts departments—were often seen as secondary priorities, with little effort invested in their marketing or customer engagement. This lack of visibility and communication created a vacuum, one that aftermarket providers were quick to fill with their own narratives.

"We talk to dealers all the time that don’t realize that the aftermarket is their competition,” says Melissa Marlatt, “people aren’t defecting from your dealership to go to another dealership.”

What was once taken for granted—their dominance in vehicle maintenance—was now contested by competitors who excelled in communication and customer engagement. This failure to maintain their narrative has left dealerships battling a perception problem decades later.

Changing the Narrative

At its core, controlling the narrative isn’t about manipulation; it’s about connection. History has shown us that those who shape the way people understand the world hold the power to influence their choices. For dealerships, it’s not about rewriting reality but about reclaiming the truth–-demonstrating their competitiveness, rebuilding trust, and fostering relationships that go beyond a single transaction.

Competitive pricing analysis is at the core of InteliChek’s offering. By comparing dealership service prices—including parts and labor—with those of local competitors, InteliChek shines a light on where dealerships stand in their markets. This data empowers dealerships to make informed pricing decisions, identify opportunities to adjust prices, and communicate their value proposition to customers.

Melissa explains, “Dealers are competitive. They’re just not advertising it properly.” InteliChek’s tools, such as the “Dare to Compare” flyers and website widgets, help dealerships do just that—showcase their pricing in a way that challenges customer assumptions and builds trust.

The Dealership Value Proposition

While aftermarket shops often undercut dealerships on price, they can’t compete on quality.

Joe Gibson, VP of Sales and Marketing, shares “we’ve done studies with vehicle owners, and they’re willing to spend up to 20% more than the aftermarket or local average because they see the added value of going to a dealership—trained technicians, OEM parts, and knowing the job is done right.”

Dealerships offer OEM-certified parts, manufacturer-trained technicians, and a level of accountability that independent shops can’t match. Studies show that customers are willing to pay more for dealership services if they perceive added value.

Dealerships don’t need to undercut competitors, they simply need to communicate their value effectively.

Barriers to Change

Despite the clear benefits of pricing transparency and value-based marketing, many dealerships remain resistant to change. Some believe they can’t compete with the lower prices of aftermarket shops. Others prioritize marketing for variable operations—like vehicle sales—while neglecting fixed operations, even though service departments are often a dealership’s most consistent profit center.

“There’s a resistance to even doing our studies,” says Joe. “Dealers think, ‘We’re not competitive, so why bother?’ But the truth is, they’re often much closer to their competitors’ prices than they think. And with the added value they provide, they don’t need to be the lowest price.”

The Role of Marketing

One of the biggest challenges dealerships face is poor marketing for their service departments. Many dealership websites lack clear, accessible pricing for services like oil changes or tire replacements. This not only frustrates customers but also hurts SEO rankings, making it harder for potential customers to find them online.

InteliChek addresses this gap by offering tools that allow dealerships to display competitive pricing on their websites, social media, and in-store displays.

Modern customers are more informed and tech-savvy than ever. They research prices online, read reviews, and compare options before making decisions. Dealerships that fail to meet these expectations risk losing business to competitors who do.

AI tools, such as automated scheduling systems and predictive analytics, are beginning to transform fixed operations for early-adopter dealerships, enhancing both efficiency and the customer experience.

This approach directly enhances the customer experience, but without addressing the barriers to entry, challenging the pricing misconception, and clearly communicating the dealership’s value proposition, dealerships risk missing the chance to establish a stronger competitive edge and meaningful customer connections.

Nearly 30 years later, InteliChek remains committed to its founding mission: bridging the gap between perception and reality by empowering customers with the information they need to make confident decisions—while driving more business to dealerships.

By harnessing the power of data, transparency, and proactive marketing, dealerships have the opportunity to rewrite the narrative.

This content is part of a sponsored brand partnership with InteliChek Automotive.

Dealer Marketing Magazine collaborates with leading automotive brands like InteliChek to deliver educational content that highlights thought leadership, innovation, and solutions that empower dealerships across the automotive sector.