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Parts Inventory
Extra effort should be given to manage parts
inventories. Any aged inventory over 12 months
without a sale should be discounted and sold
immediately. Larger items such as engines and
transmissions could be listed on eBay for bids. OE
connect is a good program most dealers can use to
discount and sell aged inventory. Check out their
discount parts hub program also that will show
independent repair shops your inventory and give
them the ability to purchase. Most dealers today are
facing some form of inventory management program
from the manufacture. The parts manager should
bring in only items with a solid sales history. Product
lines should be reviewed with restrictions given to
body shop panels and other items that cannot
possibly be customer wait. On hand compliance
discounts must be considered yet should not dictate
bringing in new items to reach with no or slow sales
history. Be sure to check dirty core inventory that
shows on hand. All dirty cores should be returned to
the manufacturer immediately without delay to receive
credit.
Find out more....
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Greetings!
Every dealership must maximize cash flow in these
difficult times. Let's look at a few ways to develop
some cash in today's market. Fixed Operations holds
the best opportunity to grow gross profit and cash in
2009.
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| Customer Pay Work |
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Customer pay service work is the best way to grow
cash flow from fixed operations. Be sure your staff
starts with a good walk around inspection and takes
the time to interact with the customer in detail.
Maintenance that has in the past been missed and
not recommended must be the primary focus. Dust off
the flush equipment and get aggressive in checking
fluid conditions. People are keeping their vehicles
longer and are more willing to put money into
maintenance. Be sure your customers are provided
information on all needed maintenance and repair
items on every visit. Retain the old parts and offer
them for the customer to see or take home.
Dealership integrity is essential to develop in the
customer to retain them. Many times integrity is lost
attempting to sell a $900 dollar 60k package with
items not needed to be performed on their vehicle.
The total focus on the customer's experience provided
by your staff must be consistent with processes that
are never compromised. Is your waiting area stuffed to
capacity at 8:30 an empty at 3:30? If so review your
scheduling process to stop the loss of your customer
base. If your dealership allows your customers to
charge for maintenance or repairs out of the service
department consider changing this practice. Credits
worthy customers have several credit card options
available to them and generate cash at the time of
service. Check your customer accounts receivable to
determine how your dealership is performing on
allowed charges. The foreseeable future will see
challenging new car sales. The best growth
opportunity is in fixed operations and must be
developed.
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Find Out More........ |
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| Get Your Action Plan With Phone Coach! |
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With Phone Coach you get:
An 18 month review of the Dealerships Fixed
Operations financial history.
A report of all data collected. This report includes an
Action Plan to identify areas of improvement
opportunity, with a plan for your team to implement for
gross profit improvement and expense reduction.
A Fixed Performance Coach with over 25 years
experience working in new car dealerships will
personally perform a scheduled phone conference
with key team members.
Weekly progress will be monitored by a Fixed
Performance Coach including a monthly updated
report of your team's progress and accomplishments,
along with an action plan and unlimited phone
support.
The Phone Coach is available for less than the price
of 1 average oil change per working day.
For the month of January we will offer a $200.00
discount for the initial setup fee for new customers.
Please call 888.205.8718 for more details.
Learn More
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