COLUMBUS, OH—Don Reed, CEO of DealerPro Training Solutions and an NADA Top 10 speaker since 2008, has announced an increased Service Gross Profit Guarantee for automobile dealers nationwide.
This applies for dealers who implement DealerPro’s In-Dealership Performance Driven Training program. This 13-month program installs new policies and processes guaranteed to increase customer pay hours per RO and CSI.
The results from this No-Risk program are so dramatic that DealerPro says a typical dealer will increase Service Gross Profits at least $200,000 within the program’s 13 months. Dozens of dealers have hit this mark and become proud members of the DealerPro $200K Club.
More important, dozens more dealers have exceeded the $200K mark, earning more than $300,000 … and $400,000 in additional Service Gross Profits. One dealer is currently on track to make more than $900,000 additional Service Gross Profits in his first 13 months on the program.
Because dealers are enjoying such tremendous success under the DealerPro Performance Driven Training program, Mr. Reed is providing a Performance Guarantee … and a Money-Back Guarantee as well. “We do the job, or we don’t get paid,” says Mr. Reed.
DealerPro trains Service Advisors to sell, and provides them with the tools for success. The result: 40% or better Increases in customer pay sales … Increased RO count, Increased sales per RO, more incoming calls converted into appointments … and more.
Mr. Reed has more than 20 years experience as a dealer and more than 10 years as a trainer. As a Twenty Group Advisor and consultant, he has helped hundreds of dealerships dramatically improve Service Gross Profits.
“The real growth in Service Gross Profits comes from monthly monitoring and refresher training built into the DealerPro process,” says Mr. Reed. “That’s how we can guarantee success.”
For more information visit www.dealerprotraining.com, call toll-free at 1-888-553-0100 or email Don Reed: dreed@dealerprotraining.com.
DealerPro Announces Phone Training Schedule For 2011
Once in a while a great deal comes along. Your friend has tickets to the game at half price…you find the golf clubs you want on sale at 40% off…the caterer for your daughters wedding throws in two bottles of champagne for the wedding party… great deals come in all shapes and sizes.
This is a great deal.
DealerPro Training Solutions is sponsoring 10 Training Sessions covering topics ranging from Increasing Your Service Absorption to Overcoming Objections starting January 5th, 2011!
All you need is a phone and a workbook…the seminars are FREE! It’s simple to register! Just send an email to freetraining@dealerprotraining.com so we can send you the password for the workbook.
It’s That Easy!
Each Training Session will last approximately 1 hour with a rebroadcast later in the day. These seminars are for Dealership Management Personnel, Fixed Operations Personnel, Service Advisors, Parts Advisors and anyone that has a Customer Service role in your Dealership.
All of the material is from DealerPro Training Solutions extensive Training Library and includes our most popular subjects from Training Manuals, Articles written by Don Reed the CEO of DealerPro Training Solutions, DealerProVT, Blog Posts and other Training Modules.
And the best thing is…it’s FREE!
Just send an email to freetraining@dealerprotraining.com so we can send you the workbook password and seminar schedule. We will do all the rest! All you have to do is call in on the designated day, listen, complete the workbook and implement the Training!
Of course, DealerPro is ready to help should you need or want additional Fixed Operations Training. You can tell us about that at your convenience. We are a full service Fixed Operations Training Provider and NADA University Partner. Go to www.dealerprotraining.com or www.dealerproblog.com for more information about us.
If you miss the start time, don’t worry! We will rebroadcast the seminar later in the day.
Send an email to freetraining@dealerprotraining.com and get signed up!
This is a great deal.
DealerPro Training Solutions is sponsoring 10 Training Sessions covering topics ranging from Increasing Your Service Absorption to Overcoming Objections starting January 5th, 2011!
All you need is a phone and a workbook…the seminars are FREE! It’s simple to register! Just send an email to freetraining@dealerprotraining.com so we can send you the password for the workbook.
It’s That Easy!
