PDF - Fixed Ops Magazine

Transcription

Exclusive protection. Powerful business programs.
Responsive, local services and support. Let’s get started.
Taxi-Tested Tough™ Oils
Give everyday drivers the oil proven to fight wear in all conditions—Kendall® GT-1®
with Liquid Titanium® protection additive. We tested it in New York City taxis and got
dramatic results, including a 63% improvement in engine wear over conventional oil.
Programs To Grow On
We’ll help you grow your business without all the growing pains. Get access to
branded promotions, incentive programs, business builders and online tools—all easy
to understand, implement and administer.
World-Class Service & Support
We’re poised to help you every step of the way. Local Marketers to lean on for brand
support and marketing. Training to get you up to speed quickly. Savvy technical support
hotline. Plus easy access to branded point-of-purchase and marketing materials.
Ready to make Kendall your go-to oil? Contact us today.
Let’s grow together. For more information, call Phil Sontag at 832.765.2149
KendallMotorOil.com
© 2014 Phillips 66 Company. Phillips 66, Kendall, GT-1, SealMax, the Two Finger logo, Liquid Titanium, Long Live the
Engine and their respective logos are registered trademarks of Phillips 66 Company in the U.S.A. and other countries.
TABLE OF C ON TEN TS
N o v e mb e r / D e c e mb e r 2 0 1 4 | | F i x e d O p s M a g a z i n e
p.
p.
p.
p.
p.
p.
p.
p.
p.
10
18
24
VHS Tapes and Measuring Total
Customer Pay ELR
Today They’re Bo th Comple tely Use le ss
Get Ready to ENGAGE
The Fut ur e Suc c ess of the Au to In d u stry Starts at the
201 5 NA DA Conve n tion & Expo
Right Hand, Meet the Left Hand
When Sales and Service Share In formation , Everybod y P r o fit s
Keeping It Together
30
Today’s A dvance d Ve hicles Requ ire Chan ges in Coll isio n R epair
At tac hment Method s
36
Taking Advantage of Advancements in
Touchless Car Washes
42
Tap Into the World’s Number One
Parts Marketplace
48
54
62
p.
72
p.
78
p.
Cleaning Up Withou t a Tou ch
How to Sell Parts On e Bay
Retaining the Connected Customer
6
C o mpa n i es to S ee At t h e
N AD A E x p o
p.
68/70 20 15
How Will Conne cted Ve hicle Te chn ology Aff e ct Se rvic e R et ent i o n?
p.
100
Accessories as the Next Profit
Center for Dealers…
p.
…A nd a Big Deal for Se rvice De partmen ts
102
Hiring & Developing Detail Personnel
p.
104
Hail Damage: Loss and Pain or
Profit and Gain?
Retai ning Ever y Dollar of Profi t While M ain tain in g Qu a l i t y R epair s
p.
106
The Service BDC
Dr ive Repair Or d er Cou n ts, M aximize Efficien cy an d Cre at e C ustomer Loyalt y
p.
b o dy s hop
C o ll i si o n R epair S h o p s B r a c e f o r C h a l le n ge s o f A lu mi n u m
B o d y wo r k
a dmin i s t r at i on
T h e Imp o r ta nc e o f P erso nnel F i l es: F i l e Va l u e , O r ga n i z ati o n
a nd A ud i t i ng
p r i c i n g s ur vey
Oi l C h a ng es a nd A i r F i lt er s
8
I n dus t r y N ew s & E ven t s
109
Adver t i s er s Di r ec to r y
Service Advisor Accountability
90
How Service Department Tire Sales
Impact Vehicle Sales
p.
94
Seeing the Opportunity Clearly
p.
98
Who’s Failing Who?
p.
pa r t s depa r t m en t
W h o l esa l e Pa r t s M a r k et i ng : D ea l er S er v i c e s a n d To o ls
108
84
p.
s ervi c e depar t m en t
W h y A r e Y o u S t i l l U nd er p erf o rmi ng ? (Pa r t 2)
Building Your Te am
p.
p.
l et t er f r o m t he p ub l i s h e r
Ar e My Employe es Followin g the De ale rship ’s Processes?
Customer Ret ention vs. Cu stomer Acqu isition
Windshield Repair the Ri ght Way
p.
109
N ew P r o duc t s
Wher e’s t he Service Ad visor Train in g?
p.
113
M a rket p l a c e
letter from the publisher
November / December 2014 || Fixed Ops Magazine
As we count down the weeks to the 2015 NADA Expo in San Francisco, I’m excited by
what I believe we’ll be seeing on the show floor in January.
Over the last several years, the NADA exhibitor line-up has been gathering strength in the
increasingly-important area of Fixed Operations – our primary focus. We’ve seen more
companies, bigger exhibits, new products, services and technologies, and a wider variety
of dealership solutions presented for our review. And these companies cover every possible facet of the Fixed Ops world:
- Accessories
- Capital equipment, Service equipment and Body Shop equipment
- Car washes
- Climate control equipment
- CRM providers
- DMS providers
- Finance and credit
- Inspection processes
- Loaner vehicle management
- Lubricants and fluids
- Marketing and social media
- Parts providers
- Parts management and parts sales
- PDR and Service drive body repairs
- Protectants
- Ratings and referrals
- Service technology
- Technician work areas and storage systems
- Testing systems
- Training, education and consulting
- Warranty administration
- Web-based tools
- Wheel repair
There are loads to see. And this doesn’t even include the many educational and energizing
seminars that you’ll be welcome to take advantage of.
1 7 8 5 3 S a ntia go Blvd., St e. 107-467
Vil l a Pa r k, CA 92861
P h o ne 7 1 4 -803-5476
F a x 7 1 4 -2 7 6-0255
Info @ F ixed OpsMag.com
w w w. F ixed OpsMag.com
P ubl ish er / Edito r ial / Advert ising
Nick West
Phone: 714-803-5476
Fax: 714-276-0255
Nick@FixedOps Mag.com
Ar t Dir ector
Ma r ia P usparan i
[email protected]
Fixed Ops Magazine is published by Prism Automotive,
LLC, 17853 Santiago Blvd., Suite 107-467, Villa Park,
CA 92861; phone 877-349-3367. Subscriptions are free
to qualified subscribers in the U.S. who are active as fixed
operations directors or service managers of franchised
automobile dealerships. Additional subscriptions are
available at: $30/year/US; $45/year/Canada; $90/
year/other foreign. Single issue price, $10. Periodicals
Bottom line? This event has something for everyone. And something for you.
postage paid at Fort Worth, TX. POSTMASTER:
A quick review of the Expo website has confirmed my seat-of-the-pants show floor impressions from the last several years: of the 537 companies listed in the 2015 online show
directory, approximately 110 are either operating squarely in the Fixed Operations world or
have a strong connection to our #1 interest. And I’ll bet there could be another 50 companies that touch on the Fixed Ops area in less direct but still-valuable ways.
Send address changes to:
Plan now to take advantage of this cornucopia of information. Our “Companies to Visit at
NADA” listing on pages 68 and 70 of this issue is a great place to start. And please stop by
the Fixed Ops Magazine booth to say hello!
Fixed Ops Magazine, 17853 Santiago Blvd.,
Suite 107-467, Villa Park, CA 92861.
Reproduction or use, without express written permission
of publisher, of editorial or graphic content in any
manner is prohibited. The statements and opinions
expressed herein are those of individual authors and
do not necessarily represent the views of Fixed Ops
Magazine or Prism Automotive, LLC. The appearance
of advertisers does not constitute an endorsement of the
products or services featured. All rights reserved.
Nick West / Publisher
Ph on e : 7 1 4 - 8 0 3 - 5 4 7 6
E-mail:
N i c k @ F i xe d Ops Ma g. c o m
p. 6
To v iew th e Digital Edit ion of
F ixed Ops Ma gazine, visit:
www.FixedOpsMag.com
SELL. SERVICE. REPEAT.
NEXT GENERATION TOOLS TO GROW YOUR DEALERSHIP.
ONE VENDOR. ONE PLATFORM. COMPLETE LIFECYCLE MARKETING.
Precision targeted multi-channel
customer engagement
Automatic equity mining and
real-time quote generation
Engage
Comprehensive solution for all
incoming and outgoing calls
Book
Flexible, customer-enabled
service scheduling
Smart Lane
Wireless mobility and connectivity
in the service lane
Targeted personalized
messaging and delivery
VISIT AUTOLOOP AT THE 2015 NADA CONVENTION & EXPO
www.AutoLoop.com
[email protected]
BOOTH #5758W
877.850.2010
In dus t r y N e w s & Event s
Rotary Lift assistPRO™ Service
Expands Digital Offerings to
Meet Growing Demand
VW Selects OEConnection Online
Mechanical Repair Parts Ordering
& Fulfilment Technology
Rotary Lift’s free assistPRO™ professional facility planning assistance
service is being expanded to give customers additional options for
creating custom shop layouts. The expansion comes as demand for
the free service hits an all-time high, with more shops now utilizing assistPRO than ever before.
OEConnection LLC, the parts e-commerce technology leader for
original equipment manufacturers (OEM) distribution networks, has announced that Volkswagen Group of America has selected RepairLink,
an internet-based, all-makes-and-models Parts ordering and fulfillment
solution, for the automaker’s network of U.S. wholesale Parts dealerships and their independent repair facility (IRF) customers. The agreement allows VW to promote their mechanical Parts wholesale channel
through RepairLink, enabling dealers to more effectively compete with
non-OEM parts suppliers for the sale of Genuine VW Parts. RepairLink
offers a rules-based pricing engine and other technology capable of automating and managing an OEM’s wholesale Parts marketing program,
from identifying eligible Parts and presenting discount opportunities at
the transactional level, to instantly validating the sale and compiling
real-time data program-wide.
The number of shops taking advantage of the program has more than
doubled over the past five years as the economy has improved. Available to any Rotary Lift customer, assistPRO helps maximize shop efficiency and technician productivity by determining the optimal number,
placement and arrangement of vehicle lifts for a new or remodeled
facility. Rotary Lift’s in-house assistPRO team works with individual
customers and architects to create custom facility layouts.
“Dealerships and independent shops have recovered from the recession and are starting to invest in their facilities again,” says Larry
Kendall, assistPRO Technical Information Specialist and Facility Planner for Rotary Lift. “No matter if they are expanding, moving into new
buildings or just upgrading old equipment, it pays to utilize assistPRO.
When you include lifts in your shop layout upfront, there is less of a
chance you will need to go through a costly redesign and delay the
project.”
“We are excited and pleased to be working with Volkswagen Group of
America to provide their U.S. dealerships and IRFs with a better Parts
ordering and fulfillment experience,” said Ron Coill, Sr. Vice President,
OEConnection. “As a result of our exclusive technology, which is designed to help both buyers and sellers increase efficiencies and improve margins, RepairLink is used by almost 25,000 repairers today to
purchase OE parts.”
Xtime and Dealer Tire Bring
Tire Selling to the Service
Drive
Dealer Tire and Xtime have announced a new partnership that puts tire
selling at the fingertips of Service Advisors. Dealer Tire’s digital selling
solution and inventory information is now accessible through Xtime’s
tablet-based Service lane solution, Check-In 7.
The integration places Dealer Tire’s eServices tire catalogs into Xtime’s
Check-In 7 via a tire selling interface designed specifically to blend
seamlessly with the Xtime design. Service Advisors can present customers with vehicle-specific, comprehensive tire recommendations and
pricing, check inventory for availability and enable an immediate purchase. Dealers retain the customer’s business at the point where consumers often first take their vehicles to the aftermarket, while consumers get a transparent, convenient method for maintaining their vehicles.
Continued on Page 114
EVENTS
Jan u ary 2015
19-22 / National Biodiesel Conference and Expo
Fort Worth Convention Center, Fort Worth, TX
573-635-3893 / www.BiodieselConference.org
22-25 / NADA Convention and Expo
Moscone Center, San Francisco, CA
“The integration with Xtime’s Check-In 7 makes it easy for Service Advisors to sell tires on the Service drive,” said Dealer Tire Partner and Chief
Sales Officer Cindy Stull. “We are excited to be working with Xtime
because we’re really in the same business: helping dealers retain customers while increasing Service and Parts revenue.”
703-821-7000 / www.NADA.org
“Dealer Tire shares our dedication to helping dealers deliver the best
Service experience to their customers and we’re pleased to bring this
new functionality to our mutual dealer customers,” said Xtime CEO Neal
East. “This is just the beginning of what Xtime and Dealer Tire can accomplish together.”
April
23-25 / The Car Wash Show
Las Vegas Convention Center, Las Vegas, NV
312-321-5199 / www.CarWash.org
p. 8
CarGuy85 posted a one star review.
3 out of 4 shoppers just moved
on to your competition.
-CarGuy85
01/12/13 6:23 p.m. PST
Your specialist monitors your online reputation across the entire
web, investigates and formulates responses to negative reviews,
and encourages customers to post positive reviews.
Advertising
Reputation
Management
Mobile
SEO and
Social
Targeted
Marketing
with a twist
888.841.8130 | nakedlime.com/drm
Protect your customers. Get more of theirs.
Web
Featu r e
VHS Tapes and Measuring
Total Customer Pay ELR
T o d a y T h e y ’ r e B o t h C o m p l e t e ly U s e l e s s B y L e i g h S i l v e r Total customer pay Effective Labor Rate
(ELR) is misleading and completely useless as a KPI. There…I’ve said it. So now
let’s see if I can prove it.
VHS tapes have been around a long
time, dating back to the mid-1970s. They
were eventually replaced with more advanced and cost-effective technologies.
Paying Technicians on a flat rate system and measuring Effective Labor Rate
(ELR) has been around even longer. We
won’t delve into the pros and cons of the
flat rate systems, but acknowledge that
dealerships primarily live in this world.
It’s common knowledge that a dealership’s Service operation has three distinct types of customers:
• Customer 1: The Sales Department (Internal)
• Customer 2: The Factory (Warranty)
• Customer 3: The Retail Customer
(Customer Pay)
Because of the uniqueness of each
these three customers, it’s obvious that
they need to be measured and managed
differently. For example, pricing Service
work and paying Service employees on
internal and warranty work jobs is simple. These two customers have specific
needs and you work backwards to make
everything pencil. Everyone knows that
growing this part of the business is quite
difficult, but for those who periodically
forget or decide to fight “Sales” or “The
Factory” they typically end up playing
for a different team.
p. 10
So why am I highlighting this common
industry fact? Because while it’s recognized that a dealership’s Service operation has three distinct customers, it’s
NOT recognized that the Customer Pay
business actually offers three unique
categories of Service that require individual measurement and management
practices of their own.
Now that you got rid of VHS for digital
HD quality it’s time to get rid of the pre70’s way of managing your Customer
Pay business.
Here’s a story (an actual business case)
to help drive this home: “The Case of the
Two Honda Dealerships”
Chapter 1: The Fight
Two Honda dealerships within the same
dealer group were duking it out to see
who would have the better ELR in December 2013. December CP ELR is
highlighted in Exhibit A; Dealership 1
sitting at $91.53 and Dealership 2 right
behind at $90.98. The difference was a
mere 55 cents.
sick days and management
headaches.
Thousands of systems at convenience stores and independent carwashes.
Hundreds of factory-trained LOCAL service technicians. Now our
SoftWash DF makes our superior cleaning performance and high
reliability affordable for car dealers.
Find out more by calling 800-525-8248
or visiting www.markvii.net.
p. 11
“Now that you got rid
of VHS for digital HD
quality it’s time to
get rid of the pre-70’s
way of managing
your Customer
Pay business.”
Chapter 2: The Twist
Highlighted in Exhibit B November 2013
is added. The difference there was a
whopping $9.07! In November Dealership 1 was at $95.67 and Dealership 2
was at $86.60. How did Dealership 1
have such a decrease while, at the same
time, Dealership 2 enjoyed such an increase?
Chapter 3: The Assumptions (and
you know what happens when you assume…)
Here are some typical answers to this
twist:
• Answer 1: Dealership 1 decreased because they gave away the farm with discounts
• Answer 2: Dealership 1 decreased because their big hitter Advisor was out
• Answer 3: Dealership 2 increased because they raised their rate / prices
• Answer 4: Dealership 2 increased because they hired the big hitter away from
Dealership 1
Chapter 4: The Facts
Now here are the facts around what really happened with these two dealerships:
• Dealerships 1 and 2 sold all their service work at exactly the same prices:
o Oil change prices exactly the same
p. 12
o Same maintenance package pricing
o Same door rate
• The amount of discounts they gave
were exactly the same:
o Same from dealership to dealership
o Same from November to December
• No employee changes from November
to December
Chapter 5: The Big Question
How could CP ELR have varied so
much from month to month without any
changes in pricing structure?
Chapter 6: The Big Answer
Customer pay work mix!
The reality of a Service operation’s customer pay business is that it’s actually
three unique categories of business,
all rolled into one type of customer. This
requires separate measuring and managing of each category! Anything less
and you’re managing a Service Department with VHS-level technology!
Here are the three unique categories:
1. Super Competitive Oil Change Business
• Defined as LOF’s sold at cutthroat prices because of aftermarket competition
and customer perception. Technicians
of this skill can be found everywhere.
2. Maintenance Business
• Defined as mileage or wear based
maintenance work that must continuously be performed. This work is sold
at discounted prices because of aftermarket competition and customer perception but it’s only slightly discounted.
Many Technicians have the capability to
complete this work, but only skilled ones
can do it both quickly and effectively.
3. Repair business
• Defined as diagnosing, fixing and repairing broken or malfunctioning items
sold at your door rate. There’s a shortage of Technicians that fit this threshold
of skill and the industry has a foreseeable problem.
Once a manager come to grips with this
reality, a light bulb comes on: “If I sell
more hours at my oil change rate it will
drive down my total CP ELR. If I sell more
hours at my door rate it will increase my
total CP ELR.”
Another question should immediately
come to mind; “How much does my total CP ELR naturally fluctuate because of
work mix changes in my shop?”
Chapter 7: The Yo-Yo (Exhibit C – take
this one in slowly)
Looking back at our two Honda dealerships let’s look through the lens of
work-mix to understand how these fluctuations actually occurred. In December
both dealerships had a similar work mix
(Exhibit C):
o Dealership 1 sold 7.6% of its total CP
hours
hours
o Both sold these hours at the same rate
of $50 per hour
hours
hours
o Both sold these hours at the same
maintenance rate of $86 per hour
p. 14
3. Repair Business
o Both dealerships sold just under 32%
of their total CP hours
o Both dealerships sold these hours at
the same door rate of $112 per hour
From November to December each
dealership had a change in their work
mix (Exhibit D)
o Dealership 1 had an increase in hours
sold from 2.8% to 7.6%
o Dealership 2 had a decrease in hours
sold from 17.1% to 9.2%
o Dealership 1 had a slight increase in
hours sold from 56.2% to 60.5%
o Dealership 2 had a slight increase in
hours sold from $56.9 to $58.9
3. Repair Business
o Dealership 1 experienced a large drop
in hours sold from 41.0% to 31.8%
o Dealership 2 experienced a nice in-
crease in hours sold from 26.0% to
31.9%
This example proves that even when a
single dealership keeps consistent pricing and discount policies in-place, the
total CP ELR will move up and down
naturally because of work mix.
“While it’s recognized that
a dealership’s Service
operation has three
distinct customers, it’s NOT
recognized that the Customer
Pay business actually offers
three unique categories
of Service that require
individual measurement
and management practices
of their own.”
Vi
Bo 201 sit
ot 5 N us
h A at
#2 D
44 A
1S
Finally, an EPC with the power to
drive your parts business.
Turbocharge your productivity with Microcat LIVE!
>> With advanced search technology and an intuitive user interface, the Microcat LIVE electronic parts
catalog has everything your parts department needs to boost productivity. The cloud-based platform
provides the most up-to-date OEM data available, so your department will be more efficient, more productive
and more profitable then ever. Add to that our industry-leading support staff and unique, no-contract
policy and it’s easy to see why Microcat LIVE is the most sought after parts selling system in the industry!
Call 888-929-5599 Today for Your Free 30-Day Trial!
or visit microcatlive.com for more information
Watch the Video
@infomediaLtd
FROM
LEADERS IN PARTS AND SERVICE SELLING SYSTEMS FOR 24 YEARS
p. 15
Chapter 8: The Conclusion
Total CP ELR is misleading and useless because it varies by work mix and
because it can be manipulated by bad
behavior. WARNING: including total CP
ELR in a pay plan can have bad, unintended consequences. The easiest
way to have total CP ELR increase is
by avoiding sales at a lower rate. This
disincentive for selling LOFs and gravy
maintenance work was not the desired
goal. The second-easiest way to drive
total CP ELR is arbitrarily overcharging
customers or -- even worse -- intentionally overcharging them. In all cases a
surface increase in total CP ELR shows
that something good has happened
when in reality that is the farthest thing
from the truth.
p. 16
“Total CP ELR is useless if you
can’t easily and independently
measure each of the three
unique categories of CP
business (LOF, Maintenance,
and Repair) that drives the
overall CP business.”
Here’s the bottom line: total CP ELR is
useless if you can’t easily and independently measure each of the three unique
categories of CP business (LOF, Maintenance, and Repair) that drives the
overall CP business. This means that for
each unique category of CP business
you must have a clear strategy (“What
am I doing to grow each business?”)
and a clear policy (“How am I managing
my people to execute?”) to ensure that
positive moves are actually being made.
Only one question remains: do you stick
with the VHS ways or go digital?
Acknowledgements
Acknowledgements to the Keeps Corp.
team members for helping clarify this
important message: Ray Branch, Les
Silver and David Stonham. Thanks!
Leigh Silver is Senior Vice President and
General Manager of the KEEPS Corporation, developers of the ROAMS technology. Prior to his tenure at KEEPS, Leigh
worked at Service Repair Solutions (SRS)
specializing in business development and
advanced repair order analytics. SRS was
the parent company of MPI where Leigh
spent over eight years working in the field
helping sell, implement and consult to the
MPI EDGE solution.
SAN FRANCISCO | JANUARY 22-25
NADA/ATD CONVENTION & EXPO 2015
YOUR MIND
at the 2015
NADA/ATD
Convention & Expo
115+ workshop sessions
500+ exhibits spanning 600,000 sq ft
24 franchise meetings with the manufacturer leadership
Keynote speakers Jeb Bush and Jay Leno
Inspirational program with Dr. Beck Weathers, survivor of the Mt. Everest disaster
The Automotive Industry Event of the Year
Attendee Registration and Housing is now open
www.nadaconvention.org
p. 17
Featu r e
Get Ready to ENGAGE
T h e Futu r e Succ e s s o f t h e Aut o In d u s t r y
St a r t s a t t h e 2 0 1 5 N ADA C o nv e nt i o n & E x p o By Connie Mikels
Known as the “Automotive Industry
Event of the Year”, the upcoming NADA
Convention & Expo is heading to San
Francisco’s Moscone Center January
22-25, 2015. The Expo dates are January 23-25.
“This must-attend annual event is where
the entire automotive industry comes
together to build, renew and nurture
business relationships as we plan for
the future”, says Steve Pitt, NADA’s Vice
President of Conventions & Expositions.
Thousands of automotive decisionmakers will be on hand to network with
peers, shop the industry’s largest marketplace of products and services and
learn and grow with a top-rated educational program.
ENGAGE To Expand Your Knowledge
NADA University is considered to be
the leader in education training for the
automotive industry and the 2015 workshop program is gearing up as one of
the best ever, offering 53 total workshop
topics presented by 82 speakers. The
six workshop tracks planned for the San
Francisco convention include the following topics:
- Dealer / Executive
- Human Resources
- Digital Marketing
- Legal & Regulatory
- Fixed Ops
- Variable Ops (includes Sales)
p. 18
NEW for 2015! -- Technology Town Halls
“Technology Town,” aka Silicon Valley, is
a “tweet” away from the Moscone Center. So this is the perfect time to have
top executives from Google, Facebook,
eBay and Twitter answer your questions
on how their emerging technologies can
help you sell more cars. The Technology
Town Halls will be held Sunday afternoon, so be sure to extend your stay in
San Francisco through Sunday evening
so you can take part.
Workshops are led by NADA University approved experts and the NADA
guarantees that you’ll go back to your
dealership with innovative ideas and
new practices. Here’s a snapshot of
the workshop sessions that specifically
target the Fixed Ops audience. (For the
complete list of scheduled workshops
go to www.nadaconvention.org)
Body Shop Profits: Time is Money
Cut costs and increase profits in the
body shop by optimizing personnel,
improving accuracy and lowering overhead. Also to be discussed: using apps
and management software that bolsters
efficiency, streamlines decision-making
and reduces cycle-time.
Presenter: Scott Rome, Rome Technologies, Inc., Pasadena, MD
FIXED OPS ADVANTAGE
The CARQUEST® Fixed Ops Advantage Program is designed to align and support today’s dealerships
aftermarket “All Makes & Models” services philosophy.
• Quality Products (OE Exact Form, Fit and Function) • Rebate Program and E-Ordering Incentive
• Unmatched Product Availability and Service
• Customized Training (Selling Services
• Consolidated Supplier (Products, Supplies,
and Technical)
Collision, Tools & Equipment)
• Consumer Education Tools.
• Aggressive and Consistent Pricing Across a
Nationwide Footprint
Great people, great products, great prices!SM
CARQUEST.com
p. 19
offer maintenance solutions and ask for
the sale. Dealers would never tolerate
a car salesperson who won’t sell cars,
so don’t tolerate a Service Advisor who
won’t sell Service.
Presenter: Charlie Polston, BG Products, Inc., Oklahoma City, OK
Develop Profitable and Efficient Parts
Managers
Help experienced and new Parts Managers become more efficient and profitable by using a Parts Manager training
program that improves job descriptions
and measures performance qualitatively
and quantitatively.
Presenter: Mike Nicholes, Mike Nicholes Capital Management, Inc., Portland,
OR
Ivy League Financial Formula for
Success in Service
With the quality of vehicles up and Service appointments down, learn all about
the Ivy League Financial Formula, with
innovative pricing strategies to increase
the effective-labor rate, specific tools to
boost retention and RO counts, and a
new approach to deciphering the financial statement.
Presenter: Chris Collins, Chris Collins,
Inc., Los Angeles, CA
Let Your Social Media Sell Your Service
Discover the secret to building a relevant
online community of new- and used-car
customers, nurtured into perfect prospects for Fixed Ops incentives.
Presenter: Amol Waishampayan, Stream
Companies, Bridgewater, NJ
p. 20
Proven Fixed Ops Marketing Tactics
You’re Not Using
Discover how top dealer groups use video, staff pages, testimonials and other
digital content to boost Fixed Ops marketing, SEO and analytics for both online and mobile applications.
Presenter: Jeff Clark, DealerOn, Inc.,
Derwood, MD
Service Drive: Your Other Sales Floor!
Learn effective strategies to teach Service Advisors how to educate customers,
Six Simple Changes for a Record Year in
Fixed Ops
Add 40 percent or more to your gross
profits with six key steps, such as increasing Service traffic 10 percent or
more by removing Service Advisors from
the appointment process (and using appointment coordinators), identifying
hidden profit opportunities lost due to
non-performance-based pay plans and
recruiting non-automotive personnel to
become top-producing advisors.
Presenter: Don Reed, DealerPro Training
Solutions, Gahanna, OH
Upselling Is Not a Dirty Word
Discover eight proven ways to increase
the sales of needed repairs and services, including how to identify factors that
keep Service Advisors from maximizing
upsell opportunities and implementing
ideas that give Advisors immediate profit
growth and increased customer loyalty.
Presenter: David Martin, The Mar-Kee
Group, Daphne, AL
BIG INNOVATION
COMES IN SMALL PACKAGES
AUTOPOINT DELIVERS
ANOTHER INDUSTRY FIRST
AutoPoint is the industry expert in service
department improvement since 2003.
Come to NADA and see our latest innovations.
FREE OAKLEYS
PRE-SCHEDULE YOUR AUTOPOINT
DEMO FOR NADA AND RECEIVE
To schedule a personal demo call us
888.503.8040 or visit autopoint.com/nada2015
FREE OAKLEY SUNGLASSES.
21
*Appointments are limited. Restrictionsp.
Apply.
Your Parts Inventory: Treasure or Trash?
Traditional methods of reducing idle and
obsolete inventory stock are changing
rapidly. This workshop will focus on how
to: (1) identify and manage idle inventory
