What would be the one word to describe what a Service Department needs these days to compete?
There are so many to choose from. However, the one word that keeps coming up when I visit Dealerships across the country is adaptability.
The Dealerships that are doing well, adapt to changing market conditions and Customer demands.
Even if this is your first day in a Dealership, you know that the ability to adapt is the key to Exceeding Expectations.
The dictionary tells us that it means to “adjust to new circumstances.” Boy, if that is not the definition or guiding principle of the Service Department these days, I don’t know what is.
If you think about it, the Service Department is the only “gray” area in the Dealership. Everything else is black and white.
We have the part in stock or we don’t. We have the car on the lot or we don't. We can fund you or we can't. We are open extended hours or we are not.
In the Service Department, they don’t have those hard and fast rules because Customers and the situations that Service Advisors deal with are seldom written in stone. It’s more like an “etchasketch.”
This requires a person that is adaptable, flexible and understanding with the backing of an organization that is adaptable, flexible and understanding. Having either without the other won’t work.
And if you have Service Advisors who do not understand this concept or cannot adapt to a Customers Expectations, you will have problems.
When you have staff that are rigid and inflexible, you end up with Customers getting service that they would describe one of several ways. They say things like “Functional, yet cold” or “They helped me but they were somewhat unfriendly” or “I had to yell at them to get them to listen to me” and lastly “What the %$&^ is wrong with you guys?”
On the flip side, if you have personnel that are really trying to work within your Dealership system and are not “Empowered with Authority” you end up with comments like “I have used you guys in the past and I’ll continue, but not as much as I used to” or “I don’t know if I’ll come back, even though your Advisors are great” and “They were ok, but if I find someone else that is closer or cheaper, I’m going to go with them” and lastly “What the *&^% is wrong with you guys? Don't you want my business?”
The Service Department that has “Empowered with Authority” all of their Advisors will consistently outperform and outsell any other Dealer that has not taken that step.
This means Advisors are Trained to be adaptable and flexible and they do what is in the Best Interests of the Customer.
This leads to a Customer experience that can only be described as “Exceptional at Exceeding Expectations” and "spontaneously helpful." And of course results in unsolicited referrals and an increase in business.
Learn to adapt, be flexible, change as needed and Empower with Authority and your Customers will respond with feverish repurchase loyalty and unsolicited testimonials.
Showing posts with label service advisor training. Show all posts
Showing posts with label service advisor training. Show all posts
Smothered by the Rut Blanket
What would a Professional Service Advisor do?
Professional Service Advisors are prepared for the day ahead of them and don’t get caught in the “why bother because everyday is the same” rut.
Now, why is this so important? I mean, c’mon, isn’t every day just the same?
Open the door, reset the alarm, start the coffee, turn on the computers, check for night drops, check your email, flip through the stack of carry-overs, etc, etc, etc.
Sounds like the “same ol’, same ol’” to me. No change required. No need to do anything different. You can live your life like a sheeple. Lots of companies need sheeples.
If that is the kind of career and the kind of earnings you want, then go for it. It is easy to be easy. You can let your whole life creep along this way, no problem.
What you have to realize is that it is not the daily routine that gets you; it’s the thinking behind the daily routine. If the day before you looks like and feels just like yesterday, then it must be the same.
And that’s when the rut gets you. Ruts do not grab you suddenly from behind like a mugger on a city street. It is not a full front assault. Because if getting into a rut was like that, we would all take precautions and avoid it.
No, getting into a rut or “stinkin’ thinkin’” is more like being smothered by a soft layer of blankets, one blanket at a time. When you get that first blanket, it’s all warm and cozy (just like your daily routine) and it feels good. Who wouldn’t feel secure in a snugly little blanket?
Then the next blanket gets piled on and you feel even more warm and cozy, just like Grandmas house at night in the winter after a cup of hot chocolate. Doesn’t that sound nice?
And every day another soft blanket gets piled on and before you know it, you are being crushed by a pile of blankets a thousand feet tall. You can’t breathe, you can’t move, in fact, you can’t even get out from under that pile of blankets. It’s so freaking heavy it squeezes the life out of you like hot cheeze wiz. Gruesomely gooey.
Blankets don’t seem so warm and cozy now, do they? Ruts are like that. Softly smothering you while wrapping you up with a false sense of security. And nothing rips through that blanket like a bucket of cold water than the Dealership getting sold, or the manager getting fired. Where is your blanket now Linus?
Earl Nightingale said “A rut is nothing more than a grave with the ends kicked out.”
We all want our days to have some routine and normalcy. It is what makes the world go around. What we don’t want to do is assume that everyday will be the same as the last one and start assuming that our Professional life and career growth stops merely because we have figured out a way to stay “warm and cozy.”
Professional Service Advisors get prepared for their day and their careers because they know that every Customer is different and it is better to be prepared to Take Action that to have Action Taken. And they take that into their Professional life as well. They don’t stand around and wait for the manager to say “Hey, have you completed training this year?” They are constantly taking the time to become better at their profession and better prepared than their competition.
Here is another way to think about it. If this does not describe you, then it’s the Advisor standing next to you getting prepared. Your immediate competition.
Here are 10 ways you can get ready for your day, your career and your Professional life. Get out of your rut.
1.Read more. Read anything that contributes to your abilities, your skill sets and education. You own those 3 free and clear. Making them better pays dividends to you 10 times what you put into it.
2.Practice your skill sets frequently. Role play, write a new greeting, new script, anything that will stimulate your mind and get you thinking about how you can do something better or different for your Customer. This will lead to a sense of satisfaction and just as important, more income.
3.Start a focus group in your workplace with other Advisors. You don’t need permission from anyone, JUST DO IT! Believe it or not, there are other Advisors in your store that have issues just like you. Waiting for someone to help is not going to get it done. Pick a subject that needs attention in your Service Drive, get the other Advisors together and get started on taking care of it.
4.Mentor someone at work. Teaching them the right way to do things will keep you on the right track, stimulate new thinking and may, just maybe, lead you to a new way of doing business.
5.Join a Professional Organization or Association. This will let you connect with others in the car biz while allowing you to gain knowledge and skills. Google it.
6.Join Toastmasters. If you are a true Service Professional and have not taken advantage of learning how to speak on your feet (for nearly nothing by the way) how Professional can you be?
7.Take a class. Writing, Speaking, Computer etc… Get new knowledge!
8.Teach a class at work. Teaching and Mentoring is the new “old school.” Skills and knowledge are being lost in the workplace faster than can be replaced. Someone has to lead the way, why not you?
9.Write down what you have to do the next day before you leave that day, go through all of your carry-overs, go through all of your appointments and make notes so you are prepared to talk to your Customer, check with Parts and make sure the VOR Parts got ordered (can you see where this is going?) etc.
10.GET HUNGRY! GET PASSIONATE! People love doing business with people who are HUNGRY and PASSIONATE about what they do. ( I use Caps to show you how PASSIONATE I am about the Service Business) There is absolutely no better experience than dealing with a Professional who wants to do a better job because they are HUNGRY and PASSIONATE about their Profession.
Preparing for the day ahead is not just about the very next day. It’s about being ready for every day, about changing your life and getting out of it what you want.
Professionals get prepared.
Professional Service Advisors are prepared for the day ahead of them and don’t get caught in the “why bother because everyday is the same” rut.
Now, why is this so important? I mean, c’mon, isn’t every day just the same?
Open the door, reset the alarm, start the coffee, turn on the computers, check for night drops, check your email, flip through the stack of carry-overs, etc, etc, etc.
Sounds like the “same ol’, same ol’” to me. No change required. No need to do anything different. You can live your life like a sheeple. Lots of companies need sheeples.
If that is the kind of career and the kind of earnings you want, then go for it. It is easy to be easy. You can let your whole life creep along this way, no problem.
What you have to realize is that it is not the daily routine that gets you; it’s the thinking behind the daily routine. If the day before you looks like and feels just like yesterday, then it must be the same.
And that’s when the rut gets you. Ruts do not grab you suddenly from behind like a mugger on a city street. It is not a full front assault. Because if getting into a rut was like that, we would all take precautions and avoid it.
No, getting into a rut or “stinkin’ thinkin’” is more like being smothered by a soft layer of blankets, one blanket at a time. When you get that first blanket, it’s all warm and cozy (just like your daily routine) and it feels good. Who wouldn’t feel secure in a snugly little blanket?
Then the next blanket gets piled on and you feel even more warm and cozy, just like Grandmas house at night in the winter after a cup of hot chocolate. Doesn’t that sound nice?
And every day another soft blanket gets piled on and before you know it, you are being crushed by a pile of blankets a thousand feet tall. You can’t breathe, you can’t move, in fact, you can’t even get out from under that pile of blankets. It’s so freaking heavy it squeezes the life out of you like hot cheeze wiz. Gruesomely gooey.
Blankets don’t seem so warm and cozy now, do they? Ruts are like that. Softly smothering you while wrapping you up with a false sense of security. And nothing rips through that blanket like a bucket of cold water than the Dealership getting sold, or the manager getting fired. Where is your blanket now Linus?
Earl Nightingale said “A rut is nothing more than a grave with the ends kicked out.”
We all want our days to have some routine and normalcy. It is what makes the world go around. What we don’t want to do is assume that everyday will be the same as the last one and start assuming that our Professional life and career growth stops merely because we have figured out a way to stay “warm and cozy.”
Professional Service Advisors get prepared for their day and their careers because they know that every Customer is different and it is better to be prepared to Take Action that to have Action Taken. And they take that into their Professional life as well. They don’t stand around and wait for the manager to say “Hey, have you completed training this year?” They are constantly taking the time to become better at their profession and better prepared than their competition.
Here is another way to think about it. If this does not describe you, then it’s the Advisor standing next to you getting prepared. Your immediate competition.
Here are 10 ways you can get ready for your day, your career and your Professional life. Get out of your rut.
1.Read more. Read anything that contributes to your abilities, your skill sets and education. You own those 3 free and clear. Making them better pays dividends to you 10 times what you put into it.
2.Practice your skill sets frequently. Role play, write a new greeting, new script, anything that will stimulate your mind and get you thinking about how you can do something better or different for your Customer. This will lead to a sense of satisfaction and just as important, more income.
3.Start a focus group in your workplace with other Advisors. You don’t need permission from anyone, JUST DO IT! Believe it or not, there are other Advisors in your store that have issues just like you. Waiting for someone to help is not going to get it done. Pick a subject that needs attention in your Service Drive, get the other Advisors together and get started on taking care of it.