Each Training Session will last approximately 1 hour with a rebroadcast later in the day. These seminars are for Dealership Management Personnel, Fixed Operations Personnel, Service Advisors, Parts Advisors and anyone that has a Customer Service role in your Dealership.
All of the material is from DealerPro Training Solutions extensive Training Library and includes our most popular subjects from Training Manuals, Articles written by Don Reed the CEO of DealerPro Training Solutions, DealerProVT, Blog Posts and other Training Modules.
And the best thing is…it’s FREE!
Just send an email to freetraining@dealerprotraining.com so we can send you the workbook password and seminar schedule. We will do all the rest! All you have to do is call in on the designated day, listen, complete the workbook and implement the Training!
Of course, DealerPro is ready to help should you need or want additional Fixed Operations Training. You can tell us about that at your convenience. We are a full service Fixed Operations Training Provider and NADA University Partner. Go to www.dealerprotraining.com or www.dealerproblog.com for more information about us.
If you miss the start time, don’t worry! We will rebroadcast the seminar later in the day.
Send an email to freetraining@dealerprotraining.com and get signed up!
DealerPro Announces NADA Convention Seminar Schedule
Don Reed, CEO of DealerPro Training Solution is scheduled to present “Implementing The Four Essentials To Service Absorption” at the NADA Convention in February 2011.
There are four seminars to choose from.
Friday February 4th@1:30pm in Room 2018 West.
Saturday February 5th@1:00pm in Room 303 South Esplanade.
Sunday February 6th@11:00am Room 2016 West.
Monday February 7th@8:30am Room 2016 West.
Don has been a Top 1o NADA Convention Speaker since 2007. He recently completed a seminar schedule in England where he delivered workshops and seminars on The Four Essentials To Service Absorption to Dealer Principals and Service Managers.
You will leave with Action Steps you can take to start increasing your Service Absorption right away.
There are four seminars to choose from.
Friday February 4th@1:30pm in Room 2018 West.
Saturday February 5th@1:00pm in Room 303 South Esplanade.
Sunday February 6th@11:00am Room 2016 West.
Monday February 7th@8:30am Room 2016 West.
Don has been a Top 1o NADA Convention Speaker since 2007. He recently completed a seminar schedule in England where he delivered workshops and seminars on The Four Essentials To Service Absorption to Dealer Principals and Service Managers.
You will leave with Action Steps you can take to start increasing your Service Absorption right away.
Be A Compelling Leader In 2011
2011 is on the doorstep.
Anytime of the year is time for reflection, goal setting and renewed committment.
However, this time of the year is particularly important as the year is winding down and we take time to look at what we have accomplished in 2010 and what we would like to do better in 2011.
This is not a “Goal” setting blah blah blah blog post. If you are in a Leadership position in your Dealership and you need a lesson on Goal setting and business planning, sorry to disappoint.
This is the first in a 5 Part Series on Leadership.
The nuts and bolts of Goal setting and business planning is in here in several different posts like “Service Absorption Rule #1″ and “Crunching Your Service Numbers.” Search the blog posts and you will find them.
A little background. I am constantly in search of new ideas or maybe old ideas presented in a new way. I had been leading seminars for a well known training company and I was assigned to deliver a Communications seminar to a large transportation organization.
I always arrive early so that I can look around and quite frankly, I spend a lot of time looking at what people put up on their walls. You can tell a lot about an organization from what you find hanging in the lobby or in the training room. (Ever notice that that the places with the most Rules posted on the walls always seem to be the unfriendliest?)
I noticed that this organization had a lot of Leadership thoughts posted. I found one very, very interesting Leadership model hanging in the training room and I copied them down. I transferred them to a 3×5 card and posted them on the wall in front of my desk. I look at them every day and think of their meaning often.
Here is the first one and the beginning of this 5 part series.
“Create A Compelling Vision”
Creating a “Compelling” Vision and one that is well, ordinary, is really two very different things.