realistically; (2) forecast future obsoleteinventory growth; and (3) explore methods for reducing idle inventory and obsolete inventory growth on a consistent
basis.
Presenter: Chuck Hartle, Partsedge,
Inc., San Diego, CA
“Here’s a
snapshot of the
workshop
sessions that
specifically
target the Fixed
Ops audience.”
ENGAGE In Your Total Convention Experience
Come and shop the industry’s largest
marketplace of products and services
during the 3-day NADA Expo, where
you’ll find more than 500 companies
covering over 600,000 square feet of exhibit space in three separate buildings –
Moscone North, South and West. These
companies offer the latest technologies,
products and services in the marketplace today, providing the cutting-edge
solutions that can help attendees accelerate their business to a higher level of
success.
The NADA Expo is your one stop shopping solution for all of the products and
services you’re looking to buy. And to
make it even easier to search for specific companies and product categories,
NADA offers the “myNADAplanner” online resource tool that connects buyers
and sellers before, during and after the
show.
p. 22
NADA’s award winning Mobile App
(“NADA2015” – available in early December 2014) will help attendees create their
ideal schedule, download presentations
and handouts, view speaker bios, take
notes on your device, select from more
than 500 exhibitors to visit and navigate
your way around the Moscone Center
using the maps within the App. No need
for paper or pen!
Back by popular demand, this year’s
convention will once again feature the
popular Social Connection Zone located inside the Moscone South Expo Hall.
This is the area where you’ll find the following activities geared to keep you on
track with the latest tech trends: NADA
social media wall, Genius Bar, rapid
charging stations, complimentary coffee, pedometer contest score board and
check-in, trained technicians to assist
you with all your tech and social media
questions, and daily Social Media sessions focused on using a variety of tech
tools in your dealership.
The Lifestyle Experience is a one-of-akind opportunity for convention attendees to focus on their mind, body and
spirit with a variety of activities located
in three separate areas of Moscone Center. “Beauty & Fashion” with Bloomingdales that includes a Men & Women’s
Accessories Boutique and Professional
Head Shots. “Mind, Body & Spirit”
health screening services including
Healthy Heart screenings, Bone Density
screenings, and COPD Lung Function
screenings. “Relax” stations with Massage Therapists and Hand Reflexology.
These recreational activities are offered
to help rejuvenate and energize attendees. Come see what all of the buzz is
about!
ENGAGE Your Personal and Professional Success...
The NADA Convention & Expo is the best
place to network with your colleagues,
get access to top rated education sessions, shop the Expo ranked in the Top
100 U.S. Tradeshows, enjoy high-caliber
keynote speakers and connect with your
OEM representatives. You can register
online for the 2015 NADA Convention &
Expo and get the latest news and updates about the show at www.nadaconvention.org. Don’t miss this unique opportunity to grow both personally and
professionally while having a great time
in San Francisco!
Connie Mikels is the Director of Expositions
at The National Automobile Dealers Association.
p. 23
Featu r e
Right Hand,
Meet the Left Hand
W h e n S a l e s a n d S e r v i c e S h a r e In f o r m a t i o n ,
Ev e r y b o d y P r o f i t s Even a casual look at a dealer’s ledger
shows that both Variable Ops and Fixed
Ops are vital to the success of a dealership. The most successful dealers have
Sales and Service teams that work best
in tandem: Sales delivers new customers
to Service, providing them the opportunity to grow a long-term relationship with
those customers and eventually bring
them full circle when they’re ready to
repurchase. Throughout the ownership
lifecycle, both departments benefit, and
both bring in revenue. Everything works
together, or at least it should. So what
happens when a disconnect occurs?
Sometimes Sales and Service seem
like totally different animals. They’re
both part of your revenue stream, but
they function in completely different
ways: Salespeople work on a commission and/or bonus basis and their goals
p. 24
B y C h r i s W i l l i a ms
can be driven by numbers and dollars.
Fixed Ops personnel, on the other hand,
benefit most from repeat business, so
they may be more focused on providing good customer experiences. Neither
approach is right or wrong, nor are they
mutually exclusive. They can, however,
cancel each other out if either department’s immediate goals supersede
those of the dealership.
Here’s an example: let’s say a sales rep
is desking a young couple right on the
verge of signing. They’ve chosen a sparkly red sports car, their financing has
cleared, everything is a go … but they
want a luggage rack. Nothing similar
on your lot has a luggage rack -- and
the couple is leaving on vacation in the
morning.
It’s not hard to predict what the Sales-
person wants to say: “I can have a
luggage rack installed on the car you
want this afternoon!” From a Sales perspective, it’s the only move that makes
sense. Ideally, of course, the rep would
have already asked Parts if the appropriate luggage rack was available, then
made sure the Service Department had
time in its schedule for an installation.
In the real world, however, chances are
that didn’t happen. Maybe that particular
luggage rack isn’t in stock, so there’s a
mad scramble to locate one. Or the Service bays are full that afternoon, meaning another customer gets bumped. And
even if the part and the manpower are
available, even if the customer signs the
deal and drives away happy, Service can
still feel slighted: “Sales doesn’t care
what hoops WE have to jump through,
as long as they get what they want!”
John Jackson
38 years of service
Gale Liter
37 years of service
Steven Smith
28 years of service
That’s not just a lift—that’s a bold example of American ingenuity. Add to that rigorous
testing and superior engineering and you have a lift that stands above the rest.
Learn more at rotarylift.com/raised-in-madison/fo
On the other hand, it’s unlikely that
Sales is deliberately trying to antagonize
Service. Sometimes Salespeople get so
caught up in the sale they don’t think to
call. Perhaps they’re afraid the Service
Manager will say no, which could lead to
dickering in front of the customer. And
what if no one on the Fixed Ops side
even answers the phone?
So which side is right? While you can
make a good case either way, that’s entirely the wrong question. Instead, you
should ask, why are there sides at all?
The answer: information. Rather than
“us vs. them” the issue is more the
right hand knowing what the left hand
is doing. Everyone in your organization
should be willing to ask for appropriate
information if necessary and share information when asked. The data exchange
must be so integral to your operation
that no one department can function
without it.
Getting good communications out of
bad communicators
The importance of interdepartmental cooperation becomes most evident when
p. 26
it’s not there. When departments aren’t
sharing information, resources and a
common goal, both Sales and Service
may have entirely different assumptions
about deadlines, priorities and responsibilities. For maximum overall performance, everyone has to see the forest
as well as the trees.
Of course, simply telling Salespeople
and Technicians to “communicate better” isn’t going to dramatically change
your information flow. Communicating is
a bit like driving: we all think we’re really good at it -- it’s everyone else who
can’t get it right. Still, there are a number of ways to increase understanding
between Variable and Fixed Ops (or any
other departments) that will lead to better overall efficiency.
Start at the top
The typical dealership information flow
lacks efficiency and could benefit from
some positive changes. The idea here
is to put in effort up front to make your
operation more efficient in the long run.
Once changes are in place, your people
will take their cues from you. Dealership
principals need to ensure that department heads are on board with the pro-
gram. Department heads, in turn, need
to be role models for their people.
Get everyone on the same page
One person not following established
guidelines is enough to break down
communications. Therefore it’s imperative to make sure everyone knows and
understands whatever guidelines you
put in place. Encourage employees to
contribute ideas that might help. And
while the final decisions need to come
from management, avoid making it too
mechanical: posters and regular announcements are helpful, but face-time
is essential for developing real team
spirit.
When defining your expectations, keep
in mind the Three S’s: Short, Simple and
Specific. A book full of long, elaborate
company policies will never get read.
Flowery or overly formal wording can
easily lead to misunderstandings. And
words that are relative or open to interpretation can mean different things to
different people. For instance, “Always
answer the phone by the third ring” is
more concrete and understandable than
“Always answer the phone promptly.”
Speak the same language
This is an age in which dealerships have
access to almost unfathomable amounts
of data on the vehicles they sell and on
the customers who buy them. Used
properly, your CRM can be a treasure
trove of information to use for marketing
and sales. The possible downside to this
“big data” is that the amount of information can be so overwhelming that each
department may end up tracking only its
own little subset.
This creates its own complications.
Sometimes information that comes from
one department is actually more useful
for another: data gathered by Fixed Ops
over the lifecycle of a vehicle, for example, could be utilized by Sales if the
vehicle were traded in.
The solution is to make sure both departments know what information is
gathered and how to access it, with
great care taken to ensure that data entered in one place is correctly read and
copied elsewhere. Strict regulation from
management is the most obvious way to
achieve this, but customer engagement
software can also be a big help -- and
that brings us to our next point:
Use all your resources
Technology doesn’t just provide infor-
p. 28
mation about your customers -- it has
the potential to alter every aspect of
your dealership, from greeting customers to processing vehicle information,
from conducting vehicle walkarounds
and writing repair orders to follow-up
and ad sourcing.
The impact of technologies -- especially
information solutions -- on the industry
will continue to escalate. Already, some
dealers have gone “paperless,” storing
as digital data the piles of paperwork required for selling and servicing vehicles.
The clear advantage here is that everyone is working from the same data files.
Paper-free systems have revolutionized
the health care industry by providing
access to patients’ records at any approved point. In the same way, a dealership has various departments which
need the same information, and the ability to access the same data in real time
dramatically boosts both efficiency and
accuracy.
We can see how this works by going
back to the couple that needed the luggage rack. An integrated scheduling
software platform would have eliminated the need for a phone call, since the
Salesperson could have logged directly
into the Service ledger, checked the
Parts inventory, and seen if the Service
bay was understaffed, overbooked or
had a vacancy… all with a few clicks of
the mouse. Scheduling the installation
would have alerted both Parts and Service, all dynamically and all in real time.
Naturally, even the most powerful information systems by themselves cannot do all the work. It’s important to
remind your people that no one can succeed alone. By providing them with the
most effective resources and by leading
through example, you can permanently
end interdepartmental bickering… and
watch your whole organization reap the
benefits.
Chris Williams’ 17-plus years in the
auto industry began as a car salesman when he was still in college
at the University of Alabama - Birmingham. After completing school,
he went on to excel in Sales and
Operations Management. In those
positions, he implemented strategies for Fixed Ops and Sales teams
to work effectively toward the goal
of customer retention. Having
worked for OEMs, dealerships and
auto marketing companies, Chris
brings a broad range of experience
to automotive operations. He is currently the Director of Operations at
Clearwater, FL-based AutoLoop, a
marketing engagement company,
where he oversees communication
between the Sales and Operations
Departments.
Featu r e
Keeping It Together
T o d a y ’ s A d v a nc e d V e h i c l e s R e q u i r e C h a n g e s
i n C o l l i s i o n R e p a i r Att a c h m e nt M e t h o d s Collision repair professionals are no
different than any other professional –
we’re resistant to change. It took many
years for repairers to make the switch
to “MIG welding” for welding early unibody vehicles. (For this article we’ll use
the term gas metal arc welding (GMAW)
metal inert gas (MIG), or GMA (MIG).
More on the reason, later.) It was a
technology that was unfamiliar to many
and there wasn’t a perceived need for
change. History would prove otherwise,
as there may not be a collision repair
business in the country that doesn’t
have a GMA (MIG) welder.
In this first of a two-part series, we’ll
take a look at some of the attachment
methods required for today’s collisiondamaged vehicles. We will focus on steel
and aluminum welding. In part 2, we’ll
take a closer look at adhesive bonding
and some of the mechanical fasteners
that are going to be required for repair.
Steel GMA (MIG) Welding
GMA (MIG) welding has been a staple
p. 30
in the collision repair industry for many
years. Steel GMA (MIG) welders offer
collision repair professionals a number
of benefits: modest price to own, ease
of use, readily available training, minimal
maintenance and Technicians that are
familiar with the equipment.
When steel GMA (MIG) welding started
its rise, it was often referred to simply as MIG welding. While this term is
widely known, it’s not really accurate.
MIG stands for “metal inert gas” and is
accurate when making welds using an
inert shielding gas, such as 100% argon.
However, for most collision repairs, we
use a shielding gas that is 75% argon,
25% carbon dioxide (often called 75/25,
or C-25). Because carbon dioxide is an
active gas, the correct term would be
MAG welding. Regardless, if a technician is doing MIG welding, or MAG
welding, both processes are gas metal
arc (GMA) welding methods, so I CAR®,
the Inter-Industry Conference on Auto
Collision Repair, and others, made the
switch to GMA (MIG) when referring to
Pa r t 1 o f a 2 - pa r t s e r i e s
b y: J a s o n B a r ta n e n
the process – GMA, to be technically accurate, and MIG to help with its recognize-ability. Simple enough, right?
Chris Cady
Managing Partner
Scott Clark Toyota
Matthews, NC
“ Our average
accessories sale is
$650 per car sold.”
Part of Reynolds Retail Management System…
transforming the way consumers experience your dealership.
reyrey.com /addonauto | 888.853.2617
© 2014 The Reynolds and Reynolds Company. All rights reserved. 1006517-8 10/14
p. 31
Push Method
Because steel GMA (MIG) welding has
been prevalent in the collision repair
industry for so long, we won’t spend a
lot of time on it in this article. However,
there are a few important items that we
do need to touch on. For the majority of
unibody welding, we will likely be using
a 110V machine, with 0.6–0.9mm (.023–
.035”) ER70S 6 electrode wire, and C-25
shielding gas. For welding on truck
frames, we may still be using ER70S-6
electrode wire, with C-25 shielding gas,
but we’ll need a 220V machine and
1.2mm (.045”) electrode wire. Also, be
aware that some vehicle makers do require ER70S 3 electrode wire for some
welding applications. As always, it’s important to refer to the vehicle maker’s instructions for any part replacement and
welding requirements.
A recent example of a new vehicle maker requirement for welding is the announcement by Honda that ER70S-6
wire only be used on steels with a tensile strength of 440 MPa or less. For any
steel on Honda vehicles between 440
MPa and 980 MPa, Honda now requires
p. 32
Bosch’s DS980J electrode wire. I-CAR,
through the I-CAR Repairability Technical Support Portal, has a copy of the
requirement from a recent Honda Body
Repair News publication.
Aluminum GMA (MIG) Welding
A lot of people tell us that aluminum repair isn’t difficult, it’s just different. But
when it comes to welding, it’s a lot different. Unlike steel GMA (MIG) welding,
aluminum welding is truly MIG welding.
Because 100% argon shielding gas is
used, the “inert” moniker is completely
accurate for aluminum welding. There
are also a number of other differences
between steel and aluminum welding.
While steel welding affords Technicians
with the option of either the push or pull
welding technique, the push technique
must be used for aluminum. The push
technique allows for the shielding gas
to clean the weld area and reduce weld
contamination.
The welding transfer method also differs
between steel and aluminum welding.
For steel, short-circuit transfer is still the
transfer methods of choice. However,
for aluminum, most vehicle makers are
now requiring pulsed-spray arc transfer.
Unlike short-circuit transfer, where molten electrode wire “breaks off’ when it
contacts the base metal, pulsed spray
forms a droplet of molten electrode wire
that is pushed across the arc into the
weld puddle. Because the concept is
easier to show, than explain, check out
these slow motion videos from Miller
Electric, for a comparison of the two
transfer methods:
Short Circuit: http://bit.ly/1vHu1mp
Spray Pulse: http://bit.ly/1oJRlMc
Another difference between steel and
aluminum welding is electrode wire selection. While there’s a nearly universal electrode type for steel, aluminum
electrode requirements vary, based on
the alloy of the base metal and the vehicle maker’s recommendation. It’s imperative to refer to the vehicle maker’s
instructions when selecting aluminum
electrode wires. Some common types
you may run into include 4043, 4047,
5356 and 5554.
p. 33
Squeeze-Type Resistance Spot Welding (STRSW)
Not since GMA (MIG) welding first made
its way into collision repair facilities
across the country, has there been a repair attachment method gaining popularity as much as spot welding. A quality
squeeze type resistance spot welder has
become an essential piece of equipment
for collision repair businesses.
Not only does STRSW duplicate the
OEM appearance, but it also allows for a
significantly smaller heat-affected zone
that doesn’t damage many of the high(HSS) and ultra-high strength steels
(UHSS) found on today’s vehicles. Some
vehicle makers have gone as far as requiring STRSW for welding HSS and
UHSS on their late-model vehicles.
In the July/August issue of Fixed Ops
Magazine we took a closer look at some
of the considerations for investing in
this type of equipment. If you haven’t already done so, it’s time to take a closer
look at making an investment into this
type of equipment. (You’ll be glad you
did.) We also covered MIG brazing in the
previous article and you may also want
to consider adding this piece of equipment to your facility.
Multi-Function Welders
One trend that we’re beginning to see
from welding machine manufacturers
is machines that integrate a number of
welding processes into one machine.
There are a handful of machines now on
the market that you can make steel GMA
(MIG) welds, MIG braze welds and aluminum GMA (MIG) welds without making modifications to the machine each
time you change welding processes.
These machines offer three welding
torches and the ability to house three
types of electrode wire, in the same
welding machine. The machine can carry 100% argon shielding gas and C 25
shielding gas. You don’t even have to
“tell” the machine which welding method
you’d like to use. When you squeeze the
trigger on the steel GMA (MIG) welding
torch, the machine switches, automatically, to steel welding mode and provides C-25 shielding gas to the nozzle.
p. 34
Squeeze the trigger on the MIG brazing
welding torch and, again, the machines
switches automatically and sends 100%
argon to the nozzle. Some of these
machines even allow for conversion to
Tungsten Inert Gas (TIG) welding and
stick welding.
Stay Current with Tools, Equipment
and Training
Automotive technology continues to
evolve at a rapid pace. As technology
evolves, collision repair processes will
continue to evolve as well. It’s important to continuously refer to the vehicle
maker recommendations for attachment
methods. While steel GMA (MIG) welding will continue to be used for the foreseeable future, STRSW and MIG brazing
will continue to rise in popularity and will
be required for certain collision repairs.
As aluminum-intensive vehicle production increases, aluminum GMA (MIG)
welding will also continue to rise. It’s
important that you not resist change in
order to keep up. You need to equip your
facility with the proper tools and equipment to perform complete, safe and
quality repairs and it’s imperative that
your Technicians have the most up-todate training on how to leverage each of
these technologies. I-CAR offers a number of courses on attachment methods.
To see which classes are available in
your area, visit www.i-car.com.
In addition to I-CAR training courses,
the I-CAR Welding Training & Certifica-
tion™ program includes instruction on
welding theory, a hands-on evaluation
by the Instructor of the facility’s gear,
equipment and infrastructure prior to
the in-shop training, practice and the
industry-recognized certification test.
More information on all of I-CAR’s welding courses (Steel GMA (MIG) Welding,
Aluminum GMA (MIG) Welding and Steel
Sectioning) can be found at i-car.com/
welding. Pricing for welding training has
been reduced to make it more affordable
for every Technician to have the handson training needed to complete a proper
weld. A growing number of OEMs use
I-CAR Welding Training & Certification
in their network programs, including
Acura, Audi, Chrysler, Ford, GM, Honda,
Infiniti, Jaguar, Land Rover, Lexus, Nissan, Porsche, Scion, Toyota, Volvo and
Volkswagen.
In the next article, we’ll take an in-depth
look at adhesive bonding, rivets and
rivet bonding and other mechanical fasteners.
Jason Bartanen is the I-CAR Director of Industry Technical Relations and is responsible
for the I-CAR Repairability Technical Support initiative, at the I-CAR Tech Center in
Appleton, WI. He has over 25 in the collision
repair industry, the last 18 with I-CAR. Prior
to his current role, Bartanen served several
roles at I-CAR; as an Instructional Designer,
Technical Development Manager and most
recently as the Technical Director. Bartanen
also assists in managing I-CAR’s specialty
training development and delivery programs
for a number of vehicle manufactures. Bartanen is a member of the SkillsUSA Collision
Repair Technology committee.
p. 35
Featu r e
Taking Advantage
of Advancements
in Touchless
Car Washes
C l e a n i n g U p W i t h o ut a T o uc h Nirvana for the auto dealer is the customer who enters the showroom, points
at a vehicle and announces, “I’ll take
that one” with no negotiating, no test
drive and no questions asked. While
this scenario may actually play out on
exceedingly rare occasions, everyone
knows that the vehicle-buying experience is really a precise process that involves large amounts of research, time
and negotiation, all crucial components
in the search for that oftentimes elusive,
but extremely satisfying, “this-is-theone” feeling.
of car-wash technology: a friction-style
system that relies on 1960’s-era hydraulics to operate its many wash, polish and
dry components.
In fact, car dealers themselves often encourage their prospective customers to
shop around, to go out and visit different
dealers or test drive different models,
knowing that the highest level of customer satisfaction will only be achieved
if the customer is convinced that he or
she did everything in their power to find
the right vehicle. Isn’t it ironic, then, that
auto dealers who operate Service and
Maintenance facilities at their sites can
be quick to settle for one specific type
The Right Touch = No Touch
While most auto dealers have staked
their vehicle-wash lot on friction systems
that feature brushes or soft-cloth strips
that actually contact the vehicle in order
to remove any dirt or grime and apply all
polishes and waxes, a better option may
be the touchless in-bay automatic wash
system. In fact, the results of a number
of recent industry surveys indicate that
drivers actually prefer touchless vehicle
washes, which they say provide a more
p. 36
While friction washes may be the default
technology of choice for the auto dealer,
in reality there are a variety of vehiclewash options available on the market.
So, in an industry that extols the virtues
of “shopping around,” it behooves the
auto dealer to do just that when the decision has been made to install an onsite car wash.
By Tony Smith
“While friction
washes may be the
default technology
of choice for
the auto dealer,
In reality there are
a variety of
vehicle-wash
options available
on the market.”
p. 37
“Rather than
brushes that
actually contact
the vehicle,
touchless systems
feature an
overhead bridge
design that moves
around the
vehicle’s exterior
with high-pressure
efficient high-quality wash than frictionstyle systems without the worry that vehicle damage caused by the system’s
brushes or other moving parts may occur during the wash process. Regarding
the actual washing of the vehicle, foam
brushes or cloth retain at least some of
the dirt and grime from previous wash
cycles, meaning that at the end of a
busy wash day, a vehicle may be getting
the filth from numerous vehicles spread
across it.
Rather than brushes that actually contact the vehicle, touchless systems
feature an overhead bridge design that
moves around the vehicle’s exterior with
high-pressure nozzles applying wash
chemicals, polishes and rinse water in
order to get the vehicle clean. Today’s
touchless wash systems offer a simple
design that results in easy operation
with lower maintenance and equipment
costs for the operator. The technology
of the touchless in-bay automatic wash
system has also advanced to the point
that sensors located in the wash components can “read” how the vehicle
p. 38
has been positioned in the wash and
then make adjustments to safely move
around it so that washing efficiency, effectiveness and safety are optimized.
The open-bay design of most touchless wash systems also eliminates the
driver’s concern of positioning the vehicle in the tracks of a treadle, which can
cause consternation and stress during
the loading process. Additionally, the
“virtual treadle” design of touchless inbay systems can be beneficial for auto
dealers who offer a wide array of vehicle
types and sizes to the buying public—
from the smallest sub-compact to the
largest SUV, including dually trucks with
their wider four-wheel rear axles. This
broad array of vehicle types demands a
wash system that is flexible enough to
safely and efficiently clean all varieties
of standard production vehicles.
Many next-generation touchless wash
systems are now being powered
through electronic variable frequency
drives (VFD). This removes the need for
hydraulic systems that can be prone
nozzles applying
wash chemicals,
polishes and rinse
water in order
to get the
vehicle clean.”
to leaks and breakdowns, which result
in higher maintenance costs, revenuesapping downtime and the frustration inherent in both. VFDs also enable
the wash operator to optimize the use
of electricity since only the necessary
amount of power is required to operate
the machinery. Also, as water usage and
disposal costs continue to rise, touchless wash systems have been designed
to minimize water consumption and can
need as little as 21 gallons of water per
wash, with much of that being able to be
reclaimed and reused, if desired.
Dealertrack ASR Pro.
The professional approach to additional service recommendations.
Get the most out of every customer visit to your service department with ASR Pro. Our powerful web-based
multi-point inspection and shop optimization software keeps you on the cutting edge in every aspect of your
operations. With seamless integration with your DMS, ASR Pro helps you take control of your department
processes, enhance upsell opportunities and improve customer service.
Call 888.579.3803 or visit
go.dealertrack.com/asrpro to learn more.
p. 39
©2014 Dealertrack, Inc. All rights reserved.
systems will require additional labor expenses that touchless in-bay automatic
systems will not.
“Touchless
wash systems also
benefit from
recent advances
in wash-control
systems
technology.”
Conclusion
For an industry that advises its customers to do their homework before making
a purchasing decision, auto dealers can
sometimes be lax when choosing which
vehicle-wash technology to install at
their stores. The days of “that’s the way
we’ve always done it” are long gone, so
those auto dealers who have continued
to turn to friction-style washes for their
operations need to realize that there are
more options available to them.
Touchless wash systems also benefit
from recent advances in wash-control