4.Mentor someone at work. Teaching them the right way to do things will keep you on the right track, stimulate new thinking and may, just maybe, lead you to a new way of doing business.
5.Join a Professional Organization or Association. This will let you connect with others in the car biz while allowing you to gain knowledge and skills. Google it.
6.Join Toastmasters. If you are a true Service Professional and have not taken advantage of learning how to speak on your feet (for nearly nothing by the way) how Professional can you be?
7.Take a class. Writing, Speaking, Computer etc… Get new knowledge!
8.Teach a class at work. Teaching and Mentoring is the new “old school.” Skills and knowledge are being lost in the workplace faster than can be replaced. Someone has to lead the way, why not you?
9.Write down what you have to do the next day before you leave that day, go through all of your carry-overs, go through all of your appointments and make notes so you are prepared to talk to your Customer, check with Parts and make sure the VOR Parts got ordered (can you see where this is going?) etc.
10.GET HUNGRY! GET PASSIONATE! People love doing business with people who are HUNGRY and PASSIONATE about what they do. ( I use Caps to show you how PASSIONATE I am about the Service Business) There is absolutely no better experience than dealing with a Professional who wants to do a better job because they are HUNGRY and PASSIONATE about their Profession.
Preparing for the day ahead is not just about the very next day. It’s about being ready for every day, about changing your life and getting out of it what you want.
Professionals get prepared.
“Missed it by that much”
There is an old saying carpenters use. “Measure twice, cut once.”
I recently went to a Dealer to present DealerPro and our Performance Driven Training Program and guess what…I measured once and missed the cut.
I didn’t miss by much. About a 1/16th of and inch or so. When you really think about it, on a small scale, 1/16th is not that much at all. It really does not seem that big a deal.
But miss by 1/16th of an inch when you are calculating something like the square footage of your home and taxes are involved and suddenly you remember things like high school algebra and can quote complex mathematical theories.
The point I am making is everyday we all say things to ourselves like “Oh, it’s ok if I don’t give that Customer a menu because I know that they don’t buy anything” or “I’m not going to worry about that multipoint inspection. They were in just a few months ago” and we give ourselves a pass.
Why?
It’s just a little bit and it won’t make a difference. Right?
I flew 200o miles to present our program to a Dealer that was not prepared to see me because I failed to follow my own process. I got busy with other things and did not “measure twice, cut once.” Can you guess the end result?
It’s never the big disaster that kills a deal. Big disasters almost always start with small decisions that don’t really seem that important when you are making them.
Deciding not to personally call this Dealer and get him on the phone even after we had talked a couple of times, did not seem that big a deal. I mean, everybody reads their email…right? And everybody can read and follow directions…can’t they?
It was only a little shortcut. And it caused a huge miss.
Are your Service Advisors taking those little “shortcuts” because in their minds “it’s just a little thing” and nobody will notice? Are you allowing your Service Team to circumvent, use “choice implementation” or refuse to follow processes that are in place? Are they “missing the cut?”
Take the time NOW to review everything you are doing that is working and everything that is not working and find out why.
Grandma dropped her car off and did not get a multipoint inspection? Why?
Mr. Jones came in for a recall and was not offered a menu? Why?
Billybob the local twice a month customer came in and was not greeted properly? Why?
Silly Sally the Service Advisor did not complete and walk around on her 10 writeups today? Why?
Ms. Coffeecellphone came in and was completely taken care of and even wrote a letter to the owner about her recent service experience. Why?
It’s not just about what is not being done. It also about what is being done correctly.
Find out what is being done correctly… train, show,coach, review, train, show, coach, review, lather, rinse, repeat daily for maximum results.
Do this enough and missing by just a 1/16th becomes a footnote in your Success Story.
Me, I’m back to measuring twice. I hate missing the cut. Don’t you?
I recently went to a Dealer to present DealerPro and our Performance Driven Training Program and guess what…I measured once and missed the cut.
I didn’t miss by much. About a 1/16th of and inch or so. When you really think about it, on a small scale, 1/16th is not that much at all. It really does not seem that big a deal.
But miss by 1/16th of an inch when you are calculating something like the square footage of your home and taxes are involved and suddenly you remember things like high school algebra and can quote complex mathematical theories.
The point I am making is everyday we all say things to ourselves like “Oh, it’s ok if I don’t give that Customer a menu because I know that they don’t buy anything” or “I’m not going to worry about that multipoint inspection. They were in just a few months ago” and we give ourselves a pass.
Why?
It’s just a little bit and it won’t make a difference. Right?
I flew 200o miles to present our program to a Dealer that was not prepared to see me because I failed to follow my own process. I got busy with other things and did not “measure twice, cut once.” Can you guess the end result?
It’s never the big disaster that kills a deal. Big disasters almost always start with small decisions that don’t really seem that important when you are making them.
Deciding not to personally call this Dealer and get him on the phone even after we had talked a couple of times, did not seem that big a deal. I mean, everybody reads their email…right? And everybody can read and follow directions…can’t they?
It was only a little shortcut. And it caused a huge miss.
Are your Service Advisors taking those little “shortcuts” because in their minds “it’s just a little thing” and nobody will notice? Are you allowing your Service Team to circumvent, use “choice implementation” or refuse to follow processes that are in place? Are they “missing the cut?”
Take the time NOW to review everything you are doing that is working and everything that is not working and find out why.
Grandma dropped her car off and did not get a multipoint inspection? Why?
Mr. Jones came in for a recall and was not offered a menu? Why?
Billybob the local twice a month customer came in and was not greeted properly? Why?
Silly Sally the Service Advisor did not complete and walk around on her 10 writeups today? Why?
Ms. Coffeecellphone came in and was completely taken care of and even wrote a letter to the owner about her recent service experience. Why?
It’s not just about what is not being done. It also about what is being done correctly.
Find out what is being done correctly… train, show,coach, review, train, show, coach, review, lather, rinse, repeat daily for maximum results.
Do this enough and missing by just a 1/16th becomes a footnote in your Success Story.
Me, I’m back to measuring twice. I hate missing the cut. Don’t you?
Not Taking Action Has Consequences
Previously, we had the privilege of addressing a room of Service Managers and Factory Personnel. And I have to believe that everyone in that room was there to find or gather some new information that would help them take action on something that might be causing them some problems at their Dealerships. Why would you attend if you had no hope of getting something, right? I hope that everyone one of them got something that they can use right away at their Dealership this week. And because I had a long drive home afterwards I started thinking about the consequences of not taking action.
In the Service Department the consequences really multiply quickly.
Lets take a look at John Q. Advisor.
John Q. is a underachiever at ABC Motors. His HPRO is at .9 and his Gross Profit Margin is below 70%. Now, John Q. is not necessarily a bad guy. In fact, he is a likeable and hard-working employee. He comes to work on time and believes he contributing to the overall success of the Service Department.
Johns current performance level is not acceptable. And the consequence of not taking action has verifiable results. Lets break down the numbers.
With his .9 HPRO at the national labor rate of $85.00 an hour, John is earning $76.50 in Gross Labor Sales per RO. Add in his Parts Gross Sales of $61.20 per RO (which is a 80% parts to labor ratio)and that adds up to a total of $137.70 per CP Repair Order written. John has been performing at this level for 3 months.
The national average is 1.5 HPRO. By accepting Johns performance it is costing the Dealership money.
How much money?
Using 1.5 HPRO as a benchmark, adding .6 at $85.00 equals $51.00 in Gross Labor Sales. Factor in the Parts Gross of $40.80 and each RO that John Q. writes is costing the Dealership $91.80 in LOST SALES! John writes an average of 220 CP ROs a month.
That is a $20,196.00 per month loss of income and over a 3 month period that adds up to $60,588.00!
I have to ask you, would you pay any Advisor $20,196.00 extra a month? $252,352 a year?
By not taking action, YOU ARE!
Everyday that John is not held Accountable for his performance there is a concrete and verifiable loss. Not only a monetary loss but a performance loss that affects the whole department as well.
Why?
Accepting Johns performance sends a message to everyone in the Dealership that there is a lack of accountability and that continued performance at this level is A-OK! In fact, John and every employee in the Service Department need not worry about their future…it is secure at ABC Motors.
You know what is worse?
John thinks that it’s ok. Should John go to another Dealership for whatever reason, he would soon find himself out of a job, again.
Why? Because Underachievers are not tolerated everywhere!
So not only has John Q. become a drain on the daily cash flow at ABC Motors, the Service Manager at ABC Motors is costing the Dealership money as well.
How is that possible and Why is it the Service Managers fault?
By not Taking Action, not providing Training and Coaching and not holding Jonh Q. accountable for his daily performance, the Service Manager is perpetuating Poor Performance and Condoning it!
Do you have a John Q. in your store?
Are you suffering the consequences of not taking action? What are you going to do about it!
In the Service Department the consequences really multiply quickly.
Lets take a look at John Q. Advisor.
John Q. is a underachiever at ABC Motors. His HPRO is at .9 and his Gross Profit Margin is below 70%. Now, John Q. is not necessarily a bad guy. In fact, he is a likeable and hard-working employee. He comes to work on time and believes he contributing to the overall success of the Service Department.
Johns current performance level is not acceptable. And the consequence of not taking action has verifiable results. Lets break down the numbers.
With his .9 HPRO at the national labor rate of $85.00 an hour, John is earning $76.50 in Gross Labor Sales per RO. Add in his Parts Gross Sales of $61.20 per RO (which is a 80% parts to labor ratio)and that adds up to a total of $137.70 per CP Repair Order written. John has been performing at this level for 3 months.
The national average is 1.5 HPRO. By accepting Johns performance it is costing the Dealership money.
How much money?
Using 1.5 HPRO as a benchmark, adding .6 at $85.00 equals $51.00 in Gross Labor Sales. Factor in the Parts Gross of $40.80 and each RO that John Q. writes is costing the Dealership $91.80 in LOST SALES! John writes an average of 220 CP ROs a month.
That is a $20,196.00 per month loss of income and over a 3 month period that adds up to $60,588.00!
I have to ask you, would you pay any Advisor $20,196.00 extra a month? $252,352 a year?
By not taking action, YOU ARE!
Everyday that John is not held Accountable for his performance there is a concrete and verifiable loss. Not only a monetary loss but a performance loss that affects the whole department as well.
Why?
Accepting Johns performance sends a message to everyone in the Dealership that there is a lack of accountability and that continued performance at this level is A-OK! In fact, John and every employee in the Service Department need not worry about their future…it is secure at ABC Motors.