The word compelling means “forceful” and “driven.” Combine that with the word “vision” and you have a future destination that other people can’t resist and feel obligated to help you achieve.
That is a “Compelling Vision.”
If you have been having some difficulty achieving your Vision, perhaps it’s time to decide if the Vision is Compelling or is it just a “if we can” or “if it works out” or a “maybe if everything falls into place” kind of Vision.
If you have what you feel is a “Compelling” Vision, try it out on a few people and see if their enthusiasm matches yours. Compare the two below to yours and see how your Vision stacks up.
■Compelling “We have had success this past year in increasing labor sales. Based on what we have accomplished so far I know that we can increase 10% for 2011. In order to do this I am using a two pronged approach and will start by providing additional Sales Training beginning next month. Secondly, I am initiating a performance based bonus plan that rewards increased labor sales. I am counting on you to help me and our Dealership meet this new objective.”
■Not Compelling. “Uh, as you all know, we have had a pretty good year and are looking to do better next year. There is no reason that we can’t improve and I am expecting big things for 2011.”
See the difference? The first is specific and lays out a game plan for hitting the new objective. The second is so general that you could be talking about how the bake sale for the school went.
Yet, how many of us have heard or delivered a Vision statement that sounded similar to that?
Start 2011 off right be Creating A Compelling Vision.
By............Leonard Buchholz
Anytime of the year is time for reflection, goal setting and renewed committment.
However, this time of the year is particularly important as the year is winding down and we take time to look at what we have accomplished in 2010 and what we would like to do better in 2011.
This is not a “Goal” setting blah blah blah blog post. If you are in a Leadership position in your Dealership and you need a lesson on Goal setting and business planning, sorry to disappoint.
This is the first in a 5 Part Series on Leadership.
The nuts and bolts of Goal setting and business planning is in here in several different posts like “Service Absorption Rule #1″ and “Crunching Your Service Numbers.” Search the blog posts and you will find them.
A little background. I am constantly in search of new ideas or maybe old ideas presented in a new way. I had been leading seminars for a well known training company and I was assigned to deliver a Communications seminar to a large transportation organization.
I always arrive early so that I can look around and quite frankly, I spend a lot of time looking at what people put up on their walls. You can tell a lot about an organization from what you find hanging in the lobby or in the training room. (Ever notice that that the places with the most Rules posted on the walls always seem to be the unfriendliest?)
I noticed that this organization had a lot of Leadership thoughts posted. I found one very, very interesting Leadership model hanging in the training room and I copied them down. I transferred them to a 3×5 card and posted them on the wall in front of my desk. I look at them every day and think of their meaning often.
Here is the first one and the beginning of this 5 part series.
“Create A Compelling Vision”
Creating a “Compelling” Vision and one that is well, ordinary, is really two very different things.
The word compelling means “forceful” and “driven.” Combine that with the word “vision” and you have a future destination that other people can’t resist and feel obligated to help you achieve.
That is a “Compelling Vision.”
If you have been having some difficulty achieving your Vision, perhaps it’s time to decide if the Vision is Compelling or is it just a “if we can” or “if it works out” or a “maybe if everything falls into place” kind of Vision.
If you have what you feel is a “Compelling” Vision, try it out on a few people and see if their enthusiasm matches yours. Compare the two below to yours and see how your Vision stacks up.
■Compelling “We have had success this past year in increasing labor sales. Based on what we have accomplished so far I know that we can increase 10% for 2011. In order to do this I am using a two pronged approach and will start by providing additional Sales Training beginning next month. Secondly, I am initiating a performance based bonus plan that rewards increased labor sales. I am counting on you to help me and our Dealership meet this new objective.”
■Not Compelling. “Uh, as you all know, we have had a pretty good year and are looking to do better next year. There is no reason that we can’t improve and I am expecting big things for 2011.”
See the difference? The first is specific and lays out a game plan for hitting the new objective. The second is so general that you could be talking about how the bake sale for the school went.