systems technology. These systems use
a Web browser that can be accessed
via personal computer, tablet or smartphone without the need for any special
software, which gives the operator realtime access to all key operating functions of a site’s wash equipment. Additionally, if operators are physically away
from their facility they can remotely configure wash packages, program machine
functions and monitor sales or wash activity at the touch of a button over the
Internet.
p. 40
Larger dealerships with plenty of acreage may choose to build a tunnel car
wash on their property. There are also
numerous drawbacks to the use of this
wash technology. First, the initial cost of
building a tunnel wash can be prohibitive. Second, tunnel washes require a
treadle system that pulls the car through
the wash. As mentioned, these treadles
can be difficult to position the vehicle in,
which can lead to damage to both the
vehicle and wash system. Next, tunnel
washes require the use of much more
water and electricity to operate, leading to higher utility bills. Finally, tunnel
While friction washes may have their
benefits, the advances in touchless
vehicle-wash technology should not be
overlooked. Today’s touchless washes
offer performance, safety, cost-consciousness and reliability. And, most
importantly, they get cars clean without
damaging them. So take your own advice: do the research and survey the options, realizing that a touchless vehiclewash system may turn out to be the best
choice for your operation.
Tony Smith is the Vice President of
Sales, Auto Dealer Sector for De Pere,
Wisconsin-based PDQ Manufacturing, Inc. PDQ Manufacturing is recognized as the technological leader
in vehicle wash systems, providing
superior quality, outstanding support
and products that contribute to its
customers’ profitability. Brands include
LaserWash® and ProTouch® In-Bay
Automatic Vehicle Wash Systems, SwingAir® and MaxAir®
Dryers, Access® Wash Activation Systems, Cortex and WALS.
Products are sold and supported worldwide through an extensive distribution network.
p. 41
Featu r e
Tap Into the World’s
Number One Parts Marketplace
H o w t o S e l l P a r t s On e B a y The way dealerships sell Parts is changing.
According to Forrester, U.S. online retail sales will hit $370 billion by 2017.
eBay Motors, the No. 1 online marketplace for automotive Parts, can help you
take advantage of this growing trend by
establishing your online presence and
increasing Parts sales. They can help
your dealership create an online store,
where your inventory will be available
to a nearly limitless audience. With the
growing popularity of mobile devices,
online Parts selling is the ideal place to
grow your Parts business.
Here are some answers to common
questions dealers ask before trying out
online Parts selling with eBay Motors.
Why eBay?
• eBay is the number one online marketplace for automotive parts; every second of every day two parts are sold
• You can create and personalize your
own online store to market to a global
audience
• With search engine optimization (SEO)
and mobile phone and tablet compatibility, it’s the perfect place to increase your
online presence
What selling options are available?
Option 1. Do-it-yourself (DIY)
- Create one listing at a time: add your
own titles, subtitles, descriptions and
images, then list the Parts
- Once a month, you will need to renew
p. 42
each listing, if the part is still available
By Kyle McKee
p. 43
Option 2. Use a Listing Service
- They provide all the information needed to list your Parts; simply use their tool
to activate your Parts listings, resulting
in several hundred or thousand Parts
online right off the bat
- All Parts listings renew automatically
What does this mean to my business?
• With DIY, it will take time to create listings individually
• A listing service will help you save time
and list all the Parts on your shelf, giving you more time to sell Parts, service
clients and pack boxes
What’s the setup process like?
• With DIY, it’s “learn as you go” … navigating through eBay, as they explain
how to list Parts yourself one at a time
• A listing service gives you specific instructions on how to set up an eBay account, link it to PayPal and set up your
store to handle mass listings
Is there support?
• With DIY, eBay and PayPal have several layers of support, which differ based
on how many Parts you sell
• A listing service usually assigns a support team for dealers selling any number of Parts, along with a higher level of
support from the eBay Motors staff and
the Merchant Support organization from
eBay
How do I learn how to operate eBay?
• With DIY or a listing service, eBay
sends you informative e-mails, as well
as gives you access to user-driven help
features and eBay University to search
for answers
• Most listing services offer training on
how to get started in addition to ongoing training and webinars from eBay Motors, designed specifically to help you
succeed
What kind of manpower does this involve?
• One employee should be responsible
for your eBay business in addition to
their other duties; depending on your
volume, it is likely not a full-time job, but
DIY will require more time and effort
• Your eBay coordinator should monitor
p. 44
eBay sales, access client support, manage listings, work closely with shipping
companies and perform other duties
necessary to manage your increased
online sales business
How do I get paid?
• For both DIY and a listing service, just
sign up for a PayPal account and link it
to your eBay account
• To create a PayPal account, you only
need an e-mail address and credit card
or bank account
Is it safe?
• PayPal offers both seller and buyer
protection
• Don’t take my word for it -- check out
PayPal’s website to learn about their
specific security measures
Do you have any insider tips for success?
• With DIY, you’re in complete control
and free to create your own path to success – the only downside is that you
need patience to build your business
• With a listing service, you have just as
much control, but also will be able to
access a user-friendly interface – which
helps you manage your inventory and
plan your strategy – and additional training and support to will help you avoid
pitfalls
“eBay Motors, the No. 1
online marketplace for
automotive Parts, can help
you take advantage of this
growing trend by
establishing your online
presence and
increasing Parts sales.”
Increase Your
Profitability
20
%
You can with NADA 20 Group.
Dealers who join
NADA 20 Group
increase their
profitability 20%
within the first year!
Upcoming Fixed Ops Manager Meetings
You can too. Attend
an upcoming meeting
and discover your
profit potential.
ALL IMPORTS
January 14–16
Fort Lauderdale, FL
CHRYSLER
November 16–18
Orlando, FL
FORD
February 18–19
Orlando, FL
GENERAL MOTORS
January 8-9
HONDA
February 9-10
MERCEDES BENZ
January 13–14
New Orleans, LA
Las Vegas, NV
Carolina, PR
nada20group.org
800.557.6232
p. 45
What tools will I need?
• With DIY, you will need exceptional
organizational skills and Excel spreadsheet training, as well as a person who
can keep track of the Parts and pick/
pack and ship
• Listing services have the tools (i.e.
an online portal) you need to efficiently
sell more Parts with proven titles, subtitles, descriptions, fitment information
and images for listings; and to save you
more time, some vendors even integrate
with your DMS
“Your eBay
coordinator
should monitor eBay
sales, access
client support,
manage listings,
work closely with
shipping companies
and perform other
duties necessary
to manage your
increased online
sales business.”
p. 46
eBay seems easy. Just list each part
and go, right?
• It’s a common misconception that
once someone enrolls in eBay, it’s just
“set it and forget it”; however, this isn’t
the case -- you have to maintain your
listings to be successful
• Here’s the easy part:
- eBay’s Global Shipping program –
eBay takes the hassle out of shipping
items to a different country by allowing
you to send items to its warehouse and
then eBay takes care of customs, damages and issues that come along with
shipping the package to the final destination
- Selling Manager Pro – This free feature,
available through some listing services,
lets you create your eBay store with your
dealership look, feel and branding
Which method will help me grow my
online presence faster -- DIY or a listing service?
• DIY is a slower growth model based
around individual listings built one at a
time
• After the initial setup with a listing service, you can grow your business fairly
quickly -- certainly faster than DIY
• Regardless of which model you choose,
it’s important to know that the growth
depends on someone at the dealership
guiding your business forward
Give it to me straight … how hard is
it, really?
• Do your homework like you would on
anything else, but don’t be afraid to get
started!
• Starting a new extension of your business can always be a difficult endeavor,
so it’s important that you explore your
options
• DIY offers some good options based
around learning as you go, spending time
slowly building your brand and getting
a feel for whether eBay is right for you
• A listing service makes it easier to
quickly list a large amount of Parts online, gives you specific tips along the
way and helps you ramp up quicker
What’s the first step I should take?
• For DIY:
- Go to ebay.com
- Click Help & Contact on the top of the
screen
- Type “start selling on eBay” in the
Search box
- Or visit one of these links:
•http://pages.ebay.com/help/sell/sellgetstarted.html
• h t t p : / / p a g e s . e b a y. c o m / h e l p / a c count/gettingstarted.html
• For a listing service, do your research
and contact one of the many different
services designed to help you list parts
on eBay
If you choose the do-it-yourself method, you will most likely find yourself
spending more time learning how to
get started than you would like. By using a third-party listing service, you will
be on the fast track to listing your entire
Parts inventory. Either option can help
your dealership increase revenue. Just
remember, make sure you have a dedicated person who can provide superior
customer service, keep everything organized and be ready to pick, pack and
ship!
Kyle McKee is the Operations Manager for
CDK Global’s PartsVoice, Cash Discovery
Program and eBay Made Easy solutions. He
has over ten years of combined Fixed Operations experience working for CDK and in
Service for two franchise dealerships.
$
FRONT GROSS
PROFIT
TODAY
ACTIVE
AVERAGE CALLS
DEALERSOCKET
COMPLETED
PER
USERS
WALK-IN PROSPECT
SERVICE APPOINTMENTS BEING
CREATED THROUGH THE
DEALERSOCKET CUSTOMER
PORTAL AT ANY GIVEN TIME
$
$
TOTAL GROSS
PROFIT TODAY
BACK GROSS
PROFIT TODAY
80% OF SALES
ARE MADE ON THE
5TH TO 12TH
CONTACT
TODAY
X
ACTIVE
DEALERSOCKET
USERS
OUTBOUND CALLS
COMPLETED TODAY
VISITS SOLD
FROM INTERNET
LEADS
TODAY’S BEBACK BUS
SERVICE APPOINTMENTS
CREATED PER MONTH
THROUGH DEALERSOCKET
FOR EVERY 1000
CUSTOMERS
CAMPAIGNED TO,
DEALER GROUPS
AVERAGE $55,000
IN SERVICE REVENUE
LOYAL SERVICE CUSTOMERS
ARE 25X MORE LIKELY TO
PURCHASE A CAR THAN LESS
LOYAL SERVICE CUSTOMERS
WE ARE
AUTOMOTIVE
GROUPS USING
MARKETPLACE
SOCIAL REPORT A
300% INCREASE IN
ONLINE REVIEWS
WeAreAutomotive.com
TM
EMPOWER PRECISE DECISIONS WITH PROACTIVE
SOFTWARE TECHNOLOGY.
Schedule a demo today to discover how our product suite can identify
service opportunities from your existing database.
DEALERSOCKET.COM
866-441-9664
p. 47
Featu r e
Retaining the
Connected Customer
H o w W i l l C o nn e ct e d V e h i c l e T e c h n o l o g y
A f f e ct S e r v i c e R e t e nt i o n ? In the first article I wrote for Fixed Ops
Magazine (back in the March/April 2011
issue) I discussed the importance of first
Service visit retention and transitioning
Sales customers into Service customers.
A lot has changed in those three years,
both in terms of the technology in vehicles and the expectations of consumers
who are now digitally-focused. However,
the principles of customer retention remain. Ensuring that customers return
for the all-important first Service at your
dealership is crucial to your success.
Delivering a top notch experience during
and after the Sales process is the best
way to do just that.
In the recent September/October 2014
issue, I discussed how connected vehicles will change the Service process in
the near future. With that in mind, there’s
no reason to think that the connected
car revolution won’t similarly affect the
Sales-to-Service transition and bring
with it new opportunities for superior
customer experience and retention.
p. 48
A recent study from eMarketer noted
that 79% of the new vehicle buyers they
surveyed were more likely to purchase a
vehicle that had the combination of connected car features and vehicle management services. The ability to review
vehicle diagnostics and driving data was
noted to be one of the highest draws
from the respondents.
These “digital native” people (who have
grown up in this completely digital
world) and “digital immigrant” buyers
(those of us who have learned the new
technologies) are customers who expect, yet appreciate, being empowered
with information. Connected cars are
brimming with the potential to deliver information and insights that can enhance
the driving experience, extend the life of
the vehicle and maximize fuel economy.
“If car companies can connect with their
customers…, they can build a permanent lasting relationship,” Patrick Salyer,
CEO of Gigya (a leading Customer Identity Management provider), noted in a
recent article.
By Gary Kalk
In fact, our feedback has shown that
dealerships that can utilize technology
to deliver a more personal experience
with the customer have more success
building trust and increasing retention.
Customers also appreciate the “attention-to-detail” benefits that technology provides. Features such as knowing their Service history, the dealership
having their details prior to arrival and
showing the exact maintenance requirements specific to their vehicle are all important.
“There’s no reason to
think that the
connected car
revolution won’t
similarly affect the
Sales-to-Service
transition and bring
with it newopportunities
for superior
customer experience
and retention.”
Believe it: you can make more money per job with 3M™ Window Film!
Offering 3M’s higher quality, higher potential profit window tinting to your customers is a great way to shift your accessories
program into high gear. We would know—we invented window film over 45 years ago—and we would love to share our
latest innovations with you. For example, our Crystalline series gives you an option to offer your customers the benefits of
window tinting without the tint. Our full range of dealership program installation options makes it easy, so get started today!
3M is a trademark of 3M.
© 3M 2014. All rights reserved.
Find a sales rep near you at 3M.com/autodealers or call 1-844-860-4164 to learn more.
Scan this code on your
mobile device to find
your nearest sales rep.
p. 49
These personal touches also apply to
ensuring customers return for Service
at your dealership. If you provide valueadded experiences along with amenities
and conveniences that customers appreciate, they will remain loyal.
To do that, ensuring that your dealership has a process in-place that is
bought into by both Sales and Service
staff is essential. Every new vehicle
buyer should receive the same experience. Your Sales rep or delivery specialist must familiarize customers with the
technology offered by their connected
vehicle and your dealership.
In the same way that connected vehicles
will change the Service process in the
near future, the Sales-to-Service transition will adapt to the advances in technology. The following strategies could
be employed to deliver an exceptional
aftersales experience for tomorrow’s
customer.
Delivery
When J.D. Power and Associates released its 2014 Initial Quality Report in
June, David Sargent, Vice President of
Global Automotive at JDPA, said that
automakers are trying to roll out many
new features in today’s technology-driven vehicles.
“However, almost all automakers are
struggling to do this flawlessly, with
some consumers indicating that the
technology is hard to understand, difficult to use, or simply does not always
work as designed,” he said.
With so many features now available on
a connected vehicle’s head unit and the
options to connect and integrate with
the customer’s smartphone, vehicle
delivery can no longer be considered a
quick walk-through. It’s important that
you schedule sufficient time to guide
customers through the new features of
the vehicle. It’s even more important to
set expectations with the customer beforehand so they are aware to set aside
adequate time.
p. 50
It’s also essential that your delivery specialists (or Sales reps) are experts with
the new technology. They should be able
to easily explain the capabilities in the
connected vehicle, the apps that integrate with it, and be able to answer how
the dealership will be handling and supporting the new features that telematics
will bring.
“Features such
as knowing their
Service history,
the dealership
having their details
prior to arrival and
showing the exact
maintenance
requirements
specific to their
vehicle are all
important.”
Equip the Customer’s Connected Service Journey
New technology brings new opportunities to equip and engage your customer
so they get the best experience from
their new connected vehicle.
Customer feedback on Fiat Chrysler’s
wiADVISOR program has shown that
their ability to pull vehicle diagnostic
data using their microPod technology
is a feature that is highly regarded. Being able to view their warranty status,
recalls, flash updates, tire pressure, etc.
directly on the Advisor’s tablet gives
customers a personal experience and
the feeling they aren’t just another customer on the drive.
This step in the Sales-to-Service process provides the ideal opportunity to
introduce a companion app for the customer’s smartphone. The app would
integrate with their connected car to
provide them with insights into their vehicle’s health and their driving habits,
putting information they value in their
hands. The delivery specialist would
be tasked with guiding the customer
through downloading and accessing
the app on their smartphone and how
to navigate within it. This not only gives
them a more personal experience with
their car, but information that can help
maximize the life of their vehicle and ultimately build a greater level of trust.
As I mentioned in my previous article,
owners are more likely to accept diagnostic information received directly
from their vehicle as opposed to hearing
about it for the first time from their Service Advisor.
LOOKING FOR A
LITTLE MORE REACH?
WHI CAN HELP.
If you’re looking to expand your reach to more customers,
we’re here for you. Whether you sell parts to businesses,
consumers, or on eBay™, our unified platform solutions
help you sell to more customers easily and efficiently.
Streamline your wholesale customer
relationships by offering integrated real
time ordering on all makes and models
with our catalog configured to your
brands.
Sell directly to individual customers who
want your parts and accessories. WHI’s
Nexpart solution provides SEO-friendly
web stores complete with our parts &
accessory catalog.
We make it easy to sell on eBay. We
create automated listings with vehicle
fitments and diagrams. Plus, pricing,
shipping, and order fulfillment data
can be integrated directly with your
management system.
eCommerce and inventory management
solutions, all in one place.
Find out more at whisolutions.com,
or call us at 1.888.844.9083
p. 51
Introduce Customers to the Service Department
Despite the advances in technology, it’s
still important to execute portions of the
Sales-to-Service transition the traditional way. Walking the customer over to the
Service desk, introducing them to Service Department staff and showing the
dealership’s conveniences are still keys
to a successful transition.
“Walking the
customer over to
the Service desk,
introducing them
to Service
Department staff
and showing the
dealership’s
conveniences
are still keys
to a successful
transition.”
The difference here is that you can
schedule their first Service visit through
online scheduling (also available on their
owner’s site and in-vehicle head unit)
as a way to demonstrate how they can
book appointments in the future. If you
want to take it to the next level, you
could also give a quick overview of your
Service process, one that ideally flows
similar to the Service experience of the
future outlined in the previous issue.
It’s critical that the customer is aware
that the dealership is equipped with
state-of-the-art technology and diagnostic tools to service the connected
vehicle. Then, the customer can feel
confident in their Service center decision for all of their after sales needs.
This is also a great time to show these
tech-savvy customers the amenities that
p. 52
they will appreciate. For example, giving them access to your WiFi network,
where device-charging stations are located or showing them how they can get
alerts on their smartphones detailing the
vehicle’s Service progress.
“We offer our weekly technology bar to
add value for our customers, help them
get the most out of their vehicles and to
simply be a resource if they have technology-related questions about their
car.”
Create Your Technology Help Desk
By educating and equipping your customers during the vehicle delivery, you
can give them an exceptional customer
experience to begin their connected
Service journey. Ensuring that your
Sales-to-Service process not only highlights the benefits of their connected
vehicle, but also empowers them with
the maintenance insights to maximize
the life of their vehicle, will be a critical
step to engage tech-savvy customers.
The goal is to encourage them to return
for the first Service visit and show them
the kind of experience they can expect
at every Service visit thereafter!
A technology “help desk” that’s staffed
by your technology experts is another
way to keep customers engaged and
give them a positive experience with
your dealership.
Dealerships like Win Kelly Chevrolet
Buick GMC in Maryland offer a “Technology Bar” to help their customers get
better acquainted with the technological components of their vehicle and the
connection to their smartphones. They
run a regular, weekly session or customers can schedule an appointment to address any concerns.
“As in-vehicle technology continues to
evolve and smartphone integration increases, it can be difficult to cover all of
the functionality offered by a connected
vehicle or have the customer fully understand it in a short time period,” said
Kevin Bell, Win Kelly’s Dealer Principal.
Gary Kalk is President and CEO
of Dealer-FX. Dealer-FX specializes in marketing and software
solutions for the automotive industry including Service write-up
and appointment management
systems and also provides social
media and digital marketing consulting for both Sales and Fixed
Operations.
ULTIMATETM PAINT PROTECTION FILM
YOUR MOST PROFITABLE ADD-ON.
FILM, TRAINING AND SUPPORT FROM ONE SOURCE.
XPEL’s integrated, consultative approach to Paint Protection
Film guarantees long-term success, high gross profit and
top customer satisfaction. Contact us today to start a new
program or to enhance your existing offering.
1-800-447-9928 | WWW.XPEL.COM | [email protected]
p. 53
Featu r e
Accessories as the Next
Profit Center for
Dealers…
… An d a B i g D e a l f o r S e r v i c e D e p a r t m e nt s By Sidney Haider
A Ford Pinto sold for $3,500 in 1974 and
had an $800 profit margin for dealers.
The average price of a new car has gone
up nearly ten times in the four decades
since, but the profit margin for dealers
has not.
In fact, according to recent State of the
Industry Reports by the National Automobile Dealers Association (NADA), in
spite of the industry’s overall sales pace
since the recession, the profit on new
car and truck sales is not growing. And
Service Department profit has declined
five of the last six years and is at 20052006 levels.
In the past 40 years, the F&I Department
is probably the last new true profit center that most dealerships have added to
their stores. Think about that: dealers
haven’t added a new profit center in four
decades. In today’s retail landscape,
four days is a long time to not add any
profit, let alone four decades, especially
when the profit is there, ripe for the taking.
p. 54
“Forty-billion dollars from accessories sales
is a mountain’s worth of cash. Guess how
much of that mountain is hiked annually by
new car dealerships? Five percent.”
p. 55
“The accessories
business typically
booms when new
vehicle sales boom
– and new vehicle
sales are
booming now.”
Accessories: The New Profit Center
Look at the floor of the car. Look at
the windows, the paint, the trim. That’s
where to find your new profits – for the
dealership and for the Service Department.
Consumers spend roughly $40 billion a
year on vehicle accessories – everything
from floor mats, window tint and custom
paint and trim to remote start systems,
interior illumination, video screens and
DVD players.
Forty billion is a mountain’s worth of
cash. Guess how much of that mountain is hiked annually by new car dealerships? Five percent.
With new vehicle sales projected to
reach pre-recession levels this year, the
opportunity for higher profits is there.
Now.
But, as the NADA report points out, it’s
more likely than not that a dealer is selling
p. 56
But dealers are only selling accessories to one out of ten people and that
one person is asking about accessories.
If you’re only selling to people already
asking for something, you’re already at
a competitive disadvantage.
more vehicles but making less money
per new vehicle through that sale. It’s
one of those head-scratching, Catch22s in today’s economy.
When faced with similar dilemmas, dealers consistently have turned to incorporating new technologies or processes
to improve profit. Dealers have seen results when they adopt new technologies
in F&I, in Service and in their customer
relationship management tools. That’s
where accessories and the right accessory sales solution come in.
Accessories are a hot commodity
among consumers. Nine out of ten will
buy something that’s considered an accessory for their vehicle; sixty percent of
consumers spend at least $500 on accessories; most buy accessories within
the first 90 days (that honeymoon period
between owner and new car); and 75
percent prefer to buy accessories at the
dealership.
This is a sizeable missed opportunity for
dealers and their Service Departments.
Today, accessories are a completely
fragmented business and money goes
to a lot of different places – a small business down the street from the dealer or
a friend of a friend who tints windows in
his backyard. That fragmentation should
allow dealers to make easy in-roads with
customers not wanting to go down the
street to a specialty shop.
The accessories business typically
booms when new vehicle sales boom –
and new vehicle sales are booming now.
Combine that with the fact that consumers are keeping their cars longer,
which means they’re looking for ways to
increase the life span and functionality
of their vehicle, make the vehicle itself
more enjoyable and protect their financial investment.
The time is certainly now for dealers to
capitalize on this fragmentation and opportunity.
Who depends on the
safety of your lifts?
Protect your technicians, your customers and your
business. Have all your lifts inspected annually by an ALI
Certified Lift Inspector.
Don’t trust your lift safety to just anyone. ALI Certified Lift Inspectors are proven qualified to
inspect every lift in your service department to determine if they are functioning properly.
Annual lift inspections are required by health & safety officials, ANSI standards and local
regulations. But even more importantly — taking care of your lifts means taking care of your
team. Their safety is riding on it.
To find an ALI Certified Lift Inspector in your
area, visit www.autolift.org/inspection
Inspect to Protect™
Your business is riding on it™
p. 57
“AIDA”
Dealers can profit in the accessories
business when they adopt best practices and the right solutions. The problem is – and has always been – that accessories are an enormous market that
dealers don’t always know how to wrap
their arms around. And the dealers that
have tried to sell accessories haven’t always seen the best results, often due to
inconsistent processes and ineffective
solutions.
The film “Glengarry Glen Ross” features
a scene in which a Sales Manager attempts to motivate his salesmen with
some clever acronyms. While the ABCs
of selling – Always Be Closing – is the
more famous of the two acronyms in
the film, the other – AIDA – is the one
that dealers should have interest in right
now:
•
•
•
•
Attention (Awareness)
Interest
Decision (Desire)
wAction
What “AIDA” represents is the sales and
marketing process between consumer
and retailer. First, consumers must be
aware of your product. Second, they
must have interest in your product.
Third, they must desire your product and
make a decision based on that desire.
Finally, they must act on their decision
and purchase your product.
The dilemma that most dealers face is
that making consumers aware of accessories options has been the biggest
hurdle. There’s little awareness of accessories when the consumer walks into
the dealership, nor is there a convenient
and compelling way for consumers to
learn about their accessory options at
