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Fixed Coverage Must Improve
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.
Find out more....
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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.
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| Repair Order Counts |
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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.
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More Information |
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| No Better Time Then Now! |
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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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