Yet, how many of us have heard or delivered a Vision statement that sounded similar to that?
Start 2011 off right be Creating A Compelling Vision.
By............Leonard Buchholz
10 Reasons Multi-point Inspections are Important
In our world there is a constant search for “better.”
Better personnel, better systems, better procesess, better sales…you get the idea.
Is there “better” out there in Fixed Operations?
Sure. In recent years software and computers have made getting every conceivable report possible and as easy as a press of the button.
Software applications like ASR Capture from Reverse Risk is a prime example. Here is an application that does nearly everything that old school managers did by hand 20 years ago. It tracks and compiles every Multi-point Inspection and tells the Service Manager at a glance what is happening in Service Drive.
There have been strides made in vehicle repair. In the Dealership today we repair more vehicles with software than we do with metal. It’s the evolution of the computer chip combined with software engineering that made that possible.
What about the Dealership? Has there not been a serious industry wide upgrade to facilities over the past 20 years? The Customer has been the beneficiary of new waiting rooms and amenities like wifi and espresso coffee makers.
Better and better.
You know what has remained the same?
The Multi-point Inspection.
Do you know why?
Because it still remains the Number One Tool a Service Department has to ensure Excellent Service to the Customer. (Besides the well trained Service Advisor)
The reason it has remained a mainstay in Fixed Operations is because it works.
It works for the Customer. They get a safe and reliable vehicle. They get consistent service. They get a report on the condition of everything from the windshield washer fluid to the air in the tires.
It works for the Fixed Operations. They get an opportunity to sell repair work while providing a safe and reliable vehicle. It helps them provide a consistent product called Excellent Service!
It works for the Dealership. It reduces the liability factor. It increases the amount of Customer contacts. It increases the amount of opportunity to demonstrate to the Customer that the Dealership is the right place to not only Service the vehicle it is the right place to buy the next vehicle.
Some in this industry have said that “Multi-points are dead” and “old school won’t work in the new school attitude we have nowadays.”
Really? Customers don’t want safe and reliable vehicles? Service Advisors don’t want opportunities to sell needed services so Customers can maintain their vehicle? Dealerships don’t need revenue…or Customers?
I would like to see a Service Manager explain to 75 year old Granny that there is no need for a complete and thorough Mult-point Inspection…in a waiting room…full of Customers.
Hey Mr./Ms. Service Manager! Looking for a way to stress the Dealer Principal?
Just go into their office and announce that you will singlehandedly increase their exposure to Liability and Risk by not completing a thorough Inspection on every vehicle that comes into the Service Drive. Think they will embrace that idea?
So here are the Top 10 Reasons Why Multi-point Inspections are Important.
1. The word “Liability” has not been removed from the dictionary. Every time a vehicle comes in to the Service Department there is a risk of Liability. A properly completed Multi-point Inspection reduces that Liability.
2. The word “Responsibility” has not been removed from the dictionary. Dealerships not only have a responsibility to the Customer, they also have a responsibility to the manufacturer. This responsibility is to provide the Customer with a safe and reliable vehicle.
3 thru 7…They have not made a Lifetime-No Replacement Necessary Brake Pad, Tire, Wiper Blade, Serpentine or Drive Belt or Air and Fuel Filter. (Here is a little tip…they’re not going to anytime soon).
8. They have not made a vehicle capable of fixing its own oil leak, replacing a cv boot, removing a rock from a caliper or rotating its own tires.
9. They have not made a vehicle capable of completing its own Safety Inspection. There is no doubt that the Vehicle Management Systems we have today can check a lot of things. Airplanes have one of the most sophisticated management and monitoring systems on the planet. Ever notice the pilot walking around the outside of the plane and taking a look?
10. Oil has not been re-invented. It has been reformulated to be sure, but it wears out. And because everybody drives differently, it wears out at different intervals.
Bonus Reason!
