Is The Fixed Sector of the Business Changing?

[FixedOpsJunkie]

How many of you that have worked in the Industry for at least the past 10 years THINK it has changed? In your opinions has it changed a little or a bunch? Do you THINK it's going to continue to change for the Fixed Operations sector of the Business? If it's going to change is it going to get better or worst? I have studied a lot of articles written over the past few years and I THINK it's going to chance a BUNCH! What does everybody else THINK? What do you THINK will be the TOP 3 changes in the Industry towards Fixed? Any and all feedback would be greatly appreciated.

------------------
A Fixed Ops Junkie 49

[topshop]

I don't think it has...I KNOW it has.

Probably more than in the previous several decades before that combined.

As we head into the future the change will be even faster.

It will get better for most of those who embrace it and worse for most others who refuse to do so.

It's hard to guess exactly what the changes will be, but it's clear that the technology will require shops to operate more like an automated McDonald's compared to the inefficient ways they operate today.

Our techs have each had their own laptop on their tool box for several years now with full access to service info, parts, most areas of management software, etc...an idea that would have seemed ridiculous ten years ago.

It looks like a lot of fun! (for those who chose to make it so)

------------------
Tom Ham
AutomotiveManagementNetwork.com

[WOODY]

You bet it's changing.I started in 1977 when most driveabilty could be fix with a set of points or carb. Now $800.00 modules
The day of the iron hanger is over .We had vehicles that had to be maintained ,now change the oil when light light comes on or every year .Comming down the road green vehicles fuel cells running electric motors. Gone will be the fluid maintenance /brakes /exhaust and so on.
People have changed are are becomming just plain rude and teaching the kids to be rude . (you are a hero till you say NO)
Gm rim trying to get rid of Parts Managers
Keep smiling as best you can , put as much as you can in a 401 k

[GMFXDOPSMGR]

With the technology that is going into the vehicles today, we have to upgrade ourselves and employees to think along with the technology. Kids that learned on the computers 10-20 years ago are now the buying public and they know how to research their vehicles, are "technically" smart and can challenge us on our diagnosis. The vehicles are smarter and as said, we have another new wave of electric, green and E-fuel vehicles that will present a new kind of diagnosis than what we have been accustomed to, so we have to make our adjsutments. The maintenance on these vehicles will change as we see more of them hitting the market. We spent more than $100K on training this year and will spend 1/2 that again in 08 and it will not stop there. As we know, this is a constantly changing business and the ones that choose to lead the way are the ones that will succeed in capturing the business and customers.
Keep learning, finding and progressing in your business and you will succeed.
Also, keep reading these fourms, I find so much here to make me "think". We need a private chat room so we can communicate with each other by phone or e-mail..Just my thought.
Have a good 2008!!!
I am still looking for a job here in town.

------------------
Tom Edwards

[btk]

Of course the business has evolved but I wouldnt say dramatic changes in 10 years. My big 3 would be
1-Reduction of Maintenance schedules
2-Elimination of Parts Managers
3-The forced shrinking of the dealer body by the manufacturer

I am sure there are other things that have changed which I have adapted to.

I think we are just seeing the tip of the iceberg on the last 2.I truly think the next generations will see even more dramatic changes. The one I think about most is the European model of the automtive industry where there is only factory service centers with strict guidelines to follow. I only know bits and pieces of the model but I understand that the German manufacturers that practice this have seen a significant drop in warranty expense and increased loyalty due to perceived better value and better quality repairs. They have effectively eliminated privately owned dealerships.
I strongly feel the Parts Manager position, as we know it now, will be like what happened to the service dispatcher position years ago-gone!! I think the Parts Manager position is like global warming. We are being sold a bill of goods that has very little basis in fact, yet everybody is reacting to an idea and going with.I agree with DP that you need to take a stand, but I also feel looking at history that some times you almost have to let the hype play itself out.
Does anyone remember the experts who said the iceage is coming back in the 70's.

For point 3, If the BIG 3 have eliminated 1/3 of the capacity it would stand to reason that they need to trim at least 1/3 of there dealer body, too many dealers not enough product.

None of us know what the future holds, I do think we are coming to a point that it is time to separate the men from the boys when it comes to dealerships. Sales having record sales years over the last decade will now see double digit decreases and that will effect us all and how we operate. I personally am looking forward to the next decade to see what happens.
History shows us nothing is forever and the only thing constant is change.
Here is the reality of my situation, I am in this business because I truly enjoy it. My passion for it makes me very good at what I do.

My advise if your concerned about your future. Keep your debt down so you are flexible enough to make needed changes and do something that you love.

[carwars]

There should be 10-15 years to try and make a profit on repairs and maint.on what is currently on the road.After that not much will be left.Everything will be built to last a particular number of years and then you buy new again.The price for individual components for electric cars will prohibit repair.E85 is only a band-aid.

