Used Car Manager Headache: Waiting for Reconditioning

Pain Point: Inefficient Reconditioning Processes

Used Car Manager Headache

Resolution: Implement Procedures and Incentives for Timely Reconditioning

Why do some dealerships ignore their dealers’ investments? It happens every day on used-car lots all across the country where trade-ins sit and sit, waiting to be reconditioned. The used-car manager—who needs those vehicles ready for retail because he’s desperate for inventory—just can’t seem to get anyone’s attention. What’s the solution? You’ll find a few in this video.

For more information, download our Streamlining Reconditioning Processes PDF.

Mismanaging Workflow Hurts Bottom Line

Pain Point: Assigning service jobs to the wrong techs

Service Department

Resolution: Variable labor rates

To the average consumer, one service tech is the same as another. Savvy service managers know better and utilize personnel to productively manage a workflow that requires different talent and skill levels. The failure to properly assign techs to work matching their skills increases costs and reduces profits. The challenge for service managers is similar to one facing coaches of sports teams: putting the right players on the field and in the right positions to succeed.

For more information, download our Increasing Service Profitability PDF.

Time Wasters That Kill Service Profits

Pain Point: Inefficient Parts and Service Processes

Time Wasters That Kill Service Profits

Resolution: Streamline Processes to Save Time and Money

Do you put the ketchup on a burger before you cook it? Of course not. There’s a sequence to preparing the burger and adding the fixings. Service and parts departments have their own sequence but some are out of whack. And when that happens it eats into the store’s profitability. In this video, we’ll show you how improve productivity and profits with advice on how to ensure you’re structured for success.

For more information, download our Structure Parts Dept for Success PDF.

Poor Parts Profits? Here’s the Fix.

Pain Point: Special Order Parts and Obsolescence

Poor Parts Profits? Here’s the Fix.

Resolution: Establish process for Special Order Parts

You can’t rack up profits in service without parts. But too many dealerships have too many parts that are obsolete and quickly declining in value, if not almost worthless. So the profits you pocket in service are lost to the hole in your pocket in parts. What to do? This video shows how to sew up that hole to ensure that your pocket for parts is profitable.

For more information, download our Special Order Parts and Obsolescence PDF.

Pay For Performance Service

Pain Point: Subpar Service Department Performance

Resolution: Pay for Performance

Are you meeting or beating NADA financial performance guidelines? If not, why not, and what can you do about it? Every department has its challenges. In service, for example, maybe the marketing isn’t bringing in enough customers. Maybe there are delays at the parts counter. Or maybe the techs aren’t sufficiently motivated to hustle. Just as financial incentives can pick up a salesman’s pace on the showroom floor, pay for performance can incentivize the service department.

For more information, download our Pay for Performance PDF.

Eliminate Obsolete Parts

Pain Point: Obsolete Parts

Resolution: Sell Them Today!

The parts you have in inventory should be as fresh as the fruits and vegetables in the supermarket produce section. Produce managers quickly discount produce past its prime, get some cash, and restock with fresh products. As the video shows, dealerships should use the same strategy: monitor what you have in stock and sell off parts that are losing value on their way to becoming worthless.

For more information, download our Eliminating Obsolete Parts PDF.

ROs and Cash Flow

Pain Point: Poor Cash Flow

Resolution: Closing Out ROs and Online Invoicing

It’s getting to be the end of the month and you have all of these open Repair Orders. That situation is delaying billing and slowing cash flow. Do you know why? There are quite a few pain points where sludge has built up in your internal processes. They are creating financial inefficiencies that cost money. In this video, experts will identify the key pain points and how to fix them.

For more information, download our ROs and Cash Flow PDF.

Obsolete Parts

Pain Point: Obsolete Parts

Resolution: Keep Parts “Fresh”

The sophisticated palate appreciates the flavors and aroma of a finely aged wine. The longer the wine bottle sits on the shelf, the better the taste, and the higher the value. Not so with automobile and truck parts. Age adds dust to parts on the rack and red ink to your balance sheet — two ingredients sure to put a bitter taste in your mouth. When it comes to parts, they should be more like vegetables — fresh. And in the video you’ll see how to keep them that way.

