Auto Dealer Monthly Magazine is the daily operations publication serving the retail automotive industry. This automotive publication serves dealer principals, officers and general managers with the latest best practices.
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AC C OUNTING maintenance work. Dealerships also tend to employ bettertrained technicians. Somehow we need to do a better job of informing the public. Start by selling the dealership when you sell the car. If your team can learn to sell the service department's capabilities as well as they sell vehicles, you will have a better chance of getting the customer to come back. You will also have an edge on your competitors. Tis philosophy is not practiced very well in most stores. Maximize the Space: For every dollar in parts and service sales, the dealership normally makes approximately 50 percent gross proft. Tis gross proft percentage is much larger than the front-end vehicle gross proft percentage. Of course, vehicle sales bring in larger dollar 12 amounts, but you have to fnd a way to maximize every stall in your service department. Te more sales you generate, the closer you'll come to 100 percent service absorption. Get Your Service Writers On Board: Full service absorption is very hard to attain, and it is getting harder every month. Tis is due to the amount of maintenance work performed rather than repair work. Further complicating the situation is the fact that maintenance work doesn't generate as many parts orders as repair work. So it takes even more sales than before to generate the same gross proft you did in prior years. Take a look at the diferent types of maintenance work your techs perform. Determine what generates the highest gross proft percentage and dollars and make AUTO DE ALE R MONTHLY • AUGUST 2013 sure your service advisors are aware it's available. Tey should have every option in mind when they meet with your customers. If you can concentrate on the work that generates higher sales and gross proft, it will be easier to replace some of the repair sales you are losing each month. Review your average sales per repair order for labor and parts. See if you can gradually increase it by having the service writers using a full checklist consistently. And that goes for every customer and every vehicle, even when they are busy. Take Care of Your Customers: You must have an efcient and timely method of informing the customer about suggested repairs and maintenance. Ideally, you want their approval while their vehicle is still in your service stall. You also need to follow up with your parts and service customers to ensure the work was performed to their highest satisfaction. When it comes to service, every consideration counts. Technicians who change the radio station, leave the driver's seat out of position or make dirty handprints can upset a customer enough to keep them from coming back — even if the service work was performed perfectly. Alerting everyone who is going to touch the vehicle of these simple quality steps can keep customers satisfed. Better yet, they'll be more likely to come back time afer time for all of their service and maintenance work. Tat will generate sales and gross profts for you, rather than your competitors. It will also help smooth out those monthly fuctuations.