[FixedOpsJunkie]

Just One Additional Comments That I heard from a very Dear Friend Today that made me THINK! The Biggest Thing That needs to change is the Variable Attitude towards Fixed. WE are not the BACK-END (Ass)-End but the backbone. We are the ones that keep them (The Real Boss) the customer's coming back If we do our job's right!! As DP in some other post would say like his web site www.disney.com don't laugh If you haven't gone thru their training. I believe we could all learn from all of the high end HOTEL chains. Learn how to really pamper the (REAL BOSS). If we had learned this early on the Aftermarket/Chains would not be as strong as they are today! Just a though starter......

------------------
A Fixed Ops Junkie 49

[DealerProfit]

Hey junkie,

A little verbiage change that could help you a lot.

The variable side does not need to change how they think and refer to Fixed. We need to change our view of them. I tell every store I work with that the building now has a new front door.

How about some trhings to make you all think;

1. 20 years ago F&I was a promising novelty. Pat Ryan was getting rich, and he should.

2. In almost every store across America (except the ones I have fixed, LOL) the highest gross profit generator is the F&I Manager.

3. The person in the store with the greatest gross profit generation potential is each Service Advisor.

4. The Inventory that sustains the greatest losses due to obsolecense is the labor inventory account.

Chew on those for a while.


Darin

[Jeepman55]

Anyone who feels that the backend is anything but an additional sales department is an idiot. Our philosophy is sales sells the first one and service sells the rest. Any dealer principle who allows the variable dept to run roughshod on fixed (or viceversa) needs to sell the store to someone better qualified. In todays world we need teamwork. Everyone with their eyes on the same prize...profitability and customer retention.

[FixedOpsJunkie]

Tom Ham: You Bet It Has! and It will continue to change as the Customer base changes more to Gen (Y) and (X) er's.

What's the thought of the Virtual General Manager! Most G.M.'s that I know come from Sales and Don't know a LOT about Fixed and don't want to learn. They still THINK it's the backend as Jeepman55 said in his post! Most GM's and DP's are putting pressure on the Fixed side to generate profits why not build that TEAM concept of the same focus of profits and Customer Loyalty! Is there a difference between Customer Satisfaction-Customer Retention or Customer Loyalty?
AS btk speaks in his post PASSION for the BUSINESS and I love it! You bet this is what I do but I agree the BIG 3 as btk says is in for a lot of changes and they are pulling in 3 seperate directions. As a Reminder to all reguardless all fo the Manufactures only have 2 things to sell
1: Parts 2: New vehicles but what about pre-owned vehicles are they not all pushing Certified Pre-Owned so they (the Manufactures) get a piece of that action. What happened just a couple short years ago with Employee Pricing where the Manufacture told the Dealer what they where going to make on the New Vehicle and pushing the Certified Pre-Owned. Most of the Manufacture have programs so they can dial into your DMS and pull data. What are they looking for? I bet it's not to make us better as what we do!
DP: I agree that the person that has the greatest gross profit potential in the Dealership long term is the Service Sales Manager/Writer/Consultant/person. I have developed stores where these folks Female or Male where Million Dollar a Year Producers.
DP: 4. The Inventory that sustains the greatest losses due to obsolecense is the labor inventory account.

We don't have an Inventory account for once you close for the day and that minute is gone and it did not produce you a $dollar$ it's gone. And it's gone forever!

Over my career just like DP; I have (FIXED) a lot of stores! I have left these STORES only to have someone come in behind me that did not understand the processes installed to maintain the $Money Machines$ that where created or had a GM that (FIXED) it! Only to go back to losing money or becoming just marginal like they where before I (FIXED) the store.
Jeepman55:::
Anyone who feels that the backend is anything but an additional sales department is an idiot. Our philosophy is sales sells the first one and service sells the rest. Any dealer principle who allows the variable dept to run roughshod on fixed (or viceversa) needs to sell the store to someone better qualified. In todays world we need teamwork. Everyone with their eyes on the same prize...profitability and customer retention.
I have a question for you: Just how can a Fixed Operation run ROUGHSHOD on a VARIABLE department when most of the GM's or DP's come from Variable and have the pursestrings? Just asking! Jeepman55 according to your bio you are a GM is your post really true of how you run your store?
DP: I the BIG 3 are cutting back the Parts Manager/Director position and they are cutting away at the overage in their Dealer Body does that mean they are going to get as Lean and Mean as the Imports? I can remember in the European and High In Japanese the Service Visit was very much like a (CULT) following! Does anybody out there remember that time? Or; Is It The Same TODAY?
One thing that a lot of Fixed Managers ---Directors that I meet TODAY! They do not understand that everybody TODAY is short on TIME! I can't tell you how many times in a day I hear I just don't have the TIME to do that! What does everybody thing about QUICK Service in Todays Modern Service Operations and I don't just mean oil changes and rotates?

As DP said "Chew on this for awhile"
as "GMFIXEDOPSMGR" POSTS:
Keep learning, finding and progressing in your business and you will succeed.
Also, keep reading these fourms, I find so much here to make me "think". We need a private chat room so we can communicate with each other by phone or e-mail..Just my thought.
Have a good 2008!!!


------------------
A Fixed Ops Junkie 49