Express Lane Service

Express Lane Service

Postby KLINK » Thu Apr 24, 2008 10:52 pm

Anyone sign up for this program and if so how is it working?
KLINK
 

Express Lane Service

Postby Art_Mopar » Fri Apr 25, 2008 8:36 am

I was going to ask the same question. The 18k consultation/sign up fee would take me 400 years to recoup!
Art_Mopar
 

Express Lane Service

Postby RPMGeorge » Tue Apr 29, 2008 12:36 pm

What does the Program entail, whats the Marketing edge, what is the estimated return?
I havent heart of any such program yet, but I do thing its time to get some back from the Quicky and Jiffys.
RPMGeorge
 

Express Lane Service

Postby GMFXDOPSMGR » Fri May 02, 2008 9:02 am

We have signed up for the program. The consultant has not come here yet, but is scheduled for next week to start. My service manager and I went to St Petersburg a couple of weeks to see Dayton Andrews Dodge. They were the pilot for this region. I was very impressed with the way the Express team functioned. Each man had a specific function when the vehicle came on the lift and stopped. The service manager, Ron, said he was against paying the 18K fee when it was introduced, but, would do it again now that he sees what it brought to the table. We are setting up to do the same thing.


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

GMFXDOPSMGR
 

Express Lane Service

Postby KLINK » Fri May 02, 2008 12:57 pm

ROI
I am still thinking of signing up for this program. I average $3.50 GP on each oil change. I average about 55% net which equals about 1.92 per oil change. That comes out to 9375 oil changes to break even with 1 tech. doing the oil change, not including any up sells. What I am worried about is the extra personnel costs to have 3 people working on one oil change. Can I drive enough trafic through 1 stall to pay for three technicians? and still turn a profit? I am all for the idea of Express Service but can I make it pay? The main benefit I see is the customer retention potential which would be a huge up side to the program.
KLINK
 

Express Lane Service

Postby Art_Mopar » Fri May 02, 2008 2:37 pm

My point exactly. Minimum of 2 technicians plus 1 dedicated Service Advisor plus 7k for the "special lift" plus 18k consultation fee? I don't think a store my size would ever get ahead of the curve.
Art_Mopar
 

Express Lane Service

Postby KLINK » Fri May 02, 2008 7:43 pm

Even at a good average of $70.00 per RO at 50% GP at 3 per hour for 7 hrs per day, 6 days a week. $35 x 3 = $105 x 7 = $735. x 6 = $4410 GP
That is only 126 oil changes per week. I am doing close to that now. Now take $4410 minus 3 techs @ 10.00 ea. per hour = $30 x 8 hrs = $240 x 6 = $1440 and some of that would be billed to the RO and already be paid for.
Now what do you think? I have put alot of thought into this and I still can't make up my mind.
KLINK
 

Express Lane Service

Postby sp7128 » Mon May 05, 2008 2:22 pm

We thought the same thing with express and currently of the 1750cp ro's a month written, 900 are express....our express initially was only to be oil, but as the cars become less maintenance we now do up to 90k, tires and state inspections. Tires only get done if no one is pressed for time otherwise the transfer to the "B" techs. Express service has 2 racks with 2 techs per rack and run 8 - 7pm or 8 - 6pm. We made drive-on rack heads for our old center post lifts. These approx 50% of our express tickets written generate 20% of our cp business dollars. (my feeling is there really isn't a choice, we have to take care of the customers the way they want to treated, not the way that makes things the most convenient for the dealer, and of course still generate a profit )
sp7128
 

Express Lane Service

Postby GMFXDOPSMGR » Thu May 08, 2008 1:04 pm

Art,
I got the lift suggested for $3900.00 + tx.installed.
We were told it was a 7k price also. Siccors/pad style lift.

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

GMFXDOPSMGR
 


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