Service Advisors

January 22, 2011 by

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.

Filed Under: Featured Videos, Parts, Service Tagged With: , , , , , ,

In Demand Vehicles

January 22, 2011 by

Pain Point: How to Stock Used Vehicles Customers Want

Resolution: Stocking In-Demand Vehicles

Chances are you have someone on staff who fancies himself a used car expert. He’s been a valued employee. He’s been around forever. And, at the drop of a hat or before you can get out your Blackberry, he can tell you the price of a 2002 vehicle with 120,000 miles on it. You know who we’re talking about.

But there’s a problem: Nobody can know it all anymore. The digital revolution has changed how the game is played. Ignore the new rules at your own peril.

As the video below shows, there’s a new way to know and stock the vehicles that your customers want.

For more information, download our In-Demand Vehicles PDF.

Filed Under: Business Management, Sales / Leasing / Finance Tagged With: , , , , , ,

Internet Response Time

January 22, 2011 by

Pain Point: Boosting Online Success

Resolution: Internet Lead Response Time

Your store managers and employees know how to handle “ups” on the lot. They’ve been doing it for years. There’s a system. And if it didn’t work you’d be out of business by now.

But what about the “ups” who visit your virtual store on the Internet? Are you happy with your online performance? More importantly, are you setting and measuring the proper benchmarks? Are you asking the right questions about your Internet ups and how your staff handles them?

For more information, download our Internet Response Time PDF.

Filed Under: Internet, Sales / Leasing / Finance Tagged With: , , , , , ,

Used Vehicle Turn

January 7, 2011 by

Pain Point: ROI: Really Old Inventory or Return On Investment?

Resolution: Used Vehicle Inventory Turn

What does a dealership have in common with the produce section of a supermarket? Both want only fresh inventory.

Brown lettuce and mushy tomatoes are money losers. It’s the same with old inventory on your used car lot. The longer the vehicle sits, the more likely you’ll have to heavily discount it — just to get rid of it.

In the video you’ll learn about how to improve the pace of the “turn” of your used inventory and your return on investment at the same time.

For more information, download our Used Vehicle Turn PDF.

Filed Under: Business Management, Sales / Leasing / Finance Tagged With: , , , , , ,

First Time Fill Rate

January 7, 2011 by

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.

Filed Under: Body Shop, Parts, Service Tagged With: , , , , , , ,

Internet Structure

January 7, 2011 by

Pain Point: Restructuring for Online Sales Success

Resolution: Internet Structure

Car dealerships have been operating for more than a century. There’s a wealth of knowledge about how to organize the store to succeed in the physical world.

But what about the virtual world? The Internet created a whole new game, one that constantly evolves and involves a lot more than your website. Is your team organized to play? Do you have people to fill the new positions on the field of play?

In the video, a leading expert discusses restructuring your store for online success.

For more information, download our Internet Structure PDF.

Filed Under: Featured Videos, Internet Tagged With: , , , , , , ,

Vehicle Receivables

January 7, 2011 by

Pain Point: Cash Clot. Financial Defibrillator Needed.

Resolution: Vehicle Receivables

Clogged arteries slow down blood flow and lead to heart attacks. What’s true for the human body is true for dealerships where the lifeblood of the business is cash.

When a dealership’s financial arteries get clogged that slows the flow of cash into the store and could put the business on life support. Dealers have eight vital signs to monitor their financial health.

The video discusses the dangers posed by one of them and offers a prescription for treatment.

For more information, download our Vehicle Receivables PDF.

Filed Under: Business Management, Sales / Leasing / Finance Tagged With: , , , , , ,

Brand Management

January 7, 2011 by

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.

Filed Under: Internet, Sales / Leasing / Finance, Service Tagged With: , , , , , , , , ,

Shop Proficiency

January 7, 2011 by

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.

Filed Under: Body Shop, Parts, Service Tagged With: , , , , , , ,

Service Department Expenses

January 7, 2011 by

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.

Filed Under: Body Shop, Business Management, Parts, Service Tagged With: , , , , , ,

Internet SEO

January 7, 2011 by

Pain Point: Is Your Website Lonely and Forgotten?

Resolution: Internet SEO

Your website looks great. And it should. You spent enough money on it. But is it as lonely as a pimply-faced teenager without a date on a Friday night?

The fact is that lonely websites make for lonely showrooms. There’s a lot of traffic on the Information Superhighway, but if it’s passing by your website without giving it a glance, you need to make some changes that will make it easier for you to “hook up” with potential suitors online.