the same time they’re purchasing vehicle. Yet, as I’ve noted in other articles,
the days when consumers walked into
a dealership with just standard options
packages in mind are long gone. The
ideal combination of options and features no longer exists.
That makes the opportunity to offer accessories in the dealership that much
more attractive.
A New Frontier for Dealership and
Service Department Profit
Accessorizing a vehicle has always been
somewhat of an underground or out-ofthe-mainstream trend. The specialty
shop down the street from the dealership
has stayed in business because of this.
Now, these businesses are taking more
and more of dealers’ potential profit because the accessorizing trend has gone
mainstream. How can you
tell? Look at things like the
Consumer Electronics Show
and the Specialty Equipment
Market Association’s (SEMA)
annual trade show. In-vehicle
technology is a trending topic
at both shows, with OEMs
unveiling plenty of new electronic features.
Gen Y has now entered the
new vehicle market, putting
a different set of pressures
on dealers. They’re the group
that’s helping to change the
retail game by demanding
a personalized, frictionless
consumer experience across
the retail landscape -- and
they’ll be driving 75 percent
p. 58
of vehicles on the road a decade from
now.
A recent report from J.D. Power and
Associates also points to the overall influence of Gen Y on accessories for vehicles – from OEM-added accessories
to aftermarket products that personalize the vehicle and make an individual
statement.
Consumers are clamoring for a more
personalized, customizable experience
in all facets and aspects of their lives
and their vehicles are the next frontier.
That’s also the next frontier in profit for
dealers and Service Departments. Like
most new frontiers, crossing it takes the
right approach to selling accessories
and the right technology tools and processes to deliver results.
It was just yesterday that the auto industry was selling 16-plus million new
vehicles a year, but 22,000 dealers did
that. The industry is projected to hit that
number again this year, but with 18,000
dealers. Each dealer is likely to sell more
vehicles than before the recession and
the opportunity to layer on the additional profit-per-vehicle from accessories
sales is even more compelling.
There are proven best practices and
technologies that will enable dealers
to capture their share of the virtuallyuntapped vehicle accessories market
and establish a new, long-overdue profit
center. This new profit center can help
meet the accessories needs of the dealership’s customers and help establish a
new profit channel that supports continual, long-term business success in the
dealership and in the Service Department.
Sidney Haider is the Vice President and
General Manager of AddOnAuto, an
accessories point-of-sale solution. He
has served in leadership roles at several
automobile retailers before founding
AddOnAuto in 2008 in response to a
need for better tools to help automotive
retailers sell vehicle accessories. Today,
AddOnAuto is a Reynolds and Reynolds company.
Fluid Rx Diagnostics™
The Science of Good Business - Proof It’s Time to Change.
Reveals the True Condition of:
Motor Oil
Power Steering Fluid
Transmission Fluid
Gear Lube
Brake Fluid
Check ‘em All.
p. 59
© 2014 Cars.com, LLC™. All rights reserved.
p. 60
PUT YOUR SERVICE DEPARTMENT WHERE
CUSTOMERS ARE SEARCHING.
83% of shoppers are likely to look online for service and repair information.1
Cars.com puts your service department in front of customers looking for
service. Show how your offerings stack up against the competition and get
customers to consider you when it matters most. Get in front of customers
before it’s too late. Learn how at dealers.cars.com.
C+R Research, April 2013
1
p. 61
Featu r e
Hiring & Developing
Detail Personnel
B u i l d i n g Y o u r T e a m Dealerships struggle with hiring and retaining good employees for their detail
departments. But it can be done. Read
carefully…
Orville is an outstanding employee who
is well-respected in the dealership. His
passion for cars shines through in his
detail work. It’s easy to see that he enjoys everything about his job; the cars
and the challenges. Although Orville is
only 29, he has worked for four different dealerships. His length of time with
each employer ranges from six months
to 4 years. He recognizes the fact that
job-hopping does not look good on a
job application, but he has never had a
problem finding a detailing position. He
has never been fired from any dealership; it has been his choice to move on
to a better position.
Orville began working in the detailing
business at age 18. He was fortunate
when he made friends with a person
who worked for the local dealer in his
town in the Detail Department. The dealership welcomed Orville and recognized
his talent. While there, Orville learned
everything he could about detailing, how
to work with used car Salespeople and
how to work with suppliers. Eventually,
he was managing the five-man department after his friend left.
Orville had become the key man in the
Detail Department. However, because
the dealer did not offer any chance for
p. 62
advancement, he left to work for another
larger dealer in the next town.
Orville actually missed working for
the first dealer but felt that he needed
to continue to develop his skills so he
could advance. He was convinced there
was nowhere else to go at the first dealership and the dealer gave him no indication he could advance beyond the
Detail Department.
The new dealership offered more money and bonuses; more benefits, more
vacation time and allowed him to sit in
on weekly meetings with other managers. After six months at the dealership,
Orville was performing well in his position, but he was unhappy with his supervisor’s “my way” management style.
As a result, Orville’s attitude began to
deteriorate because he was putting so
much into the job to perform well, but
was again not getting any recognition.
Had the first dealer recognized Orville’s
desire to move up and better develop
his skills, he could have done a number
of things to show him that he was valued and what opportunities he had in
the dealership.
However, the dealer did not bother to
pay attention to such a good employee. As well, the second dealer was not
aware that Orville’s supervisor had a
management style that was a turn-off to
Orville and others in the department.
B y B u d Ab r a h a m
“Had the dealer
recognized
Orville’s
desire to move
up and better
develop his
skills, he could
have done a
number of
things to show
him that he was
valued
and what
opportunities
he had in the
dealership.”
p. 63
Who Are Key Employees?
They are those who consistently achieve
and exceed their responsibilities. They
fit into their employer’s culture and do
whatever it takes to get the job done.
Fellow employees may go to them for
advice and help with job duties because
they have the answers and can always
be counted on. Do you have any “key”
employees in you Detail Department? If
you don’t, there’s a problem. If you do,
are you taking care of them? How do
you know? Have you asked them what
their goals are? Where they want to go
in the dealership?
Developing Key Employees
Identify those employees in the Detail
Department that you want to develop
into “key employees”. Try to understand
the qualities and behavior that make
them key to yours and the dealership’s
success. Once you have identified them,
work with them to create a development
path. This could include giving them
more responsibilities that will give them
more exposure, participating in meetings at the dealership, attending training
seminars and even trade shows.
p. 64
Retaining Key Employees
What a key employee wants more than
anything else is to be a part of something great while being appreciated for
his contributions. Of course, they expect
to be paid fairly and rewarded for their
hard work, as well.
Here are some suggestions for retaining
key detail employees (or any employee
for that matter):
• Communicate the vision of the dealership so that employees can see, feel,
taste and touch their growth potential.
This is especially important for smaller
dealerships. It’s difficult to compete with
a dealership that has employees who
share the vision and understand their
part in the long-term growth of the dealership.
• People leave managers – they don’t
leave companies. So before you advance a superstar employee to a management position, be sure that they have
or can develop good management and
leadership skills. The detail skills are not
important; it’s their management skills.
Provide regular management and leadership training for the person in charge
of the Detail Department. Research has
shown that employees want their supervisor to know how to manage, as well as
be a leader. This is what dealers lack in
Detail Departments -- LEADERS. Most
all of them have only detailers and pick
one to be a manager, whether they’re
qualified or not.
“Key employees
are those who
consistently
achieve and
exceed their
responsibilities.
They fit
into their
employer’s
culture and
do whatever
it takes to get
the job done.”
p. 65
• Have high-performance expectations.
Do this by having performance reviews
for compensation, as well as bonus and
rewards programs. One way to pay for
top performance is to allocate a higher
salary increase percentage to employees who exceed the job expectations
over those employees who simply meet
the job expectations. For example, if you
use a performance review system with
a one-to-five scale, with five as excellent and one as poor performance, pay
those employees who receive a five the
highest percentage increase, those who
receive a four the next-highest percentage increase, and those who receive a
three a little more than a cost-of-living
increase.
• Regularly review this key employee’s
development plan. That way you can ensure that a regular discussion will occur
regarding the employee’s growth within
the Department. This will keep you in the
loop with your key employees.
• Whether you are a small, medium or
large dealership, pay competitively within your market. If you cannot do that,
provide other incentives that reward
your detail employees.
p. 66
• Consider giving your key detail employees profit sharing. This can be accomplished a number of ways consistent with your dealership program and
personal philosophy.
• Promoting from within is one of the
best ways to show your employees that
you care about their development. If you
have an open position, and a key detail
employee has the personality and most
of the skills to do the job, ask them to apply. Let it be known that you will hire the
most competent person for the job. You
may want to interview other candidates
as well. However, let it also be known to
the key detail employee that you believe
they can do the job. Remember, you will
not have to train your existing employee
about your dealership’s philosophy, processes and policies.
• Have competent human resources
professionals help you develop your
“people programs”. Many good intentions can turn into programs that look
and feel like favoritism or discrimination,
or are just poorly developed and end up
costing the dealership a lot of money in
the end.
Had the first dealer been aware that Orville was looking for more than a paycheck, he could have taken steps to
prevent him from leaving. Moreover, as
Orville developed further in the dealership he could have moved up into car
sales or perhaps could have become a
Service Advisor. With a vision of the future, Orville could have seen his growth
potential and understood that the dealer
truly did value him as a key employee.
Dealers really need to pay more attention to Detail Department employees
instead of complaining about them or
listening to complaints from the GM,
Service Manager or Used Car Manager.
After all, who’s in charge of things in
your dealership?
R.L. “Bud” Abraham is the Owner of
Portland, Oregon-based DETAIL PLUS
Car Appearance Systems. DETAIL
PLUS is also the only company that offers comprehensive training programs
in all phases of the cosmetic car care
business. Bud has nearly 30 years of
experience in the cosmetic car care industry as an operator, manufacturer and
consultant. He was the Founder and
Executive Director of the International
Detailing Association. Bud consults with
auto dealers all over the world who want
to improve the operation of their Detail
Departments.
p. 67
Co mpanies to See at th e 20 15 NAD A E xp o
p. 68
3M / 6558W
DealerPro Training Solutions / 3428N
AutoLoop / 5758W
DealerSocket / 5708W
AutoPoint / 2615S
Dealertrack Technologies / 2219S
AutoZone - Alldata / 6358W
EBay Motors / 4528N
BG Products / 2001S
ELead1One / 501S
Borroughs Corporation / 3635N
Fixed Ops Magazine / 3838N
CarCareOne by Synchrony Financial / 5316W
Fluid Rx Diagnostics / 6656W
Cars.com / 3003N
Hunter Engineering / 1001S
Castrol Motor Oil / 4029N
Infomedia / 2441S
CDK Global / 2101S and 4291N
JohnDow Industries / 3737N
Chief Technologies and Elektron / 2419S
Mark VII Equipment / 5752W
Dealer-FX / 5546W
Mighty Auto Parts / 2601S
DealerMine / 6128W
MOC Products / 700S
Get Fixed.
How do you sell your product, service, technology or program to the new vehicle dealership fixed
operations audience? With Fixed Ops Magazine.
- Fixed Ops Magazine is the only publication that is focused 100% on the needs of fixed operations managers.
- Fixed Ops Magazine is the only medium of any kind that reaches virtually 100% of this
hard-to-reach audience.
- Fixed Ops Magazine has the largest fixed operations circulation and readership of any
automotive industry publication.
- Fixed Ops Magazine is read by the managers who have the authority to recommend and
purchase products and services.
Bottom line? Fixed Ops Magazine is the only way to efficiently reach and sell to virtually 100% of America’s
dealership fixed operations managers.
Call or e-mail today to start your sales-building ad campaign in Fixed Ops Magazine.
The Auto Dealer’s Original Fixed Operations Resource
Telephone: 877-349-3367
7 1 4 -8 0 3 -5 4 7 6
E-mail: [email protected]
p. 69
Co mpanies to See at th e 20 15 NAD A E xp o
p. 70
NADA / 1301S
Rome Technologies / 5628W
NADA University / 1301S
Rotary Lift / 2519S
Naked Lime Marketing / 527S
Rousseau Metal / 5616W
National Biodiesel Board / 5257
Service Dynamics / 5600W
NCM Associates / 4422N
Terra Clean - CPS Automotive / 5438W
NitroFill / 5510W
Tire Profiles / 6023W
PDQ Manufacturing / 2535S
TSD / 4051N
Pflow Industries / 5218W
WHI Solutions / 4528N
Phoenix Systems / 6205W
Wildeck / 5703W
Power Pusher / 4125N
Wynn’s - AutoEKG / 3334N
Protex by Bardahl / 6707W
XPEL Technologies / 5427W
Reynolds and Reynolds / 535S
Xtime / 5028W
Get Fixed.
Digitally.
You’re already holding in your hands the industry’s #1 Fixed Operations information resource for new
car dealership Directors and Managers.
But there’s more.
Fixed Ops Magazine has several free online online resources. And if you and your associates aren’t
already receiving them, well...you should be.
- Fixed Ops Weekly Fix E-Newsletter: Every Friday, keep up on the latest Industry News and
New Products from the world of Service, Parts and the Body Shop.
- The Fixed Ops Magazine Digital Edition: Read your favorite publication in print or online wherever you
like. And sign up an unlimited number of your fellow Directors and Managers to receive the magazine,
as well.
- Special offers from leading companies: Sign up for free webinars, learn about new products and
services, or receive advance information that will help you and your dealership.
How? Just do this:
Send an e-mail to [email protected]
with your name, title, dealership name and e-mail
address. In the subject line put,
“Sign me up!”
That’s it.
But there’s a bonus...
Send us that same information for your Service
Manager, Parts Manager, Body Shop Manager and
General Manager and you’ll all be signed up for
these free online extras.
(You can even take the credit...)
Sign up today!
It’s all free. But it’s all valuable.
p. 71
Featu r e
Hail Damage: Loss and
Pain or Profit
and Gain?
R e t a i n i n g Ev e r y D o l l a r o f P r o f i t W h i l e
M a i nt a i n i n g Qu a l i t y R e p a i r s The aftermath of a single hailstorm can
be incredible, often damaging tens of
thousands of vehicles as it rolls over an
area. In a dealership information bulletin sent out by Ally Insurance in 2012,
Ally states that, “Losses due to weather
are among the most frequent and serious type of losses that affect automobile
dealership inventories.”
Rather than looking at a hail event as a
complete catastrophe, the goal is to turn
this event around into a positive situation that will create even more sales opportunities for your team.
By advance planning now, you can ensure that you will be able to maximize
your profitability, while at the same time
mitigating the impact to your normal
day-to-day operations as much as possible following a hailstorm.
p. 72
By Jeffrey Smith
The Right Partner is Key
The right hail partner can help you manage the repair process to profit as much
as possible, but this can be a difficult
situation if you don’t have a previous relationship already established.
Generally, within a few hours after a
hailstorm, you will magically have several paintless dent repair (PDR) companies trying to get an audience with you
in your office. Apparently, these out-oftown companies you’ve never heard of
“have the best group of Technicians in
the USA and they promise to perfectly
repair your cars lickety-split at a price
you can’t refuse.”
If you’ve been through a hailstorm, you
know exactly what I’m talking about.
You might feel extremely pressured with
your entire inventory damaged and also
damaged “sold” units that need to deliver.
“By advance
planning now, you
can ensure that you
will be able to
maximize your
profitability, while at
the same time
mitigating the impact
to your normal
day-to-day operations
as much as possible
following a
hailstorm.”
The 70’s called. They want their spreadsheets back.
When Motorola’s Martin Cooper made the first cellular call back in
1973, it started a revolution. And the telecommunications industry
never looked back.
So why, all these years later, are dealerships hung up on using
practices from the 70s? Multimillion-dollar enterprises, still relying
on manually generated reports – when 21st century technology is
readily available.
Say hello to the software that aggregates data automatically
and delivers complete visibility to your dealership operations
in seconds. So you can quickly assess, adjust and control your
bottom line.
Say hello to NCM® axcessa®.
Schedule your demo today at axcessa.com or call 844.699.7271
and ask about our iPhone 6 offer!
p. 73
A word of caution: making a quick reactive decision about who will lead the
repairs to your damaged inventory after
the hail strikes is much more dangerous than making a hail partner decision
in advance. Additionally, choosing a
hail partner based solely on price often
leads to numerous dealer headaches.
In order to keep cost down, many PDR
companies cut corners on the repairs,
such as drilling holes in inappropriate
places on the vehicle to increase repair
speed. They may skip applying corrosion protection, or they may not even do
simple things like washing hands before
removing headliners resulting in leaving
fingerprints that can stain brand new
headliners.
You may also discover that they cannot
really scale quickly enough to get your
cars repaired in a reasonable amount of
time, costing you time and money. Many
PDR companies also suffer from not having an effective QC process. This results
in failing to inspect your units for missed
or unfinished dent repairs and failing to
p. 74
inspect the vehicle interior, making sure
that the map lights work and that no
plastic trim has been broken.
All of these issues will cost you in terms
of time, money and reputation.
Advance Planning Will Ensure the
Best Results
In order for you to achieve your desired
outcome, you will want to focus on the
three primary components of a successful hail event: speed, profit and reputation.
Speed – You need your inventory repaired as quickly as possible. Every day
that a vehicle remains on your lot it continues to cost you money. Usually the
entire sales operation comes to a halt
because the sales team and operations
staff do not know how to move forward
or what to tell customers until a plan has
been outlined.
The right hail partner will have a repair
process protocol customizable for your
dealership. With that in place, your mis-
sion-critical employees will be able to
keep their focus and not be taken away
from their day-to-day programs by hail
repair operations on the lot.
If possible, try finding a vendor who offers real time electronic reporting and invoicing. This will help you better manage
your business during the process and let
“The right hail
partner can help you
manage the repair
process to profit as
much as possible, but
this can be a
difficult situation if
you don’t have a
previous relationship
already established.”
you know the status of any and all repairs at all times.
Profit – This is really where advance hail
partner selection and planning comes
into play. You should be able to look to
your hail partner to share with you how
to profit from every component of the
storm, not just offering you a discount
on repairs.
“Now when hail hits, your hail partner can
begin right away even without waiting for
repair prices to be established. Your sold units
can be repaired and delivered and your
inventory repairs can begin as well.”
Consider the differences in profit potential in the following two examples:
Scenario #1 (no hail plan):
Your entire inventory is damaged. Your
insurance company arrives and begins
estimating your inventory. 25 different
PDR companies visit you within 48 hours
with prices ranging from $400 per unit
to $1,600 per unit, and they’re all telling you the same thing in terms of repair
speed, repair quality, and so on. How do
you choose? Maybe you select a vendor
on price because of the pressure to have
clean inventory to sell. Maybe you wait
it out a week until the insurance company numbers are in, and you use that
to help set your direction. But how do
you know that the insurance company
wrote your vehicles correctly? Once you
get your numbers, you find that you are
ONLY getting an average $1,000 per unit
and that’s BEFORE your aggregate deductible is factored. Now you’re limited
and have to go with a cheaper vendor
in order to not lose money. This causes
headaches, delays and poor workmanship -- all at a cost to you.
Scenario #2 (advance hail plan in place):
During these next few winter months,
you align yourself with a hail vendor
who consistently performs high quality repairs and has the scale to fit your
needs. Together, you and your hail vendor create a repair process protocol
specifically customized for your dealership, complete with details about where
the repairs would be performed at your
location, what kind of staffing would be
available, how quickly and who would
be responsible for what. Your hail partner should also take this opportunity to
p. 75
show you how to drive even more profit
through retail hail repairs, hail sales and
other local hail repair programs.
It’s best to negotiate a fixed percentage discount for the repairs. This way
the economics of the repairs are set in
advance, your exposure is limited and
your profit level is guaranteed. Because
the hail partner is now working at a set
percentage, you can benefit by allowing them to work directly with your insurance companies on site to ensure
that the insurance company does not
miss key components in the estimating process. Something as simple as
overlooking aluminum panels, missing
oversize dents or extended roof panels,
can mean a significant amount of money taken from your pocket, sometimes
20%-30% per unit.
Now when hail hits, your hail partner can
begin right away even without waiting for
repair prices to be established. Your sold
units can be repaired and delivered and
your inventory repairs can begin as well.
p. 76
“long por or additional image needed long por
or additional image needed long por or additional image needed long por or additional image needed long por or additional image needed long por or additional image needed long
por or additional image needed long por or
additional image needed long por or additional
image needed long por or additional image
needed long por or additional image needed”
Because a significant volume discount
was agreed to in advance, you are not
waiting on your insurance company and
there’s no high pressure to select a vendor or guess about whether or not you
will be losing money.
Reputation – At the end of the day, it’s
your name on the door and any repairs
done to your inventory will reflect on you
and your good name in the community.
Be sure that the vendor you choose will
stand behind their repairs with a written
warranty. Ask if they have national “brick
and mortar” headquarters where any issues can immediately be addressed. Finally, make sure that they have sufficient
insurance coverage and the legal right
to work in the country. Surprisingly, this
is becoming a major issue in the PDR industry. At the end of the day, their compliance will reflect on you.
As you can see, you don’t have to let
repair quality suffer simply to gain speed
and profit. If you have a plan of operation and a solid PDR partner, you will
yield all three, without sacrificing in one
to gain in another.
powerpusher.com • 800-800-9274
“long por or additional image needed long
por or additional image
needed long por or additional image needed
long por or additional
image needed long por
or additional image
or additional image
or additional image
needed”
There are several months between now
and storm season to construct your customized hail plan. When a hailstorm hits,
you want to be ready -- and you want a
proven performer in your corner.
By doing a bit of research before you
are faced with a hail event, you will not
only save yourself a tremendous headache, but also being prepared will save
you from accidentally leaving a chunk of
your change on the table when the deal
is over.
Jeffrey Smith develops national dealer accounts for Tulsa, OK-based Hail360 Catastrophe Services, a multinational hail repair
company that operates in the USA, Australia and New Zealand. Jeffrey believes in
true partnership and helping people achieve
their best results.
Pushes 18,000 lbs up a 5% grade
Safe for use on plastic bumpers
Variable Speed–Soft Touch Control
Built-in 115V charging system
p. 77
Featu r e
The Service BDC
D r i v e R e p a i r O r d e r C o unt s , M a x i m i z e E f f i c i e nc y
a n d C r e at e C u s t o m e r L o ya lt y
Pa r t 1 i n a s e r i e s
By Kolbe Meier
With new vehicle sales on target to reach
16.8 million units in 2014 and the industry rebounding from one of the worst recessions in decades, dealers and Fixed
Ops management are now focusing their
efforts on driving repair order counts
and building customer loyalty.
After the economic downturn, many
dealerships were forced to cut all nonessential personnel just to keep the
business alive. Service and Sales business development centers (BDCs) were
viewed as an expense that could be
eliminated – and one of the first to be
cut. Now, with business on the rise,
times have changed and seasoned dealers are looking for ways to increase customer-pay repair order counts and build
market share and retention.
In this article -- the first in a series dedicated to building and operating a highly
successful Service BDC -- we’ll start by
looking at the essential fundamentals,
which are paramount to building a department with a solid foundation.
p. 78
BDCs are becoming more of a necessity, owing to the millions of recalls that
Service Departments are dealing with
today. Fixed Ops Directors and Service
Managers are turning to them to manage increased call volumes and to give
their Service Advisors more quality time
to spend with customers in the Service
drive.
“Fixed Ops Directors and Service Managers are
turning to Service BDCs to manage increased
call volumes and to give their Service Advisors
more quality time to spend with customers
in the Service drive.”
If approached in the right manner, a Service BDC can be a critical asset and pivotal department for strategically growing
your business. Managing and creating
demand are both essential when looking
to maximize return on your investment.
With 20 years of experience in building
and managing Service BDCs, I’ll share
what we have found to be some of the
critical elements that must be included
when outlining your strategy of building
a world class Service BDC.
Four Key Elements of a High Performance BDC
1) Key Personnel
Staffing your department with a talented
Service BDC Manager is the first step.
Understanding the skills, aptitude and
experience that top level BDC Managers
must have is paramount when looking to
land the right candidate for this crucial
position. Your staffing decisions rank as
most critical when looking to build a unit
that will have the greatest influence on
your Service business, and it should be
deemed as priority number one.
When evaluating the skills that a successful BDC Manager should have,
the first is leadership. The person you
choose needs to be able to take a
group of people and lead them in harmony to specific goals and objectives. A
gifted manager knows how to “rally the
team” and motivate each staff member
to reach his or her full potential. They
are a critical role model who should
be self-assured and able to draw out

