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Developing a Strong Customer Base
New car dealerships have always struggled with
customer retention after the warranty expires. This
business generally goes to places such as Firestone,
Goodyear, or Midas. Now is the time to challenge your
store and look beyond accepting the loss of these
customers. The focus must be on proper processes
and procedures to maximize the customer
experience. With strong advantages such as special
tools and training for the technicians independent
repair shops should be easy prey for gaining
customer counts. Last week I called a new car
dealership attempting to take my wife's car in for an oil
change. I was surprised when the advisor informed
me that were booked up and could not provide me
service until the following week. Needless to say I did
not schedule that appointment and am positive most
customers wouldn't. Before you question the
practices of this dealership challenge yourself to look
at your operations. What policies or processes do you
have in place that consistently sending customers
away? Invest the time now as your new business
model must take shape. The auto dealership model
has changed. You must adapt to it and accept the
challenge to prosper.
Find out more....
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Greetings!
The news for new car dealerships hasn't been
pleasant for a while now. I am amazed that many
dealerships are awaiting a phone call to inform them
if they will have the availability to purchase new
vehicles in the future. The reality is however for all of
us new car sales will be challenging even for the
chosen stores that will be allowed to continue selling
new product. A new business model must be
developed that will increase fixed coverage and used
car gross profit. This month will look at a few ways to
develop and prosper in this market.
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| The Used Car Business |
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I understand that many dealerships have stopped
preparing use cars properly for sale. The logic is that
when the vehicle is sold they will perform the services
if requested by the customer. The problem is that
most customers won't ask the dealership to repair the
vehicle instead searching elsewhere for a vehicle in
better condition. Why not develop your own
certification process on used cars that informs the
customer of maintenance items completed and
vehicle condition? If the brakes were below 25% and
replaced with the rotors resurfaced the sales staff
should present it as an additional reason to purchase
a used car. The service manager would be proud to
sign off on a used car that was properly serviced
addressing all issues on that vehicle. Post this
information on the rear window of the vehicle so the
customer would see the information. One time I
challenged the used car manager to do 10 of these
vehicles and see which ones who sold first and
created the most used car gross profit. It did not take
long to recognize customers were drawn to the units
that were reconditioned in the service department
before they were placed on the lot. The service
department must understand used cars need to be
equal to any customer getting a repair to a vehicle.
Used cars can't be put on hold for weeks to get run
through the shop. A good rule to follow is that used
vehicles be processed within two business days of
being available for service. If you can't be proud of a
used cars condition wholesale it and don't even place
it on your lot.
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Find Out More... |
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| Let Us Help |
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Let us help your team develop a plan to adapt and
prosper in this market. The real cost is to do nothing.
Call Rob Now at 419-282-1351 and chat.
Our Price:
$
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