People have not stopped finding ways to drive with little or no regard to how the manufacturer thinks they should drive! (Ever removed a bush, bike, furry animal, piece of concrete, chunk of wood, dead furry animal, lost watch, family heirloom or some other flotsam from the front seat, rear seat, grill, undercarriage, windshield, gas tank, engine compartment or wheel well?)
Better sometimes is left well enough alone.
Better personnel, better systems, better procesess, better sales…you get the idea.
Is there “better” out there in Fixed Operations?
Sure. In recent years software and computers have made getting every conceivable report possible and as easy as a press of the button.
Software applications like ASR Capture from Reverse Risk is a prime example. Here is an application that does nearly everything that old school managers did by hand 20 years ago. It tracks and compiles every Multi-point Inspection and tells the Service Manager at a glance what is happening in Service Drive.
There have been strides made in vehicle repair. In the Dealership today we repair more vehicles with software than we do with metal. It’s the evolution of the computer chip combined with software engineering that made that possible.
What about the Dealership? Has there not been a serious industry wide upgrade to facilities over the past 20 years? The Customer has been the beneficiary of new waiting rooms and amenities like wifi and espresso coffee makers.
Better and better.
You know what has remained the same?
The Multi-point Inspection.
Do you know why?
Because it still remains the Number One Tool a Service Department has to ensure Excellent Service to the Customer. (Besides the well trained Service Advisor)
The reason it has remained a mainstay in Fixed Operations is because it works.
It works for the Customer. They get a safe and reliable vehicle. They get consistent service. They get a report on the condition of everything from the windshield washer fluid to the air in the tires.
It works for the Fixed Operations. They get an opportunity to sell repair work while providing a safe and reliable vehicle. It helps them provide a consistent product called Excellent Service!
It works for the Dealership. It reduces the liability factor. It increases the amount of Customer contacts. It increases the amount of opportunity to demonstrate to the Customer that the Dealership is the right place to not only Service the vehicle it is the right place to buy the next vehicle.
Some in this industry have said that “Multi-points are dead” and “old school won’t work in the new school attitude we have nowadays.”
Really? Customers don’t want safe and reliable vehicles? Service Advisors don’t want opportunities to sell needed services so Customers can maintain their vehicle? Dealerships don’t need revenue…or Customers?
I would like to see a Service Manager explain to 75 year old Granny that there is no need for a complete and thorough Mult-point Inspection…in a waiting room…full of Customers.
Hey Mr./Ms. Service Manager! Looking for a way to stress the Dealer Principal?
Just go into their office and announce that you will singlehandedly increase their exposure to Liability and Risk by not completing a thorough Inspection on every vehicle that comes into the Service Drive. Think they will embrace that idea?
So here are the Top 10 Reasons Why Multi-point Inspections are Important.
1. The word “Liability” has not been removed from the dictionary. Every time a vehicle comes in to the Service Department there is a risk of Liability. A properly completed Multi-point Inspection reduces that Liability.
2. The word “Responsibility” has not been removed from the dictionary. Dealerships not only have a responsibility to the Customer, they also have a responsibility to the manufacturer. This responsibility is to provide the Customer with a safe and reliable vehicle.
3 thru 7…They have not made a Lifetime-No Replacement Necessary Brake Pad, Tire, Wiper Blade, Serpentine or Drive Belt or Air and Fuel Filter. (Here is a little tip…they’re not going to anytime soon).
8. They have not made a vehicle capable of fixing its own oil leak, replacing a cv boot, removing a rock from a caliper or rotating its own tires.
9. They have not made a vehicle capable of completing its own Safety Inspection. There is no doubt that the Vehicle Management Systems we have today can check a lot of things. Airplanes have one of the most sophisticated management and monitoring systems on the planet. Ever notice the pilot walking around the outside of the plane and taking a look?
10. Oil has not been re-invented. It has been reformulated to be sure, but it wears out. And because everybody drives differently, it wears out at different intervals.
Bonus Reason!