For more information, download our Obsolete Parts PDF.

Service Free Inspections

Pain Point: The Need to Build Service Revenue

Resolution: Offer Free Inspections

When people go to the doctor’s office, they get a free inspection. No matter what the ailment, their blood pressure and pulse are checked. And sometimes those checkups discover other ailments, leading to further tests, diagnoses and remedies. Everything is meant to lead to better health outcomes. At the same time, the necessary additional work increases the doctor’s revenue. As you’ll see in the video, the same process, applied to your service lane, could be just the miracle cure you’re looking for to increase revenues and customer satisfaction.

For more information, download our Service Free Inspections PDF.

Dirty Cores

Pain Point: Lost Revenue

Resolution: Active Management

Many a ship has been lost in the Bermuda Triangle or so the legend goes. Many a captain has been wary of entering those waters. Are you navigating a safe course and protecting the valuable cargo in your parts department? In this video we’ll discuss an area where three out of four dealers lose money. See how and what steps you can take to stop it.

For more information, download our Parts Management Cores PDF.

Discounting Labor/Pay Plans

Pain Point: Discounting Labor/Pay Plans

Magic of Disappearing Profits

Resolution: Analyzing and Auditing Repair Orders

Magic acts are for the circus—not your dealership. Everyone knows they’re not cutting a woman in half but you wonder, “How did they do that?” It’s the same when a magician makes things disappear. The question is, do you have magicians working for you? Do they make profits “disappear” in the service department? In this video, you’ll learn how to find out and what you can do about it.

For more information, download our Improving Service Profitability PDF.

Inventory Integrity

Pain Point: The Part Isn’t Where It’s Supposed to Be

Hide and Seek

Resolution: Inventory Integrity

Hide and seek is fun when you’re a kid. But it’s no fun and a costly “game” when a part you need is “hiding.” For whatever reason, it’s not where it’s supposed to be and you’re wasting time (read money) looking for it. With thousands of parts and hundreds of thousands or millions of dollars worth of parts in inventory, the inability to find what you need promptly is a sign of a system breakdown. In the video you’ll learn what you can do about it.

For more information, download our Parts Inventory Management PDF.

Competitive Service Pricing

Pain Point: Perception of Service Pricing

Resolution: Publicize Competitive Pricing

The average consumer thinks dealership services cost the most. That’s the perception. Is it accurate? In most cases, it isn’t. But what are you going to do about it? The longer you do nothing, the more it costs you. You’re competitive in a variety of services but there’s no reward for keeping it a secret from customers and potential customers. In this video, you’ll learn how to take some steps to improve service sales.

For more information, download our Service Competitive Pricing PDF.

Parts Dept Financial Performance

Pain Point: Poor Parts Department Financial Performance

Man on wire

Resolution: Active Management

Running a parts department is a lot like performing a high wire act. It’s all about balance. A slip-up on the high wire can be deadly. Slipping up in parts will kill your profits. In this video, we’ll look at how to keep your balance — having enough of the right parts to meet consumer demand while avoiding overstock issues that can crimp cash flow.

For more information, download our Parts Active Management PDF

Service Department Performance

Pain Point: Poor Service Department Performance

Process Makes Perfect

Resolution: Process Boosts Profitability

It’s true that “practice makes perfect.” It’s also true that it takes good people to turn a profit. But even the best people will deliver spotty results unless they’re following a well-defined process. So, ultimately, process makes perfect. That’s true no matter what part of the dealership you’re evaluating. In this video, we’ll look at the keys to success in the service department — from process to measuring success. And as you’ll see, getting the process off to a good start is critical to reaching a profitable ending.

For more information, download our Service Department Process PDF.

