Menu Board

[RPMGeorge]

Are you using a Menu Board in your Service Dep.? If so, how well does it work for the SA and which Customers are most likely to take advantage of preset Service & Price; whats the potential of up-selling thru menu pricing? How do you set the standard for menu pricing and how do you use this to draw in more CP customers?
What incentive do you have in place to reach a high CSI for your techs (Team or Individual)?
Just would like to know where to fine tune our opperations.
Thanks for every response.

[Pete Daniel]

RPMGeorge, Here is some info that I hope will help you. Most progressive dealers today use a competitive board in thier service departments. The idea is to have a tool that changes the customers perception of "the dealership being higher than everyone else". It is also used for marketing and a tool for advisors to overcome pricing objectives from customers.The menu board should actually be a "competitive" board with 4-6 services that are highly visible, and frequently advertised operations by the aftermarket.IE: LOF,Alignment,Front Brakes,rotate,etc. In other words, services that customers purchase frequently during the life of a car.Perform a survey in your market of the current prices by telephone. Shop well known names IE: Goodyear (Gemini) Firestone, Midas,Jiffy Lube,etc. Then set your prices to be "competitive" with them. Not the highest and not the lowest. Just "competitive". List the competitors and yourself on display including prices. You might have to lower some prices. Then you should build factory maint-menus (Printed)for advisors to present to EVERY customer that comes in service(Advising them on needed service due at that time or future) and purchases a new car. Pricing of the menus should have an effective labor rate of at least your warranty rate. Parts pricing of the menu parts can be derived from performing a "weighted average" and selling most parts needed for the menu at the same price per catagory. IE: Brake pads $55.00, Air filters $23.00, plugs $2.75, etc. How many apple pies would Mcdonalds sell if they did not present and ask for the sale? Menus actually do not draw in more customers so to speak, but allow you to capitalize further on your present customer base and give the customer information to return for thier next service. One more note, consistent pricing system from your department allows advisors to give quick and accurate prices to customers. After you have developed the "competitive" pricing board and the menus, you have to look at your effective labor rate. In order to be competitive, your ELR will drop. You then need to implement a "repair rate" to offset the low competitive pricing in order to obtain your ELR target and desired GP% on CP labor sales.
There are great pricing systems out there from R&R & ADP if you have those systems or Hayes Ligon offers a stand alone PC based pricing guide. The "variable labor rates can be programed into these guides as well. Customers and advisors will enjoy having "consistent" and accurate pricing instead of the ceiling tile or seat of the pants method. Domestic dealers should have 35% menu penetration and Import dealers 40%. In other words, 35-40 of 100 CP RO'S should have a menu package sale. Including Quick Lubes Ro's.The big key is not only to implement these tools, but to monitor advisors performance on a daily basis, praising and coaching on production results. Set goals and give them the tools and support to reach them. I will be glad to send you a picture of a "competitve board" and a copy of a menu if you need one.
E-mail: pete@consultadc.com