Let’s look at a service department that has been challenged with the coronavirus over the last several months. An aggressive team would look for ways to grow count and margins in spite of real reasons to have reduced results. The other option is wait for the phone to ring. Your team might stop recommending maintenance or repair items they see because of preconceived notions on customer struggles. Have your team working on open safety campaigns with cars picked up and delivered making it convenient for the clients. Develop and implement new processes that protect the staff and your clients while keeping good processes such as walk around inspections and recommending preventive maintenance. Another thing to consider is your warranty rates from the manufacturer. Are you due for another warranty increase?
Most dealerships may have performed a submission to take advantage of state law in the past however, haven’t looked recently to see if they could do another. If you desire more gross profit on warranty repairs take advantage of our test drive that looks at six months of your data to develop the best repair order range on a submission. The test drive is only $500 and if we submit a Margin Plus agreement, we credit the money. It’s amazing what an extra $15-$30 means per technician hour sold to the factory. An extra 20% margin on warranty parts always makes the parts manager smile. Be creative and look for ways to develop relationships with local fleets.
This isn’t the time to be timid. This is a time to be aggressive and look in every corner to get your best results.Sincerely,
Rob Gehring, President
Fixed Performance Inc. (Fixed Operations Consulting)
ATES (Automotive Technician Employer Standards)
Margin Plus (Manufacturer Warranty Reimbursement Program)
Toll Free: 1-888-205-8718
Office: (419) 433-8219
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