Increasing Service Sales

Pain Point: Underperforming Service Advisors

Super Size It

Resolution: Make Orders, Don’t Just Take Them

While it may seem like success depends on having all the answers, a lot of times success really depends on asking the right questions. Nowhere is that more crucial than with service advisors. They can have a huge impact on the bottom line if they’re trained to up-sell. After all, even the fast food order taker who writes down “burger, fries, and a Coke” asks if you’d like to super-size it. You need that same mentality at work in the service lane.

For more information, download our Increasing Service Sales PDF.

Service All Makes/Models

Pain Point: Boosting Service Profitability

Resolution: Service All Makes and Models

You service the vehicles you sell. Everybody gets that. But you have the best trained service technicians in town. They can fix anything. Why not let them? Not only will they enjoy the challenge, it will keep them motivated and productive. And the potential addition to the bottom line could be huge, increasing not only service revenue but parts revenue as well. The video showcases a dealership that utilizes its service techs talent to the max.

For more information, download our Service All Makes/Models PDF.

Theft

Pain Point: Insider Crime: How to Handcuff a Crook

Theft

Resolution: Internal Audits and Reconciling Accounts

Trust but verify. It’s a Russian proverb made famous by President Ronald Reagan who used it frequently when discussing U.S. relations with Russia. A “trust but verify” policy with employees at your dealership may save you a lot of money and headaches when it comes to a uniquely American phrase: The Five Finger Discount. Act now before the police string up the yellow crime scene tape at your store.

For more information, download our Theft PDF.

Defending Online Reputation

Pain Point: Online Gossip About Your Store Getting Ugly?

Defending Online Reputation

Resolution: Actively Defend Your Reputation Online

What’s the old saying about publicity? Even bad publicity is good, as long as you spell my name right. That may be true for the bad boys and girls of Hollywood fame and misfortune but that’s not the kind of reputation that bodes well for long-term success in the car business. As the video demonstrates, with today’s communication tools available to any disgruntled consumer, it’s important to defend your reputation online.

For more information, download our Online Reputation PDF.

Parts Turn

Pain Point: Slow Parts Turn — Missing the Passion?

Resolution: Faster Parts Turn

Nobody gets into the car business for the love of parts. Let’s face it. The passion that dealers and employees have for cars — whether selling or fixing them — doesn’t extend to the parts department. But if nobody pays attention to what’s happening in parts, the dealership’s bottom line will need fixing. To ensure your love affair with the business is a profitable one, you’ll have to romance your parts department. The video includes some “dating tips” to do just that.

For more information, download our Parts Turn PDF.

Service Advisors

Pain Point: Salesmanship in the Service Lane

Resolution: Service Writers

Your hot-shot salesmen might parade around the showroom in starched shirts with French cuffs. But your biggest-grossing employee might be on the job long before the showroom doors open.

High-performance service advisors keep everyone in the store busy. Unfortunately, far too many employees in the service lane are masters of the profit-killing “one-line repair order.”

Before you fix another vehicle, fix that problem. And in the video right below, you’ll see how.

For more information, download our Service Advisors PDF.

First Time Fill Rate

Pain Point: What’s Your Parts Department Batting Average?

Resolution: First Time Fill Rate

In baseball, a player’s batting average is a key measure of success. Anyone hitting .300 is performing way above average. Only 23 players batted .300 or better in 2010.

But while a .300 batting average is terrific in baseball, that would be an awful performance for your parts department, one that would not only be a profit drain but make for a lot of unhappy customers.

In the video, you’ll learn how to measure your parts department batting average and how to spot clues that it could be doing a lot better.

For more information, download our First Time Fill Rate PDF.

Brand Management

Pain Point: Is Your Reputation Getting Hammered Online?

Resolution: Page One Management

Reputation. It takes years and untold amounts of money to build a solid reputation. But only seconds to lose it on the Internet.

Brand damage usually refers to a product in crisis. But in the case of dealerships, the brand is the dealer’s name. It’s easy for dissatisfied and disgruntled consumers to go online and attack dealers. Nobody’s perfect and everyone makes mistakes but dealers put their dealerships in peril if they don’t defend their reputations online.

