Getting your Service Department Net Profit in Line

Don Reed, CEO

The service department is an essential part of every dealer’s business. By providing quality service, dealers retain their customers while maintaining a high level of customer satisfaction.  To maximize profits and maintain a high level of service, dealers must ensure their fixed operations are in line with their company’s overall goals. Here’s how to get your service department and dealership’s fixed operations in line.

What do successful service departments focus on?

Successful service departments focus on creating a positive customer experience. They maintain high levels of customer satisfaction with a focus on providing every customer with a safe and reliable vehicle while delivering on the friendly service promise. This ensures customers will come back and recommend the dealership to friends and family.

Why are processes important to profitability?

Processes are important to profitability because they help build customer confidence that every service visit will be the same experience every time they come in for service. No surprises.

Keeping employee turnover low, keeps expenses down

Employee turnover is a huge expense for service departments. It can cost a dealership anywhere from $5,000 to $20,000 per employee. By keeping employee turnover low, service departments can keep their expenses down.

Successful dealers train consistently to grow gross profit

Another key focus for successful service departments is producing a consistent gross profit. The service sales team receives consistent training, coaching and monitoring to maximize every service visit.

This means that service departments are able to keep their expenses low while still making a healthy profit.

If your dealership’s net-to-gross is out of line, DealerPRO’s profit potential analysis can help. This analysis can identify areas where profits can be increased. By addressing these areas, dealerships can get their service department back in line and maintain a high level of profitability.

Where do you start if your net-to-gross ratio is way out of line?

The first step is to evaluate your dealership’s overall business strategy. This evaluation will help you identify which areas of the business are contributing to the net-to-gross problem. DealerPRO can help you with this evaluation.

Next, it’s time to get automotive fixed operations training companies to help you address the issues. These companies are experts in automotive service and can help you improve your dealership’s service operation.

Start Improving Your Dealership Fixed Operations with Training, Coaching, and Workshops from DealerPRO Training

If your dealership’s net-to-gross is out of line, DealerPRO’s profit potential analysis can help. After our analysis, we can recommend a training plan just for you, to get your service department back in line and maintain a high level of profitability. Contact us today to get started.

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Don Reed, CEO

DealerPRO Training

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Don Reed is the founder and prime mover of DealerPRO Training. As a former Car Dealer, Don knows it takes a well-trained team in Fixed Operations to be successful in the auto industry. His passion for excellence in service is highly contagious and is why Dealers across the nation consistently vote Don’s ideas to be among the best they’ve ever heard in Fixed Ops.