You know what is worse?
John thinks that it’s ok. Should John go to another Dealership for whatever reason, he would soon find himself out of a job, again.
Why? Because Underachievers are not tolerated everywhere!
So not only has John Q. become a drain on the daily cash flow at ABC Motors, the Service Manager at ABC Motors is costing the Dealership money as well.
How is that possible and Why is it the Service Managers fault?
By not Taking Action, not providing Training and Coaching and not holding Jonh Q. accountable for his daily performance, the Service Manager is perpetuating Poor Performance and Condoning it!
Do you have a John Q. in your store?
Are you suffering the consequences of not taking action? What are you going to do about it!
Exceeding the Expectations
What would a Service Professional do?
A Professional understands their Customers Expectations.
Now this has got to be the easiest “no brainer” post you have read in years! You would think that every person who works in the Dealership has heard of Customer Service (here’s a little hint: WE ALL DO) and would take the time to understand their Customer expectations.
You would think.
And every day in the field at a Dealership there is a couple of moments where there is the “I have no idea” look on people’s faces when asked about what their Customer came in for, what was the reason for their visit, why are they here, how are we helping them, what’s the story etc....It's like a mystery novel.
The reason is they have become order takers. This new breed of Service Advisor has been trained by corporate America all of their lives with “instantology”, which is using the smallest amount of brain activity required to actually have meaningful interactions with their Customers.
This in turn has led us to a new term in Training called “you don’t need to know” in which Customers are regularly greeted and serviced by non-communicators who cannot distinguish between a request for service or a statement of concern unless it’s printed on the touch screen menu in front of them.
This collection of "Service (aacckkkk, cough cough) Professionals” are then left to founder and fumble with your Dealership Customers (you know, the "lifeblood of the Dealership, our main focus, why we are open"...etc...you've heard all of that before, right?) with more skills in “instantology” than in COMMUNICATION and CRITICAL THINKING!
This has reduced our once world renown model of Service Excellence we called the “American Way of Doing Business” to a misdirected application called "Someone told me to stand here and talk to you."
And because we choose to do business this way we find ourselves in constant need of reminding our Service "Professionals" what they are supposed to do and why they are supposed to do it.
In turn, this has increased our Customers chances of having to do business with someone who has little desire and are completely clueless how to deliver Exceptional Customer Service because it does not come with instructions on the box.
The true Professional Service Advisor not only knows what his or her Customers expectations are, they EXCEED them. They are anticipatory because they have taken the time to study their product and their Customer. And they truly understand Service. More importantly, they understand how the Customer could EXPECT to use their vehicle in their daily lives. Lastly, they understand their Customers EXPECTATIONS when they come in for Service.
How do they know these "magical things?"
The true Professional Service Advisor has taken the time to become an excellent COMMUNICATOR and only relies on “instantology” for storage and processing of the Customers information as a means of assistance and not as a means of conveyance.
Basically folks, you can’t get the computer to pull out its wallet no matter how hard you try.
When you have taken the time to really understand and anticipate your Customers Expectations by asking if they have been met one on one and by becoming a true Communicator through study and application will you become a True Service Professional.
Be Professional.
A Professional understands their Customers Expectations.
Now this has got to be the easiest “no brainer” post you have read in years! You would think that every person who works in the Dealership has heard of Customer Service (here’s a little hint: WE ALL DO) and would take the time to understand their Customer expectations.
You would think.
And every day in the field at a Dealership there is a couple of moments where there is the “I have no idea” look on people’s faces when asked about what their Customer came in for, what was the reason for their visit, why are they here, how are we helping them, what’s the story etc....It's like a mystery novel.
The reason is they have become order takers. This new breed of Service Advisor has been trained by corporate America all of their lives with “instantology”, which is using the smallest amount of brain activity required to actually have meaningful interactions with their Customers.
This in turn has led us to a new term in Training called “you don’t need to know” in which Customers are regularly greeted and serviced by non-communicators who cannot distinguish between a request for service or a statement of concern unless it’s printed on the touch screen menu in front of them.
This collection of "Service (aacckkkk, cough cough) Professionals” are then left to founder and fumble with your Dealership Customers (you know, the "lifeblood of the Dealership, our main focus, why we are open"...etc...you've heard all of that before, right?) with more skills in “instantology” than in COMMUNICATION and CRITICAL THINKING!
This has reduced our once world renown model of Service Excellence we called the “American Way of Doing Business” to a misdirected application called "Someone told me to stand here and talk to you."
And because we choose to do business this way we find ourselves in constant need of reminding our Service "Professionals" what they are supposed to do and why they are supposed to do it.
In turn, this has increased our Customers chances of having to do business with someone who has little desire and are completely clueless how to deliver Exceptional Customer Service because it does not come with instructions on the box.
The true Professional Service Advisor not only knows what his or her Customers expectations are, they EXCEED them. They are anticipatory because they have taken the time to study their product and their Customer. And they truly understand Service. More importantly, they understand how the Customer could EXPECT to use their vehicle in their daily lives. Lastly, they understand their Customers EXPECTATIONS when they come in for Service.
How do they know these "magical things?"
The true Professional Service Advisor has taken the time to become an excellent COMMUNICATOR and only relies on “instantology” for storage and processing of the Customers information as a means of assistance and not as a means of conveyance.
Basically folks, you can’t get the computer to pull out its wallet no matter how hard you try.
When you have taken the time to really understand and anticipate your Customers Expectations by asking if they have been met one on one and by becoming a true Communicator through study and application will you become a True Service Professional.
Be Professional.
Was Last Month Defined By Two Simple Words?
Was your last month defined by these two words…”If only”?
“If only…”
The Dealer Principal
“If only” I had asked my Managers “What is your plan for increasing Profit this month?” and held them accountable for their replies.
“If only” I had taken a walk every day and made it my mission to talk to Sales and Service Customers, introduce myself and say “Is there anything I can do to help you today while you are here at our Dealership?”
“If only” I had walked through the Dealership and asked my personnel “What is there about your job you like to do?”
“If only” I had walked through the Dealership and asked my personnel “What is there about your job you don’t like?”
“If only” I had asked the Service Manager “What is your daily routine when you come into work in the morning…in other words…walk me through the first 10 things you do every day.”
“If only” I asked the Service Manager “What is your plan for getting Labor Margins to 75%?” and the Parts Manager “What is your plan for getting the Parts Margins to 45%?” and held them accountable for their actions.
“If only” I had asked the Service Advisors “How do you do a Walk-a-round?” and let them demonstrate it to me.
“If only” I had asked the Service Advisors “What does it mean to ask for a Pre-authorized amount when writing a repair order?” and then observed them doing it.
“If only” I asked my shuttle drivers to take me with some Customers on a shuttle ride so I could see how they were treating the most valuable asset I have…My Customers.
“If only” I had been more involved in the daily business of my Dealership. What would have happened? Would I have been able to influence the outcome?
“If only…”
General Manager
“If only” I had held a meeting in which I asked the Service Manager and the Parts Manager “What is your plan for increasing Gross Profit…increasing Repair Order Count…increasing CSI?” and held him/her accountable for their actions.
“If only” I had held a meeting in which I asked the Parts Manager “What is your plan for increasing Item Transactions…Gross Profit Margins…Wholesale Item Transactions?” and held them accountable for his/her reply.
“If only” I had walked through the Service Department once a day and introduced myself and asked my customers “Is there anything else I can do for you today?”
“If only” I had walked through the Service and Parts Departments and asked Dealership personnel “Is there something preventing you from doing your absolute best?”
“If only” I had weekly meetings with my Fixed Operations Managers and asked them “How are we doing in meeting our monthly objectives and what can I do to help you get there?”
“If only” I had taken the time to have a monthly meeting with the Fixed Operations personnel and congratulated them on something that they did well.
“If only” I had been less tied to my desk where I only hear what people want me to hear. Would I have been able to prevent a bad month from happening.
“If only”
Service Manager
“If only” I had been in the Service Drive every day especially during the busiest times to work with my Advisors and help them become more Professional.
“If only” I had taken the time to be available to the Technicians and Advisors especially during the busiest times and help them overcome problems with production.
“If only” I had coached my Advisors every day on the previous days results using the reports from the DMS.
“If only” I had coached my Technicians every day on the previous days results using the reports from the DMS.
“If only” I had taken the time to introduce myself to my customers and asked them “Is there anything else I can do for you today?”
“If only” I had asked my Service Advisors to demonstrate an ASR presentation and then coached them on the results…again and again.
“If only” I had reviewed the Customer Pay Repair Orders with the Advisors and Technicians and coached not only on what was wrong, I also coached them on what was done right.
“If only” I had taken control of my month.
Everybody
“If only” I had accepted responsibility for my actions, held myself accountable for what I needed to do, made changes when necessary and reviewed my progress, what kind of month would I have had?
“If only…”
The Dealer Principal
“If only” I had asked my Managers “What is your plan for increasing Profit this month?” and held them accountable for their replies.
“If only” I had taken a walk every day and made it my mission to talk to Sales and Service Customers, introduce myself and say “Is there anything I can do to help you today while you are here at our Dealership?”
“If only” I had walked through the Dealership and asked my personnel “What is there about your job you like to do?”
“If only” I had walked through the Dealership and asked my personnel “What is there about your job you don’t like?”
“If only” I had asked the Service Manager “What is your daily routine when you come into work in the morning…in other words…walk me through the first 10 things you do every day.”
“If only” I asked the Service Manager “What is your plan for getting Labor Margins to 75%?” and the Parts Manager “What is your plan for getting the Parts Margins to 45%?” and held them accountable for their actions.
“If only” I had asked the Service Advisors “How do you do a Walk-a-round?” and let them demonstrate it to me.
“If only” I had asked the Service Advisors “What does it mean to ask for a Pre-authorized amount when writing a repair order?” and then observed them doing it.
“If only” I asked my shuttle drivers to take me with some Customers on a shuttle ride so I could see how they were treating the most valuable asset I have…My Customers.
“If only” I had been more involved in the daily business of my Dealership. What would have happened? Would I have been able to influence the outcome?
“If only…”
General Manager
“If only” I had held a meeting in which I asked the Service Manager and the Parts Manager “What is your plan for increasing Gross Profit…increasing Repair Order Count…increasing CSI?” and held him/her accountable for their actions.
“If only” I had held a meeting in which I asked the Parts Manager “What is your plan for increasing Item Transactions…Gross Profit Margins…Wholesale Item Transactions?” and held them accountable for his/her reply.