47 More Customer Visits Per Month

$41 More Per Repair Order

$23,000 Per Month In Incremental Revenue
Only Xtime gives you the proven ROI and
increase in profitability that more than
6,000 dealerships experience today.
Unlock your potential with Xtime!
Schedule a demo at www.meetxtime.com!
© 2014 Xtime Inc. All Rights Reserved | www.xtime.com | (888) 463-3888
p. 79
“In a recent survey,
88% of Service
Managers operating
a dealership with a
Service BDC, said they
were dissatisfied
with the results that
their BDC was
producing.”
every ounce of talent that your team
possesses. Leadership can be learned,
but rather than try to teach this ability,
it’s much easier to find a manager who is
already a skillful authority figure.
Second in importance to leadership
are communication skills. The ability to
provide written, verbal and non-verbal
feedback is critical for leading, managing and training a team. Coaching staff
members, and investing time into giving
constructive feedback, helps to achieve
desired outcomes.
Your manager must boast excellent telephone skills with ease, beginning with
their ability to master the inbound and
outbound call guides. If they’re average or below-average when it comes
to handling phone calls, their ability to
model will be compromised and their
effectiveness to teach, coach and train
their team will be greatly diminished. It’s
tough to teach others how to become
outstanding at something if you’ve not
mastered it yourself. Without exception, your manager must be an excellent
communicator.
Finding and hiring your Service Coordinators is the next important aspect of
building a highly productive team. Look
for associates who have already per-
p. 80
formed specific job duties successfully
and have displayed the competence in
executing those responsibilities consistently. For us, their number one requirement is the ability to consistently handle
an average of 120 calls per day. If they
don’t enjoy spending day after day taking and making phone calls, they’re not
the right candidate for the position.
As important as communication skills
are for the Service BDC Manager, Service Coordinators must also excel in this
area. Service Coordinators have to be
able to deliver and execute a series of
different call guides, with a desired outcome of maximizing appointments. They
must be coachable, with a positive attitude and a desire to provide exceptional
service to customers.
2) Continuous Training
Once you have assembled your talented
team, training will be a crucial element
of building a high-powered, productive
department. Teaching your team what,
when, how and why to say something
is paramount for converting calls into
appointments and offering amazing
world-class service. From professional
telephone etiquette and basic selling
skills to techniques on how to close an
appointment, continuous training is vital -- especially if you are committed to
building the ultimate Service BDC.
For example, rather than asking a customer when they would like to bring their
vehicle in, proper strategic scheduling
accounts for the vehicle’s mileage, the
job type and transportation options before an appointment time is offered.
Grading and scoring inbound Service
calls must also be part of the training you provide. It’s an essential step
to take if you’re going to be a market
leader it comes to managing and creating demand for your Service operations.
So when a client is requesting an appointment to bring in their low mileage, late model vehicle, the Service
Coordinator should lead with a late
afternoon appointment time. Why?
Because what are your “up-sell” opportunities on a 2014 Toyota RAV4
with 9,958 miles? Virtually none.
Regularly sitting with Service Coordinators to provide continuous coaching is a
key part of the manager’s job.
3) Shop Loading Strategy
Executing a specific scheduling plan is
another fundamental step to running a
well-orchestrated Service BDC and your
Coordinators must have the ability to
understand and execute fundamental
shop loading strategies.
Proper shop loading strategy leaves
smaller, quicker jobs for the end of the
day, giving continuous work to the Technicians. Older vehicles offer more upsell opportunities, so high-mileage, older model vehicles should be scheduled
earlier in the day, even when they’re just
coming in for an oil change. Allow your
Service Advisors to sell those opportunities and provide the Technician with adequate time to complete the necessary
“If you implement
these proven
practices, you’ll
have a solid
foundation for
building a
department that can
help you accomplish
many of your
Service goals.”
Engage customers SMARTER and put your service-marketing on AutoPilot!
Send the RIGHT Message to the
RIGHT Person at the RIGHT Time.
Introducing...
• Online Service Scheduler
• Service Lane Application
• Online Payment Tools
• Workflow Dashboards
• Comprehensive Reporting
• Dynamic MPI Tools
• Live Calls • Automated Calls • Automated Text Messaging
• Targeted Email • Targeted Mail
elead-crm.com
We will revolutionize the
way you do business in the
service drive!
888.486.5595
© Data Software Services, L.L.C. 2014
p. 81
services or repairs within the same day.
This is one of the keys to improving customer satisfaction.
4) Key Performance Indicators (KPIs)
No matter what the business or department, a clear set of performance indicators are essential to determining opportunities for improvement and evaluating
success. When auditing existing Service
BDCs, this is most often one of the areas that I see being under-evaluated.
If you haven’t established key metrics,
it’s difficult to gauge your department’s
needs and successes and hard for you
to hold your BDC Manager accountable.
Let’s start with KPIs centered on phone
call counts. Total inbound calls, the average time taken to answer them, the
percentage of those calls abandoned
and average talk time of our Service
p. 82
“After the economic downturn, Service and
Sales business development centers (BDCs)
were viewed as an expense that could be
eliminated. Now, with business on the rise,
times have changed and seasoned dealers
are looking for ways to increase
customer-pay repair order counts and
build market share and retention.”
Coordinators are just some of the essential metrics when gauging the performance of your BDC. In addition, the
conversion rate of appointments created and completed from outbound calls
are important when measuring the department’s ability to “create demand”
successfully.
Lastly, individual Service Coordinator
KPIs must be measured. For instance,
the average number of calls received,
outbound dials and the total number of
appointments created and completed
should be used to evaluate each Service
Coordinator’s performance on a weekly
basis. .
customer retention. This is how dealerships will continue to flourish.
Several other key strategies are important to getting your Service BDC operating at the highest level, and we’ll look at
those later in this series.
Remember: if you can’t measure it, you
can’t manage it. And if you can’t manage it, you can’t improve it.
Kolbe Meier, Founder and CEO
of Irvine, CA-based Blueprint,
Inc., BDC Architects, has studied team performance and behavioral patterns of dealerships
and clients for the past 20 years.
Kolbe has built, measured and
improved client-centric, revenuedriven contact centers for the
nation’s most successful dealerships, groups and OEMs. Today,
Blueprint’s research, software
and comprehensive BDC solutions are used in hundreds of
dealerships nationwide.
“BDCs are becoming
more of a necessity,
owing to the millions
of recalls that
Service Departments
are dealing with
today. Fixed Ops
Directors are
turning to them to
manage increased
call volumes and to
give their Advisors
more quality time to
spend with
customers in the
Service drive.”
If you implement these proven practices, you’ll have a solid foundation for
building a department that can help you
accomplish many of your Service goals.
In turn, the Service BDC will become an
asset to you and your business.
DESIGNED, E NGINEERED & M ANUFACTURED BY R OUSSEAU
Even with automotive sales on the rise,
building client loyalty and delivering superior, strategic Service increases repair
orders, maximizes efficiency and drives
p. 83
Featu r e
Service Advisor
Accountability
Are My Employees Following the
D e a l e r s h i p ’ s P r o c e s s e s ? By Ed Meyers
Service Department where software is
not enough.
Question: How do we hold our employees accountable for the processes,
tasks and responsibilities of their role?
As the old standard goes: We need to
inspect what we expect.
Repair Order Review
There’s critical information on every repair order that will identify how Service
There are many areas of supervision that
need constant monitoring and so little
time in each day to make sure that our
employees are doing what they should
be doing. Have you ever asked a Service Advisor: “Are you making sure that
you’re offering every customer the minimum required maintenance on their vehicle?” Every Service Advisor I’ve ever
asked has told me that they are definitely asking for that Service. Supervisors should never rely solely on what
an employee tells them. So the question
remains, “How do I make sure that all of
my employees are following the dealership’s processes?”
REPAIR ORDER #
Advisors and Technicians are doing
when it comes to following processes.
A repair order review is something every
Service Manager should be doing on a
regular basis. Here’s an example of a repair order review log:
WA
LKA
ROU
DAT
ND
SHE
EOF
ET W
1ST
FUL
ITH
USE
L CU
DAM
AN
STO
AGE
LICE
M ER D OPEN
NOT
NSE
REC
INFO
ED A
P
ALL
LAT
RM
EM A
ND
PRIN
E
A
#
TION
SIGN
IL A
TOU
DDR
ED
I
N
T AT
C. U
CON
ESS
TAC
P
DAT
DI TI
HED
ON,
ED N
WA
CAU
UM
RRA
BER
SE,
NTY
COR
S IN
SUP
OPC
REC
DM
POR
TION
ODE
S
TING
, FA
C
LEA
CUS
I
L
D
E
R
D PA
OCS
LY S
TOM
ATT
TAT
RT &
ER A
ACH
ED
TIRE
WA
UTH
ED (
RRA
AND
SIGN
PRIN
NTY
BRA
A
ROA
T
T
C
OUT
URE
KE R
D TE
S, SU ODING
OR
EAD
ST D
VER
COM
ING
BLE
DEC
O
B
T IN
S
PLET
ALA
CUM
IN S
LINE
VOI
UTH
ED
TOR
ENT
DO
C
ES, E
ED A
Y
DOC
PCO
M IL
TC.)
EAG
DES
UM
SNE
E
EOU
WIT
EDE
NTA
EST
D
H
T
TION
DES
REA
IMA
CIPI
DIN
TE M
TION
G
MU
ATC
AND
LTI H
E
SIN
POI
EST
NT I
VOI
IMA
WA
CET
NSP
RRA
TE I
ECT
OTA
N ST
NTY
I
O
L
ORY
/ EX
N CO
TEN
MPL
DED
ETE
WA
D
RRA
NTY
ADD
ONS
SIGN
ED B
Y SE
RV.
MG
R.
“Accountability breeds
response-ability.” -- Stephen R. Covey
NOTES
Managers need tools and information
to be able to inspect departmental processes and performance. As a Service
Manager, I’ve always tried to find the
best way to inspect processes. Technology has definitely helped us keep track
of certain performance metrics but there
still are some limitations. Here are some
ways to inspect several key areas of a
p. 84
DATE:_________________
REVIEWED BY:____________________
SCORE:_______ OUT OF_______ CORRECT
SERVICE ADVISOR_______________
I HAVE REVIEWED THESE REPAIR ORDERS WITH MY SUPERVISOR: X___________________
Performing repair order reviews on 5-10
repair orders per week per Advisor will
give you a very good idea how well the
Advisors are following your processes.
Going back to the question I asked
about the Service Advisor in the beginning of this article: “Are you making
sure that you’re offering every customer
the minimum required maintenance on
their vehicle?” Here’s a great way to
make sure that’s being done with every
customer. First, create an op code that
states something along the lines of: “I
have been advised of and declined the
factory required maintenance due for my
vehicle at this time: X____”. (Note: The
wording can be slightly different but the
message to the customer must be the
same.) Next, require your Service Advisors to add this op code on every repair
order where the customer declines the
factory required maintenance. Have the
Advisor request that the customer initial
after the “X” to acknowledge that they
want to perform less than the factory
required maintenance. Lastly, add a col-
umn on your repair order inspection log
to verify that it’s being done when doing
repair order reviews.
This small process will hold your Service
Advisors (and also your customers) accountable on performing required maintenance. The process will also keep your
customers from blaming the dealership
for not recommending required maintenance when they have maintenance-related failures such as lack of oil changes, tire rotations, etc.
I cannot tell you how many times I have
had angry customers come in with worn
out front tires after 20k miles and I had
to explain to them that it was due to lack
of tire rotation. Their typical response
was: “I only do the service that you guys
recommend.” It made the conversation
very easy when I was able to show them
their Service history with the declined
maintenance op code used on every
previous visit.
“There’s critical
information on
every repair
order that will
identify how
Service
Advisors and
Technicians
are doing when
it comes to
following
processes.”
p. 85
Your Advisors may say to you that following this process will cause CSI issues since it’s very negatively perceived
by the customer. I completely understand this and it must be delivered very
carefully. And if a customer asks, “Why
are you putting that on the repair order”
have your Advisors respond, “This is how
my boss knows that I’ve recommended
the needed Service on every vehicle.”
Another benefit of this technique is that
about 20-30% of the customers will just
have the required Service performed
anyway after being asked to initial.
Shop Supplies
Holding all personnel in the Service
Department accountable for shop supplies can be very difficult and, without
the right process in place, can be very
financially draining. I’ve found that the
best way to keep track of shop supplies being given out (while also holding
each employee accountable) is to create a monthly “Shop Supply Repair Order.” This RO will be opened on the 1st
of every month and closed on the last
day and will have a line for each Technician, Porter, Service Advisor and anyone
else that uses shop supplies. All shop
supplies that are handed out to Technicians and not sold on a repair order will
be charged on the shop supply repair
order on the line of that person receiving
that supply. Also, the person charging
out the supply should make a note, on
that Part line, if it’s out of the ordinary.
This will allow the Service Manager to
inspect how much and what supplies
are being used by each individual person. See the example:
Repair Order # 249201
“Require your
ABCAutomotive
9999 Main St.
Fastville, NC. 12345
888-123-4567
Service Advisors
to add this op
Color
Gray
code on every
Line
A
Year
2012
Make/ Model
Chevy Camaro
Opcode Description
Steve Prince #521
repair order
where the
B
John Small #632
customer
declines the
C
Carl Bright #753
factory
required
maintenance.”
p. 86
D
Jim Glass #856
Part#
Service Advisor: Allan Smith
VIN
Mileage IN/ OUT
1ABCD23589C123456
30890/
Tag
5121
Part Qty Part Description
Total
Each
12345
4
Parts Wash
$ 3.99 $ 15.96
225588
2
Gloves
$ 6.25 $ 12.50
76543
1
Silicone Lubricant
$ 7.30
12345
2
Parts Wash
$ 3.99 $ 7.98
76543
1
Silicone Lubricant
$ 7.30
225588
2
Gloves
$ 6.25 $ 12.50
91915
2
Cotter Pin
$ 0.45
12345
4
Parts Wash
$ 3.99 $ 15.96
225588
4
Gloves
$ 6.25 $ 25.00
456987
1
Shop Light Bulb
$ 4.99
12345
76543
225588
3
1
3
Parts Wash
Silicone Lubricant
Gloves
$ 3.99 $ 11.97
$ 7.30 $ 7.30
$ 6.25 $ 18.75
Total:
$ 7.30
$ 7.30
$ 0.90
$ 4.99
$ 148.41
At the end of every month, the shop
supply repair order needs to be reviewed for accuracy. A labor type can
be created to direct the expensing of the
repair order to the correct account or the
business office can make an adjustment
after the repair order is closed. You will
be amazed what will find its way on the
shop supply RO. You will be able to use
the information on the repair order to
hold all employees accountable for the
shops supplies they use.
Service Advisor Tracking
There are many great electronic tools
that keep track of specific Service Advisor performance metrics. These different
software tools can track your Advisors’
sales performance, multi-point inspection performance and other specific
areas that need to be monitored. After
running all the different reports, you will
have four or more different documents
that make it difficult to ascertain how
an individual advisor is performing as a
whole. Having a single document, created on a regular basis, that shows all
critical Service Advisor metrics, will let
you know how the Advisors are doing in
all the areas that need to be tracked.
“Managers need tools and
information to be able to inspect
departmental processes and
performance. As a Service Manager,
I’ve always tried to find the best
way to inspect processes.”
Repair Order Analysis & Management System
Spot the Difference
Can you help Sherlock ROAMS spot the 8 differences
between these 2 Service Manager offices?
For example, every Service Manager
wants to know how their Advisors are
doing in effective labor rate, hours per
repair order, sales, gross profit and
many other sales-related items. There
are many programs that do a great job
reporting that information but what
about CSI, multi-point inspection performance and other areas that are not
available from the DMS?
A Service Manager should take all needed data from the DMS, 3rd party reporting software, electronic multi-point inspection software and manufacturer’s
customer satisfaction reports and compile it on a regular basis (daily or at least
bi-weekly) into a tracking document
that’s distributed and reviewed with Advisors. This is a great tool to make sure
that there are no surprises at the end of
the month.
10 Service Managers/Directors will each win $100 cash!
Correctly identify and submit your answers by October 29th, 2014
To submit, please visit www.ROAMSdata.com/FixedOps
Winners will be announced and paid on October 31st, 2014
Making Service Management Easier & More Profitable
800-948-9377 | ROAMSdata.com
p. 87
Setting goals for each Service Advisor
at the beginning of every month will give
each Advisor something to strive for and
will also be a map for you to understand
how the Service Department will reach
its financial and other performance
goals.
This process requires that you input the
initial data of how many days an Advisor
will work and what you think the advisor will do for that month. Regularly input the current data from your DMS, 3rd
party software or other sources and then
you can track and train as the month
progresses. I’ve found this process invaluable when it comes to improving
Service Advisors and also figuring out
the formula on how I will reach my goals
each month. Here’s an example of the
tracking sheet I’ve used for years.
Then put in total hoursgoal
using estimated daily hours
average multiplied by days
scheduled
Start with # of
daysscheduled
Month/Year
# OF
DAYS
WORKED
Set your minimum CP ELRand
CP oursper RO standards
Date:
Current Hours Tracking Hours
1.8 MIN 90.00 MIN
Avg. daily hours C/P
Avg.
needed to hit HOURS
PER RO
forecast
Daily hours Forecast Hrs
ELR
C/P
CP ROS HOURS
ADDL.
HRS IF
AT 2.5
HRS/RO
Advisor 1
days
Hours #DIV/0! Hours #DIV/0! Hours
Hours #DIV/0! Hours
-
Advisor 2
days
Hours #DIV/0! Hours
-
Advisor 3
days
Hours #DIV/0! Hours
-
Advisor 4
days
Hours #DIV/0! Hours
-
Advisor 5
days
Hours #DIV/0! Hours
-
Hours #DIV/0! Hours
-
0 Hours #DIV/0! Hours
-
Advisor 6
9 days
10
days
36
3
TOTAL
Entire
Benchmark
Mpi
Process
90.20
94% Min.
SPSI
Tires
-
On a daily basis, enter in # of daysworked, current hours, CPhoursper RO and ELR, # of CP ROs,
Ros, Tires,
Tires,CSI
CSI&
&MPI
MPI %
%and
andyou
youwill
willend
endup
upwith…
with……
…
JUNE 2014
# OF
DAYS
WORKED
Advisor 1
17 days
Advisor 2
18 days
Advisor 3
10 days
Advisor 4
16 days
Advisor 5
18 days
Advisor 6
17
9 days
10
days
8
Date: 6/16/2014 Avg.
Current Hours Tracking Hours
241.60 Hours
513.40 Hours
Avg.
Daily hours Forecast Hrs
30.20 Hours
475
Hours
daily
hours
needed
to hit
25.93 Hours
1.8 MIN 90.00 MIN
C/P
HOURS
PER RO
2.28
ELR
$ 95.67
ADDL. HRS
C/P
IF AT 2.5
CP ROS HOURS
HRS/RO
122
219.00
26.84
24
93.52
96.85
129
271.10
45.15
18
90.56
94.50
39
115.10
1.95
12
92.20
97.20
69
136.50
20.70
16
90.46
96.54
114
188.80
49.02
24
88.30
93.10
76
127.51
33.44
9
93.81
95.41
549
1,058.0
192.15
103
91.64
94.45
$ 93.20
9
290.50 Hours
581.00 Hours
32.28 Hours
550
Hours
28.83 Hours
2.15
$ 102.12
5
36
137.30 Hours
274.60 Hours
27.46 Hours
300
Hours
32.54 Hours
2.45
Tires
Entire
Benchmark
Mpi
Process
90.20
94% Min.
SPSI
$ 93.08
7
10
163.10 Hours
205.90 Hours
372.80 Hours
370.62 Hours
23.30 Hours
20.59 Hours
420
400
Hours
Hours
28.54 Hours
24.26 Hours
2.20
2.07
$ 95.67
$ 103.95
7
3
152.01 Hours
369.17 Hours
21.72 Hours
360
Hours
20.80 Hours
2.06
$ 95.25
TOTAL
p. 88
26
13
1190.41 Hours 2380.82 Hours
91.57 Hours
2505
Hours
101.12 Hours
2.15
“Another
benefit of
Finding ways to hold our employees accountable is critical to our success as
supervisors and leaders. We are only as
good as our employees allow us to be.
Here’s to your success and to building
the Service and Parts Departments that
everyone admires.
this technique
is that about
20-30% of the
Ed Meyers has spent the last 26
years mastering dealership skills
in most Fixed Operations positions from Service Technician
to Parts and Service Director.
He has a history of transforming dealership Fixed Ops Departments to perform amongst
the best in the industry. Ed has
recently transitioned to consult
and train in Service and Parts
Departments and has also joined
the Redondo Beach, CA-based
Fixed Ops Group as the Director
of Dealer Service.
WWW.BORROUGHS.COM • MADE IN THE USA.
NADA BOOTH #2372
customers
will just
have the
required
Service
performed
anyway
after being
asked
• Iron-Clad Warranty
• All Steel Construction
• 400 lb. Capacity Drawers
• Tip-up, Slide-in Upper Cabinet Doors
• Swing Doors for 100% Accessibility
on Lower Cabinets
Workstations, Toolboxes, Mobile Carts, & Racks
Easy to Configure
Optimizes Floor Space
Retrieve Tools Quickly
to initial.”
p. 89
Featu r e
How Service
Department Tire Sales
Impact Vehicle Sales
C u s t o m e r R e t e nt i o n v s . C u s t o m e r Ac q u i s i t i o n In my article in the previous issue of
Fixed Ops, I provided a cost / benefit
analysis spreadsheet that shows what
an investment in tire merchandising displays will generate in terms of sales, revenue and customer retention, based on
the actual results achieved in hundreds
of dealerships during the past two-anda-half years. (Note: If you did not get
a copy of the spreadsheet, e-mail the
Publisher and he will make sure you get
one.)
While doing my research for this current
article, I came across the NADA Data
Annual Financial profile for 2014. In this
latest report is the number $616. That’s
p. 90
the average advertising expenditure, per
vehicle, across the nearly 18,000-dealership base.
Stated another way, the average dealer
pays $616 for each customer who buys
a vehicle. The actual cost for each NEW
customer is actually higher, because
this average advertising cost number
does not account for referral customers or existing (retained) customers who
purchase a vehicle, ads notwithstanding. The cost of retaining an existing
customer is providing customer service,
which should actually generate revenue
and not require the expenditure of hardearned cash.
B y C h u ck d e M a r t i g n y
“The average
dealer pays
$616 for each
customer
who buys
a vehicle.”
Total expenses were up 5.4%, but declined as a percentage of sales to 11.2%
from 11.5%.
Based on the above, a one-time investment of $5,100 in a billboard or newspaper ad should generate an average of
8.27 vehicle sales. The math is simple:
divide the $5,100 ad cost by the $616
average cost per vehicle = 8.27 vehicle
sales yield.
Add to that, Parts and Service sales
were up in 2013 by 4.8% over 2012,
but sales in 2012 were down 1.7% from
2011. Compare that to overall dealership sales which increased by 8.8%
in 2013. Even with this lagging performance, Parts and Service still generated
almost 40% of the gross profit for the
dealerships.
Why is this important? Because when
you plug in the numbers into my spreadsheet, here’s what you’ll find:
A $5,100 investment in an ad campaign
will generate one-time 8.27 vehicle sales
A $5,100 investment in a good tire merchandising display will generate:
1. 8.4 additional vehicle sales this year
2. Plus $27,360 in incremental gross
profit this year,
3. Plus return your $5,100 investment
within 3 months
4. Then continue to deliver these results
for many years to come at no additional
cost.
How do tire sales sell more vehicles, you
may ask? It’s quite simple really. Your
Service customers are 10% more likely
to purchase their next vehicle from you.
Therefore, if you lose ten customers
because they left the dealership to purchase tires from a competitor, you lose
one vehicle sale. If, on the other hand,
you retain ten customers by convincing
them to purchase tires from you, you’ll
gain one vehicle sale. The spreadsheet
calculates that the $5,100 display retains seven customers per month, which
is 84 customers per year, resulting in 8.4
additional vehicle sales in addition to all
the other benefits.
Why Invest in Your Service Department Now?
New vehicle sales are booming for 2014,
reaching pre-recession volume of 16.6
million for franchised new car dealerships, up from 15.5 million units in 2013.
So GMs are more focused on selling
cars than on Parts and Service. However, total dealership gross margins fell
further in 2013 to 13.4% of total dealership sales from 13.7% the previous year.
A 2013 NADA study on factory-mandated auto dealership image programs
showed that expansion of a facility, especially the Service Department, offers
a positive return on investment, while
investing in modernizing a store is hard
to justify and standardizing dealership
formats seems to have no benefit at all.
“The good news:
significant tire sales
growth has been
accomplished in car
dealerships for a
number of years.
The bad news: it’s
nowhere near enough
and many dealerships
are still missing
the boat.”
FIXEDOPS.pdf 1 5/9/2012 1:42:11 PM
C
M
Y
CM
MY
CY
CMY
K
p. 91
mean a 50% share of tire sales. A 50%
retention rate could show a 25% share.
If the dealer base doubles its share to
15%, the customer retention rate would
grow to 30% from the current 15%.
Is it possible? Absolutely! And it’s already happening in some dealerships.
The average dealership sold approximately 5,500 vehicles in the last five
years. National studies show that 15%
of these vehicles need tires today. That’s
825 vehicles per store. That’s about
2,300 tires you could sell to your own
customers right now. How many will you
actually sell this month? 100? 200?
Own Your Customer – Double Your
Retention
Tire dealers vs. car dealers
Both are making noise but only one is
way up in market share.
savvy shopper expects -- especially
women, who represent more than 50%
of the clientele. Is it any wonder that in
some dealerships, less than 50% of new
The chart shows some good news:
significant tire sales growth has been
accomplished in the car dealerships
for a number of years. The bad news
is that it’s nowhere near enough and
many, if not most, dealerships are still
missing the boat. Dealerships continue to bleed customers, with 85%
lost each year to the independents.
The number one defection point is tire
sales. So where are your customers?
vehicle customers even turn up for their
first Service appointment?
This is only the tip of a huge iceberg,
representing either a potential disaster
or a huge opportunity, especially when
you consider that once your customer
leaves the dealership to shop for tires,
they take their Service business with
them and they don’t come back.
With the focus on new car sales, dealerships are not spending the time and