People have not stopped finding ways to drive with little or no regard to how the manufacturer thinks they should drive! (Ever removed a bush, bike, furry animal, piece of concrete, chunk of wood, dead furry animal, lost watch, family heirloom or some other flotsam from the front seat, rear seat, grill, undercarriage, windshield, gas tank, engine compartment or wheel well?)
Better sometimes is left well enough alone.
3 Ways Service Advisors Can Speed Up Service Sales
One of the most frustrating things that Service Advisors have to deal with is the unavailability of the Customer after they have left the Dealership.
In 100% of the cases there is a series of steps the Advisor can do during the writeup and repair process to increase the chances that they will be able to contact the Customer once the vehicle has been inspected or the repairs have been completed.
Step Number One.
Get a “Pre-Approval” amount. This is amazingly easier than what you would think it would be. Why? Because the Customer wants to have the vehicle repaired the same day as much as the Advisor does.
And the easiest way to do that is for the Customer to authorize an “up to” amount. This amount is typically a figure based on what the average RO dollar amount is for your Dealership.
And it is just as simple as asking the Customer. It might sound like this.
“Mr. Jones, I have here on the Repair Order to do an oil change, check the brakes for a grinding noise and diagnose the check engine light. If I can repair all of these items for less than $250.00 dollars, do you want me to go ahead and take care of it?”
This does not mean spend the $250.00. What it means is if the repairs can be handled for $250.00 or less then the Customer is authorizing you to complete those repairs and to call him (or her) if the repairs exceed $250.00 dollars.
Step Number 2
Have the Technician do a complete and thorough Inspection and report back to the Advisor before any other repairs are completed. This will ensure that the Advisor has a complete report to share with the Customer and advise them on any needed repairs before the vehicle comes off the rack.
Step Number 3
Verify the Customers Information.
Now you would think that this would be a “no brainer.”
And every day in a Dealership a Customer is being written up right now and the Advisor is not asking the Customer “Is the information listed here correct?” while pointing to the address and telephone number on the RO.
Or asking “What is the best way to reach you today?” and “Is there another number or email that I can use if I don’t have any success reaching you on the primary number?”
If you are a Service Advisor and you want to increase Service Sales, why would you not ask for a telephone number and email address? It makes no sense not to ask. Service Advisors are in the Communication Business and the first rule is “Know How To Contact Your Customer!”
These 3 Simple Steps will Speed Up your ability to contact your Customer and make more Service Sales.
In 100% of the cases there is a series of steps the Advisor can do during the writeup and repair process to increase the chances that they will be able to contact the Customer once the vehicle has been inspected or the repairs have been completed.
Step Number One.
Get a “Pre-Approval” amount. This is amazingly easier than what you would think it would be. Why? Because the Customer wants to have the vehicle repaired the same day as much as the Advisor does.
And the easiest way to do that is for the Customer to authorize an “up to” amount. This amount is typically a figure based on what the average RO dollar amount is for your Dealership.
And it is just as simple as asking the Customer. It might sound like this.
“Mr. Jones, I have here on the Repair Order to do an oil change, check the brakes for a grinding noise and diagnose the check engine light. If I can repair all of these items for less than $250.00 dollars, do you want me to go ahead and take care of it?”
This does not mean spend the $250.00. What it means is if the repairs can be handled for $250.00 or less then the Customer is authorizing you to complete those repairs and to call him (or her) if the repairs exceed $250.00 dollars.
Step Number 2
Have the Technician do a complete and thorough Inspection and report back to the Advisor before any other repairs are completed. This will ensure that the Advisor has a complete report to share with the Customer and advise them on any needed repairs before the vehicle comes off the rack.
Step Number 3
Verify the Customers Information.
Now you would think that this would be a “no brainer.”
And every day in a Dealership a Customer is being written up right now and the Advisor is not asking the Customer “Is the information listed here correct?” while pointing to the address and telephone number on the RO.
Or asking “What is the best way to reach you today?” and “Is there another number or email that I can use if I don’t have any success reaching you on the primary number?”