“If only” I had walked through the Service Department once a day and introduced myself and asked my customers “Is there anything else I can do for you today?”
“If only” I had walked through the Service and Parts Departments and asked Dealership personnel “Is there something preventing you from doing your absolute best?”
“If only” I had weekly meetings with my Fixed Operations Managers and asked them “How are we doing in meeting our monthly objectives and what can I do to help you get there?”
“If only” I had taken the time to have a monthly meeting with the Fixed Operations personnel and congratulated them on something that they did well.
“If only” I had been less tied to my desk where I only hear what people want me to hear. Would I have been able to prevent a bad month from happening.
“If only”
Service Manager
“If only” I had been in the Service Drive every day especially during the busiest times to work with my Advisors and help them become more Professional.
“If only” I had taken the time to be available to the Technicians and Advisors especially during the busiest times and help them overcome problems with production.
“If only” I had coached my Advisors every day on the previous days results using the reports from the DMS.
“If only” I had coached my Technicians every day on the previous days results using the reports from the DMS.
“If only” I had taken the time to introduce myself to my customers and asked them “Is there anything else I can do for you today?”
“If only” I had asked my Service Advisors to demonstrate an ASR presentation and then coached them on the results…again and again.
“If only” I had reviewed the Customer Pay Repair Orders with the Advisors and Technicians and coached not only on what was wrong, I also coached them on what was done right.
“If only” I had taken control of my month.
Everybody
“If only” I had accepted responsibility for my actions, held myself accountable for what I needed to do, made changes when necessary and reviewed my progress, what kind of month would I have had?
Service Advisor Training---Expense or Investment?
Service Advisor Training---Expense or Investment?
A significant number of dealers these days are becoming more and more aggressive in selling used vehicles. Some have even lost their new car franchises and now rely solely on used vehicle sales along with parts and service sales to pay the overhead and hopefully provide them with a significant Return On Investment (ROI). I’m confident you will agree that it is critically important for all dealers to earn the highest possible ROI on every single investment they make, right?
Now, in order to increase sales in any department you have to start doing things differently and/or do different things. If not, then you simply continue to do what you’ve always done as stated so clearly by Zig Ziglar: “You have the perfect processes in place to get you exactly what you got last year.” I’m talking about training here in order to positively affect change. Some of you will take the approach of “saving your way into profitability” by vowing not to increase your expenses but you remain willing to make investments every day of your business life. Let’s consider some examples.
NADA research shows that the average used car cost (investment) is about $13,300 and sells for around $15,000 resulting in a gross profit of $1700 which is a ROI of 13%. ($1700 divided by $13,300 = $13%). Assume you can turn that inventory investment of $13,300 every 30 days (great job) that would be 12 turns per year at $1700 gross PRU for a total gross profit of $20,400 resulting in a ROI of 153%! My guess is none of you would hesitate to invest $13,300 in a used car knowing that you will realize a 153% ROI over the next 12 months. As a matter of fact, many of you wouldn’t hesitate to make multiple investments: 50, 75 or even 100 of those $13,300 cars to earn that kind of an ROI. Makes perfect sense to me!
Research also shows that a Service Advisor servicing 12 customers per day (4 Warranty and 8 Customer Pay) and averaging 1.5 Hours Per Repair Order at NADA benchmark’s will produce about $1637 in Gross Profit per day, $36,016 in Gross Profit per month and a total of $432,194 in Gross Profit per year. Let’s assume you diverted just one of those $13,300 used car inventory investments into a $13,300 training investment in your Service Advisor and that training produced an extra .5 HPRO (33% Improvement), you would realize a Gross Profit increase of about $12,000 per month or $144,000 over the next 12 months resulting in a ROI of 1082%! (If your stock broker can do that for you please send me his name and number.) Let’s finish the math here by adding the additional gross profit of $144,000 to the $432,194 and you have a total gross profit of $576,194 produced by one employee—The Service Advisor. Now I ask you, how many employees do you have producing over $576,000 a year in Gross Profit? Maybe your F&I Producers. How many salespeople are producing that kind of gross for you? This is the equivalent of selling 28 used cars a month at $1700 PRU. How many sales people are selling an average of 28 cars a month to match the performance of a 2.0 HPRO Service Advisor? How’s that $13,300 training investment working out for you now? Is it an expense or an investment? Maybe you should ask your broker to answer that one for you?
Let’s continue on with this logic and consider the following:
1. Who gets the most incoming Sales Calls per day—Salesperson or Service Advisor?
2. Who meets and greets the most Sales Opportunities per day—Salesperson or Service Advisor?
3. Who has the greatest impact on Owner Retention—Salesperson or Service Advisor?
4. Who has the greatest impact on Brand Loyalty—Salesperson or Service Advisor
5. Who needs Telephone & Sales Training—Salesperson or Service Advisor
The answer to questions 1, 2, 3, and 4 is the Service Advisor. The answer to question number 5 is both the Salesperson and the Service Advisor. The simple fact is anyone in your dealership who comes in contact with your customers as well as your potential customers, must be professionally trained on how to effectively communicate (Sell) to them all.
I’m sure far too many of you Dealers, General Managers and Service Directors will continue to try and “save your way into profitability” versus being proactive and commit to re-allocating some of your inventory investment into your training investment. For those Dealers, General Managers and Service Directors who “get it” you can look forward to record Service and Parts Net Profits in 2010. It’s your choice to make.
Article by:
Don Reed
CEO-DealerPro Training Solutions
NADA University Partner
A significant number of dealers these days are becoming more and more aggressive in selling used vehicles. Some have even lost their new car franchises and now rely solely on used vehicle sales along with parts and service sales to pay the overhead and hopefully provide them with a significant Return On Investment (ROI). I’m confident you will agree that it is critically important for all dealers to earn the highest possible ROI on every single investment they make, right?
Now, in order to increase sales in any department you have to start doing things differently and/or do different things. If not, then you simply continue to do what you’ve always done as stated so clearly by Zig Ziglar: “You have the perfect processes in place to get you exactly what you got last year.” I’m talking about training here in order to positively affect change. Some of you will take the approach of “saving your way into profitability” by vowing not to increase your expenses but you remain willing to make investments every day of your business life. Let’s consider some examples.
NADA research shows that the average used car cost (investment) is about $13,300 and sells for around $15,000 resulting in a gross profit of $1700 which is a ROI of 13%. ($1700 divided by $13,300 = $13%). Assume you can turn that inventory investment of $13,300 every 30 days (great job) that would be 12 turns per year at $1700 gross PRU for a total gross profit of $20,400 resulting in a ROI of 153%! My guess is none of you would hesitate to invest $13,300 in a used car knowing that you will realize a 153% ROI over the next 12 months. As a matter of fact, many of you wouldn’t hesitate to make multiple investments: 50, 75 or even 100 of those $13,300 cars to earn that kind of an ROI. Makes perfect sense to me!
Research also shows that a Service Advisor servicing 12 customers per day (4 Warranty and 8 Customer Pay) and averaging 1.5 Hours Per Repair Order at NADA benchmark’s will produce about $1637 in Gross Profit per day, $36,016 in Gross Profit per month and a total of $432,194 in Gross Profit per year. Let’s assume you diverted just one of those $13,300 used car inventory investments into a $13,300 training investment in your Service Advisor and that training produced an extra .5 HPRO (33% Improvement), you would realize a Gross Profit increase of about $12,000 per month or $144,000 over the next 12 months resulting in a ROI of 1082%! (If your stock broker can do that for you please send me his name and number.) Let’s finish the math here by adding the additional gross profit of $144,000 to the $432,194 and you have a total gross profit of $576,194 produced by one employee—The Service Advisor. Now I ask you, how many employees do you have producing over $576,000 a year in Gross Profit? Maybe your F&I Producers. How many salespeople are producing that kind of gross for you? This is the equivalent of selling 28 used cars a month at $1700 PRU. How many sales people are selling an average of 28 cars a month to match the performance of a 2.0 HPRO Service Advisor? How’s that $13,300 training investment working out for you now? Is it an expense or an investment? Maybe you should ask your broker to answer that one for you?
Let’s continue on with this logic and consider the following:
1. Who gets the most incoming Sales Calls per day—Salesperson or Service Advisor?
2. Who meets and greets the most Sales Opportunities per day—Salesperson or Service Advisor?
3. Who has the greatest impact on Owner Retention—Salesperson or Service Advisor?
4. Who has the greatest impact on Brand Loyalty—Salesperson or Service Advisor
5. Who needs Telephone & Sales Training—Salesperson or Service Advisor
The answer to questions 1, 2, 3, and 4 is the Service Advisor. The answer to question number 5 is both the Salesperson and the Service Advisor. The simple fact is anyone in your dealership who comes in contact with your customers as well as your potential customers, must be professionally trained on how to effectively communicate (Sell) to them all.
I’m sure far too many of you Dealers, General Managers and Service Directors will continue to try and “save your way into profitability” versus being proactive and commit to re-allocating some of your inventory investment into your training investment. For those Dealers, General Managers and Service Directors who “get it” you can look forward to record Service and Parts Net Profits in 2010. It’s your choice to make.
Article by:
Don Reed
CEO-DealerPro Training Solutions
NADA University Partner
Missed Profit Opportunities
In the pursuit of additional profit opportunities in your service department, you must focus on maintenance of your customers’ vehicles. This is a missed opportunity for many dealers who do not perform complete, thorough inspections of their customers’ vehicles and do not make recommendations for preventative maintenance based on time, mileage, local conditions, etc. The value of these missed profit opportunities might surprise you.
To begin with, let me ask you this question: What percentage of your customers take delivery of their new or used vehicle and then, once they get home, remove that maintenance manual so they can review and study their required and recommended maintenance services? I don’t know the exact answer but I’m pretty confident the answer is, not very many. I’m talking about the transmission services, coolant flushes, air filters, pollen filters (which very few customers know they need), alignments, tire rotations, and the list goes on, and on. Everyone knows when to change the engine oil, but how many do you really think know when to perform all of those other maintenance services?
Next question: Are all of your customers mechanically inclined and can they perform all maintenance services on their vehicles themselves? Most customers rely upon someone with knowledge of their vehicle to provide recommendations for the proper maintenance and service on their vehicle.
It’s kind of like going to the dentist; the dentist performs an inspection of your teeth on each and every visit and makes recommendations to you based on the time since your last visit and the condition of your teeth. You know that you have to brush after every meal and floss, but there are other things your teeth need that you may not be aware of.
