HOW TO USE FRONT-END IDEAS TO GET BACK END RESULTS

Don Reed, CEO

Recession-Proof Your Dealership 

If you would like to “Recession Proof” your Dealership in this coming year, you can do so by increasing your “Service Absorption” or “Fixed Coverage” as some like to call it. Fact: Many dealers have increased their service Absorption to 100% or more.

In simple terms, you can get your Service and Parts departments to generate enough gross profit to pay for ALL (100%) of your Dealership’s total fixed overhead expenses, which means that your Sales department is left with covering the Variable Selling expenses.

Sound like “FANTASYLAND?” Please read on.

Service Writers Can’t Do It – Advisors Can
Ask yourself this question:  “Do I employ Service Writers or Service Advisors in my Service Department?”

What is the difference, you ask? Well, a Writer simply writes the customer’s concerns on a repair order and then dispatches it to a technician.

An Advisor writes the customer’s concern on a repair order, walks around their car with them, advises them of any obvious service needs, makes recommendations for a maintenance program and advises the customer that a factory trained technician will perform a 27 point courtesy inspection of their vehicle at no charge. Simply put, a Writer is essentially a clerk. An Advisor is a salesperson.

Measure Performance
In your Sales departments and F&I departments you are probably measuring the performance of your Salespeople and Managers on a DAILY, WEEKLY and MONTHLY basis, right? Do you do the same for your Technicians, Advisors (Writers) and Managers?

Most Dealerships have sales goals for new and used vehicles and F&I products.
Do you have sales goals for customer pay repair orders, maintenance menus, and preventative maintenance?

If your Sales department has goals for GROSS PROFIT PER RETAIL UNIT and F&I GROSS PROFIT PER RETAIL UNIT, then why not have goals for
                   •  HOURS PER CUSTOMER PAY REPAIR ORDER,
                   •  DOLLAR SALES PER REPAIR ORDER and
                   •  GROSS PROFIT AS A % OF SALES for labor and parts sales.

Pay for Performance
If you believe in PERFORMANCE BASED PAY PLANS for you Salespeople and Sales Managers then why not do the same for your Advisors (Writers), Service & Parts Managers and ALL Technicians?

If you have minimum performance standards for your Salespeople, you should also have performance standards for your Advisors (Writers).

Answer this question: “What would you do with a Salesperson who averages 5 vehicle sales per month?” There are only two options. Train and show him or her how to sell 10+ vehicles per month or conduct an EXIT INTERVIEW!

Now answer another question: “What would you do with a Service Writer that only writes 1.5 hours per customer pay RO?” Your options remain the same. Train and show him or her how to sell 2.5 hours per customer pay RO or let them join the 5-car salesperson in the EXIT INTERVIEW!

Front & Back Accountability 
If you hold your Salespeople accountable for their sales performance, then why not do the same for your Service Advisors? By the way, you will most likely experience a higher CSI rating for your Advisors once they learn how to ADVISE.

Inspect what you expect by using Daily Performance Evaluations of your Service Advisors’ sales productivity. Set realistic goals for them, coach them daily and get them professionally trained on how to be a salesperson (Advisor). Now you are on your way to making your Dealership “Recession Proof.”

Call me toll free at 1-888-553-0100
Or email dreed@dealerprotraining.com.

 

 

 

Don Reed
CEO-DealerPRO Training

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6 WAYS TO INCREASE YOUR SERVICE TRAFFIC

“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.”

Don Reed, CEO

DealerPRO Training

senior man smiling

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.