If you are a Service Advisor and you want to increase Service Sales, why would you not ask for a telephone number and email address? It makes no sense not to ask. Service Advisors are in the Communication Business and the first rule is “Know How To Contact Your Customer!”
These 3 Simple Steps will Speed Up your ability to contact your Customer and make more Service Sales.
The Hundred Mile An Hour Goat
Two friends are out hunting, and as they are walking along they come upon a huge hole in the ground. As they approach it they are amazed by the size of it.
The first hunter says “Wow, that’s some hole; I can’t even see the bottom. I wonder how deep it is.” The second hunter says” I don’t know, let’s throw something down and listen and see how long it takes to hit bottom.”
The first hunter looks around and spies an old automobile transmission lying in the grass. He tells the other hunter “Hey, there’s this old automobile transmission here. Give me a hand and we’ll throw it in and see”.
So they pick it up, carry it over and count “One, two, three!” and
throw it into the hole.
They are standing there listening and looking over the edge when they hear a rustling in the brush behind them. As they turn around they see a goat come crashing through the brush, run up to the hole and with no hesitation jump in head first!
They are totally shocked and suprised to say the least! While standing at the edge of the hole looking at each other and then looking into the hole trying to figure out what just happened, an old farmer walks up.
“Say there”, says the farmer, “you fellers didn’t happen to see my goat
around here anywhere, did you?”
The first hunter says ” Funny you should ask, but we were just standing here a minute ago and a goat came running out of the bushes doin’ about a hunert miles an hour and jumped headfirst into this hole here!”
The old farmer said “Why that’s impossible…… I had him chained to a
transmission!”
The moral of the story…don’t chain your 2011 Fixed Operations Gross Profit to anything that can be tossed into a deep hole. If your 2010 ended up like a goat chained to a transmission, now is the time to make a plan for 2011.
This is the time to measure what you accomplished or did not accomplish in 2010, what you want to improve in 2011 and plan how you are going to do it.
Goal setting is critical for achieving Success.
Here are 10 0f the most important areas to measure in Fixed Operations and their standards to help you set defined Goals for 2011.
■Labor Gross Profit Margins (75% is the correct number)
■Parts Gross Profit Margins (45% is the correct number)
■Parts to Labor Ratio (80% is the correct number)
■Multi-point Inspection Completion Rate (100% is the correct number)
■Additional Service Requests (30-40% of CP ROs is the correct number)
■ASR Closing Ratio (30-50% is the correct number)
■RO Count to Sold Units (6-1 Ratio is the correct number)
■Effective Labor Rate (90% of Door Rate is the correct number)
■Gross Profit Increase Year over Year (10% or more is the correct number)
■RO Count Increase (Yearly 10% or more is the correct number)
These are the bare minimum numbers for planning next years Goals. By planning now you are keeping yourself from “chaining your goat” to something that can be tossed at the first sign of trouble or adversity, which we all know happens when things are not going smoothly.
Goal Setting with everyone involved will prevent the possibility of 2011 being tossed into a deep hole before it even gets started.
The first hunter says “Wow, that’s some hole; I can’t even see the bottom. I wonder how deep it is.” The second hunter says” I don’t know, let’s throw something down and listen and see how long it takes to hit bottom.”
The first hunter looks around and spies an old automobile transmission lying in the grass. He tells the other hunter “Hey, there’s this old automobile transmission here. Give me a hand and we’ll throw it in and see”.
So they pick it up, carry it over and count “One, two, three!” and
throw it into the hole.
They are standing there listening and looking over the edge when they hear a rustling in the brush behind them. As they turn around they see a goat come crashing through the brush, run up to the hole and with no hesitation jump in head first!
They are totally shocked and suprised to say the least! While standing at the edge of the hole looking at each other and then looking into the hole trying to figure out what just happened, an old farmer walks up.
“Say there”, says the farmer, “you fellers didn’t happen to see my goat
around here anywhere, did you?”