The video describes some of the challenges and solutions.

For more information, download our Brand Management PDF.

Shop Proficiency

Pain Point: Why You Should Close Your Back Parts Counter

Resolution: Shop Proficiency

Shutting down your back parts counter may sound drastic but some dealers have done it with good results. They include more efficient — and profitable — parts and service departments.

The origin of the adage, “Time is Money” can be traced to the ancient Greeks. The modern variation of that phrase for dealerships would be “turning clock hours,” which is the key to profitability.

The video shows how to spin the clock a little faster.

For more information, download our Shop Proficiency PDF.

Service Department Expenses

Pain Point: The Dollars and Cents of Nuts and Bolts

Resolution: Cutting Service Department Expenses

A highly profitable service department saved more than a few dealers during the economic downturn. Once considered the back end of the business, it’s now the backbone of a dealership.

Two signs of a successful service department are busy techs and a steady stream of vehicles into your service drive. But just as important as increasing service revenue is keeping a lid on expenses.

The video offers several ways to do just that.

For more information, download our Service Department Expenses PDF.

Selling Tires

Pain Point: Pumping Up Service Profitability

Resolution: Selling Tires

Are your service advisors on the lookout for wear and tear on the vehicles pulling into the service drive? All it takes is a few seconds to check the tread and add a line to the repair order.

In fact, you’ll be surprised how many people need new tires. Improving the customer’s grip on the road also propels profitability into the fast lane for both your service and parts departments.

As the video explains, every new set of tires you inflate triggers several benefits for the store, and customers will appreciate being alerted to potential safety issues.

For more information, download our Increasing Service Profitability PDF.

CRM

Pain Point: Boosting Be-Backs and Closing Ratios

Resolution: Good CRM

Dealers have lived the adage, “If at first you don’t succeed, try, try again.” But is your sales department giving up after the first try? Of course, it’s not your policy to give up. But sometimes practices and procedures, or the lack of them, produce the same result. Managers and employees need to know that the store’s success—and their jobs—depend on getting a second chance with people who didn’t buy on their first visit.

Watch the video for an explanation of why Customer Relationship Management is the way you “try, try again.”

For more information, download our CRM PDF.

Special Order Parts

Pain Point: The Survivalist Parts Manager

Resolution: Special Order Parts

Unless you’re a survivalist, you don’t have a year’s supply of food in your house. Why tie up the money? Besides, some of the food inventory could spoil.

But does your parts manager have survivalist tendencies? Is your parts department overstocked with parts that are on the costly road to obsolescence? Poor parts management costs you money in two ways. First, it ties up cash today. And there’s a carrying cost to that. Second, parts with no demand history lose value that can’t be recouped.

Watch the video — it points the finger at the #1 cause of obsolete parts.

For more information, download our Parts Management PDF.

Paint Booth Rules

Pain Point: Are You Ready for New Paint Booth Rules?

Resolution: NADA University training on new EPA rules for Body Shop Emissions

Between six and eight thousand dealers have body shops. The new rules issued by the Environmental Protection Agency govern the equipment being used and the employees using it. The rules are intended to protect the environment, body shop employees and the people in the surrounding community.

The video provides an overview of dealership responsibilities.

For more information, download our Paint Booth Rules PDF.

Ten Point Inspection

Revenue Booster: How “Free” Adds Up!

Free Inspection

Resolution: Free Maintenance Inspection

If there is any good news in vehicle sales at recession levels, it’s that the aging fleet on the street needs more service than ever. More and more people are keeping their vehicles for longer periods and, more than ever, need their cars kept in good running order.

All of that is obvious to the naked eye. But sometimes managers are blinded by “fires” they have to put out on a daily basis. The fact is many dealers don’t need more customers in the service department—they need to more fully service their existing customers’ vehicles.

As the video shows, that all starts with the word “free.”

For more information, download our Ten Point Inspection PDF.