It’s getting harder and harder for many dealerships to pay the bills these days, and it seems like projections for profit losses have become a reality for 2009. Automotive industry news projected losses in profit in the billions due to a decline in new car sales. It’s an unprecedented loss that’s primarily due to consumers struggling in today’s economy.
Dealerships all across the country are being affected by the economy, and many are struggling just to make ends meet. It’s a grim scenario, but not a hopeless one. To manage to survive and even thrive in today’s tough economy, dealerships must look beyond the sales department, or what’s always been the “golden child” of gross profits. Now is the time to make a fixed op’s invested that can’t fail to tap into the massive profit potential that exists outside of new car sales.
The service department is a terrific place to begin recouping lost profits. Investing in the service department doesn’t mean you need a department overall or more personnel. Start by investing in professional service consulting that involves in-depth, specialized training for the service manager, advisors and technicians. Working with a service consultant will produce the fastest, most dramatic results in terms of increasing fixed op’s profitability.
A professional service consultant who provides service team members with hands-on, in-depth, specialized training can boost service department profits in many ways. First, the consultant can perform a comprehensive review and analysis of service department performance to see exactly where profits can be gained. This review usually points out several opportunities for improvement that will equate to increased gross profits. Next, a service consultant can provide the training service department personnel need to make their department more profitable right away.
Investing in service consulting makes more sense today than ever before. Customers might not be buying new cars, but they’re trying very hard to keep the ones they own running smoothly. They’re also very interested in saving money. Service maintenance is almost like insurance against the need for costly repairs. Given a choice, today’s customer would much rather pay for affordable maintenance services than repairs that cost a small fortune.
Fixed op’s and specifically service consulting can teach your team how to work together to impress upon customers the importance of regular maintenance service. Technicians can provide service advisors with in-depth information about the services a customer needs. Service advisors can then explain in detail why a particular service is important, when it should be performed and what (if any) other options are available. The director of service can coach, evaluate and support both techs and advisors along the way.
In the end, service consulting benefits not only the dealership, but the customer, as well. Customers receive the exact type of service they’re looking for in today’s economy when maintenance and service are a priority at their dealership. Better customer service means enhanced customer loyalty and increased sales. That’s why a renewed focus on fixed op’s and the service department in particular can turn a struggling dealership into a profitable organization that thrives in today’s economy and beyond. Discover how a small investment in service consulting is today’s automotive industry secret to success.
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