You rely upon a professional to help you maintain healthy teeth. An automobile customer is no different. They rely upon a professional, your technician or your service advisor, to properly advise them on how to maintain a reliable and safe vehicle which, in the long run, provides a much more enjoyable driving experience. There’s nothing worse than going on a trip with the family and having a problem occur with your vehicle, right?
Okay, so let’s look at the profit potential regarding this process of inspecting every vehicle and making recommendations to your customers for additional maintenance. In working with dealers all over the country, I have found that a complete and thorough inspection will produce, on average, an additional 0.7 hour of labor per retail work order. Let’s use the following assumptions when calculating the profit opportunity in our model dealership/service facility:
•Retail labor rate of $85 per hour
•Retail labor profit margin of 75% (Techs are paid $21.25 per hour)
•Parts-to-labor sales ratio of 0.8-to-1 ($0.80 in parts sales = $1.00 in labor sales)
•Retail parts profit margin of 45%
•Average 500 retail work orders per month
By performing complete and thorough inspections of all 500 vehicles we find, on average, 0.7 additional hours to sell at $85 per hour equals $59.50 in labor sales. At a profit margin of 75 percent, this produces additional gross profit of $44.63. At a 0.8-to-1 ratio our parts sales would be $68 per hour with a profit margin of 45 percent, which produces additional gross profit of $30.60 per repair order. Add the two together, and our total additional gross profit equals $75.23 per work order. Multiply that by our 500 work orders and the result is an additional gross profit of $37,615 per month. That comes to $451,380 for the year, based on 500 work orders each month.
Now ask yourself this question: “How many additional vehicles would I need to sell throughout the year to produce another $451,380 in gross profit?” If your average gross profit per unit is $1,500, this equates to approximately 301 additional vehicles. Does that get your attention? The point is, you need to start looking at your service and parts departments as true profit centers that can not only stand on their own, but also actually generate enough profit to cover all of your dealership’s fixed expenses. That’s service absorption! This means you have less dependency on new and used vehicle sales to make a net profit, which becomes a huge benefit during a soft market, high interest rates, expensive fuel, bad weather and a whole lot of other ills.
In far too many dealerships, the service and parts departments are simply there to provide support for the sale and delivery of new and used vehicles. Their secondary role is to take care of all the warranty repairs, and last of all, if time permits, they will write a retail work order for cash business. I’ve actually been in a service department that told customers that if they didn’t buy their vehicle from the dealership, they were low priority.
If this philosophy makes sense to you, then welcome to the dark ages! As you can imagine, this dealer was losing money in his service and parts department in numbers that would take your breath away. Would you want to be a service advisor or service manager in that store? It’s worth noting that the turnover in those two positions was quite high.
Why would you want to operate any department in your dealership at a loss to support another department? I believe it makes a lot more sense to operate every department as a standalone enterprise that works with the other departments to maximize overall performance and profits. It’s called return on investment.
Don Reed
CEO, Fixed Ops Solutions
DealerPro Training Solutions
To begin with, let me ask you this question: What percentage of your customers take delivery of their new or used vehicle and then, once they get home, remove that maintenance manual so they can review and study their required and recommended maintenance services? I don’t know the exact answer but I’m pretty confident the answer is, not very many. I’m talking about the transmission services, coolant flushes, air filters, pollen filters (which very few customers know they need), alignments, tire rotations, and the list goes on, and on. Everyone knows when to change the engine oil, but how many do you really think know when to perform all of those other maintenance services?
Next question: Are all of your customers mechanically inclined and can they perform all maintenance services on their vehicles themselves? Most customers rely upon someone with knowledge of their vehicle to provide recommendations for the proper maintenance and service on their vehicle.
It’s kind of like going to the dentist; the dentist performs an inspection of your teeth on each and every visit and makes recommendations to you based on the time since your last visit and the condition of your teeth. You know that you have to brush after every meal and floss, but there are other things your teeth need that you may not be aware of.
You rely upon a professional to help you maintain healthy teeth. An automobile customer is no different. They rely upon a professional, your technician or your service advisor, to properly advise them on how to maintain a reliable and safe vehicle which, in the long run, provides a much more enjoyable driving experience. There’s nothing worse than going on a trip with the family and having a problem occur with your vehicle, right?
Okay, so let’s look at the profit potential regarding this process of inspecting every vehicle and making recommendations to your customers for additional maintenance. In working with dealers all over the country, I have found that a complete and thorough inspection will produce, on average, an additional 0.7 hour of labor per retail work order. Let’s use the following assumptions when calculating the profit opportunity in our model dealership/service facility:
•Retail labor rate of $85 per hour
•Retail labor profit margin of 75% (Techs are paid $21.25 per hour)
•Parts-to-labor sales ratio of 0.8-to-1 ($0.80 in parts sales = $1.00 in labor sales)
•Retail parts profit margin of 45%
•Average 500 retail work orders per month
By performing complete and thorough inspections of all 500 vehicles we find, on average, 0.7 additional hours to sell at $85 per hour equals $59.50 in labor sales. At a profit margin of 75 percent, this produces additional gross profit of $44.63. At a 0.8-to-1 ratio our parts sales would be $68 per hour with a profit margin of 45 percent, which produces additional gross profit of $30.60 per repair order. Add the two together, and our total additional gross profit equals $75.23 per work order. Multiply that by our 500 work orders and the result is an additional gross profit of $37,615 per month. That comes to $451,380 for the year, based on 500 work orders each month.
Now ask yourself this question: “How many additional vehicles would I need to sell throughout the year to produce another $451,380 in gross profit?” If your average gross profit per unit is $1,500, this equates to approximately 301 additional vehicles. Does that get your attention? The point is, you need to start looking at your service and parts departments as true profit centers that can not only stand on their own, but also actually generate enough profit to cover all of your dealership’s fixed expenses. That’s service absorption! This means you have less dependency on new and used vehicle sales to make a net profit, which becomes a huge benefit during a soft market, high interest rates, expensive fuel, bad weather and a whole lot of other ills.
In far too many dealerships, the service and parts departments are simply there to provide support for the sale and delivery of new and used vehicles. Their secondary role is to take care of all the warranty repairs, and last of all, if time permits, they will write a retail work order for cash business. I’ve actually been in a service department that told customers that if they didn’t buy their vehicle from the dealership, they were low priority.
If this philosophy makes sense to you, then welcome to the dark ages! As you can imagine, this dealer was losing money in his service and parts department in numbers that would take your breath away. Would you want to be a service advisor or service manager in that store? It’s worth noting that the turnover in those two positions was quite high.
Why would you want to operate any department in your dealership at a loss to support another department? I believe it makes a lot more sense to operate every department as a standalone enterprise that works with the other departments to maximize overall performance and profits. It’s called return on investment.
Don Reed
CEO, Fixed Ops Solutions
DealerPro Training Solutions
The Top Ten Excuses and Myths of Dealership Training Programs
Number 10.
“We’ll do it ourselves.” The Truth is very different than the Reality. Most of the time Managers find it hard to devote 5 minutes to a vendor or the factory Rep let alone the hours of training required to make a change in an Advisors behavior.
Number 9.
“It’s too expensive.” We have a saying at DealerPro… “Never let money stand in the way of training.” No, Mr. or Ms. Dealer, it’s too expensive to do nothing. Every day you wait, you are losing Gross Profit. Those days of Lost Opportunity add up to months and then years of money flowing out of your Service Department. Let us help you achieve your Goals for 2011.
Number 8.
“It’s not the right time.” When is it ever the right time? Every day there are new challenges. People quit, the computer system crashes, the parking lot is being repaved…there is no right time. In fact, waiting for the right time is the exact opposite of the right time. It is always the wrong time to wait and it is costing you money Mr. or Ms. Dealer.
Number 7.
“I’m in the middle of hiring new people.” What a perfect time to get them trained properly. What benefit is there to waiting for training? None, there is no benefit. Every successful organization on the planet has a training program for new hires that gets them started on the right foot. You want them to be properly trained and started off on the right foot don’t you?
Number 6.
“We do things differently around here. Your program won’t work.” In the 11 year history of DealerPro that refrain has been heard hundreds if not thousands of times. We have proven that our system does work without regard to location or region. It works because it’s based on people and processes.
Number 5.
“My people won’t like it.” That may be true. If they are underachieving, they won’t like our program or any other program. When you start making changes people who have been comfortable get…uncomfortable. Why? If you want to succeed, you have to do things differently.
And comfortable people just want to stay comfortable, don’t they?
Number 4.
“We are too busy to do training.” Mr. or Ms. Dealer, this is exactly why you need to do training. If your level of “busy” matched your level of profits, we wouldn’t be having this conversation. There are busy Dealerships and then there are Dealerships that appear to be busy. In the latter, we find that there is a lot of wasted opportunity.
Number 3.
“What if I don’t like the Trainer?” We are a Performance Based company Mr. or Ms. Dealer, and as such, everyone is measured all of the time. If there is a Performance issue, chances are we already know and will be talking with you and your Trainer to identify the problem.
Number 2.
“I have a friend/consultant/the factory with a similar program and we want to use them.” While we support Training and certainly respect anyone who can provide a program, the differences between DealerPro and the “other guy” is tremendous. Here are a few items to consider.
1.Will the friend/consultant/the factory return every month for 13 months for 3-5 days of training in the service drive?
2.Do they have any “skin in the game”? In other words, are they fee based or performance based?
3.Do they have an Automotive Retail background? Our average Trainer has 20 Years experience as a Service Manager or Service and Parts Director.
If the answer to any of these questions is no, then you really need to consider DealerPro as your first choice.
Number 1.
“I’m not really sure about all of this. Isn’t this what I am paying my Service Manager for?” Mr. or Ms. Dealer, we find that most Service Managers and Service and Parts Directors are good at doing lots of things.
We are the best at one thing, Training Service Personnel.
And because we are the best our Dealers enjoy an average 35-40% increase in Gross Profit.
Bottom Line, there really is no reason not to start Training.
Let us help you get the Profits you deserve from your Fixed Operations.
Contact me at rheywood@dealerprotraining.com
“We’ll do it ourselves.” The Truth is very different than the Reality. Most of the time Managers find it hard to devote 5 minutes to a vendor or the factory Rep let alone the hours of training required to make a change in an Advisors behavior.
Number 9.
“It’s too expensive.” We have a saying at DealerPro… “Never let money stand in the way of training.” No, Mr. or Ms. Dealer, it’s too expensive to do nothing. Every day you wait, you are losing Gross Profit. Those days of Lost Opportunity add up to months and then years of money flowing out of your Service Department. Let us help you achieve your Goals for 2011.
