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Fixed Performance Inc Newsletter
The Future of Fixed Operations March 2008

in this issue

Fixed Coverage Must Improve

Repair Order Counts


 

Fixed Coverage Must Improve
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New vehicles sales will continue to struggle for the foreseeable future. This increases the importance of fixed operations prospering and increasing fixed coverage. The investments for technician training and special tools will continue to increase as systems increase in complexity. To offset these costs technician hours sold and facility utilization must be the source for additional gross profit. Several factors should benefit fixed operations for 2008. Long term financing contracts on new vehicle sales have increased in the length of terms. This practice that started three years ago have owners that can not trade in their vehicle due to its value being less than the amount owed. These owners will be faced with adding additional cash to the trade or fixing their current vehicle. It is also believed that tighter credit will not allow many people that desire a new car to obtain financing. With fuel costs increasing the importance of maintenance will increase to maximize fuel economy. Every shop must have a customer intake process that visually inspects for every needed item on every vehicle. Dealers must invest in training staffs on proper processes and procedures to maximize customer care. The days of allowing advisors not to leave their seat and inspect vehicles are far behind us. Hundreds of thousands of dollars are lost annually by individual advisors not even recommending needed maintenance items. Popping the hood with the customer with them explaining and showing their needs is the only way to retain them. High-pressure is not an option in today's market we must educate and inform them so they can make the proper decision on maintenance and needed repairs.

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Greetings!

Getting the most from dealership fixed operations is critical in today's marketplace. Dealers must place a priority on proper advisor performance and training. This month we look at a few ways to improve customer satisfaction and care.


  • Repair Order Counts
  • Most dealership service personal do not have a good handle on how to achieve great repair order counts. They believe that customers that show up get waited on and if things are slow oh well tomorrow is another day. The truth is that management of repair order counts is a critical part of proper customer care. If a manager is asked how many service technician hours are scheduled for tomorrow he should know the answer. The time to deal with a slow schedule is before the day is here. Let's look first at the proper way to schedule. The customer's appointments should be staggered every 15 minutes to allow time for advisors to perform walk around and popping hoods. If a customer needs a special time of day like 8:00 it might be more days before that slot is open. Waiters should be separated with all advisors using a special number to be sure staff is able to process them promptly. Many times advisors over schedule waiters at 8:00 AM just because they do not know what the other appointments are. If a shop has 15 people show up at 8 as a waiter repair appointment what are the chances of providing proper customer care? All you need to do is watch your customer lounge at 8:30 for a while and look again at 10:00 AM. You might find some of the same people still waiting! Then the Customer lounge becomes quite most of the day with only a few people. This is sloppy management and will cause poor customer satisfaction and retention. Many advisors I train do not believe customers will use appointments. When I challenge them explaining it works for doctors and dentists they state they are not automotive. Then again I explain it works for oil changes correct? Let's face it folks it works only when the appointment schedule is done properly. Management needs to look ahead at the schedule and inform advisors of open technician hours available for the next day. They should estimate the hours needed for each appointment and have a goal of booking at least 85% of technician hours available. If appointments are short they should be proactive and begin calling open recall customers, tow truck companies, fleets, and used car dealerships doing free inventory checks for open recalls. On a slow day advisors should call tow truck companies stating we have a quick turn around for tow in vehicles today. They love to know where to take the cars let's tell them! The focus on technician hours averages per repair order combined with repair order counts will generate the maximum gross profit improvement. Proper scheduling and planning is the only way to provide customer care and isn't that why we are here? To gain great repair order counts and retain customers understand the need for management to gain control of the scheduling policies.

    More Information
  • No Better Time Then Now!
  • Fixed performance just announced a new pricing program that makes it lower cost to get started training your staff on the proper processes and procedures to improve your fixed operations immediately. Call Jeff Katz for more information at 601-942-2342 on this exciting new program! Make 2008 your best year ever and call now.

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