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.
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A large amount of one line tickets
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Perception of do not want to sell due to
overloading
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Oil change person not up selling
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Inconsistent pricing being given to
customers
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Takes too long to give customer an estimate
of repairs
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Incentives for oil change person (add one person)
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Pricing not tailored for selling (all over
board trying to maintain a labor rate)
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Maintenance pricing not standardized
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No bundled maintenance
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Not charging supplies
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Labor operation codes not set up for
consistency
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Scheduled maintenance board not real
estimate of pricing
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Technician cost too high for maintenance
services to be competitive
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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.
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Three part form for hard copies
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Shop Supplies not being charged
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Disposal Fee
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Lack of a dispatching log
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No organized structure for dispatching or
maintaining status of vehicles
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Unable to get the status of a vehicle
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Advisors dressed very casually
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Baseball hats being worn by advisors
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Lack of Structure
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Lack of Accountability
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Advisors and technicians not involved in
Viewpoint performance
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Recommendations
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Implemented
Action
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Owner
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Due By
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Complete
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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.
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See attached pay plan recommendations
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XXXX
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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.
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Cost average maintenance services and
create a standardized pricing schedule.
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XXXX
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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.
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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.
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Create
bundling for mileage intervals regarding normal scheduled maintenance.
Use combination of cost average study.
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Create bundles from results of cost
averaging
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XXXX
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Update
computer labor operations with new pricing.
Train advisors to use new operations for repair orders and quoting
to customers.
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Update operation
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XXXX
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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.
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Report card to be used on all vehicles
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XXXX
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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)
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Create form that tracks the following:
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Number should be performed vs. number performed
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Number that had brake measurements vs. those that did not
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Number that had tires measurements vs. those that did not.
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Number of up sells
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Track by technician so they can be held accountable
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Report turned in to weekly
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XXXX
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Have
dress code for the service advisors and other service personnel.
This will provide a professional environment for the customers.
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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.
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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.
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Involve
the advisors and technicians in the dealerships performance on viewpoint.
This will keep them focused on customer satisfaction.
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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.
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Consider
adding another full-time maintenance person to assist in oil changes
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Create
an incentive for oil change personnel to sell services.
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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
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