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Controlling Costs
Controlling operational costs are an essential part of
managing today's environment. Many of our
customers are faced with filling up the tank or of
performing needed vehicle maintenance. We all know
filling up the tank will win over performing vehicle
maintenance. Miles driven by our customers are
declining causing additional reduction in repair order
counts. Let's look at some ways to reduce and control
operational costs at your dealerships. Uniform
vendors have an interesting way to add on costs for
dealerships. Pull out the uniform bill for your
dealership and be prepared for a surprise. You might
find items such as air fresheners for your restroom at
$10 rental per week. Who among us would find a
need to rent mop handles? Mats for high traffic
walking areas are another source of revenue for
uniform vendors. These mats can be purchased at
most discount wholesale clubs for about the cost of
three weeks rental. Many dealerships could use co-
op funds to purchase Mats with the company's logo on
them making a high customer impact. Fender covers
are often rented instead of purchased as well adding
still more cost to the dealerships uniform bill. Don't
forget to watch shop rags that many times get billed
each week for the inventoried amount instead of
usage. I have personally found as much as $13,000
annually expensed for these wasteful rentals at one
dealership. Shop supplies must be tracked by
individual technician use with management reviewing
at least on a monthly basis. When technicians
understand shop supplies are being tracked with
questions asked them on individual use you can
expect a 20% reduction on these costs. There are
many ways to reduce costs for every dealership that
need reviewed including advertising. As a consultant
for dealerships obviously hiring the right consulting
firm will be a benefit far outweighing the cost.
More Information
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Greetings!
Today dealerships are facing many challenges. The
manufactures are no exception with General Motors
stock today valued as low as $10.57 and Ford at only
$4.46 per share. There are many reasons to be
concerned however the focus must be on positive
actions that must be taken today to survive this
environment. To assist dealerships who are facing
struggles with sales my company will perform at no
cost telephone assistance to help dealerships survive
these troubling times. Email me at
rgehring@fixedperformance.com with a request and I
promise you will be contacted as soon as possible to
review your fixed operations.
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| Getting the Most From Your Customer |
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In tough times it's easy to consider ways to beat up
your customers selling additional maintenance that
isn't needed. Compromising integrity is never a way
to prosper a dealership long-term. The best practice
is to inspect the vehicle for needed items to be at peak
performance and inform and educate the customer of
their needs. Advisors must be truly that and give the
customer professional input as to what their vehicle
needs are. If the customer can not afford to perform
all of maintenance needed at this time an advisor
should instruct them as to what is the most important
now. Customer retention will always be more
important then manipulation. We have all experienced
the well-trained salesperson that has a designed
program to manipulate their customer into a
purchase. My initial response to these types of sales
tactics is to refrain from an assault and just leave the
company never to return. The dealership that looks for
the customers needed items on every vehicle and
informs and educates them of these needs will win in
the long term. Hundreds of thousands of
maintenance dollars are missed on an annual basis
at every dealership going without a recommendation.
The dealership must place a strong focus on creating
a positive customer experience on every visit. Review
all of the processes with the goal of achieving this
positive experience and long term growth and
customer retention will follow.
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