The video shows how to not make your website more attractive but more visible.

For more information, download our Internet SEO PDF.

Filed Under: Internet Tagged With: , , , , , ,

E-Contracting

January 7, 2011 by

Pain Point: How to Stop Chasing Cash Every Day

Resolution: E-Contracting

Some of today’s dealerships opened their doors in a bygone era — selling horse-drawn carriages. Unfortunately, some dealers are collecting receivables at about the same pace as the horse and buggy era.

Today, we live in a tweet and text-message world. Failure to quickly collect vehicle receivables leaves many dealers in the frustrating and uncomfortable position of chasing cash every day.

Dealers need to collect at Internet speed, and the video points the way.

For more information, download our Cash Flow E-Contracting PDF.

Filed Under: Business Management, Sales / Leasing / Finance Tagged With: , , , , ,

UNICAP

January 7, 2011 by

Pain Point: New IRS Ruling Benefits Dealers

Resolution: UNICAP

The IRS decided that dealers don’t have to capitalize certain costs and can instead “expense them.” In a major victory for car and truck dealers, the IRS has created two safe harbors under its uniform capitalization, UNICAP, methods of accounting. The IRS decision favorably resolves several contentious and costly income tax issues. When some IRS auditors re-interpreted UNICAP 5 years ago, the affected dealers’ tax bill rose more than $100,000.

Watch the video explaining that most dealers will no longer face such exposure under the new IRS ruling.

For more information, download our UNICAP PDF.

Filed Under: Business Management, Legal / Regulatory, Sales / Leasing / Finance Tagged With: , , , ,

Internet Conversions

January 7, 2011 by

Pain Point: Website Hits and Misses

Resolution: Internet Conversions

In baseball, a batter can’t just have a good-looking swing. He’s actually got to hit the ball. It’s the same with websites. It may look good. But what is its batting average? Is your site even getting to first base with potential customers? Is it striking out too much? And just as in baseball if a batter is not performing well, the manager makes adjustments. You’re the manager of your Internet team.

Watch the video for an explanation of why you should regularly check your website’s effectiveness.

For more information, download our Internet Conversions PDF.

Filed Under: Business Management, Featured Videos, Internet, Sales / Leasing / Finance Tagged With: , , , , , ,

Contracts in Transit

January 7, 2011 by

Pain Point: Cash Flow Giving You a Sinking Feeling?

Resolution: Contracts in Transit

You’re making sales and showing a profit but the bank balance is close to zero or worse! If you’re in choppy financial waters, then somewhere in the store there’s a Bermuda triangle swallowing up cash and threatening to sink the dealership. As captains of the ship, dealers must locate the problem and chart a course to calmer waters.

Watch the video for info on one place to look, and how to navigate around the problem.

For more information, download our Cash Flow Contracts in Transit PDF.

Filed Under: Business Management, Sales / Leasing / Finance Tagged With: , , , , , ,

Selling Tires

January 7, 2011 by

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.

Filed Under: Parts, Service Tagged With: , , , , , ,

CRM

January 7, 2011 by

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.

Filed Under: Sales / Leasing / Finance, Service Tagged With: , , , , , , ,

Used Vehicles Cash Flow

January 7, 2011 by

Pain Point: Is Your Cash Stuck in “Park”?

Resolution: Used-Vehicle Cash Flow

Running a dealership would be a lot easier if only your cash moved as fast the vehicles you sell. If only. Unfortunately, some of your cash is going nowhere fast. And some of it is on the fast track to depreciation. Where is it? Stuck in “park,” sitting on your used-car lot.

Used-vehicle sales helped many a dealer survive when new-car sales took a nose dive. But it only takes a few wrong turns for your used-vehicle inventory to put a significant dent in your cash flow.

Check out the video to see if you’re meeting NADA’s inventory guidelines.

For more information, download our Cash Flow Management and Vehicle Inventory PDF.

Filed Under: Business Management, Sales / Leasing / Finance Tagged With: , , , , ,

Special Order Parts

January 7, 2011 by

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.

Filed Under: Featured Videos, Parts, Service Tagged With: , , , , ,

Paint Booth Rules

January 7, 2011 by

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.

Filed Under: Body Shop, Legal / Regulatory, Service Tagged With: , , , , , ,

Ten Point Inspection

January 7, 2011 by

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.

Filed Under: Body Shop, Service Tagged With: , , , , ,

Risk-Based Pricing

January 7, 2011 by

Pain Point: Requirement for Credit Customer Notices

Resolution: Learning to comply with Risk-Based Pricing

Dealership F & I departments have a new federal rule they must comply with effective January 1, 2011. That’s when the new Risk Based Pricing Rule took effect. Congress mandated the rule when it passed the FACT Act in 2003.

