DealersEdge Professional Forums

Hello,
I would like to know what service managers and directors are doing to increase cp sales and what their average hour per ro is. I am at a Chrysler store in a middle income area with 15 techs and 4 advisors. Business is up and down one day I dont have enough help and the next I am 3 to 4 tech to heavy. We are located in the St.Louis Area. Our market today seems to be shop were the best deal is, so it takes more time to work each customer and sell on the benifits of having the work done at the dealer. We seem to stay right around 1.3 hrs per ro. The dealership is a older place that has no service drive, which limits the walk around. Any advice, thoughs, or comments that you have about the ever changing puzzle would be welcomed.

How's the gross on your sales right now? Not to be directed at your efforts, but more your comparison group, but I could boost your hours per RO tomorrow by pricing at $30 an hour and keeping the job revenue the same (i.e., 1.0 FRH x $60 -- or -- 2.0 FRH x $30) Sometimes I think when managers chase Hours per RO, they are following an inflated figure. I am always more concerned with keeping the gross and working half as hard.

That being said actual average per RO for domestics is 1.5 - 1.8, and definitely south of the magical 2.0+ ideal that is often preached. But also north of your current results.

Since you say that work comes and goes, I'd try to find non-pressing work that can fill in the gaps. Used cars are great for this, yours and everyone elses. Same thing for fleet work (like rentals, auctions, municipalities). If it is the same techs that run out of work I'd also try to backup some of their work. For instance, if the trans tech is always done early, maybe there's a major trans shop in town that is a little overwhelmed that could use some extra rebuild help sub'ed out.

Anyway, my point is I'd look here first before I spent the money to drive regular retail customers in the door. Because if your luck is like mine, they'd all want to come in on the same day leaving me in the same position.

Oh, one other thing, I'd spend some time with my advisors in the AM on those days that look to be slow and make sure they realize we have extra time to perform work on a customers vehicle. This could include being a little more agressive on pricing.


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** Rob, Editor WD&S **
Help is only a message post away!
robc@dealersedge.com

And when you are looking for work to fill in the slower days make sure that your ADVISORS are notifying their customers that special order parts have arrived. Many stores can realize an immediate spike in business just by seeing what is sitting on the special order shelves and notifying them to come in. Remember, it is the ADVISOR's (not the parts personnel as some service management seem to think) that should be notifying them that parts have arrived -- they are the ones with the relationship with the customer and they are the ones who make the appointments.

I thank both of you for all your input, The advisors keep a clean speacial order parts list that gets turned into me on a daily basis with updates. We have one major rental car company that has s large amout of units that runs through the shop. We have 3 used car lots that we do work for and get many recalls to fill in. Used car department is a good paying customer too. We get 30% mark up on any sublet work including towing. I work the lost soles list to get customers back in with a free oil change that we are hitting about 50% with upsells. We have a union shop, which makes it that more tougher to retain the profits, I have all journeyman techs which make $23.00 a hr and advisors at $.20 more a hr and benifits run about $900 a month. I have 2 speacialist that i keeps busy with oil changes, used cars and new. Anybody with great success in the aftermarket add ons after the sale? Anyone using the internet to send service reminders, offer discounts or monthly speacials? Any thoughts, problems or ideas, I know we are all looking to accomplish those goals! Keep our customers happy and take home as much as we can.

I am curious about your current marketing and merchandising efforts. Do you use a competitively priced and manufacturer supported service menu? Do you use any type of courtesy inspection process? Is your hours per r/o coming from the efforts of the advisors or the efforts of the technicians? How much of it does come from the technicians? Quit candidly, I live by the motto that if "I can't measure it, I can't manage it!' I would suggest to start off by learning where the current sales are being generated and then proceed with the areas of opportunity. Ultimately, increasing hours per r/o is not enough. You must increase the total volume of billable flat rate hours being generated in the service department.

In our area we have major competition with independants. Having a competitive board up, helps customer perception and avoid from shopping around. Also having a variable labor rate or grid will help on not loosing any job. You should also measure menu penetration & 1 item R/O to be shure your staff is doing the best efford. To keep customer coming back I recomend making pro-active appointments (next visit) & your SA/ASM calling to confirm those when is time to be back for service. This special touch will make a big difference from your competition to your customers.

THIS MAY NOT BE DIRECTLY RELATED, BUT IN AN EFFORT TO COMB YOUR OWN(ALREADY HAVE THEM IN SYSTEM FROM PAST BUSINESS)CUSTOMER BASE, WHEN WAS THE LAST TIME YOU HAD SOMEONE RUN AN OPEN RECALL REPORT. I KNOW, YOU ALL GROAN, BUT I AM TALKING ABOUT THE THREE TO FIVE YEAR OLD VEHICLES. THESE ARE CARS THAT WILL LIKELY NEED MAINTENANCE, OR SOME KIND OF UPSELL. IF YOU ARE A R+R OR ADP USER, YOUR SYSTEM IS ALREADY DESIGNED TO BE ABLE TO RUN THESE REPORTS, SO LONG AS SOMEBODY KEYS THEM INTO THE SYSTEM FILE. AS THE ECONOMY FLUCTUATES, THESE CUSTOMERS MAY ALSO FILL A GAP, IF PROPERLY SCHEDULED. AN ADDED BONUS, YOUR RECALL COMPLETION NUMBERS WILL LOOK BETTER. JUST A THOUGHT THAT HAS WORKED WELL FOR US. WE WERE NOT IDLE, EVEN DURING MASSIVE SNOW OF FEBRUARY, DUE TO CAREFUL WORKING OF THIS LIST.

I'd take a good look at the traffic you have right now! Are your advisors asking about maintenance whan making appointments and at write-up? Are your techs inspecting every vehicle for additional needed service? Are your Advisors following up on those inspections getting approvals? How do you know? Are you measuring or spiffing any of these?

Is anyone using any loyalty card programs to keep customers coming back to the dealer. Has any one used online service records for their customers to be able to veiw and get service reminders that may go along with a loyalty program.