money to make the Service Department
a destination, with compelling point-ofsale displays, exciting product selections, up-to-date signage and all the
other retail accoutrements that today’s
Consider this: OEM dealerships sell almost half of all vehicles sold to retail
customers each year. OEM dealerships
will sell about 16.6 million new vehicles
and about 10 million used vehicles
(25% of total used vehicle retail sales).
A 100% retention rate for Service could
p. 92
The Opportunity
Here are some ideas worth considering
that can help transform your Service experience from drudgery into a destination.
1- Update the Service drive (You only
have one chance to make a good first
impression)
1. Add tire displays, posters and signage
2. Add electronic wheel alignment diagnostics
3. Add express service or quick lane if
you don’t have it
2- Update the Interior Service area
(Friendly, inviting, professional service)
1. Add point-of-sale posters and signage
2. Add CSI reminders
3. Provide iPads to Service Advisors
“With the focus on
new car sales,
dealerships are not
spending the time and
money to make the
Service Department
a destination,
with compelling
point-of-sale displays,
exciting product
selections and
up-to-date signage.”
3- Update the Parts counter (Think
like a high-end retail store)
1. Add a gift boutique and accessories
center
2. Improve product selection with an eye
to women shoppers
3. Add professional store displays
4. Hire a merchandiser – preferably a
woman with merchandising experience
“Once your
customer leaves
the dealership to
shop for tires,
they take their
Service business
with them -- and
they don’t
1.
2.
3.
4.
Clean, late-model, comfortable van
Pick-up and drop-off by appointment
Local mall service
More than one, if required
7- Plan on-going events (Make it an
event worth going to)
1. Hair and nail day / spa day
2. Technical clinics
3. Defensive driving course / skid course
10 - Engage and train all Service staff
(Everyone is part of the customer retention team)
Rethinking and reinventing your Service
experience may seem like a daunting
task. But it’s worth doing. It can’t and
won’t happen overnight, so take it step
by step.
8- Add a Parts and Service Loyalty
Rewards Program (Membership has
its rewards)
1. Special offers
2. Incentives
3. Tickets to events
4. Club membership
Start today with a tire display. It’s already
proven to be the #1 customer retention
tool. It works and it pays for itself. Then
each successful step you take thereafter will help convince your management
and co-workers to support you as you
continue on this path to earning and
owning your customers’ loyalty.
9- Photograph everything and everyone (If you’re proud of it, show it off!)
1. Make a professional brochure to give
to every customer
2. Add all photos to your website
3. Add Service to your social media
campaigns
4. Send photo postcards to every customer from the last 10 years
Chuck de Martigny is CEO and Founder of
Clearwater, FL-based Jungle Cat Marketing,
a marketing and manufacturing company
that specializes in innovative point-of-sales
marketing initiatives for OEM car dealerships. His extensive consumer marketing and retail merchandising background
includes a winning track record of major
consumer product marketing launches.
Most recently Chuck has focused on tire
merchandising, helping dealerships achieve
sales growth and increased customer retention through replacement tire sales.
come back.”
4- Update the customer lounge (Think
like a high-end hotel)
1. Make it part of the boutique
2. Add high-end refreshments and
snacks -- then maintain it
3. Add quality magazines, brochures
and gift catalogues
4. Provide kid-friendly play space in
close proximity
5. Internet, Wi-Fi, Movies
6. Add point-of-sale signage
5- Hire a hostess or concierge (Guest
services coordinator)
1. Introduce hostess as part of the
Sales-Service handoff
2. Hostess to manage the Service appointments
3. Hostess to manage customer shuttle
4. Hostess will take special orders for
gift shop
5. Manage Service social events
6- Update shuttle service (A chauffeur, not a taxi)
p. 93
Featu r e
Seeing the
Opportunity Clearly
W i n d s h i e l d R e p a i r t h e R i g h t W a y By Josh McCooey
Windshield repair or “rock chip” repair
has been around for nearly 40 years and
now we’re seeing a trend in the automotive Service industry. The concept is
simple. Windshields have two panes of
glass held together by a laminate film.
When a rock chip impacts the windshield it creates an air gap between the
panes and a proper repair replaces the
air with a UV cure resin that prevents further damage.
This service is here to stay. The question
is, how do we do it right? There are tents
on corners, attendants at carwashes,
tire shops adding the service and thousands of dealerships around the country
that have realized that glass repair isn’t
just a fad, but a viable addition to their
Service mix. As you’re developing your
glass program within your dealership,
there are a few things to take into account. Throughout this article we’ll outline the best auto dealership practices.
The allure of substantial additional profit
is promising, but let’s look a little deeper
into the windshield repair business and
the opportunity available:
• Insurance companies pay, on average, $57.00 for a windshield repair and
they are happy to waive the deductable
because a repaired rock chip prevents
p. 94
the need for a replacement. In turn, this
mitigates the risk of a rust damage claim
later because of a poor replacement.
• The repair takes 10 minutes and can
often be performed while other cleaning
or repair services are underway.
• Customers need windshield repair.
One in every seven cars on the road has
windshield damage and 100% of chips
will crack, whether it’s in two hours or
two years after impact.
• It fits into the flow of the dealership
and adds value to the customer. It’s
great to hear a customer say, “Wait, you
mean to tell me you can fix that chip
today without any extra time out of my
day, it will save me time and money in
the future and my insurance company
covers the repair?” YES!!
Weigh the pros and cons before adding
glass into your Service Department.
“Windshield repair or
“rock chip” repair
has been around for
nearly 40 years and
now we’re seeing a
trend in the
automotive
Service Industry.”
Pros
• Rock chip repair is a ten-minute service
• $1.00 in the cost of goods with an average sale price of over $50.00
• Simple to learn and perform repairs
• Clean service; little to no prep work
and it takes only mobile equipment
• Plenty of demand (one in seven cars
has rock chip damage)
• Promotes customer loyalty and repeat
customer ratios; most people get at
least one break on their windshield each
year
• Customers already trust their dealership and would prefer a professional repair over a repair by a guy with a tent on
the corner
• Eco-friendly. Most windshields wind up
in the landfill, but each time you repair
a windshield it prevents the customer
from having to replace the entire piece
of glass that’s often not recycled
• Cost Savings. The repair Technician
can repair used vehicles on your dealership lot instead of paying an outside
company to fix broken windshields before resale
“The repair takes ten minutes
and can often be performed
while other cleaning or repair
services are underway.”
Cons
• Windshield repair isn’t a sexy service
and customers often don’t like having
bad news pointed out to them
• Depending on equipment and training,
“perfect” repairs can be tricky to perform on a regular basis
• Technicians don’t like to add services
to their task list
• You have to make a five minute call
with the customer if you decide to offer
insurance processing as a payment option to your customers
• The break never disappears 100%
At dealerships we pride ourselves on
providing a positive customer experience. The money is right and we’ll definitely earn customer loyalty by servicing
our clients’ glass needs, but do we want
to bring it in-house or sub the work out
to a reputable repair company to work in
our Service Departments?
p. 95
As one Chevrolet dealership told us,
“We added glass repair because we
have a captive audience that trusts us
with their vehicle. It would be irresponsible of us to let the car drive away with
a small break that we could have fixed
at no cost to them, but left alone could
cost them hundreds of dollars and headaches when it cracks out and a replacement is needed.”
If your dealership averages less than 40
cars a day through the Service Department, it doesn’t make sense to bring in
a third party to offer windshield repair.
Many times, outside glass techs have
to meet a repair quota in order to make
ends meet and the customer could feel
pressured if you don’t have complete
control over the customer interaction.
In this scenario, it makes sense to offer the repair with the Service Advisors
and have a porter or Technician perform
the ten-minute repair.
If your store averages more than 40 cars
a day, it might make sense to either hire
a fulltime person to run the glass program in-house or hire a reputable glass
repair company to maximize your sales
and customer experience. If you decide
to partner with a third party, make sure
they have the same customer mindset
that your company has and don’t charge
rent. In lieu of rent, it’s best to design a
revenue share contract that ensures you
both win together. Rent scenarios tend
to have a expiration date because the
glass Technicians only care about sales
and undoubtedly someone will feel pressured into a repair, the dealership will
lose control over the experience and
you’ll churn through outside Techs until
you give up on the service all together
or decide to hire an internal Technician.
p. 96
“If your store
averages more
than 40 cars
a day through
your Service
Department,
it might make
sense to either
hire a full-time
person to run the
glass program
in-house or hire a
reputable glass
repair company
to maximize
your sales
and customer
experience.”
“Customers already
trust their dealership
and would prefer a
professional repair over
a repair by a guy with a
tent on the corner.”
*Average industry costs outlined
As a Fixed Ops Director, you might be
asking yourself if windshield repair is
right for you. Maybe you’ve already decided that rock chip repair isn’t a service
you want to offer because you’ve tried it
in the past, had a bad experience, or a
customer has told you how much they
hated to be bugged by the “glass guys”
at another facility. In one article I won’t
be able to explain all the ins and outs
of windshield repair, but I can hopefully
give you some insight into current trends
and opportunities.
1. Decide whether windshield repair
fits for you and your customer
Average capture rate for windshield repair at a dealership is around 13%. (Using a daily car count of 100 cars and an
average price of $50, that’s nearly $650
extra a day or $16,250 a month.)
2. Purchase quality equipment with
integrated training. Focus on your core
competency at the dealership and your
glass techs have all tools they need to
succeed. Just like any equipment, the
price for systems can vary, as does quality and support, so be sure to team up
with a windshield repair equipment company with all tools you need to scale and
recertify your Technicians. Most equipment providers will include information
about insurance processing, but there
are some recent advances in technology
that allow a technician to capture signatures and bill the insurance company
right from their phone, tablet or Service
Department point of sale, avoiding the
extra overhead and processing costs.
3. Commit. Whether you have a full time
Technician or just a sign to “text for a repair”, commit to your customer through
education,
marketing,
consistency
and even a free car wash with repair if
you’d like. Who wouldn’t give up a dollar of wash costs for a $50 dollar sale?
Commit to your staff through incentives,
competitions and accountability. If you
can help the sales force have a mindset of “If I don’t offer chip repair service,
I’m doing the customer a disservice be-
cause all chips break”, it will be easier
to help them look for breaks and offer
the service.
Josh McCooey is the COO of Glass Mechanix Solutions. Mr. McCooey received his
business degree from Westminster College
in Salt Lake City and is actively engaged
with various boards in the PDR and detail
industry, providing insight as a nationally
certified glass technician and supporter of
the reconditioning industry. Before entering
into the glass industry, Mr. McCooey built
and operated a chain of high-end carwashes and understands that glass repair can be
tricky without the right plan for implementation, training, processing and marketing
solutions.
Special Offer
Top Sign
Included
$5,100
Freight & Tax Extra
2 Posters
& Snap
Frames
Included
Rolling
Quad 4
Custom Toppers, Inserts & Overlay Stickers Included
Tire
Display
Included
Free Custom Design & Mock-up
MODULAR
LOCKABLE
INDOOR-OUTDOOR DISPLAYS
www.TireMerchandising.com
p. 97
Featu r e
Who’s Failing Who?
W h e r e ’ s t h e S e r v i c e A d v i s o r T r a i n i n g ? I have a friend who called me up in late
June and asked me for some help. His
daughter, who had graduated from college the year before, was having trouble
finding a job. He knew I’m in the automotive industry and wanted to know if
there might be an opportunity for his
daughter. Knowing Tammy, I was thrilled
to think that this bright young woman
would have an interest in an industry
that I love so much.
Although her collage had been paid
for, Tammy, not one to be idle, worked
a part time job as she went to school.
She worked at Starbucks for a while,
but worked the bulk of her collage years
at an electronics and appliance store.
She started out in customer service but
quickly moved to the sales floor as the
managers saw that she had a work ethic
and personality more suited for Sales.
After making that move, Tammy earned
more than her share of spiffs and small
awards for her ability to work with and
sell to customers. This didn’t surprise
me, as I had always known Tammy to be
a happy outgoing type of person -- the
type that could one day be a great salesperson if that’s where her heart lead her.
Anxious to help, I recommended she
give writing Service a try. I told her how
p. 98
she could earn an income of $50K plus
annually and, over a short period of time,
50% more than that. I explained to Tammy all the benefits of the job, explaining
that although it might be tough, it could
be a very rewarding career choice for
her. Being the motivated hard-working
person she is, she immediately started
applying at dealerships in her area. She
was hired within one week of looking.
Tammy started at a GM dealership in
July. This particular dealership has
about 50 vehicles visiting its Service
Department every day. The pay plan she
showed me was one that would allow
her to make the $50k plus annually, just
as I had told her, with a decent benefit
package. She was stoked, to say the
least. With this job, she could accomplish her dream of being totally independent and on her own.
As I write this, it has been just over
three months since she started. And it
has been nothing short of a disaster.
She’s averaging about $1,700 a month
in gross income with no big upswing visible in the near future. Everything I had
portrayed the job to be has not panned
out. What went wrong? Well – several
things:
By Jeff Cowan
1. In three months’ time, she has received one hour of training. That training came from the factory rep. He happened to stop by the dealership 35 days
after she started. He was kind enough
to spend an hour with her to show her
some “tricks” on her computer.
2. With it being July and right in the heat
of the summer, the Advisors she shares
her day with were supposed to help her
learn the job. They did not. My assumption is that either they did not have the
time, simply did not want to, or most
likely, did not know how to do the job
themselves, since their numbers are ridiculously low as well.
3. Her Service Manager, who always
seems to be missing or putting out fires,
has spent zero time with her beyond normal chit chat and monthly team meetings where he talks about the importance of better numbers; ‘talks about’,
yet gives no instruction on how to get
these better numbers. The General Manager, however, taking a liking to Tammy
and seeing her struggle, bought her a
copy of the book “Gung Ho!” He felt by
her reading it, it would help improve her
survey scores.
why they don’t. Just like an untrained
Salesperson will run your customers off,
any business that doesn’t train their employees will run those employees off.
As far as Tammy goes, she’s now talking
about leaving the car industry, not because she wants to, as she sees great
potential in it. She’s leaving it because
her whole reason for going to school and
working is not being met -- the need to
be independent and live without a handout, or the aid of others. What a shame.
I thought that young, educated people
were what we wanted and needed in
our industry! If it truly is, we will never
attract and keep them with our current
approach. I did give Tammy access to
my training, but as I was not able to be
with her on the drive every day (living
2,000 miles away), I could not show her
how it worked and coach her the way
she and the rest of the staff needed to
be coached.
4. Morale is understandably low since
no one is making anything close to the
money they were told they could make
– and that they would make with some
training. What’s even more demoralizing
for the Service staff and for Tammy, is
that they witness every week how the
vehicle Sales staff get endless training,
endless spiffs and have regular Saturday auto sales contests with hundreds
of dollars in cash being handed out.
I have Service Advisors write and call
me all the time with similar stories. And
although I’ve always felt for these Advisors, it never quite resonated with me
until I saw it happen firsthand. I know
that not all dealerships are like that,
but by my best guesstimate, I believe
that somewhere between 30 and 50%
are, just based on the communication
we have daily with dealerships that are
seeking us out to improve their Service
profits.
“In three
months’ time,
she has
received one
hour of
training.”
Personally, I don’t get it. Why would
someone go to the trouble of finding
the land, building the facility, inventorying it with millions of dollars of materials, spend thousands to get people to
walk in the door and then stop short by
a very few thousand dollars to train their
employees to be prepared for their customers. We in the auto industry cry and
scream for people to come and join our
employment ranks. We’re stunned that
more would not want to, with all the industry has to offer. Yet it’s easy to see
All this is to say…if you’re wondering
why your Advisors or Service Department are not meeting your goals, here
are a couple of things to think about or
address:
1. Do you actually have a solid and ongoing training process for each Advisor
hired at your store? Veterans and rookies alike?
2. Does your Service Manager hold daily
and weekly meetings where they coach,
critique and role-play?
3. Do you have clear, concise goals for
your staff to meet?
4. Do your managers themselves understand the profession of selling?
5. Do you as a Dealer, General Manager
or Fixed Operations Director fully understand the opportunity missed by not
having a fully trained staff, prepared to
meet and handle any situation in a proactive way?
Jeff Cowan is Founder and President
of Jeff Cowan’s PRO TALK, Inc. Jeff is
recognized as the creator of the modern
day walk around and training processes
for automotive Service Departments.
Jeff Cowan’s PRO TALK, Inc. is known
for delivering some of North America’s
best training for Service Departments
everywhere.
p. 99
SERV I C E D E PT.
Why Are You Still
Underperforming? (Part 2)
In the first installment of this article I
spoke about some factors relating to
your team. Now it’s time to talk about
you. We know that as the leader of a
team, you’re ultimately responsible for
the results of the team. So I’m going
to use some of the obstacles that I’ve
personally stumbled on as well as obstacles that I’ve overcome.
It’s taken me a long time to realize that,
sometime throughout the course of a
day, the reason that I wasn’t “100%”
was because of what I was doing to myself.
My breakfast was two smokes and two
coffees. I was jacked at 7:00AM, had
great ideas and sent out a ton of e-mails
about the agenda for the day. I reviewed
appointments for the day and had an action plan in place. Sadly, by 10:00AM....
not feeling too great...running out of gas.
More coffee, more smokes and working
on a second wind.
The smallest obstacles have now become mountains and the rest of the day
is firefighting.
(The best laid plans...)
It was very easy for me to look at the
day’s events and blame them for my
p. 100
feelings. Work was tough, employees
were underperforming and the car business was just crazy. Customers were a
pain. There had to be a better way to
make a living.
Now, in any experiment, you need to
have a control group. You need to have
something that’s the constant and at
this point in my life, other people weren’t
where I was going to start. I was going
to start with myself.
The nights of coming home and sitting
on the sofa reflecting on the day and
blaming my guidance counselor for not
getting me into another career were
over. Sofa time became learning time.
When I thought of how I got into the car
business, it was the same as for many of
you. Some us started in the shop, some
of us on the sales floor. You showed a
little initiative and the next thing you
know, you’re promoted. And after that,
your responsible for possibly hundreds
of people and the next thing you know...
Learning time means becoming a student. You may ask, “a student of what?”
and the answer isn’t the car business -the answer is “yourself.” Now, before I
get too philosophical, you need to know
yourself, and you need to know how to
learn. You need to have the desire to be
better.
By Rex Weaver
When I think back on my early days, I
was burning the candle at both ends.
For things to get done, I was leaving all
I had on the floor of the shop everyday
and when I got home, there was nothing left. I was just getting by. I was burning myself out. I fought my way through
every day and I knew it couldn’t keep
going like that and so learning began...
again.
I started by searching -- searching for
the best in the business. And not just
our business -- in every business.
Whether it was Steve Jobs or Cesar Ritz,
John Wooden or Abraham Lincoln...they
all had so much too offer. And I began to
realize that my job wasn’t that hard -- I
just wasn’t ready for it and now it was
time to be ready.
The morning regimen became getting
myself ready. Making sure my nutrition was right and that I was ready to
completely immerse myself in the day.
Working out in the morning, some days
mediating or listening to a motivational
book on tape -- anything that made me
learn something new. A new technique
to manage, a new way to diffuse a client situation or just a new way to breath
and make sure that when things got hot,
I stayed cool.
day wasn’t taking me -- I was
taking charge of the day. It
was strategic and focused
and I became effective in what
I was truly accomplishing. Every day was a new challenge,
not a new problem that needed to be dreaded.
Now, of course, Dr. Covey is
just one example of hundreds
that can provide “brain food”
to make you a better manager
and a better leader. But I just
want to stress the fact that
you need to want to be better.
You need to want to perform
at a higher level and you need
to want to change.
Instead of eating breakfast out of the
coffee pot or snack machine, I was now
ready. Packing a lunch and snacks that
made a better performer became a must
and, when I was feeling better, I was
performing better. The same situations
that made me crazy now just became a
part of the job.
I know that nutrition may seem pretty
basic but we are talking about car business people. And making sure that your
filling your head with the right things
may seem pretty basic. I’m going to
start sharing techniques and literature
that changed my life and made me a top
performer in my field.
One of the first books that changed the
way I saw things (and which is certainly
a classic) was “The 7 Habits of Highly
Effective People” by Stephen Covey.
This book gave me the chance to not
only change the way I saw work, but
also life. And the better I became, the
better I became for my team. Now the
There are so many trainers
and so much access to information. But the first thing you
need to do is to want to learn.
You need to become a student
of life and once you start that,
you can become a student of
your business. I know it’s difficult to think that you’re a student and this is especially hard for those
of you that have been doing what you’ve
been doing for a long time. But life is
meant to be a learning experience.
I’m going to use the analogy of your
body and mind as machine. You need to
feed the machine the right fuel and once
you have some parts of it running right,
the diagnosis can begin.
I remember starting my latest adventure
at my current dealership. We were missing on all fronts. As I’ve shared in the
past, I was never at a dealer that missed
everything. CSI was low and so was
cash flow. The owners weren’t happy
and neither were employees. The building was old and everyone was defeated.
and GM were all in and the diagnosis
began. But it started by putting all our
efforts into one front -- getting the CSI
scores where they needed to be. And
making our customers happy. Let’s get
that part down and then we can get the
other components in order, one by one.
“I remember
starting my
latest adventure
at my current
dealership. We
were missing on
all fronts.”
Your life is in the same situation. Get one
part right. I don’t care if it’s your health
or your attitude; you need to get something in order. Once that’s in place, we
can start looking at everything else.
- Be approachable.
- Be steady and make your decisions
consistent.
- Be motivational.
- Be ready.
- Be ready for things to be great.
Look forward to becoming a student
again and look for a learning opportunity
every chance you can.
Make yourself right. Then start making
other things right.
Then the reinvention began.
I was in the middle, but we started to
change and things started to change. A
new building project began and the DP
Rex Weaver is the Service Manager for
Rothrock Motor Sales in Allentown, PA.
p. 101
PA R TS D E PT.
Wholesale Parts Marketing:
Dealer Services and Tools
Wholesale Parts Marketing Services
Employing a wholesale Parts salesperson to spend their days on the road
wooing shops to become customers
and persuading customers to buy more
is expensive – too expensive for many
dealerships. And most dealerships must
cover this cost with Parts sales from a
few makes (not so for Aftermarket (AM)
parts suppliers serving all makes).
An alternative to employing your own
sales representative for wholesale Parts
is to outsource wholesale Parts marketing to one of the nearly two-dozen
wholesale Parts marketing firms that
connect dealers and shops. (Wholesale
Parts marketing firms can also supplement rather than replace your own sales
representative.) These firms thrive by
building relationships in the wholesale
buyer community – in one or more geographic regions and then spreading the
costs of selling and customer support
over multiple dealerships covering all
franchises. (In a future article we’ll cover
the firms and services implementing and
supporting vehicle-manufacturer wholesale Parts marketing programs.)
p. 102
Advanced Logistics