The rule is designed to help customers understand the effect that their credit report has on the credit terms they are being offered. That sound simple enough but finding a way to implement the law’s objective in the real world proved to be far more difficult for the two agencies charged with writing the regulations: the Federal Reserve Board and the Federal Trade Commission. NADA suggested the agencies find a manageable way for dealers to comply with the law. And they did.

Watch the “Dealer Deadline” video to learn more about dealership responsibilities under the new rule.

For more information, download our Risk-Based Pricing PDF.

Filed Under: Business Management, Featured Videos, Legal / Regulatory, Sales / Leasing / Finance Tagged With: , , , , , , ,

Parts

January 7, 2011 by

Pain Point: Cash Flow Killers

Resolution: Getting rid of Obsolete Parts

While it’s true that Cash is King, the King’s life is always in mortal danger at auto dealerships. Every department has assassins in the form of practices, processes and procedures — or sometimes sheer poor employee performance — that are cash flow killers.

As every dealer knows, a balance sheet showing a profit doesn’t mean you have cash in the bank. That balance sheet contains eight critical concerns — every one of them as dangerous as a sniper at point-blank range.

Watch the “Cash Flow Killers” video to learn about one place where dealers are vulnerable.

For more information, download our Parts Management PDF.

Filed Under: Body Shop, Parts, Service Tagged With: , , , , , ,

Selling Service Hours

January 7, 2011 by

Pain Point: Perishable Profits

Perishable Profits

Resolution: Sell all Service Hours available

Dealers don’t sell fruits and vegetables but they carry something that’s even more perishable and far more valuable. Tick. Tock. Every second that passes by is a lost opportunity. Tick. Tock. Every lost minute is potential revenue lost forever. Tick Tock.

Dealer perishables don’t smell up a storeroom as crates of spoiled supermarket produce would. But when you take a look at the impact on your bottom line, you’ll want to hold your nose. “Perishable Profits” explains the one place in the dealership where you never get a second chance at a sale.

Watch the video, and learn to hold on to those Service Department profits!

For more information, download our Selling Service Hours PDF.

Filed Under: Body Shop, Parts, Service Tagged With: , , , , , ,

Privacy Notice

January 7, 2011 by

Pain Point: Need to Adopt New Model Privacy Notice!

Resolution: For quick, intensive learning, see archived webinar, “Transitioning to the New Model Privacy Notice.”

Privacy law requires dealers to notify consumers about their information-sharing practices and to inform them of their opt-out rights. The FTC and the federal banking agencies have released a new model privacy notice form that makes it easier for consumers to understand how dealers and other financial institutions collect and share information about consumers. The new notice is the only notice that will afford dealers safe harbor protection beginning December 31, 2010.

Watch the video to learn more about the new notice and what’s at stake.

For more information, download our Privacy Notice PDF.

Filed Under: Business Management, Legal / Regulatory, Sales / Leasing / Finance Tagged With: , , , , , ,

Extended Service Contracts

January 7, 2011 by

Pain Point: Low Service Contract Sales

Resolution: Profit-Building Tools and Training from NADA University

Service contracts don’t exactly sell themselves, do they? What dealer wouldn’t want a product that not only makes money today but improves service department profitability and brings customers back to buy their next car? If that sounds to you like something that not only boosts profits but builds a business, you’re right.

But the truth is that even the best products are just opportunities – they never really sell themselves.

Watch the video to discover how a single sale can turn into a profit-rippling wave that surges through your dealership and leads to steady growth in every department.

For more information, download our Extended Service Contracts PDF.

Filed Under: Business Management, Featured Videos, Sales / Leasing / Finance, Service Tagged With: , , , , , ,

Exception Deviation Report

January 7, 2011 by

Pain Point: Stolen Service Profits

Resolution: Exception Deviation Report

The famed bank robber Willie Sutton said he robbed banks because that’s where the money is. If he were going after dealership profitability, his richest target would be your service department. Whether through theft, fraud or simply poor practices and processes, it’s easy for profitability to erode in the service department. But when it happens, it’s a stealth attack. No alarms blare. No one dials 9-1-1. In fact, nobody notices a thing.

Click on the video to learn about a financial alarm that will alert you to trouble.

For more information, download our Exception Deviation PDF.

Filed Under: Business Management, Human Resources, Service Tagged With: , , , , , , ,