Number 8.
“It’s not the right time.” When is it ever the right time? Every day there are new challenges. People quit, the computer system crashes, the parking lot is being repaved…there is no right time. In fact, waiting for the right time is the exact opposite of the right time. It is always the wrong time to wait and it is costing you money Mr. or Ms. Dealer.
Number 7.
“I’m in the middle of hiring new people.” What a perfect time to get them trained properly. What benefit is there to waiting for training? None, there is no benefit. Every successful organization on the planet has a training program for new hires that gets them started on the right foot. You want them to be properly trained and started off on the right foot don’t you?
Number 6.
“We do things differently around here. Your program won’t work.” In the 11 year history of DealerPro that refrain has been heard hundreds if not thousands of times. We have proven that our system does work without regard to location or region. It works because it’s based on people and processes.
Number 5.
“My people won’t like it.” That may be true. If they are underachieving, they won’t like our program or any other program. When you start making changes people who have been comfortable get…uncomfortable. Why? If you want to succeed, you have to do things differently.
And comfortable people just want to stay comfortable, don’t they?
Number 4.
“We are too busy to do training.” Mr. or Ms. Dealer, this is exactly why you need to do training. If your level of “busy” matched your level of profits, we wouldn’t be having this conversation. There are busy Dealerships and then there are Dealerships that appear to be busy. In the latter, we find that there is a lot of wasted opportunity.
Number 3.
“What if I don’t like the Trainer?” We are a Performance Based company Mr. or Ms. Dealer, and as such, everyone is measured all of the time. If there is a Performance issue, chances are we already know and will be talking with you and your Trainer to identify the problem.
Number 2.
“I have a friend/consultant/the factory with a similar program and we want to use them.” While we support Training and certainly respect anyone who can provide a program, the differences between DealerPro and the “other guy” is tremendous. Here are a few items to consider.
1.Will the friend/consultant/the factory return every month for 13 months for 3-5 days of training in the service drive?
2.Do they have any “skin in the game”? In other words, are they fee based or performance based?
3.Do they have an Automotive Retail background? Our average Trainer has 20 Years experience as a Service Manager or Service and Parts Director.
If the answer to any of these questions is no, then you really need to consider DealerPro as your first choice.
Number 1.
“I’m not really sure about all of this. Isn’t this what I am paying my Service Manager for?” Mr. or Ms. Dealer, we find that most Service Managers and Service and Parts Directors are good at doing lots of things.
We are the best at one thing, Training Service Personnel.
And because we are the best our Dealers enjoy an average 35-40% increase in Gross Profit.
Bottom Line, there really is no reason not to start Training.
Let us help you get the Profits you deserve from your Fixed Operations.
Contact me at rheywood@dealerprotraining.com
For Trainers
The greatest single feeling of accomplishment you can experience as a Trainer is one where someone you are Training suddenly…Gets It.
And right in front of you… before your very eyes, there is a Change.
See, in Training, change is mostly slow, frequently subtle, hard to see and sometimes hard to measure. It requires energy, time, committment, belief, knowledge, skill, communication, background, application and mostly… Will Power.
So, when someone “Gets It” and it happens right in front of you, it is a pretty special moment. Because up until that time you have invested all of yourself on…Faith.
Nothing more.
Faith in that person. Faith in what you Teach and how you Train. Faith that if you keep trying and never give in to the naysaying, the complaints, the whining, the bitching, the negativity…then you will have that moment…that special moment that occurs only after you have given of yourself and invested in another person based solely on Faith… with the only Thought and the only Reward… a moment in time when… that person…Gets It.
So, for you Trainers out there, the ones with the skin in the game, the heart on your sleeve, the feet on the deck and the eye on the prize…Keep It Up. We are counting on you.
We are counting on you to see us for what we can Become and what we can Achieve. We are counting on you Mr. or Ms. Trainer to Push us when we think we cannot be Pushed any more, to Train us when we think we have been Trained enough, to ask us to Commit to what you are Teaching us and to hold us Accountable for what we do or do not do.
That is what we are asking of you Mr. or Ms. Trainer.
Because if you do not…who will?
And because we have Faith in you Mr. or Ms. Trainer, we will…Try.
Rest assured that we will stumble, we will procrastinate, we will regress, we will start in fits and flubs…and through it all we will be counting on you.
Counting on you to be there to guide and lead. To lead us when we want to quit and remind us what we can become. You never quit on us and that is why we look to you. Because you have Faith.
For if you give up on us, what Hope do we have? If you do not Train us, who will?
Remember that you fill a Role…the most important Role any person can have …the most Respected of all Professions a man or woman can undertake…that of one who Leads and Trains. We ask that you don’t give up on us.
We ask that you…Try. Because we want to be the person that “Gets It” and make everything you do worthwhile.
We are counting on you.
And right in front of you… before your very eyes, there is a Change.
See, in Training, change is mostly slow, frequently subtle, hard to see and sometimes hard to measure. It requires energy, time, committment, belief, knowledge, skill, communication, background, application and mostly… Will Power.
So, when someone “Gets It” and it happens right in front of you, it is a pretty special moment. Because up until that time you have invested all of yourself on…Faith.
Nothing more.
Faith in that person. Faith in what you Teach and how you Train. Faith that if you keep trying and never give in to the naysaying, the complaints, the whining, the bitching, the negativity…then you will have that moment…that special moment that occurs only after you have given of yourself and invested in another person based solely on Faith… with the only Thought and the only Reward… a moment in time when… that person…Gets It.
So, for you Trainers out there, the ones with the skin in the game, the heart on your sleeve, the feet on the deck and the eye on the prize…Keep It Up. We are counting on you.
We are counting on you to see us for what we can Become and what we can Achieve. We are counting on you Mr. or Ms. Trainer to Push us when we think we cannot be Pushed any more, to Train us when we think we have been Trained enough, to ask us to Commit to what you are Teaching us and to hold us Accountable for what we do or do not do.
That is what we are asking of you Mr. or Ms. Trainer.
Because if you do not…who will?
And because we have Faith in you Mr. or Ms. Trainer, we will…Try.
Rest assured that we will stumble, we will procrastinate, we will regress, we will start in fits and flubs…and through it all we will be counting on you.
Counting on you to be there to guide and lead. To lead us when we want to quit and remind us what we can become. You never quit on us and that is why we look to you. Because you have Faith.
For if you give up on us, what Hope do we have? If you do not Train us, who will?
Remember that you fill a Role…the most important Role any person can have …the most Respected of all Professions a man or woman can undertake…that of one who Leads and Trains. We ask that you don’t give up on us.
We ask that you…Try. Because we want to be the person that “Gets It” and make everything you do worthwhile.
We are counting on you.
Coaching For Professionals
Several years ago, our local golf course completed an extensive re-model and re-design. At the dedication, Ray Floyd was the celebrity guest of honor. At the time, Ray had been enjoying renewed success in his golfing career. The local newspaper covered the event which included an interview. The answer to one of the questions intrigued me, and formed the basis for this article. The question was, “Ray, what do you contribute your recent successes to?” Ray responded, “I hired a new swing coach and started seeing a golf psychologist. You see, I needed to make certain I was maximizing every aspect of my game, both mental and physical! I needed all I could get from my swing and had to make sure my head was in the right place. These two changes helped me to improve my game and start scoring again.”
From Ray’s comments we can conclude that regardless of experience, abilities or past successes, EVERYONE can benefit from coaching, even your business. Coaching can improve current performance and help move dealerships to their Next Level. A third party, a coach, will see things others do not see, or things that are seen but overlooked, or worse yet, tolerated. A coach can help efficiently maximize an organizations effort.
Many of the dealerships we visit lack structure and processes. Structure is like the golf swing, you need to START correctly in order to finish up where you want. Processes relate to the mental aspect. If a dealership has procedures that are followed as designed, the thought process becomes easier, EVERYONE does the same thing, EVERY TIME. The only time one needs to improvise is when the situation is not clearly defined by a process. When that happens, get help immediately.
Let’s look at each of these elements individually. Proper structure needs to include economic balance in every aspect of your business. Are you selling the right products, are you stocking the right merchandise? Are your grosses in line with others in your area, region or the nation? Are you spending more than you should to generate the sales and grosses you are currently generating? Do you have guidelines for your new and used inventories? Are you paying your people TOO much, or TOO little? Are your pay plans fair to your employees as well as the dealership? Are your goals in writing? Did your management staff have the opportunity to give their input when establishing those goals? How often are the goals reviewed? The more frequent your review of your goals, the more you tend to move toward those goals.
Processes reflect the mental aspects of your business. Everyone needs to be doing the same thing, every time. When a customer walks on your lot, they need to be greeted in a professional and courteous manner, every time. After the customer has been greeted, they need to be escorted to a place where the salesperson can conduct a thorough, fact finding interview, every time. When a customer walks up to your service or parts department, they need to be handled the same way, every time. When a salesperson sits your customer down to negotiate the deal on their new purchase, they need to follow the same process, every time. Simplify the mental parts with processes and improve the score. No one can be exempt, everyone needs to follow the processes, every time.
Processes require ongoing training and discipline. Speaking of training, who does your training, your managers, your top producers? If they are not training, who is? Here is a scary thought, if your sales managers or your top producers are not doing the training that means your BOTTOM producers must be handling it. When you hire new people, what are they learning and who are they learning it from?
A Coach can help an organization with these and other opportunities. When was the last time your dealership had a check up? Is your business on solid ground? How are your processes? Are regular, ongoing training sessions being held? Are ALL employees required to attend? Is your dealership selling what sells, and stocking what is selling. Are your managers involved at all levels, including forecasting? Are your forecast and goals written? Are the forecasts achievable? How frequently are your forecasts reviewed? Do you have a coach, and if not, why?
Dugan Anderson operates Profit Solutions, a Division of RVMax. Dugan is a former dealer and for the past 8 years has been working with RVMax and dealerships across the country, dealing with all aspects of Financial Analysis, Expense control, marketing, training and consulting.
From Ray’s comments we can conclude that regardless of experience, abilities or past successes, EVERYONE can benefit from coaching, even your business. Coaching can improve current performance and help move dealerships to their Next Level. A third party, a coach, will see things others do not see, or things that are seen but overlooked, or worse yet, tolerated. A coach can help efficiently maximize an organizations effort.
