“If you are like most dealers, you do not have an expense problem but you do most likely have a lack of gross profit. This is why you are not realizing the net profit that you deserve from your investment in fixed operations.”
“For the second year in a row, automakers set an all-time U.S. sales record. With all those new vehicle sales, you’d think their retail Fixed Ops traffic would grow so sales per RO and Service Gross Profits would reach record levels, too–right?”
“It’s called making a net profit of about $2 million a year plus a nice salary and a dynamite boat! I wonder what would happen if the dealer would just allocate another 10% of his advertising budget to fixed operations? I’ll let you do the math!
Sound too good, to be true? Well, it is true for one of our GM dealers in Michigan who made a commitment to train his Service and Parts Team to always “Put the Customer FIRST” when performing their day to day operations.
“Far too often in our industry we have Dealers, General Managers, Service Directors, etc. who focus on and measure themselves in terms of the ‘average’ dealer. But ‘average’ is nothing more than a reference point. Average means you are the “Worst of the Best or the Best of the Worst!”
“The measure of success is not whether you have a problem to deal with, but whether it is the same problem you had last year.” — John Foster Dulles Does this apply to your Service Department? If your “Service Absorption” is less than 100%+ year after year, then you are dealing with the same old problem.
“There are two kinds of dealers in our industry today: those who are living up to their profit potential, and those who are not. “Those who are optimized are enjoying success and thriving. The others are limiting themselves and will struggle the most … Which are you?”
Finding The CureThe cancer within is called “Lack of Accountability.” Yet in virtually every dealership, I find maximum accountability for everyone’s performance in the Sales Departments.But when I cross into…
Take This Simple TestAfter you ‘CHECK OUT’ your Service Department you will find the problem areas that need to be addressed and possibly form an action plan as to how…
Develop Your StrategyLet’s look at some strategies that will enable all of you to achieve BIG. Our focus will be on the retail service customer since that is the greatest…