The following is a piece of an actual dealership's one-day assessment.  The actual document involved the same analysis for the Parts, Body and Rental Department as well as Service.  Yes, we can do all that in one day!  If you wish to see what recommendations we made for this store please click the link at the bottom of the page.

6.               Service Business Practices

6.1           Opportunities

6.1.1      Service Advisor Performance

·        A large amount of one line tickets

·        Perception of do not want to sell due to overloading

·        Oil change person not up selling

·        Inconsistent pricing being given to customers

·        Takes too long to give customer an estimate of repairs 

·        Incentives for oil change person (add one person)

·        Pricing not tailored for selling (all over board trying to maintain a labor rate)

·        Maintenance pricing not standardized

·        No bundled maintenance

·        Not charging supplies

·        Labor operation codes not set up for consistency

·        Scheduled maintenance board not real estimate of pricing

·        Technician cost too high for maintenance services to be competitive

·        Estimates are not documented at the time of write-up or sales and then validated when the ticket is invoiced-produces billed amounts that the customer did not agree to which causes customer dissatisfaction and loss of credibility.

6.1.2      Expense Reduction

·        Three part form for hard copies

·        Shop Supplies not being charged

·        Disposal Fee

6.1.3      Scheduling and Loading

·        Lack of a dispatching log

·        No organized structure for dispatching or maintaining status of vehicles

·        Unable to get the status of a vehicle

6.1.4      Observations

·        Advisors dressed very casually

·        Baseball hats being worn by advisors

·        Lack of Structure

·        Lack of Accountability

·        Advisors and technicians not involved in Viewpoint performance

6.2           Recommendations/Action Plan

Recommendations

Implemented Action

Owner

Due By

Complete

Move advisors from a salary to a commission pay plan.  This will motivate the advisors to sell service.  As well, their pay plan need to incorporate viewpoint performance to keep them motivated toward customer satisfaction.

See attached pay plan recommendations

XXXX

 

 

Consider cost averaging to standardize maintenance pricing.  This procedure need to have the involvement of the service advisors and parts manager.  It is important that all parties agree to the price adjustments.  Furthermore, validate which vehicles and services are the most common, the pricing from those services needs to be established as the mean and deviate from that point.  Cost averaging can be done for Diesel and Dually vehicles as well, but do not include those costs in with the remaining vehicle lines.

Cost average maintenance services and create a standardized pricing schedule.

XXXX

 

 

Turn on the estimate block in the computer setup.  This will block anyone from invoicing a customer’s ticket if the billed amount is in excess of the estimated amount.

 

 

 

 

Approach your afterXXXXet chemical distributors to furnish the department tools on consignment.  Items such as a transmission service machine can not only allow you to charge a competitive price for a trans service, but also allow a good gross margin on performing the service.

 

 

 

 

Create bundling for mileage intervals regarding normal scheduled maintenance.  Use combination of cost average study.

Create bundles from results of cost averaging

XXXX

 

 

Update computer labor operations with new pricing.  Train advisors to use new operations for repair orders and quoting to customers.

Update operation

XXXX

 

 

Institute the QCM/AtW inspection form on all vehicles.  This will create the opportunity for all the technicians to actively sell repairs and reduce one-line repair orders. 

Report card to be used on all vehicles

XXXX

 

 

Track the performance on these inspections and hold technicians accountable for completing the inspections.

(Inspect 15-20 RO’s per week all C/W repairs should have a sheet attached)

Create form that tracks the following:

-          Number should be performed vs. number performed

-          Number that had brake measurements vs. those that did not

-          Number that had tires measurements vs. those that did not.

-          Number of up sells

-          Track by technician so they can be held accountable

-          Report turned in to weekly

XXXX

 

 

Have dress code for the service advisors and other service personnel.  This will provide a professional environment for the customers.

 

 

 

 

Install a partial wall on the other side of the service door that extends to the end of the first service stall.  This would prevent the customer from seeing into the shop and hide the dirt and grease from their view.

 

 

 

 

A dispatching system need to be instituted to control vehicle flow.  A manual log would initiate some structure in the process and allow more realistic appointments and the ability to give the customer status.

 

 

 

 

Involve the advisors and technicians in the dealerships performance on viewpoint.  This will keep them focused on customer satisfaction.

 

 

 

 

Contact Reynolds and investigate purchasing the Service Price Guide application.  This would allow the dealership to create consistent pricing and estimating.  It would provide immediate access for the advisors to quote repairs and check on parts availability.  Furthermore it would allow the dealership to structure a variable labor rate to maintain gross percentage.

 

 

 

 

Consider adding another full-time maintenance person to assist in oil changes

 

 

 

 

Create an incentive for oil change personnel to sell services.

 

 

 

 

Set up shop supplies in the computer to be charged on all customer pay repairs.  Also set up password override so the charges cannot be removed

 

 

 

 

 

Tailored Solution

Contact Us