Attention All Dealer Owners and G.M.'S

[bsilcox]

I am a Fixed Operations Director with 40 years of experience. I have managed very large dealer groups-High Line Imports to Domestic. I started with a High Line Import many/many years ago but the one thing I have learned over the years is that our business changes on a regular basis but the most part Most Dealers still look at the Dealership as a vehicle sales unit and treat the Sales Department with different standards than Fixed. I am totally supportive of the Vehicle Sales Organizations because to drive fixed we need the sales of vehicles to drive our business. But I totally believe that the Sales Department should do everything in their collective power to Fill The Funnel in Fixed. So the Fixed Managers that are not asleep at the wheel can grow their business to drive 100% plus Fixed Absorption. Every Dealer/General Manager/Sales Manager and all the Fixed Managers should work together as a TEAM to drive 100% Fixed absorption. I believe there are so many Front End Managers and Dealers that don't understand the positive impact 100% plus in Fixed Absorption would make to Dealerships in the current market conditions. Why do you believe the Aftermarket is so strong in a lot of Market Areas is Dealerships are asleep at the wheel and have no clue how to help fill the funnel. I don't understand why Dealerships don't drive Front End Sales thru the Fixed Operations. Move at least 50% of the Sales Ad Budgets to Fixed and Drive Customers thru Fixed to Sales. I think that this part of the budget cost should be shared with all departments in the Dealership. I believe every Fixed Department should be One Stop Shops for thier Customers let's not give our customers any reason to go elsewhere. Why when their is a warranty repair we have 100% of the customer's in our Fixed Departments but when it comes to asking the customers to spend their hard earned money they go elsewhere for service I have been on both sides I have been involved with Aftermarket Service Centers and Dealerships. I can tell you in the current market conditions we the Franchised Dealership have a big avantage over the aftermarket but we just don't pull together to get that message to the vehicle owners. Why don't the Dealers and General Managers who hold the purse strings of the Dealerships learn about Fixed and help the Fixed Managers in those Departments drive Vehicle Sales thru Fixed> There is a lot of money to be made if you drive them thru service first. Market your Fixed Departments as hard as you market the Sales Side of the business. Remember We Are In Sales just as much or more as Your Vehicles Sales Departments. Help us to Sell Our Way to Vehicle Sales thru the Service Drive. Wake up and Help the Fixed Managers of Car World to help you Sell More Vehicles which just helps to get to the magic number of 100% plus Service Absorption. Quit Treating the Fixed Departments like the BACK END (Ass End) of the Dealership we are as Important as the Variable Departments in the Dealership. One Thing to Remember:
If We Keep Doing the Same Things as we always have done and expecting different results you are kidding your collective selves. How about THINKING out of the BOX and Help the Fixed Managers drive your business. Drive your vehicle sales thru the Service Drive. Let's bring the Variable and Fixed Departments together and BEAT our competition. They don't Sell the First Vehicle We do! Just Think what it would mean if we could keep just as much of the retail service business and maintenance as we do the warranty business, WOW anywhere about your current customer retention would be nothing but a PLUS to the bottom line of the Dealership. What's the Difference in a Dealership that a MLM business? In a MLM their is a TON of synergy within the down line, Why is their no Synergy within most Dealerships? Let's not allow the Aftermarket take our customers. But the only way to make that happen is to UNITE inside the Dealership as One Great Big Team that has a TON of Synergy to Fight the Competition.

[Old Irish]

Wow. That's quite a mouthful. I agree with every word.

Cheers
DD

[calgm988]

Any well-run operation has a successful Fixed Operations dept. While it's true 100% absorption is the goal; it's not always possible. If a dealership can get to 85%-90% they're doing well in a competitive market. It sounds like you have a bigger problem, than shared marketing budgets. I'd suggest finding a dealer/group that holds the same beliefs as you do. There are plenty of single-point and multi-point groups out there that believe in and utilize their fixed oeprations.

At the core of your argument is finding a cohesive team. Teams need fundamental leaders who understand what it's like to develop a team. Maybe it's not the team but rather the leader?

Good luck.

------------------
"focus on the purpose, not the outcome."

[Strap22]

I agree the marketing isn't the problem Find a Dealer that shares your thoughts and you may find a happy place to work. Until your name is on the sign out front or you find a dealer that believes as you do the likelyhood of finding any happiness is slim. Good luck.....

[sallen1]

Our motto

Competitive in sales

Competent in service.

Customers want to know they are getting a good deal when they buy their car. They also want assurance that the dealership can remedy any problem they may experience after the sale.

Any dealer who thinks otherwise is wrong.

s

[tcollins]

calgm988, I'm curious about something. Fixed absorbtion has been increasing for some time now and I know some import dealers that would consider 100 percent to be a failure. UIO on the other hand, continues to fall for all but the most fortunate. Having said that, how do you view fixed and variable? Where do you feel that the customer cycle begins and/or ends? In other words, when faced with the decision to spend in fixed or variable, where is the best ROI?

[BROWNR11]

Sales sells the first car, Service sells the rest!

[bsilcox]

When I started this post I was really hoping to drive, incite, provoke, inflame, rouse, goad, spur-on, egg-on, stimulate, push, motivate, or just get them to "Think-Out-Of-The-Box" for awhile to have the Dealers, General Managers, General Sales Managers or Sales Managers to give us Fixed Op's Guys and Gals some real though on the subject of 100% Fixed Absorption and what it could and would do for a dealership! There is merit to driving Sales of any kind thru the Service Drive. What is the dollar value of a real Service Sales Consultant that handles 15 vehicles a day, Oh! about a Million Dollars in Sales Gross. I don't think there is many Vehicle Sales Consultant in most Dealerships driving sales to attain a Million Dollars in Sales Gross. Fixed is also a Sales Organization and should be treated as one!! Oh! by the way I have also sold vehicles. I believe you Sales Consultants have a Hard Life in the Sales Lanes of todays dealerships.
Best of Selling in any Department we need it!

[calgm988]

tcollins:

I'll answer your statement two ways. First, I am in a major metro with several "major groups" who don't run 100% fixed absorption. In fact, unless you consider used cars into your absorption calculations there are few nationally that are 100% absorption.

Second, we spend about 20% more in our advertising budget in fixed operations than we did three years ago. Compare that with a 45% decrease in sales advertising dollars. We realize that growth for sales volume has decreased, while the need for increased fixed operations profits is trending the other way.

Third, the customer starts with the sales dept. Not, the fixed operations dept. BUT, sales sells the first and service sells the rest...is still a true motto.

bsilcox:

Let's look at the facts. Yes, while its true per person in each dept comparably the advisors talk to more people. But, sales to sales...a sales person will produce more in sales than an advisor. Now lets, look at gross per person. An advisor can produce more in gross (totally depending on the ability of the salesperson and environment) but it's cost per dollar is higher than that of a sales person.