Many of the dealerships we visit lack structure and processes. Structure is like the golf swing, you need to START correctly in order to finish up where you want. Processes relate to the mental aspect. If a dealership has procedures that are followed as designed, the thought process becomes easier, EVERYONE does the same thing, EVERY TIME. The only time one needs to improvise is when the situation is not clearly defined by a process. When that happens, get help immediately.
Let’s look at each of these elements individually. Proper structure needs to include economic balance in every aspect of your business. Are you selling the right products, are you stocking the right merchandise? Are your grosses in line with others in your area, region or the nation? Are you spending more than you should to generate the sales and grosses you are currently generating? Do you have guidelines for your new and used inventories? Are you paying your people TOO much, or TOO little? Are your pay plans fair to your employees as well as the dealership? Are your goals in writing? Did your management staff have the opportunity to give their input when establishing those goals? How often are the goals reviewed? The more frequent your review of your goals, the more you tend to move toward those goals.
Processes reflect the mental aspects of your business. Everyone needs to be doing the same thing, every time. When a customer walks on your lot, they need to be greeted in a professional and courteous manner, every time. After the customer has been greeted, they need to be escorted to a place where the salesperson can conduct a thorough, fact finding interview, every time. When a customer walks up to your service or parts department, they need to be handled the same way, every time. When a salesperson sits your customer down to negotiate the deal on their new purchase, they need to follow the same process, every time. Simplify the mental parts with processes and improve the score. No one can be exempt, everyone needs to follow the processes, every time.
Processes require ongoing training and discipline. Speaking of training, who does your training, your managers, your top producers? If they are not training, who is? Here is a scary thought, if your sales managers or your top producers are not doing the training that means your BOTTOM producers must be handling it. When you hire new people, what are they learning and who are they learning it from?
A Coach can help an organization with these and other opportunities. When was the last time your dealership had a check up? Is your business on solid ground? How are your processes? Are regular, ongoing training sessions being held? Are ALL employees required to attend? Is your dealership selling what sells, and stocking what is selling. Are your managers involved at all levels, including forecasting? Are your forecast and goals written? Are the forecasts achievable? How frequently are your forecasts reviewed? Do you have a coach, and if not, why?
Dugan Anderson operates Profit Solutions, a Division of RVMax. Dugan is a former dealer and for the past 8 years has been working with RVMax and dealerships across the country, dealing with all aspects of Financial Analysis, Expense control, marketing, training and consulting.
3 Important Steps to Increase Service Sales
Ooooohhh, you got a shiny new car. I got to admit….you look good in it! It’s all you…the color… the styling….all your friends and neighbors are just gonna scream when you pull it into the driveway…they’ll say things like “Nice ride” or “Man, that is saaaaawwweeeetttt!”
And for the next few months you are constantly looking for excuses to take that baby for a spin! Need a double A for the tv remote??? “I’ll be right back” is the only thing you shout as you rush out the door to a store clear across town just so you can “cruise it baby!” Know what I’m talking about?
You probably are not even thinking about this next question.
“What percentage of your customers take delivery of their new or used vehicle and then, once they get home, remove that maintenance manual so they can review their required and recommended maintenance schedule?”
asks Don Reed of DealerPro Training Solutions.
The answer, not many. The reason is, they are just like you and me. The last thing on our minds is “When will I need to take it in for my first service?” All this means is that the purchaser, who has become your new potential Service Customer, will need to know what maintenance is required in order to keep their vehicle in top running condition.
If you are in Service there should be a word that just popped into your head. Can you say “Opportunity? In order to capitalize on your potential ”opportunity” you will need to do at least 3 things.
1st, provide a friendly, inviting environment to have service completed. Some things you will need to have are Friendly People (not fake friendly), clean waiting rooms and restrooms (a real must!), adequately comfortable chairs to sit down (not the plastic high school lunchroom chairs), access to refreshments (does not have to be gourmet) and probably the number one item in the customers mind, a promise to meet the customers time expectations.
2nd, have personnel that are not only knowledgeable about the maintenance required, but can explain it in a manner that a customer can understand with a friendly, caring attitude. No condescending, no derogatory or demeaning statements, no expectation of compensation. Just a sincere and caring attitude in favor of the customer. Lastly, a thorough inspection of the customer vehicle when in for service. Everytime. When completed, the customer should receive a copy and complete explanation of what was found and the overall condition of the vehicle. Everytime. By doing this the customer and you will begin to build a relationship. One that will lead to continued customer loyalty to the brand and the Dealership and future business for you.
Are there many more things you need to do? Yep. These are just 3 of the most important. There are a lot more steps to take in increasing your service market. If you can accomplish these 1st 3, you’ll be on your way to having increased service business, returning loyal customers and increasing profit.
Now, go get your car and take it for a ride…somewhere there is a double A about to go bad and you are going to need a new one!
And for the next few months you are constantly looking for excuses to take that baby for a spin! Need a double A for the tv remote??? “I’ll be right back” is the only thing you shout as you rush out the door to a store clear across town just so you can “cruise it baby!” Know what I’m talking about?
You probably are not even thinking about this next question.
“What percentage of your customers take delivery of their new or used vehicle and then, once they get home, remove that maintenance manual so they can review their required and recommended maintenance schedule?”
asks Don Reed of DealerPro Training Solutions.
The answer, not many. The reason is, they are just like you and me. The last thing on our minds is “When will I need to take it in for my first service?” All this means is that the purchaser, who has become your new potential Service Customer, will need to know what maintenance is required in order to keep their vehicle in top running condition.
If you are in Service there should be a word that just popped into your head. Can you say “Opportunity? In order to capitalize on your potential ”opportunity” you will need to do at least 3 things.
1st, provide a friendly, inviting environment to have service completed. Some things you will need to have are Friendly People (not fake friendly), clean waiting rooms and restrooms (a real must!), adequately comfortable chairs to sit down (not the plastic high school lunchroom chairs), access to refreshments (does not have to be gourmet) and probably the number one item in the customers mind, a promise to meet the customers time expectations.
2nd, have personnel that are not only knowledgeable about the maintenance required, but can explain it in a manner that a customer can understand with a friendly, caring attitude. No condescending, no derogatory or demeaning statements, no expectation of compensation. Just a sincere and caring attitude in favor of the customer. Lastly, a thorough inspection of the customer vehicle when in for service. Everytime. When completed, the customer should receive a copy and complete explanation of what was found and the overall condition of the vehicle. Everytime. By doing this the customer and you will begin to build a relationship. One that will lead to continued customer loyalty to the brand and the Dealership and future business for you.
Are there many more things you need to do? Yep. These are just 3 of the most important. There are a lot more steps to take in increasing your service market. If you can accomplish these 1st 3, you’ll be on your way to having increased service business, returning loyal customers and increasing profit.
Now, go get your car and take it for a ride…somewhere there is a double A about to go bad and you are going to need a new one!
Are You Trying to Save Your Way to Profitability?
Getting profitable. Wow. How cool would that be?
You come into the store the first day of the month, open the door to your office, turn on the lights, sit at your desk and open the drawer that you keep your last months financial statement in and read through it until you come to the page that has the final numbers….and you smile a little self satisfied smile….when you realize “we paid all of our bills before we even opened the door this morning.”
Sounds like a science fiction novel? Or a fairy tale?
Maybe…especially if you are trying to save your way into Profitability.
It can be done…no doubt…that first month or two after you have made the cuts in Personnel, and wages (a favorite of all the employees by the way), and supplies, and vendors (they love that thing you do…you know..”Hey dude, I’m not paying $75.00 a car anymore for ding repair, it’s $50.00 now.”), and weekend meals for the Sales Dept…..you know what I’m talking about…and at the end of the second month…Wala…Profit. Right there on the statement. Just like you thought.
Then….the unthinkable happens…even less Traffic…. which you guessed it…. leads to less Sales and that of course takes us to less Profit because there is less Revenue and less of….well…EVERYTHING!
Now what do you cut? More importantly, how can you remain Profitable?
Maybe the question is not “Are my Expenses too High?”….maybe it’s “Are my Profits too Low?”
If this is you, then you need to start looking at Profit Generation and not Expense Cuts. Let me elaborate.
There is an area in your Dealership that has been known to generate Profit….consistently…if it’s being done correctly….it’s called the Fixed Operations or Service and Parts Department. I know….you can’t believe it either….it’s been there all along. Just waiting to be capitalized on.
Let’s present some facts. Now, I’m not picking on anyone, just discussing. Don’t get offended…I’m just the messenger and the alarm sounder.
The average hardworking Salesperson in the average Dealer selling an average New Vehicle will generate an average of $1450.00 in Gross PUS. If the New Vehicle has a $30000.00 sale price, that equates to .048333 or almost .05% average Gross Profit PUS.
Lets look at the Service Numbers. The average hardworking Advisor writing an average of 12 ROs a day will generate an average of $2754.00 in Sales with an average overall Gross of $1636.00 or 59% Gross Profit, per day.
Compared that to the average hardworking Salesperson overall average monthly Sales of 11 Units generating a total average monthly Gross of $15950.00, the average Advisor, well, has the bigger potential!
The average Advisor will generate $32,720.00 in average Gross Profit for the month!
Ok, what’s your point?
Since Saving our way to Profitability is a short term fix (and one sure to demoralize and in some cases, scare the employees), why not invest and allocate available resources into the Fixed Operations? One thing is for sure, the Sales to Gross ratio is a lot better, and the potential for getting even more is a lot greater.
So, which seems the better course of action?
Saving your way to Profitability or Generating More Profit?
You come into the store the first day of the month, open the door to your office, turn on the lights, sit at your desk and open the drawer that you keep your last months financial statement in and read through it until you come to the page that has the final numbers….and you smile a little self satisfied smile….when you realize “we paid all of our bills before we even opened the door this morning.”
Sounds like a science fiction novel? Or a fairy tale?
Maybe…especially if you are trying to save your way into Profitability.
It can be done…no doubt…that first month or two after you have made the cuts in Personnel, and wages (a favorite of all the employees by the way), and supplies, and vendors (they love that thing you do…you know..”Hey dude, I’m not paying $75.00 a car anymore for ding repair, it’s $50.00 now.”), and weekend meals for the Sales Dept…..you know what I’m talking about…and at the end of the second month…Wala…Profit. Right there on the statement. Just like you thought.
Then….the unthinkable happens…even less Traffic…. which you guessed it…. leads to less Sales and that of course takes us to less Profit because there is less Revenue and less of….well…EVERYTHING!
Now what do you cut? More importantly, how can you remain Profitable?