The first hunter says ” Funny you should ask, but we were just standing here a minute ago and a goat came running out of the bushes doin’ about a hunert miles an hour and jumped headfirst into this hole here!”
The old farmer said “Why that’s impossible…… I had him chained to a
transmission!”
The moral of the story…don’t chain your 2011 Fixed Operations Gross Profit to anything that can be tossed into a deep hole. If your 2010 ended up like a goat chained to a transmission, now is the time to make a plan for 2011.
This is the time to measure what you accomplished or did not accomplish in 2010, what you want to improve in 2011 and plan how you are going to do it.
Goal setting is critical for achieving Success.
Here are 10 0f the most important areas to measure in Fixed Operations and their standards to help you set defined Goals for 2011.
■Labor Gross Profit Margins (75% is the correct number)
■Parts Gross Profit Margins (45% is the correct number)
■Parts to Labor Ratio (80% is the correct number)
■Multi-point Inspection Completion Rate (100% is the correct number)
■Additional Service Requests (30-40% of CP ROs is the correct number)
■ASR Closing Ratio (30-50% is the correct number)
■RO Count to Sold Units (6-1 Ratio is the correct number)
■Effective Labor Rate (90% of Door Rate is the correct number)
■Gross Profit Increase Year over Year (10% or more is the correct number)
■RO Count Increase (Yearly 10% or more is the correct number)
These are the bare minimum numbers for planning next years Goals. By planning now you are keeping yourself from “chaining your goat” to something that can be tossed at the first sign of trouble or adversity, which we all know happens when things are not going smoothly.
Goal Setting with everyone involved will prevent the possibility of 2011 being tossed into a deep hole before it even gets started.
“The Cheapest Oil Change In Town”
In every market and at every dealer there is the perception in Fixed Operations that cheap oil changes will add profit.
While it is true that cheap oil changes will bring Customers to your door, it is up to you to do something with them when they arrive.
Here are 3 Ways you can maximize the cheap oil change.
■Be “Over The Top” with your Customer Service. Be clean and neat, be accomodating, be prompt, be courteous and be Thankful. Think of the Customer as someone who is test driving your Dealership to see if they like the ride. Give them the best ride possible.
■Do a Complete and Thorough Inspection of the vehicle. Instead of a “27 Point” how about a “Driveability Check” or a “Winter Safety Check” or a “Brake, Light and Fluid Check” in addition to your usual 27 Point Inspection. The object is to give the Customer something that they were not expecting when they came in for “just an oil change.”
■Give them a Reason to Complete Service Work with You. Hey, you advertise, you plan for, you spend money and you lose money on the oil change and then…you don’t give your Customer a compelling reason to have service work completed at your Dealership? What are you thinking?
Making money in Fixed Operations is difficult when you don’t plan for the Oil Change Customer who might or might not be your Customer. It is impossible if you do not maximize the Cheap Oil Change Customers visit.
While it is true that cheap oil changes will bring Customers to your door, it is up to you to do something with them when they arrive.
Here are 3 Ways you can maximize the cheap oil change.
■Be “Over The Top” with your Customer Service. Be clean and neat, be accomodating, be prompt, be courteous and be Thankful. Think of the Customer as someone who is test driving your Dealership to see if they like the ride. Give them the best ride possible.
■Do a Complete and Thorough Inspection of the vehicle. Instead of a “27 Point” how about a “Driveability Check” or a “Winter Safety Check” or a “Brake, Light and Fluid Check” in addition to your usual 27 Point Inspection. The object is to give the Customer something that they were not expecting when they came in for “just an oil change.”
■Give them a Reason to Complete Service Work with You. Hey, you advertise, you plan for, you spend money and you lose money on the oil change and then…you don’t give your Customer a compelling reason to have service work completed at your Dealership? What are you thinking?
Making money in Fixed Operations is difficult when you don’t plan for the Oil Change Customer who might or might not be your Customer. It is impossible if you do not maximize the Cheap Oil Change Customers visit.
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