Check Out Your Service Department

After 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 you can make a difference in the upcoming months.

 

First question: How many answers did you not know? Second question: How many answers did your managers not know? To formulate an action plan for improvement, you must first realize that you “can’t manage what you don’t measure.” All 12 items listed below should be reviewed and evaluated daily. Your numbers listed below are the results of the efforts of your people, so if you focus on “managing the efforts” of your people daily, your results will improve. Additionally, to maximize your results, you must pre-plan the efforts of your people through daily performance goals. These goals must be given to your technicians, service advisors, service manager, shop foreman and parts manager daily and then evaluated at the end of each day, similar to what you may be already doing in your sales department.

1. Each Service Advisor writes between

15 and 20 repair orders per day ________________

profit ________________

 

When it comes to selling to our service customer, the service advisor is where it all starts. Now ask yourself this question: “How much sales training have I given my advisors?” The answer I’m sure is, “Little to none.” We must understand that a service advisor is a salesperson and not a clerk. As such, they must be professionally trained how to meet and greet the customer, investigate to determine their needs, select a product that satisfies those needs, make a feature/benefit presentation on the product and ask the customer to buy it! Sound familiar?

 

In addition, you must embrace the philosophy of all the fast food chains in America. “Would you like to SUPER SIZE IT for 50 cents?” By this, I mean you must simply give every customer that drives in your door the opportunity to say YES to one additional purchase. Is this not what you do in your F&I department? For every 10 service customers you ask to buy your product, a minimum of 2 will immediately say OK, another 1.5 will do so on the second try. That sounds like a 35 percent closing ratio, which in turn will give you a 35 percent increase in customer pay parts and labor sales. This is exactly what all of the independent service centers are doing with their $19.95 oil change customer. Research shows that the average “quick lube” service center has an average sale per repair order of about $86! That equals an average upsell of about $60 per RO. Multiply $60 times the number of customer pay RO’s you wrote in your service department last month; then multiply that number times 12 to see how much additional sales you should be getting in the next year. To put it in another perspective, this is how much you “lost” in sales in the last year by not training your advisors to SUPER SIZE IT.

 

Let’s review our strategy. First, you must “measure what you need to manage.” Second, you must “inspect and evaluate” the efforts of your people “daily.” Last of all, you must get your service advisors professionally trained on how to “sell in the service lane.” The results will be there for the dealers who are committed to operating their service and parts departments as profit centers.

 

Vol 2, Issue 7