Dealer Network One

Elite Extra
Elite Sales / E-Brands
JLS Marketing
King Wholesale
Marketing
 
 

Minacs

OE PartsDirect
OPA (Overnight Parts
 
Online Payment


   
Hotshot deliveries, delivery alliances
N. America &
Int’l
Florida
Alabama/Georgi
a
National

 
Because these firms reduce the burden
on shops to find (and manage) a superior set of Parts suppliers to cover allmakes (and sometimes provide a rebate
to MSOs), some shops may suggest
(or require) that your dealership work
through a particular – preferred – Marketing Services firm.
While outsourcing wholesale Parts marketing may be cost-effective, accurately
measuring the ROI can be challenging.
Whether utilizing outside marketing services or employing your own sales person, it’s useful to know the net actual
impact on retaining and growing existing
customers, as well as acquiring new accounts. By aggregating wholesale transactions and providing analytic reports,
A “Dealer Parts Group” company
Regional
Alabama

Expected national roll-out
ROI analysis: selling & marketing
programs
U.S. & Canada
 Regional

Comments
Drivers, Vehicles, Routing –
Dedicated/Shared
DMS integration; ETA in eCommerce
Nearly National
 
  
Geographic
Range
Northwest
N. America &
Int’l
Regional –
South

 
Driver Solutions
WE Logistics
CRM

AdvantageData
Alliance)
OPS (Overall Parts
Solution)
SCI (Summit Consulting,
Int’l)
eCommerce
Summary Chart
Marketing Services
Delivery
Management
Routing/Tracking
Introduction
My recent research in support of writing about wholesale Parts eCommerce
(in the last few issues of Fixed Ops
Magazine) drew my attention to the importance of adjacent products and services: wholesale Parts marketing, Parts
delivery and more. For many dealerships, these wholesale Parts products
and services present an opportunity to
hold down costs while improving customer satisfaction and maintaining (or
growing) revenue from their wholesale
Parts trade.
By Ted Fellowes
U.S.
Online ordering starting 2015
a.k.a., NAPCO
Reporting tools that support ROI analysis
Hotshot deliveries, other support
Building ShipTrack tool; OPA is dealer Coop
DMS Integration; Deliveries are regional
only
Adopted by Autonation, other dealer
groups
Northeast
a CRM system may allow monitoring
productivity and sales – thus, enabling
dealers to determine the effectiveness
of new tools and programs.
Parts Delivery Services
Once parts are sold to wholesale buyers, the parts must be delivered. Some
dealers maintain a fleet of delivery
trucks and a team of drivers – an expensive proposition and one that may limit
delivery frequency. Dealers may reduce
the burden (management time / focus,
administration and liability) by using a
dedicated service. Dealers can further
reduce delivery costs with shared delivery services, while possibly increasing
delivery frequency (and thus customer
satisfaction).
GPS-based routing / tracking services
are a significant improvement (15% in
crease in efficiency and 5% reduction in
fuel, fewer / smaller delivery delays and
buyer access to ETAs) and are available
for dealers’ own delivery fleets, some
dedicated contracted fleets / drivers
and some shared delivery fleets. GPS
routing / tracking for dealer Parts deliveries will grow from low adoption to high
adoption in coming years.
“Dealerships
are not only
lowering cost,
liability and
management
distractions, they
are growing their
wholesale Parts
business faster.”
An entirely different type of Parts Delivery Management solution optimizes
dealers’ selection of transportation
companies for Parts orders not being
picked up by the buyer or delivered by
the dealership’s delivery fleet. The solution identifies restrictions (hazmat,
dimensions, weight) and can select the
least expensive alternative. Such solutions typically print shipping labels and
documentation, as well.
Digital Integration
Parts eCommerce solutions (via integration with routing/tracking solutions) may
now provide shops with delivery ETA’s
for their Parts based on real-time GPS
location of the delivery vehicle, route and
current traffic. In coming years, embedded real-time ETAs will become (nearly)
universal in Parts ordering solutions (as
dealers pursue the time-savings and
higher shop satisfaction).
Soon firms will begin combining (or integrating) vehicle GPS with shipment management – even Dispatch Management.
Integrating CRM and delivery management solutions is also emerging and will
provide outside sales staff key information regarding customers’ buying trends
and delivery times, as well as provide
optimal routing of customer visits.
More Services
Several firms deliver additional value by:
(1) running twice-a-day deliveries; (2)
making emergency hot-shot deliveries;
(3) assisting with returns; (4) facilitating
credit approvals – of shops they bring to
the dealer; and (5) training in the adoption and use of new technology such as
parts eCommerce. On a related note,
solutions are now available to aid dealers in selecting the best shipping option for express (UPS / FedEx) and LTL
as well as truckload shipments for their
wholesale Parts business.
Choices
See the summary chart for a representative (but not comprehensive) list of the
many options available to dealers.
Additional Considerations
- Dealerships may form co-ops to provide wholesale marketing and delivery
services
- The wholesale Parts trade has two distinct markets: (1) collision-repair shops
and (2) mechanical-repair / maintenance
shops and fleets. Marketing and delivery
services may serve both or only serve
one very well (or at all)
- Supporting wholesale Parts requires
more than selecting the best service
providers. Dealers must have knowledgeable, dedicated staff and the right
inventories, as well as other core capabilities
- Finally, the individual delivering the
service makes a key difference; performance will vary with the individual
representative(s) working with dealers
and shops
Summary / Conclusion
For dealer wholesale Parts marketing
and delivery, the number of solutions
(and providers) as well as the performance of these solutions is continuing
to expand impressively. Dealerships are
not only lowering cost, liability and management distractions, they are growing
their wholesale Parts business faster.
One network of dealers reported 90%
growth of dealer wholesale revenue over
five years resulting from outsourcing
marketing and delivery. Given the new
and improved potential cost-efficiencies, dealerships that are serious about
building or sustaining a wholesale Parts
business should consider again if these
services could be provided by a partner.
Use this article as a checklist for your
assessment.
My thanks to the many folks in the industry that helped with this article – too
numerous to list, but you know who you
are.
A follow-up article will fill in some of the
gaps, including:
- OEM Programs (including incentives)
- CRM
- Wholesale payment (invoicing)
- GPS solutions
- Portals (order archive, performance
metrics, returns)
During 30 years focused on Service Parts systems and information services from the dealership, vehicle-maker and buyer perspective,
Ted Fellowes has been a leader in dealer systems innovation – first EPC, first dealer Parts
e-commerce and first web Parts locator. He
has served in executive roles with Bell & Howell (now, Snap-on) and OEConnection. Five
years ago he launched Fellowes Research which now has clients
in North America, Asia and Europe, including vehicle manufacturers, consulting / investment firms, DMS providers and Fixed Ops
solutions providers. Fellowes is the leading expert on automotive
Service Parts e-commerce.
p. 103
BOD Y S H OP
Collision Repair Shops
Brace for Challenges of
Aluminum Bodywork
With Ford’s 2015 F-150 pickups’ highstrength, military grade, aluminum alloy body and bed saving up to 700 lbs.
over the previous model while increasing mileage and towing-hauling capacity, body shops have been preparing for
new challenges that aluminum body repair work will entail. At the top of the list:
the proper handling of messy and potentially explosive airborne dust caused
by grinding or sanding.
The aluminum body revolution is an industry game changer and its impact will
only increase in the years ahead. General Motors has already signaled that
updates of its Chevrolet Silverado and
GMC Sierra pickups will feature weightsaving aluminum bodies in the fall of
2018.
By 2025, “Seven out of ten new pickup
trucks produced in North America will
be aluminum-bodied” and “every leading automaker will have several aluminum body and closure panel programs,”
according to a 2015 North American
Light Vehicle Aluminum Content Study
by Ducker Worldwide, a premier consulting and research firm.
To meet the coming demand, body
shops will need to adapt to the challenges of working with aluminum with
dedicated tools, equipment and training.
Failing to do so may mean missing out
on one of the fastest growing markets in
the next decade.
p. 104
“All aluminum bodies from Ford’s Fseries to Chevy and GMC are going to
have a major impact on the collision
auto body industry in the next few years
and it’s going to grow from there,” says
Gary Gardella, Jr., co-owner and production manager at County Line Auto
Body in Howell, N.J., a high-production,
Ford-certified, collision repair shop, that
repairs about 50-70 vehicles per week,
generating about $5 million in annual
revenue. “We’re preparing now because
we want to be ready for the opportunity.”
Ford, for its part, is at the forefront of setting the guidelines and requirements for
working with aluminum bodied vehicles
for both Ford dealership and independent body shops. Through Ford’s National Body Shop Program and its 2015
F-150 Collision Repair program, the
company has been addressing the full
range of aluminum issues: from isolating
aluminum vehicles from traditional steel
repairs with a separate room or curtain
system to dealing with aluminum dust
to dedicated aluminum welding, riveting and dent extraction systems. Ford’s
National Body Shop Program enables
dealerships and sponsored independent
body shops to become officially certified
or recognized by Ford and Lincoln.
Among the requirements for Ford’s program, administered by Assured Performance, for instance, is a “dedicated aluminum dust extraction system with wet
mix technology.”
B y D e l W i l l i a ms
Ford’s 2015 F-150 Collision Repair program, created by Ford to assist dealers
and independents, further stipulates a
dedicated aluminum wet mix air filtration system, which can be portable or a
central installed system.
While collision repair body shops have
always performed sanding, grinding,
welding and cutting to produce dust,
fumes, spatter and sparks, this was just
a nuisance when the industry revolved
around steel vehicles. But the recent introduction of mass-produced aluminum
bodied vehicles like the Ford F-150 has
brought this dust into the spotlight, as
the dust has created problems and hazards ranging from cross-contamination
of metals to combustible dust fires and
even explosions.
“Aluminum dust must be safely captured at its source to prevent quality issues like peeling paint or adhesion problems,” says Gardella, who has several
auto body technicians participating in
Ford’s F-150 Collision Repair program.
Cross-contamination occurs when aluminum dust in the air settles on steel
panels or iron oxide dust settles on aluminum panels, prior to primer or paint.
This contamination will result in poor
adhesion and quality problems months
and years after painting a panel. This
can pose a real business risk to a collision repair shop that’s forced to deal
with warranty issues and customer
comebacks.
aluminum dust at its source for over a
decade.
“The transfer of safe, high efficiency,
aluminum dust capture technology from
aerospace to auto body collision repair is
going to make our industry safer, cleaner
and more efficient,” says Gardella, who
is testing several of the vacuum and airpowered units around his shop.
Isolating aluminum repairs with curtains
or dividers can help prevent cross contamination, but it does little to prevent
the risk of fire or explosion. In shops doing aluminum bodywork, aluminum dust
can settle on overhead pipes, rafters,
walls and shop equipment, creating an
environment ripe for disaster.
To eliminate the concern of aluminum
cross-contamination and dust combustibility, and to present a clean “dealership feel” to their body shops, more
owners are looking to vacuum extraction. They’re finding inspiration in other
industries that have successfully used
the technology.
Aluminum dust poses a combustion
hazard in high concentrations and is
particularly combustible -- even explosive -- when airborne and finely separated. If a typical vacuum containing dry
aluminum dust were to draw in a grinding spark or even experience the spark
from static electricity, it could ignite and
cause a fire or explosion.
Vacuum extraction of aluminum dust, in
fact, has been standard in aerospace for
decades, as lightweight aluminum has
long been used as a primary manufacturing material. Now, similar technology
is being used in the automotive industry
to control aluminum dust.
“When dealing with aluminum dust, a
high, safe capture rate is important to
prevent potential fires or even explosions,” says Gardella.
The collision repair industry has long
been viewed as a dirty business, bringing to mind the image of a technician
hunched over a vehicle, with a plume of
sanding dust being launched into the air
as he finesses a body panel back into
shape. In recent years, however, shop
owners have sought to reach out to customers with a cleaner, dust-free environment.
“Younger techs and the public don’t
want to breathe a plume of dust, aluminum or otherwise, in auto body shops,”
says Gardella. “They want a cleaner
environment and that requires better
equipment.”
In wet mix technology, one challenge is
that a wet aluminum sludge remains at
the bottom of the vacuum. This needs
to be emptied on a daily basis as part
of proper maintenance to ensure safe
operation. While some units require the
user to drain the fluid, then extract the
remaining sludge with a squeegee, this
method fails to fully remove the sludge
caked on the sides of the unit. This allows a potentially dangerous build up of
aluminum to accumulate.
Other units involve a gravity feed drain
with a funnel-shaped bottom and water
spray-down system inside. This enables
a safer, full-system flush out of aluminum sludge and facilitates daily maintenance.
A dedicated aluminum wet mix air filtration system, such as that stipulated by
the Ford F-150 Collision Repair program,
for instance, safely captures aluminum
dust within the body shop at its source
while using water to ensure potentially
explosive aluminum dust particles do
not become airborne within the unit.
The aluminum sludge, in turn, must be
properly filtered to satisfy regulation before the discharge can be emptied into
the public sewer system. Aluminum dust
vacuum units are designed to filter out
such aluminum residue as it exits the
unit, so it can be safely discharged into
public sewers.
A wet mix air filtration system, also
known as an immersion separator, essentially brings in the aluminum dustladen air stream through water contained in the vacuum.
As collision repair shops prepare for
the lucrative new business that aluminum bodywork such as Ford’s F-150 will
bring, outfitting their shops with the necessary equipment will position them for
a profitable ride.
One such system, for instance, directs the air stream and aluminum dust
through a series of air filtration baffles
that bursts the air bubbles and thoroughly wets the dust before the air exits
the vacuum. While Ford’s specific requirements call for an immersion separator, dry collection vacuum systems
have been used in aerospace to capture
Del Williams is a technical writer based in Torrance, California. He writes about health, business, technology and educational issues. Del has
an M.A. in English from C.S.U. Dominguez Hills.
Some of the source material for this article came
from Lakewood, NJ-based Clayton Associates, a
company specializing in collision repair products
and supplies.
p. 105
A D MI N I S TR ATI ON
The Importance of Personnel
Files: File Value, Organization and Auditing
B y K at h r y n C a r l s o n
Not only are there Federal laws regarding
the contents of personnel files, but there
are also individual State laws, as well.
A well-organized personnel file program
will ensure that your facility is compliant,
able to effectively manage your employees and help to protect you against employment lawsuits.
There are many considerations to take
into account when creating a personnel
file for each employee. First and foremost, for each document placed within
the file, consider if the dealership will
need the particular document to justify
decisions if they are sued. Would the
document be necessary in a court of
law? There’s a fine line between including important documentation and providing too much information that may create
further issues in an employment lawsuit.
The debate over whether a document will
be valuable in a court of law may lead
many employers to put too much information into a personnel file, but keep in
mind that managers should never put
opinions or personal thoughts into a
personnel file; only factual information
should be included. It’s best to have employees sign any document that will be
included in the file. This signature acknowledges that the employee is aware
of and has read the document, not to
note that the employee agrees with the
contents of the document.
The confidentiality of personnel files is of
great importance. Personnel files must
p. 106
be stored in a locked, fire-proof file cabinet in a locked location that is only available to Human Resources staff. While
most documents are kept within personnel files, confidential information, I-9 Employment Verification forms and medical
/ leave records must be kept in folders or
binders that are separate from personnel
files.
Confidential information refers to any
documents that include:
• Date of birth
• Medical information
• Marital status
• Religious beliefs
• Social Security information
It’s very important to keep your personnel files up-to-date for them to be a true
asset in the event of a legal dispute. An
ideal time to audit personnel files is during annual reviews. Prior to a review, take
the time to confirm that all files are accurate, up-to-date, properly separated and
complete. During the annual assessment,
ensure that the following items are completed within each personnel file.
Hiring
• Is the employee’s job application, offer
letter and resume included?
• Is the job description included in the
file? Has it been signed by the employee?
• When was the last time the job description was reviewed? Is it pertinent to
the employee’s current position? Does
the job description include enough information to determine if the employee
is exempt or non-exempt?
• Is the employee handbook acknowledgement and other policies signed by
the employee?
• Is there a signed Acknowledgement of
Receipt of company equipment?
• Is there a completed checklist indicating issues covered during new hire orientation?
“Outside of the
legal reasons
to maintain
personnel
files, they can
also help you
make important
management
decisions.”
Performance Management
• Are all performance appraisals signed
by the appropriate individuals?
• Is performance appraisal documentation attached?
• Are the performance appraisals completed on-time in accordance with company policy?
• Do the performance appraisals contain appropriate language and identify
appropriate development requirements
that need to be addressed?
• Are disciplinary action notices (counseling sessions, written warnings, performance improvement plans) signed by
the supervisor and is supporting documentation attached, if applicable? Do
the notices include future expectations
with deadlines and consequences for
failing to meet the expectations?
• Are termination letters or letters of res-
ignation placed in the employee’s file?
Training & Development
• Is mandatory training documented in
the file? (Customer Information Security,
F&I, Red Flags Rule safety, OSHA, harassment prevention)
• Are all applicable licensures copied
and included in the file?
Payroll
• Are time sheets maintained for each
employee and are they completed and
signed by the employee and supervisor?
(They may be contained electronically in
your payroll software program.)
• Have employees signed the appropriate documentation for deductions to
paychecks (insurance, 401k contributions, union dues, charitable donations)?
Form I-9 Employment Verification (kept
in separate folder or binder)
• Is there a completed Form I-9 for each
employee hired after November 6, 1986?
• Is each Form I-9 completed within
three days of the employee’s start date?
• Is the Form I-9 filled out accurately?
Medical Records / Leave Requests
(kept in separate folder or binder)
• Are all current benefit enrollment forms,
beneficiary forms and benefit claims included?
• Is there any leave-of-absence documentation (FMLA and non-FMLA), dis-
ability or WC documentation to include?
Outside of the legal reasons to maintain
personnel files, they can also help you
make important management decisions.
Personnel files can help managers track
employee turnover rates, create training and development programs and can
also help them make salary revisions, allowances and other benefits related to
salaries. Personnel files are a vital piece
of any dealership organization and, if
properly managed, can both support the
dealership as well as protect against legal liability.
Have you considered using electronic
storage for your personnel files? Having the information online can make access easier and help you stay organized.
From full-scale online HR management
software platforms to using a basic document storage solution, there are many
options to eliminate having to maintain
paper files.
Kathryn Carlson is the Vice President of
HR Management Products for Lafayette,
Colorado-based KPA. She has more than
25 years of human resources management
experience and is a certified HR professional. For the past 13 years Kathryn has
focused on developing HR software and
programs to improve efficiency, reduce
risk and ensure compliance for companies
ranging from small businesses to international corporations.
p. 107
P R I C I N G S U R VEY
THIS ISSUE:
Oil C h ang e s a n d A i r F i lt e rs
Nassau-Suffolk, NY
2012 Chrysler 200 S, Sedan, 3.6L, V6, Auto, FWD
National Competitor
National Competitor
National Competitor
Dealer #1
Dealer #2
National Competitor
National Competitor
National Competitor
Dealer #1
Dealer #2
National Competitor
National Competitor
National Competitor
Dealer #1
Dealer #2
National Competitor
National Competitor
National Competitor
Dealer #1
Dealer #2
Engine Air Filter (Part)
Installation of Engine Air Filter
Brand of Engine Air Filter
Conventional Oil Change
$6.44
Free
FRAM
$25.00
Free
Purolator
$10.99
Free
Pro Line
$21.95
Free
Chrysler
$24.95
Free
Mopar
San Jose, CA
2011 Volkswagen Jetta, Base Sedan, 2.0L in-line 4, Auto, FWD
$40.00
Free
NAPA
$20.00
$20.00
MicroGuard
$29.99
Free
Pro Select
$20.50
$58.00
Volkswagen
$25.00
$39.95
Volkswagen
Grand Rapids-Muskegon-Holland, MI
2010 Ford Mustang GT, Coupe, 4.6L, V8, Auto, RWD
$25.00
Free
$38.00
Free
$24.99
Free
$19.95
Free
$19.95
Free
Tulsa, OK
2010 Toyota Tacoma Pre-runner Double Cab, 4L V6
$12.99
$25.00
$14.00
$29.95
$25.74
Free
Free
Free
Free
$12.95
NAPA
CarQuest
Purolator
Motorcraft
Motorcraft
Purolator
Purolator
FRAM
Toyota
Toyota
$31.88
$26.99
$31.99
$34.95
$29.90
$18.95
$44.00
$24.99
$49.95
$69.95
$24.95
$22.95
$34.49
$28.50
$36.43
$34.75
$37.49
$34.00
$34.95
$46.00
Brand of Oil/Filter
Pennzoil/FRAM
Kendall/Purolator
Pennzoil/Pro Line
Chrysler/Chrysler
Citgo/Mopar
Brand of Oil/Filter
Valvoline/NAPA
Shell/MicroGuard
Kendall/Pro Select
Castrol/Volkswagen
Castrol/Volkswagen
Brand of Oil/Filter
National/NAPA
Kendall/Car Quest
Kendall/FRAM
Motorcraft/Motorcraft
Motorcraft/Motorcraft
Brand of Oil/Filter
Valvoline/Purolator
Kendall/Purolator
Shell/FRAM
Mobil/Toyota
Mobil/Toyota
InteliChek shops local, regional and national competition for automotive dealerships, providing market
intelligence to improve customer retention, identify new trends, conquer new business, analyze competitive
activity and identify areas of improvement.
For this month’s feature, InteliChek contacted a selection of independent retailers, mass merchants and new vehicle
dealerships to obtain current pricing on Oil Changes and Air Filters. Four markets of varying size were selected.
InteliChek requested and verified retail prices via phone calls, using specific vehicles, and vehicle services. In that
way, direct and useful comparisons can be made. While InteliChek allows the retailer to suggest a brand of Oil
Changes and Air Filters, efforts are made to steer the retailer to providing prices for major brands to allow for
accurate pricing comparisons
For more information on InteliChek, visit www.intelichek.com.
p. 108
N ew p r od u c t s
Royal Purple Max ATF Synthetic
Automatic Transmission Fluid
Max ATF is a synthetic, high-performance, automatic transmission fluid. Its low co-efficient of friction and high film strength
help dramatically reduce heat and wear. Additionally, this premium ATF fluid gives longer fluid life because it’s more oxidation-stable than
other transmission fluids. A longer lasting synthetic transmission fluid can
result in a number of advantages. Most often, Royal Purple customers report
crisper shifting, improved fuel economy and increased power with Max ATF.
Max ATF is scientifically engineered to extend the life of the transmission by
reducing the amount of heat and wear on the transmission system. Automatic
transmissions generate a great deal of heat and depend upon the transmission fluid for cooling and protection. More than 90 percent of all automatic
transmission failures are caused by overheating; a 20°F reduction in fluid temperature can double the life of the transmission.
Get Speed and Accuracy with New
John Bean V2300 Imaging Wheel
Alignment System
The new John Bean® V2300 Imaging Wheel Alignment System is one of the most advanced products available today. With patented,
high-resolution imaging technology, easy-to-use features and the awardwinning AC400 Touchless Alignment Wheel Clamp, the V2300 will provide
shops with accurate, real-time measurements that improve performance and
productivity, while at the same time enhancing the bottom line.
Fully featured, the John Bean V2300 Imaging Wheel Alignment System is
unlike anything offered in the marketplace today. The XD technology enables
highly accurate results, while the XD target system is lighter and takes up less
space than previous designs and provides a new small-pattern, single-plane
design. In addition, the extensive OEM specifications allow for quick and precise vehicle selection. The high resolution camera produces exact, live alignment readings and diagnostic data while the passive front and rear XD targets
improve durability with no electronics to damage. The V2300 also gives the
user advanced dimensioning as the cross-diagonal measurements identify
frame or structural damage while the rolling radius identifies mismatched tire
sizes, a potential cause of vehicle pulling and driver complaints.
Protect Tow-Behind Vehicles
with XPEL(tm) TRACWRAP
Temporary Paint Protection Film
Before your customer hits the road, protect their motorhome or tow-behind
vehicle investment from debris damage with XPEL(tm) TRACWRAP, an affordable, temporary paint protection film. Designed to prevent rock chips and
other paint damage, TRACWRAP can be easily self-installed for one-time use.
TRACWRAP was first created to protect vehicles at race tracks and is a great
solution to preserve the finish on all sizes tow-behind vehicles. TRACWRAP
is an 8mil thick urethane film, which provides robust protection for paint, unlike other extremely thin protection films on the market, and it will not harm
a vehicle’s finish.
Tracwrap is available in two sizes: eight inch by 40 foot size will cover the
hood, bumper, leading edge and rear end of a car, as well as the front of a
motorhome or truck. An eight inch by 100 foot size is designed for larger motor coach applications.
Advertisers Directory
3M Automotive Window Films
Pages 49 and 113
AutoLoopPage 7
Automotive Lift Institute (ALI)
Page 57
AutoPointPage 21
AutoZonePage 29
Bardahl / Protex
Page 95
BG Products
Inside Back Cover
Borroughs Corp.
Page 89
Carquest Auto Parts
Page 19
Cars.com Pages 60 and 61
CDK Global
Page 13
Dealer-FXPage 43
DealerMinePage 75
DealerPro Training
Page 93
DealerSocketPage 47
Dealertrack / ASR Pro
Page 39
EcoPower / Safety-Kleen
Page 113
eLead1OnePage 81
Eneos / Nippon Oil
Page 91
Fluid Rx Diagnostics
Page 59
I-CARPage 27
Infomedia / Microcat Live
Page 15
Infomedia / Superservice
Back Cover
Kendall Motor Oil / Phillips 66
Inside front cover and page 3
Mark VII Car Wash Equipment
Page 11
Mighty Auto Parts
Page 37
NADA Convention and Expo
Page 17
NADA University
Page 45
Naked Lime Marketing
Page 9
NAPA PRO Link / NAPA Auto Parts Page 113
NCM Associates
Page 73
NitroFillPage 65
PDQ Vehicle Wash Systems
Pages 33 and 113
Pedego / Ford Electric Bicycles
Page 67
Pennzoil / Shell Oil Products
Page 113
PowerPusher / NuStar
Pages 77 and 113
Reynolds and Reynolds
Page 31
ROAMS-KEEPSPage 87
Rome Technologies
Page 85
Rotary Lift
Page 25
Rousseau Metal
Pages 83 and 113
Royal Purple
Page 23
Simoniz USA
Page 5
SmartDealer Technologies
Page 55
Synchrony Financial
Page 41
TerraClean Products / Uview
Page 35
TireMerchandising.com / Jungle Cat Marketing
Pages 97 and 113
TSD Rental Management Software
Page 63
WHI Solutions / eBay
Page 51
XPELPage 53
XtimePage 79
p. 109
n ew p r od u c t s
BG Big Dawg® II Power Flush and Fluid
Exchange System
BG Big Dawg® II is built tough for large vehicle transmissions
and can handle small vehicles easily. It can exchange 42
quarts of automatic transmission fluid in as little as two minutes.
The Big Dawg® II is a professional-use transmission exchange machine
specifically designed to remove old automatic transmission fluid from large
transmissions while simultaneously adding new fluid such as BG Universal
Synthetic ATF or BG Universal Synthetic CVT Fluid. The simultaneous exchange method permits no intermixing of new and old fluids, meaning the
new fluid will last significantly longer than in traditional methods. Once the
fluid exchange is complete, additives such as BG ATC Plus or BG Universal
Synthetic CVT Fluid Conditioner, can be installed through the machine.
Display Wheels and Wheel & Tire
Packages Securely on the Service Drive
Jungle Cat Marketing, industry leader in point-of-sale tire merchandising systems and displays, has introduced their new
Wheel and Tire Display system. This rack is the perfect addon to your current tire merchandising program. Now you can
securely add wheels and / or wheel & tire packages to your
Service drive displays, even in an open drive.
The system is modular, lockable, weather-resistant and fully compatible with
the company’s popular modular tire merchandising displays. All racks are galvanized, then powder coated DOT steel. The wheel and tire version features
an adjustable height, lockable wheel fitment that’s hidden behind the assembly. The product is super strong and can be shipped anywhere by UPS.
Graco SD Series Cord and Light Reels
All Graco cord and light reels feature an innovative slip
ring design that promotes long life and durability. The
spring is completely enclosed for protection and is easier and safer to repair
with access on the open side of the reel. The sturdy, heavy gauge steel frame
won’t flex or bend. Internal components meet UL355*, CSA22.2 No. 21 and
IP44 standards for general, commercial and industrial grade use.
- Durable frame in two sizes to fit into more applications
- Choose from 35, 50 or 95-foot cord lengths
- Lighting options include fluorescent or LED with optional tool tap receptacle
- Cord options include single industrial receptacle or duplex GFCI receptacle
- Flexible positioning of the guide arm allows for mounting on bench, ceiling,
wall or utility truck
TRICO NeoForm Wiper Blades
TRICO NeoForm® beam wiper blades give you the original factory quality you
can depend on, with the value-added performance of Teflon® wiper blade
surface protector for a smoother wipe and longer life.
Features and benefits:
- Original Equipment quality for the same fit and function as when the vehicle
was new
- Exclusive Teflon® surface protector
- Memory Curve Steel® beam provides uniform pressure for the clearest wipe
- Exclusive dual-point coupler helps eliminate streaking
- Extreme weather durability – from sun and rain to snow and mud
- Wiper blade size – available in lengths from 14” to 28”
p. 110
PEAK Global Lifetime Full-Strength
Antifreeze & Coolant
PEAK® Global LifetimeTM Antifreeze & Coolant features a patented, advanced organic acid technology that provides guaranteed LifetimeTM protection for as long as your customer owns their vehicle.
Patented inhibitors provide maximum protection against damaging rust and
corrosion in all automobiles and light trucks worldwide, regardless of make,
model, year or original antifreeze color.
Specific benefits include:
- Provides guaranteed LifetimeTM protection when a complete cooling
system flush and fill is performed and specified maintenance is followed
- Formulated for use in all American, Asian and European automobiles
- Features a patented non 2-EH formula that is phosphate-free and
silicate-free
- Can be used to top-off any color of automotive antifreeze including green,
yellow, orange, fuschia, blue and red
- Amber color will not change the current antifreeze color when used for
topping off
- Meets ASTM D-3306 and ASTM D-4340
Lista Offers ListaWorks CustomConfigurable Process
Lista now offers the innovative ListaWorks™ service,
which provides the highest-quality, custom-configurable solution that precisely fits dealerships’ unique space requirements, free of charge.
With ListaWorks, experts survey current and future storage and workspace
needs, then propose solutions that provide the highest density and greatest
productivity. The detailed, customized plan for individual workspace and storage needs is guaranteed to maximize efficiency and flexibility while optimizing space and profitability.
Service and Parts Departments are major profit centers and Lista’s customized workspace and storage solutions are ideal for increasing efficiency and
productivity. Dealership customers are attracted to the clean, organized and
professional appearance that comes from Lista’s contemporary product design.
Rotary Lift Updates Light-Duty
Four-Post Lifts for Better
Productivity and Durability
Rotary Lift has updated its SM series of 14,000 lb.
capacity four-post lifts to provide greater productivity and durability through
a higher rise height, improved drive-on ramps and a new powder-coated
hammer-tone paint finish. The features make the SM series four-post lifts
more capable for facilities that service a variety of vehicles, including cars,
light trucks and vans.
The Rotary Lift SM series four-post lifts now come standard with 78.75 inches
of rise height, which is five inches higher than previous models. The resulting
extra under-runway clearance makes it easier for technicians to walk under
the lift to access drivetrain, exhaust and other under-vehicle components.
For improved traction, louvers have been added to the lifts’ drive-on ramps.
The bottom of each ramp has also been fitted with polymer rollers instead
of protective strips. This allows the ramps to smoothly roll along the floor as
the lift is raised and lowered, to reduce floor gouging. The ramps, runways
and posts are finished with a powder-coated hammer-tone paint finish for
improved durability and easier maintenance.
N ew p r od u c t s
Enhanced Hunter TC3700
Center-Clamp Tire Changer
- Tilted ergonomic design
- Complete operation performed from one position
- Bead press arm assists mounting difficult assemblies
- Directs bursts of compressed air to easily seat the bead
- Moveable rear column handles up to 50-inch diameter tires
- 850 ft-lbs of torque
- PowerOut bead loosener
- Polymer mount / demount head
Martins Industries Premium Tire Cart
The premium tire cart (MPTC) reduces handling, the
number of trips and helps avoid work stoppages and
workplace accidents, particularly back injuries. Your employees will greatly appreciate this tool, especially when working with larger,
heavier tires.
The MPTC carries tires of up to 38-1/2” in diameter and can move up to 8
tires at a time. It’s easy to use: simply open the clamps of the cart with the
handles, slide it under the stack of tires, close back the clamps and lean back
the cart to move the tires around easily.
The premium tire cart is adjustable at a 45 degrees angle to transport the tires
easily and effortless due to the back wheels that can handle the maximum
weight capacity of 440 lbs. The cart can be position in an angle of 90 degrees
(horizontal) to be used as a working plan.
Bosch S6 Platinum Series Ultra High
Performance AGM™ Battery
- PureLead Technology provides more active material inside the battery for maximum power and longevity
- 28 times more vibration resistance than conventional batteries
- 100% maintenance free under normal operating conditions
- Sealed and 100% leak-proof in any position; also for passenger compartment use
- Substantially higher cycling endurance for start / stop applications
- Engineered for greater energy capacity, excellent conductivity and maximized life
