Blog
Short, practical notes on running service, parts and body shop departments that customers come back to.
The Advisor Difference
Service advisors can make the difference of hundreds of thousands of dollars annually in revenue to the dealership. They see your customers more than anyone else, yet receive little support from the dealership. Many dealerships consider advisor staffing a cost that must be limited, which is very shortsighted. They throw people into the position without…
Measuring Customer Pay Sales
There is an interesting statistic that is use when measuring customer pay sales called technician hours sold per repair order. This takes the average technician hour sold in the dealership and is used to see how good there advisors are performing. I admit to monitoring this result very closely looking for opportunities for improvement. I’ve…
It’s an Idea
All progress starts with an idea. Industry titans such as Henry Ford or Thomas Edison both started with an idea. The idea centers on an individual observing a need and thinking through a solution that would solve it. Although there is never guarantee in every idea being successful. It is essential to understand without processing…
Customer Focus
Today’s dealerships spend tens of thousands of dollars every month to reach new customers and get them inside the dealership doors. A large amount of these funds are spent on newspapers that end up as a floor mat the next day for a birdcage. I’ve seen thousands of dollars spent on service ads, that promote…
Do You Believe?
So many of us are focused on the numbers the team generates as a measurement of performance. We review them daily, weekly or monthly and likely let the team know in some form or fashion how we are doing. Many dealership managers feel it’s productive to beat the team member up that’s not performing well…
Selling Great Used Cars
I have visited new car dealerships throughout the United States and consider it a privilege to see the different ways that they operate. It is interesting to observe opportunities for improvement financially and with customer care. The most successful car dealerships understand the value of integrity in building their local brand. Other dealerships might look…
Warranty Parts Pricing
For as long as I can remember warranty parts prices were calculated by taking dealer cost and adding 40% markup. Now in many states laws exist that have forced the manufacturer to compensate dealerships at retail pricing. This new law almost doubles the gross profit from warranty parts sales. My experience with this new law…
Because I Said So
When I was a child growing up I used to challenge every order issued by Mom or Dad with a simple question why. I’m not certain I ever received a detailed description of why I should perform a task that they asked me to do, however the response was always the same. Because I said…
The Team Without A Coach
No professional sports team would consider going without a coach. There may be times where they terminate employment of a coach and have an interim position however, professional sports understand the need for good coaching. A good coach knows how to get the most out of individual players and inspire the team. When things go…
Going Green Isn’t Always Expensive
Most dealerships want to operate in a manner that they will be considered green. Normally however, going green is costly when compared to today’s methods of operation. There is one exception I’ve been made aware of that saves time and money for dealership operations. In the near future, service departments will all be faced with…