Maybe the question is not “Are my Expenses too High?”….maybe it’s “Are my Profits too Low?”
If this is you, then you need to start looking at Profit Generation and not Expense Cuts. Let me elaborate.
There is an area in your Dealership that has been known to generate Profit….consistently…if it’s being done correctly….it’s called the Fixed Operations or Service and Parts Department. I know….you can’t believe it either….it’s been there all along. Just waiting to be capitalized on.
Let’s present some facts. Now, I’m not picking on anyone, just discussing. Don’t get offended…I’m just the messenger and the alarm sounder.
The average hardworking Salesperson in the average Dealer selling an average New Vehicle will generate an average of $1450.00 in Gross PUS. If the New Vehicle has a $30000.00 sale price, that equates to .048333 or almost .05% average Gross Profit PUS.
Lets look at the Service Numbers. The average hardworking Advisor writing an average of 12 ROs a day will generate an average of $2754.00 in Sales with an average overall Gross of $1636.00 or 59% Gross Profit, per day.
Compared that to the average hardworking Salesperson overall average monthly Sales of 11 Units generating a total average monthly Gross of $15950.00, the average Advisor, well, has the bigger potential!
The average Advisor will generate $32,720.00 in average Gross Profit for the month!
Ok, what’s your point?
Since Saving our way to Profitability is a short term fix (and one sure to demoralize and in some cases, scare the employees), why not invest and allocate available resources into the Fixed Operations? One thing is for sure, the Sales to Gross ratio is a lot better, and the potential for getting even more is a lot greater.
So, which seems the better course of action?
Saving your way to Profitability or Generating More Profit?
Saving Newbie Advisor
In the movie “Saving Private Ryan”, an Army unit is sent to rescue the last surviving brother for a mother in waiting. The team is successful and Private Ryan returns home to live a life of fulfillment.
Nice story. Great plot. Excellent movie.
What has that got to do with Fixed Operations and Service Advisors?
Well, it is more about what you are not doing than what you are doing. And “Saving Newbie Advisor” could just as well be titled “Saving Every Advisor.” But I chose Newbie because it brings home that in every Service Manager there beats the heart of a Trainer and Coach (at least there should be) , and that last thing we want to do is put Newbie Advisor in a position to Fail.
So the question is, “If I am the Service Manager today, what 3 things would I need to teach my Newbie Advisor so that I could save him or her from the same mistakes that most every other Advisor makes in their respective careers?”
1st, lets teach them How to be Investigatory. In other words, how to ask good questions. Let me give you an example of a bad question. “Would you like fries with that?” Why is that a bad question?
Because everything preceding that question was order taking. Order taking is just that. Writing down what the person told you, putting that into the computer and waiting for the next request. Anybody can learn to do that. Heck, we taught a monkey to fly in space using the very same technique.
Advisors are investigatory. They ask questions that are investigative in nature. “Mr. Customer, I noticed that it’s been 6ooo miles since you had your tires rotated. Would you like for me to rotate them for you today?” or “Mr. Customer, during your last visit we recommended replacing the upper and lower radiator hoses. Has that been taken care of yet?”
2nd, lets teach them how to be Sell properly. A true Salesperson is the ultimate Professional. They study their craft by reading, training and role playing. They leave nothing to chance that is in their direct control. They always know how to respond even if they don’t know what they are going to say.
Too many times our Newbie Advisors are in the position to make a Sale and have no clue how to properly do it. They say the wrong thing or even worse, never say anything at all! They lack confidence to complete the transaction if there is anything outside of the ordinary because they haven’t been trained to deal with the unexpected. (Does Handling Objections sound familiar?)
Lastly, lets teach them how to Listen properly. Listening is a skill like any other. Stop practicing good Listening habits and watch the Sales tumble like BP’s stock after the oil spill. Straight down the Leader board.
Good Listening start with eye contact and paying attention. If you find your Advisors staring at the computer screen and answering the phone when the Customer is standing in front of them, it might be time for a “Saving.”
Saving Newbie and Every Advisor does not need to be a rescue mission if Training and Coaching are a priority and practiced daily. Take a look at your Advisors and see if they are in need of being saved. Teach and Coach How to ask Investigative Questions, How to Sell and How to Listen and watch your Service Sales increase.
Nice story. Great plot. Excellent movie.
What has that got to do with Fixed Operations and Service Advisors?
Well, it is more about what you are not doing than what you are doing. And “Saving Newbie Advisor” could just as well be titled “Saving Every Advisor.” But I chose Newbie because it brings home that in every Service Manager there beats the heart of a Trainer and Coach (at least there should be) , and that last thing we want to do is put Newbie Advisor in a position to Fail.
So the question is, “If I am the Service Manager today, what 3 things would I need to teach my Newbie Advisor so that I could save him or her from the same mistakes that most every other Advisor makes in their respective careers?”
1st, lets teach them How to be Investigatory. In other words, how to ask good questions. Let me give you an example of a bad question. “Would you like fries with that?” Why is that a bad question?
Because everything preceding that question was order taking. Order taking is just that. Writing down what the person told you, putting that into the computer and waiting for the next request. Anybody can learn to do that. Heck, we taught a monkey to fly in space using the very same technique.
Advisors are investigatory. They ask questions that are investigative in nature. “Mr. Customer, I noticed that it’s been 6ooo miles since you had your tires rotated. Would you like for me to rotate them for you today?” or “Mr. Customer, during your last visit we recommended replacing the upper and lower radiator hoses. Has that been taken care of yet?”
2nd, lets teach them how to be Sell properly. A true Salesperson is the ultimate Professional. They study their craft by reading, training and role playing. They leave nothing to chance that is in their direct control. They always know how to respond even if they don’t know what they are going to say.
Too many times our Newbie Advisors are in the position to make a Sale and have no clue how to properly do it. They say the wrong thing or even worse, never say anything at all! They lack confidence to complete the transaction if there is anything outside of the ordinary because they haven’t been trained to deal with the unexpected. (Does Handling Objections sound familiar?)
Lastly, lets teach them how to Listen properly. Listening is a skill like any other. Stop practicing good Listening habits and watch the Sales tumble like BP’s stock after the oil spill. Straight down the Leader board.
Good Listening start with eye contact and paying attention. If you find your Advisors staring at the computer screen and answering the phone when the Customer is standing in front of them, it might be time for a “Saving.”
Saving Newbie and Every Advisor does not need to be a rescue mission if Training and Coaching are a priority and practiced daily. Take a look at your Advisors and see if they are in need of being saved. Teach and Coach How to ask Investigative Questions, How to Sell and How to Listen and watch your Service Sales increase.
Service Absorption Rule #3
“Maintain a 6 to 1 ratio of C/P RO count to total vehicle sales” says Don Reed, CEO of DealerPro Training Solutions.
That sounds simple enough. If you are currently selling 100 New and Used a month, then that pencils out to 600 Customer Pay Repair Orders per Month, not including Warranty and Internal. It’s the CP RO count we are after.
So, you just realized that your RO count is low, right? What are you going to do about it? If you are thinking that you need a big production that costs a lot of money and the only thing that you can do is advertise to get more Customers in the door, think again.
Certainly advertising can be a part of the overall strategy to bring customers back in. “You don’t need to spend more money-you need to spend more of your money wisely” says Don. Which means that you need to look at reallocating some of what you already spend elsewhere (Sales) and give it to Service where you can realize a much better ROI.
“The average dealer is spending $500 to sell a new customer while spending $8.40 to keep the customers they have.”
And, if you do the math on a 500 RO (Customer Interaction) Service Drive and the typical 100 car store, you can expect to pay $50000.00 to get results that are somewhere north of say $145,000.00 in Gross Profit from the sale of those cars, or, you can spend $5000.00 in your Service Department ($10.00 per Customer) for a $153,000.00 Gross Profit return.
Thats 30 times over what you invested…vs a 2.9% ROI in Sales. 30 times! If I asked you to give me a $10.00 bill and I told you that in exchange for that $10.00 I would give you back $300.00, would you do it? Of course you would!
While advertising is part of the overall strategy and is part of your planning, it is another tool to be used in conjunction with everything else you do in Customer retention and marketing.
In fact, there are at least 20 different things that you can do right away (in the next few months) that will have an immediate impact on your RO count. Most of them require nothing more than a little elbow grease and awareness.
Send me an email at lbuchholz@dealerprotraining.com and put “Send me the 20″ in the subject line and I’ll send you back 20 ways you can increase RO count in your service department.
In the meantime, measure your current numbers using the 6/1 Rule and see where you stackup. If you are struggling, it might be time for a fresh look.
Getting to 100% Service Absorption is a decision. Decide to have better Absorption this year
That sounds simple enough. If you are currently selling 100 New and Used a month, then that pencils out to 600 Customer Pay Repair Orders per Month, not including Warranty and Internal. It’s the CP RO count we are after.
So, you just realized that your RO count is low, right? What are you going to do about it? If you are thinking that you need a big production that costs a lot of money and the only thing that you can do is advertise to get more Customers in the door, think again.
Certainly advertising can be a part of the overall strategy to bring customers back in. “You don’t need to spend more money-you need to spend more of your money wisely” says Don. Which means that you need to look at reallocating some of what you already spend elsewhere (Sales) and give it to Service where you can realize a much better ROI.
“The average dealer is spending $500 to sell a new customer while spending $8.40 to keep the customers they have.”
And, if you do the math on a 500 RO (Customer Interaction) Service Drive and the typical 100 car store, you can expect to pay $50000.00 to get results that are somewhere north of say $145,000.00 in Gross Profit from the sale of those cars, or, you can spend $5000.00 in your Service Department ($10.00 per Customer) for a $153,000.00 Gross Profit return.
Thats 30 times over what you invested…vs a 2.9% ROI in Sales. 30 times! If I asked you to give me a $10.00 bill and I told you that in exchange for that $10.00 I would give you back $300.00, would you do it? Of course you would!
While advertising is part of the overall strategy and is part of your planning, it is another tool to be used in conjunction with everything else you do in Customer retention and marketing.
In fact, there are at least 20 different things that you can do right away (in the next few months) that will have an immediate impact on your RO count. Most of them require nothing more than a little elbow grease and awareness.
Send me an email at lbuchholz@dealerprotraining.com and put “Send me the 20″ in the subject line and I’ll send you back 20 ways you can increase RO count in your service department.
In the meantime, measure your current numbers using the 6/1 Rule and see where you stackup. If you are struggling, it might be time for a fresh look.
Getting to 100% Service Absorption is a decision. Decide to have better Absorption this year
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