This is why you are not realizing the net profit that you deserve from your investment in fixed operations.”
Assuming your expenses are in line, then there are only three ways to increase net profit.
1) Increase your gross profit margins on labor and parts sales.
2) Increase your sales per repair order
3) Increase your repair order count
Let’s focus on #3.
How can you increase your repair order count or “service traffic?”
I’m going to give you 6 ways to bring more customers into your service department and they won’t cost you anything. So relax, I’m not going to suggest you double your advertising budget!
1. Offer Same Day/Next Day Appointments
Your aftermarket competition will tell your customers that they can bring their vehicle in “today” or “tomorrow.” So your answer has to be one day.
If it takes two days or longer you are losing business to the aftermarket because they are more convenient and responsive to the customer’s needs.
So you need to focus on shop productivity or capacity.
2. Optimize Shop Productivity
If you are at 100% or higher you need to hire technicians because you can’t reduce the wait time for your customers to come in unless you have the capacity to complete the repairs in a timely manner.
You don’t need Master Techs to increase your service sales. You need “C” and “B” level Techs that can perform lower skill level repairs and maintenance. Hire a Tech and your existing Techs will produce more.
An average Tech will generate a minimum of $10,000 in gross profit per month so what is holding you back? 90% of you need to hire a Tech TODAY.
3. Refine your appointment process
If you are like most dealers, 80% of your customer pay sales start with a telephone call to your dealership. Most of these calls go to a Service Advisor. In other cases they go to a BDC, CDC or to an appointment coordinator.
Please understand that the primary mission of the person receiving the call is to schedule an appointment. They DO NOT
• Quote prices so the customer can shop around,
• Diagnose the customer’s concern
THEY SHOULD IMMEDIATELY GIVE THE CUSTOMER THE OPTION TO BRING THE VEHICLE IN TODAY OR TOMORROW SO A FACTORY TRAINED TECHNICIAN CAN PROPERLY INSPECT THE VEHICLE AND PROVIDE AN ACCURATE DIAGNOSIS.
TRAIN YOUR ADVISORS TO ASK FOR THE APPOINTMENT.