- 4-year free replacement
- Free roadside assistance
Update Your Frame Rack with New
Holding Package From Chief
Modern vehicles manufactured with aluminum and other “exotic” materials require an updated approach to collision repair.
The new Structural Holding Package from Chief Automotive
Technologies allows collision repair shop operators to use their
existing frame racks to properly repair these vehicles. The package is included in the Ford 2015 F-150 Collision Repair Program.
The package includes more than 50 components that can be combined in
a variety of ways to secure a vehicle at a wide range of holding points. Vice
clamps are included for use on frame-based trucks and vans, while unibody
vehicles can be secured at their suspension mounting points or upper rails
with bolt-on surface plate attachments. The entire contents of the Structural
Holding Package come neatly arranged on a rolling tool board to keep everything organized and easy to move.
Phillips 66 Lubricants
Kendall® VersaTrans® LV ATF
and Kendall® CVT Fluid
Phillips 66 Lubricants has announced the
addition of two new products to its Automatic
Transmission Fluid (ATF) line with the launch of Kendall® VersaTrans® LV
ATF and Kendall® CVT Fluid. The lubricants are designed for use in passenger vehicles with conventional automatic transmissions and continuously
variable transmissions, respectively.
The specially-engineered, full-synthetic Kendall VersaTrans LV
ATF is formulated to help ensure long service life and to provide consistent
shift performance for the life of the fluid. Additionally, this low-viscosity fluid
results in less frictional drag for improved transmission efficiency, thereby
offering the potential for improved fuel economy. Kendall VersaTrans LV ATF
is licensed as Ford MERCON LV® and GM DEXRON® VI ATF. It’s recommended for use in the newer Ford, GM and Toyota passenger car and light
truck automatic transmissions, which require use of modern, low viscosity
ATFs.
Kendall Motor Oil’s new CVT Fluid offering is designed with carefully balanced frictional properties to meet the unique requirements of passenger cars with belt-driven continuously variable transmissions. Compared
to conventional all mineral fluids, this new synthetic fluid provides enhanced
performance in oxidation stability, wear protection and service life. Kendall
CVT Fluid is recommended for use in most Honda, Jeep, Mitsubishi, Nissan,
Subaru and Suzuki vehicles with CVT transmissions, under all operating
conditions, including extreme temperatures.
Mobil 1 0W-40 Full Synthetic Motor Oil
Mobil 1™ 0W-40 is an advanced full synthetic motor oil designed to help provide exceptional cleaning power, wear protection and overall performance. Mobil 1 0W-40 keeps engines
running like new in all driving conditions.
Mobil 1 0W-40 (European Car Formula in North America) synthetic oil is engineered for the latest gasoline and diesel (without diesel particulate filters or
DPFs) engine technology delivering excellent all-round performance. Mobil
1 0W-40 is recommended for many types of modern vehicles where it will
help provide unsurpassed performance even under very demanding driving
conditions.
Thanks to extensive cooperative development work with major manufacturers and the application of the latest lubrication technology, Mobil 1 0W-40
synthetic oil is recommended for many types of modern vehicles where it will
help provide unsurpassed performance even under very demanding driving
conditions.
- Latest engine technologies including turbochargers, direct injection, diesels
(without DPF) and hybrids
- High performance engines
- Most operating conditions, from mild to extreme
WeatherTech DigitalFit®
FloorLiner™
Digital laser measurements of interior surfaces offer a consistently perfect fit. A patented tri-extruded
composition allows for a rigid core for strength while offering surface friction
to the carpet, as well as tactile feel to the surface. The FloorLiner™ advanced
surface design has channels that carry fluid and debris, away from shoes and
clothing, into a lower reservoir. The lower reservoir uses additional channeling
to minimize fluid movement while driving. Once fluids become trapped in the
reservoir, they are easily removed from the WeatherTech® FloorLiner™ over
the door sill…No muss – No Fuss!
p. 111
n ew p r od u c t s
Petra Shield Professional Grade Car Care
Products and Cleaners
Houston-based Petra Oil Company, a leader in aftermarket automotive maintenance products and programs, has launched
Petra Shield, professional grade interior and exterior car care
products.
The full product line includes the following: Cherry Soap, Genesis High Performance Polish, Genesis High Performance Compound, Pro Interior Dressing, Glacier Dressing, Leather Conditioner, Red Fury Degreaser, Upholstery
and Carpet Cleaner, Super Sheen Tire Dressing, Ultra Wheel Cleaner, Petra
Spray Shine, Paint Protector and Glass Cleaner.
Coats Vero V200 Wheel Balancer
The Coats® Vero Series™ V200 wheel balancer reduces
balance related comebacks with Coats’ exclusive Direct
Drive technology and innovative ProBalance Technology™. The V200’s Direct Drive technology holds a
10-year warranty. ProBalance Technology™ is a unique
balancing algorithm and unbalance correction methodology that minimizes
both static and couple unbalance. The industrial-grade touchscreen interface standardizes wheel balancing into a step-by-step process and boasts
an intuitive “No Touch” interface. This helps technicians perform 85% of
wheel balances without ever touching the screen. The V200 reduces comebacks and helps you do the job right the first time, every time.
Bardahl All-U-Need Fuel System
Treatment
The complete fuel system treatment that reduces emissions and
guarantees you’ll pass emissions test. It’s not enough to just
clean injectors. To maintain total engine efficiency it’s necessary
to clean injectors, intake valves, combustion chamber and the
emission system. One bottle of All-U-Need in a full tank of gasoline provides fast one-tank clean-up of all these areas. This unique blend of
detergents and dispersants allows Bardahl to offer the first and strongest
emission test guarantee in the industry. For best results add one bottle of
All-U-Need to a full tank of gas every 5,000 miles. There’s no better emissions
product on the market today.
- Cleans emission control systems
- Designed in response to strict I\M 240 emissions test requirements
- Reduces tailpipe pollutants up to 60%
- Concentrated fuel system treatment
Havoline ProDS Full Synthetic Motor Oil
A full synthetic motor oil formulated to provide exceptional
wear protection in hot or cold operating temperatures. Provides protection for extended oil drains, heavy loads and for
vehicles requiring a synthetic motor oil.
Customer benefits:
Easy cold weather starting
Minimizes engine deposit and emissions
Promotes long engine life due to extremely fast lubrication during starting
and outstanding wear protection during all other engine operating conditions.
New Oil Eater Brake Washer
The new Oil Eater professional brake Brake Washer is an
energy-efficient washer that needs no electricity to function.
Powered by air, it thoroughly cleans through the gunk and
dirt found on brake parts.
Included with the washer is a cover that catches any debris that might
otherwise fall on the floor while washing. It’s designed for use on alignment
lift / ramp lifts or on the floor and can also be used as aportable parts washer.
Eco-friendly Oil Eater Original cleaner / degreaser is included. It’s non-toxic,
non-corrosive, non-flammable and biodegradable.
Hanel MP-Link Dealership
Management System Interface
MP Link establishes a valuable connection between Hänel
units and DMS systems creating improved productivity
and increased inventory accuracy.
The Hänel MP Link was developed specifically for applications at automotive, truck and motorcycle dealerships.
While initially these customers embrace Hänel units for
recovery of floor space, the benefits of increased inventory control and improved Parts Department employee productivity become apparent.
Parts Department personnel process all transactions through the established
DMS systems just as they did before installing Hänel units. Once the transaction is completed on the DMS system, it’s sent to the Hänel unit and parts
can be stored and picked from one centrally located ergonomically correct
position. In other words, parts are brought directly to the operator instead of
the operator having to walk to the parts.
p. 112
Rousseau Spider® Shelving with
Drawers
Gone are the days of poorly-lit and under-used shelves and losing objects
because of inadequate storage. Rousseau’s drawers (with a 400 lb. per
drawer capacity) are the ideal solution for storing your small parts as well as
high-turnover items. They will allow you to store a large number of articles
while keeping them all within easy reach and reducing picking time. Rousseau drawers can be installed in Spider® shelving as well as more than 35
different brands of shelving available on the market. It’s therefore possible to
keep installations that are already in place while still taking advantage of considerable space gains. Plus, with the many shelving and drawer accessories
available from Rousseau, the number of configurations is limitless.
Car-O-Liner Quick 42 Frame
Alignment System
Quick 42 is a phenomenal, multi-functional bench designed
to manage every type of damage productively and accurately. When used
together with one of the Car-O-Tronic Measuring Systems and the EVO Universal Anchoring and Holding Fixture System, Quick 42 easily handles not
only cosmetic but also structural repairs of damaged vehicles.
A quick repair process guaranteed.
Fast set-up, easy access, on-wheels measuring, quick anchoring and adjustable working height are some of the Quick 42 features that measurably
decrease repair time. Cosmetic repairs can be made while the vehicle is still
on its wheels. And if structural damage is discovered, the repairs can begin
immediately without changing benches.
MA RK E TP L A CE
SUPERCHARGE YOUR TIRE SALES!
See us at:
www.TireMerchandising.com
3M™ Automotive
Window Film
Crystalline Series
3M.com/autodealers
p. 113
I N D US TR Y N E WS
Continued from page 8
Steel vs. Zinc: BADA ‘8 Reasons’
Campaign Backs Up Steel with
Facts
BADA, a leading U.S. manufacturer of wheel weights, has launched a campaign highlighting the advantages of steel wheel weights. The campaign,
known as “8 Is More Than Enough”, highlights eight reasons for steel’s
superiority over other alternative materials.
“Our industry understands that lead wheel weights will eventually be phased
out across the U.S., so naturally the next question is ‘what is the best alternative to lead?’” said Kevin Keefe, Vice President of Marketing for BADA’s
parent company, Hennessy Industries. “With this campaign, we relied on
straightforward facts to tell the story of why steel wheel weights are a better choice than zinc wheel weights, the other emerging alternative to lead.”
“The independent lab found the tested zinc wheel weights had inconsistent weight due to porosity, which occurs during the casting process when
pockets of air are trapped inside the wheel weight body and make it lighter
than designed,” said Keefe. “Porosity isn’t an issue for BADA steel wheel
weights because our weights are formed from a solid piece of steel rather
than cast in a mold, resulting in a more accurate weight, every time.”
Study Finds Reputation of
Service Department a Key
Factor in Car Buying Decision
Cars.com, the leading online resource for buying and selling new and
used cars and a comprehensive digital marketing resource for car dealerships and manufacturers, has announced new research reinforcing that
the majority of consumers seek out online reviews about dealership Service Departments making car buying decisions.
In an independent Harris Poll commissioned by Cars.com, 64% of inmarket shoppers indicated that a Service Department’s reputation is a
factor when choosing where to purchase a vehicle. Furthermore, the research revealed more than half (57%) of shoppers would seek out a dealership’s Service Department reviews before purchasing a vehicle.
“These new findings show that reputation management can’t be limited
to the sales floor; it needs be embraced throughout the entire dealership,
especially in the Service Department,” said Jack Simmons, Manager of
Dealer Training Cars.com. “Car shoppers read online reviews for both
Sales and the Service Department before buying because they want to
know that the dealership will be a reliable, long-term partner for the entire
life cycle of their new car. For dealers to earn shoppers’ trust, they must
build their Service Department’s brand presence online and effectively
communicate their positive reputation through a variety of digital channels, where today’s consumers are shopping most.”
p. 114
MarketPlace Loyalty
Promotes Service Retentions
DealerSocket is introducing a new product that promotes Service retention during F&I and Service opportunities. MarketPlace Loyalty is a prepaid maintenance product linked with executable strategies through e-mail,
phone and direct mail reminder campaigns all from DealerSocket CRM.
Over 65% of customers that purchase a new or used vehicle never return
to the dealership for Service. MarketPlace Loyalty grants dealerships more
opportunities to promote multiple Service packages, during key moments,
which benefit that specific dealership and guarantee customer loyalty. In
addition, dealerships that implement MarketPlace Loyalty have seen a dramatic decrease in their marketing expenses by an average of 61% thereby
allowing dealerships to focus their marketing budgets on greater opportunities such as returning or new customers:
- Dealerships can utilize MarketPlace Loyalty as a differentiator to promote
customer loyalty.
- Over 46% of gross profit margin is at risk with ineffective planning for
Service retention.
- Proven to retain and capture 36% more customers servicing at the dealership.
Asbury Enviromental Service
to Showcase Fluid Rx “Instant
Lubricant Diagnostic™”
Fluid Rx Diagnostics™ by Magna-Guard has announced that it has reached
a strategic alliance with Asbury Environmental Services (AES) to distribute
a private label of its instant fluid testing and analysis tools. This program
could reach over 13,000 automotive service centers, oil change facilities
and new car dealerships in California, Arizona and Nevada.
“This is a very exciting partnership for Fluid Rx Diagnostics™,” said MagnaGuard, Inc. President, Ron McElroy. “AES has been a leader in the automotive waste fluids industry for over 75 years. The fact that they recognize the
reputation of Fluid Rx Diagnostics™ and the integrity of our diagnostic tools
compliments their long-standing position of excellence is very gratifying,”
he added.
With the introduction of manufacturer-specific lubricants and so-called
“lifetime fluids” the complexity of fluid preventative maintenance has significantly changed. Relying simply on OE time/mileage recommendations may
not be good enough or in the best interests of many vehicle owners and
operators. And what are the recommendations when the warranty runs out?
Fluid Rx Instant Lubricant Diagnostics™ provides both the Technician and
customer with the information needed to make an informed decision on
when fluid services are needed. Showing the test results to your customer
puts them in the driver’s seat, identifying needed services ups ticket averages and bolstering customer loyalty and retention.
NitroFill™ Dealers & Customers
Team Up to Plant More Than
100,000 Trees
NitroFill is looking to replace oxygen in vehicle tires as quickly as possible
with the superior performance of NitroFill nitrogen. NitroFill is just as serious about returning more oxygen to the environment via the company’s
Plant-a-Tree Program, a sustainable reforestation campaign, enhancing the
environment one tree at a time. Since January 2014, NitroFill has been partnering with its extensive dealer network to plant one tree for every NitroFill
conversion service sold.
Customers who purchase a NitroFill service, or a vehicle equipped with NitroFill, receive a free membership in the NitroFill Auto Club, a customer benefit program that includes tire repair and replacement coverage, roadside
assistance and other valuable benefits, which now include the planting of a
tree in their honor. When customers register and activate their membership
online at they are prompted to dedicate their trees to the person or cause of
their choice, and receive a personalized “Dedication Certificate” via e-mail.
“Our dealers are always excited to promote NitroFill because of the many
benefits it provides motorists including better fuel economy, longer tire life,
enhanced safety and a reduced carbon foot print. The opportunity to connect these advantages with the environmental stewardship of a tree planting program makes the experience even more positive,” stated Jay Lighter,
President of NitroFill. “This program energizes everyone and we’re receiving
a great deal of positive feedback.”
Car-O-Liner® Improves
Efficiency with WorkShop
Facility Planning Solution
Car-O-Liner®, a leading global provider of collision repair equipment to the
automotive aftermarket, offers WorkShop facility design planning as a free,
value-added service through local authorized Car-O-Liner Distributors.
Through this service, shops address challenges posed by limited space
or awkward building layouts by designing a concept for how equipment
will best fit to optimize work flow, thereby providing confidence that their
equipment investment will maximize both Technician productivity and shop
profitability.
After consulting on the objectives of the facility, the Car-O-Liner distributor will work with shop operators and their architects to plan and visualize
the most effective layout from a top view in 2D. The unique footprint of
the building is accurately represented to include structural attributes such
as garage bay openings as well as doors, windows, lighting and more.
Equipment can be rotated and moved, in real time, to determine optimal
placement with consideration for vehicle flow restrictions, safety and other
requirements of the space. At any time, the design can be viewed in 3D
from any angle with the ability to save and print high-resolution drawings
and specifications.
Phillips 66 Lubricants Extends
National Supply Agreement with
American Honda Motor Company
Phillips 66 Lubricants, one of the largest finished lubricants suppliers in
North America, has announced that it has signed a three-year agreement to
continue manufacturing and supplying service-fill lubricants for American
Honda Motor Company, Inc. (AHM). With this agreement, Phillips 66 Lubricants will remain the exclusive provider for most Honda Genuine and Acura
branded engine oil, lubricants and other vital fluids to dealers throughout
the U.S.
Phillips 66 Lubricants began supplying lubricants to AHM in late 2010. By
extending the relationship, Phillips 66 Lubricants and AHM are committed
to providing Honda and Acura dealers with high-performance products and
service.
“Our association with the great team at AHM has been highly effective over
the past three years because of our shared commitment to developing Honda Genuine and Acura branded oil programs that complement the quality
service provided at their dealerships,” said Bryan Faria, Manager, Finished
Lubricants. “We value the relationship and will continue to support AHM
and their dealers with genuine Honda and Acura products and service that
enhance the ownership experience for AHM’s customers.”
AutoLoop’s SmartLane
Integrates with Dealer Tire to
Help Dealerships Drive Profits
Through Tire Sales
AutoLoop’s SmartLane is a service app that provides mobile access to key
information in AutoLoop’s Book scheduling software, streamlining the Service lane check-in process and making inspections easier, faster and more
reliable. Dealer Tire is the only national firm exclusively dedicated to helping
original equipment automobile manufacturers design, implement and manage profitable tire programs for their dealerships.
“SmartLane is a powerful and useful tool for the dealership,” said Matt Rodeghero, AutoLoop Chief Product Officer. “Integrating with the Dealer Tire
software adds another facet of functionality and another service that dealerships can offer their customers.”
According to Rodeghero, Dealer Tire software is accessed during the vehicle inspection. If the tires are found to be worn, cracked, or otherwise in
need of attention, SmartLane seamlessly provides all relevant options from
the Dealer Tire site, including recommended replacement tires, pricing, current rebates and incentives. Results are then added to the SmartLane summary page.
“We’re excited to work with another company that specializes in proactive
automotive services,” said Rodeghero. “Dealer Tire and SmartLane together are an effective solution that benefits both the dealer and the end user.”
p. 115
NADA Launches Major New
Initiative to Promote the Benefits
of Franchised Auto Dealers
The National Automobile Dealers Association has rolled out a new “Get The
Facts” initiative to inform the media, opinion leaders and consumers about
the numerous benefits of America’s franchised new-car dealer network
through a website and variety of multimedia resources.
The centerpiece of the project is a two-and-a-half minute animated video
detailing the benefits of the franchised dealer system. Other resources include a 30-second video, a fact sheet on the consumer benefits of dealers,
a longer informative FAQ, a document explaining the reasons for state franchise laws, an infographic and other materials. In June the NADA released
a new report by renowned auto industry analyst Maryann Keller on the consumer benefits of the dealer franchise system.
“Franchised new-car dealers provide the best, most efficient and most
cost-effective way to sell and distribute new cars in America and we’re
proud of our businesses and business model,” said NADA President Peter
Welch.
“NADA’s efforts will set the record straight about the benefits of the dealer
franchise network for consumers, manufacturers and local communities
everywhere,” Welch added. “New car dealers provide the best and most
efficient way to buy and sell cars for both consumers and manufacturers,
despite the misinformation and misconceptions that have surfaced over the
last several months.”
Castrol® Expands Castrol
Protection Plus Program, Featuring a ‘Forever’ Engine
Warranty
Castrol Protection Plus (CPP) is only available to franchised new car dealerships that sell Castrol products. CPP is designed to provide a unique
advantage for dealerships to differentiate their used vehicle inventory from
local competition, by offering a ‘Forever’ limited engine warranty simply by
installing and performing regular maintenance with Castrol EDGE® Professional full-synthetic motor oil every 6 months or 5,000 miles. Plus, by doing
so, used car-buyers also receive 24-hour emergency roadside assistance
from Nation Safe Drivers (NSD), which is extended for 6 months every time
they get a Castrol EDGE Professional oil change. Owners of these vehicles
receive e-mail reminders to schedule their Service appointment at the selling dealership to keep their coverage active.
Castrol EDGE Professional – Castrol’s most advanced oil – is exclusively
available to franchised new car dealerships. It contains a UV dye, a recognizable signature of authenticity, and is micro-filtered to the standard required for factory installation by automakers, giving it superior performance
and engine protection. Castrol EDGE Professional is recommended by
world leading car manufacturers: Audi, BMW, Bugatti, Jaguar, Lamborghini,
Land Rover, Mazda, MINI, Rolls-Royce, Volvo and Volkswagen.
Dealertrack Acquires ASR Pro
Infomedia Announces New
Agreement with Hyundai
Canada for Microcat® Auto PartsBridge™
Global automotive industry software developer, Infomedia Ltd (IFM) has announced that it has entered into a non-exclusive licensing agreement with
Hyundai Auto Canada Corp. (HACC), to produce and supply Microcat®
Auto PartsBridge ® (APB) to Hyundai dealers and body shop customers
within Canada.
APB is the highly commended B2B version of its Microcat® Electronic Parts
Catalog (EPC). As a specialized SaaS (Software as a Service) business solution for OEM dealers and their important collision repair customers, APB
is the most comprehensive and effective system for the management of
competitive conquest sales available in the Parts field today.
Karen Blunden, CEO of Infomedia Americas said: “We are excited about the
opportunity to offer the APB system to Hyundai dealers in Canada. APB is
an affordable and innovative application that helps dealerships conquest a
higher degree of genuine Parts sales.”
Hyundai now joins Honda, Acura, Chrysler, Toyota and Kia in adopting APB
in support of their wholesale Parts programs.
p. 116
Dealertrack Technologies has announced the acquisition of substantially all
of the assets of ASR Pro, a leading provider of web-based electronic multipoint-inspection and Fixed Operations services for automotive dealerships.
Launched in 2004, ASR Pro software is designed to help maximize workflow efficiencies and increase profitability for automotive Service and Parts
departments within dealerships. ASR Pro, which is based in Raleigh, North
Carolina and employs approximately 35 team members, helps track, measure and manage Service sales and utilization for dealers to create additional Service opportunities, increase profits, improve customer satisfaction
and grow their customer base.
“The acquisition of ASR Pro will augment our existing integrated suite of
Fixed Operations offerings. With the proper management and control of the
Service lane and shop, we feel that the opportunity for capturing additional
Service revenue for dealers is tremendous,” said Raj Sundaram, Executive
Vice President, Dealer Solutions, Dealertrack. “The powerful combination
of our dealer management system (DMS) and ASR Pro will help dealers
transform their Service business and benefit from the rapidly-growing Fixed
Operations marketplace.”
According to Fred Fordin, Chief Executive Officer, ASR Pro, “The joining of
our organization with Dealertrack’s resources and expertise will help more
dealers create a sustainable and profitable Service and Parts business,
while significantly improving customer satisfaction and retention. We look
forward to being part of Dealertrack and continuing to bring innovative solutions to the Fixed Operations market.”
Recall Angel from Zonic Design
Accelerates OEM Recall
Notifications for Dealers
Recall Angel, a SaaS-based vehicle recall notification dashboard from Zonic Design, helps auto dealers quickly communicate OEM recall notifications to their customers so they can service those recalled vehicles effectively to ensure motorist safety.
The Detroit News reported recently that “25% of recalled cars in the U.S.
aren’t fixed despite notice.” The newspaper noted that, “Some car owners
mistake safety recall notices for junk mail and toss them without opening
them. In some cases, owners may not think a recall is serious and opt not
to get their cars fixed right away — or at all.”
“Zonic Design’s Recall Angel is a timely solution for all auto dealers
whose customers are being impacted by OEM vehicle recalls,” said Brian
Ramphal, Zonic Design CEO. “We have created a tool that greatly improves
communication efficiency with consumers and helps dealers qualify their
information with a user-friendly interface. OEM’s don’t always make recall
records easily accessible to their dealers.”
As a BDC-centered dashboard tool, Recall Angel ensures that detailed
recall information is communicated using personal telephony outreach to
subscribing dealers’ customers. Telephony ensures that these vital messages are delivered. Recall Angel drills down to specific makes, models,
trim levels and model years covered by a broader recall, giving dealers specific, detailed recall and Service data.
I-CAR® Celebrates 35 Years of
Serving Auto Collision Repair
Industry
Xtime Wins Best Automotive
Application at 2014 Annual
Telematics Update Awards
Known for its advanced connected car capabilities, Xtime took home the
honor for Best Automotive Application at the 2014 Annual Telematics Update Awards. Among a selected group of winners from more than 500 nominations globally, Xtime was recognized for ServiceTelematics, a component
of its industry-leading Scheduling 7 solution that is in use at over 6,000 new
car dealerships in the United States, Canada and Australia.
Xtime’s ServiceTelematics seamlessly connects a vehicle with the automaker’s dealer network. When alerted about needed maintenance or repair, the
driver can use the in-dash telematics system, mobile application or vehicle
diagnosis email notifications to quickly schedule Service directly with their
preferred dealer. Xtime’s ServiceTelematics then transmits Service details
to the selected dealership and confirms the order, and the information is
used by the preferred dealer’s Service Advisor to check in the customer
upon arrival. The result is an integrated and quality experience that values
the driver’s convenience.
“Xtime takes great pride in being at the forefront of the connected car movement and creating platforms that represent the ultimate customer experience,” said Neal East, Xtime CEO. “We are elated that the telematics community recognizes our innovations and that an increasing number of major
automakers are looking to Xtime to power their in-car Service scheduling.”
Automotive Compliance
Consultants Offers Tips for
Handling Toxic Troublemakers
Terry Dortch, President of Automotive Compliance Consultants, has stated
that dealers who permit toxic troublemakers – often a business’ top performers – to run riot unchecked could put other employees at risk and damage dealership reputation.
I-CAR®, the Inter-Industry Conference on Auto Collision Repair, has observed its 35th anniversary of improving the quality and safety of collision
repair to benefit the industry and consumers. The organization was formed
in 1979 when leaders convened to create a technical focus on collision
repair education in order to address a significant shift in vehicle technology
-- the advent of the unibody.
It’s not likely a dealership will become a mass shooting scene, but human
behaviors can too frequently strike on a smaller, less lethal scale. Bullying, abuse and other actions toward others in the workplace can leave behind victims, sorrow, distrust and anger. Toxic behaviors include gossip,
unconstructive criticism, drama, bitterness, bullying, constant complaining
or blaming others.
“I-CAR has worked hard over the years to expand our relevance to the
collision repair industry with a focus on building the knowledge and skills
necessary to support complete, safe and quality repairs,” said John Van Alstyne, I-CAR President & CEO. “We believe in excellence and we are committed to the ongoing success of our industry. Thus we are helping prepare
the industry for the accelerating period of vehicle technology change we are
just entering, we are encouraging industry-wide commitment to the Learning Culture this technology shift requires, and we are focused on better
educating the consumer. On this important anniversary, I want to extend
my gratitude to all those who embrace the I-CAR vision and mission, especially all our volunteers and instructors, which without their support our
work would be impossible.”
“Where these characteristics are identified in any employee and they tend
to be habitual characteristics, heed the warnings,” notes Dortch. “These
individuals may present with transient work histories, a history of substance
abuse, an expectation of being owed, narcissism, explosive outbursts, and
manipulative, caustic, dishonest and passive-aggressive behaviors. These
individuals are often more concerned with what they get from their position
than what they can contribute.”
“Often the toxic personality is a high performer for the dealership, making it
difficult for management to know how to handle the situation,” Dortch said.
“Don’t allow any one employee to get away with unacceptable behavior just
because they produce.
p. 117
CCC Information Services
Inc. and WHI Solutions to
Provide eCommerce Suite
CCC Information Services (CCC) has announced that it has reached agreement with
WHI Solutions, an eBay company, to offer eCommerce services that streamline
the process for aftermarket suppliers to present and sell their Parts to collision repairers and mechanical repair shops. The eCommerce suite will support
direct sales to active buyers and provide listing support services through eBay
Motors. WHI Solutions is the leading provider of on-demand e-business solutions to the automotive and heavy truck industries.
“We’re excited to work with WHI Solutions to bring services to the aftermarket
industry that will make it easier for WHI Parts suppliers to gain exposure to the
collision repair community,” said David Boden, VP, CCC Parts Services Group.
“CCC works with thousands of collision repair facilities that purchase millions
of dollars in parts each year and are always looking for quality suppliers. By
working with WHI Solutions we’ll be able to offer another option for suppliers
interested in connecting with repairers in an easy and efficient way.”
Bryan Murphy, Managing Director of WHI Solutions added: “CCC is a leader
in the collision repair marketplace and we’re very excited to begin working
with them. We shared news of our relationship with CCC with members of the
Auto Body Parts Association (ABPA) recently and received a great response.
We look forward to our future work and bringing services to the marketplace.”
TimeHighway.com
Announces Partnership
with CIMA Systems
to Bring Best-of-Breed
Service Technologies
to Dealers
TimeHighway.com, a premier real-time, online Service appointment-scheduling tool for auto dealerships, has announced a partnership with ownership
marketing leader CIMA Systems. This strategic partnership will bring the best
of both companies’ products and services to dealerships to help them drive
more business.
“Over the years I’ve looked at just about every automotive marketing vendor
and CIMA Systems offers one of the most comprehensive and robust solutions
I’ve seen,” said TimeHighway.com President Karen Dillon.
CIMA Systems, the patent-pending automated customer interaction tool for
the automotive industry, has been the highest-rated Ownership Marketing
Company for the past five years on DrivingSales.com, as voted by dealers.
“We are honored to partner with TimeHighway.com to offer dealers the most
advanced Service marketing and scheduling system solution on the market
today,” said CIMA Systems President & CEO Gary Nixon.
p. 118
Gratis Solutions Introduces
Service-Pay-On-Line
Gratis Solutions, the producers of autoWALL, is proud to announce another
revolutionary tool added to its arsenal of client care; SPOL or Service-PayOn-Line is now released and successfully operational. Service-Pay-On-Line
makes the lives of customers and Service personnel much easier and payment
of a repair quicker. autoWALL’s core functionality is focused on addressing
the needs of the everyday user of dealership services and SPOL makes that
customer experience easier and more seamless. Rather than waiting to pay at
a dealership cashier or Service Advisor, SPOL users will be able to pick up their
vehicle and go. Service Advisors will already have been notified of the online
payment having been made. Or the customer can show their receipt on their
mobile device, retrieve their vehicle and drive off.
Saphura Safavi Long, President of Chattanooga, Tennessee-based Gratis Solutions, indicated that this one tool has brought more attention to the company
in a short period of time than any other of the tools available within the autoWALL Interactive Customer Community. She attributes this success to a need in
this vertical that is being addressed easily and with as few human interactions
as possible. “We all know that Service Advisors and accounting professionals
at the dealership are busy and a process that makes their life easier only adds
to employee productivity and dealership bottom line,” she said.
The autoWALL declined Service functionality, along with its reputation management capability, delivers higher Google scores for a dealership, which is
a requirement for today’s millennial consumers. It also delivers an increase in
organic leads and improvements in unique visitors. All this, along with appointment setting capabilities and developing the branding of a Service Department.
Monthly Service Sales &
Profit-Building Courses for
Advisors and Managers Offered at New Don Reed Training
Center
The Don Reed Training Network is proud to announce the Grand Opening
of the DealerPro Don Reed Training Center, conveniently located just a few
minutes from the Columbus, Ohio airport.
Every month, Service sales-building courses will be led by the DealerPro
training team. All are designed to increase Service gross profits by up to
40%:
Service Advisor Training 101 (2 days) -- Increasing Repair Orders and Hours
per RO
Service Advisor Training 201 (2 days) -- Maximizing CSI and Customer Retention
Service Management Team Training (3 days) -- How to Achieve 100% Service Absorption
These state-of-the-art interactive courses feature complete training manuals, role-playing and test certification. Managers also get profit calculators,
a Service Sales Menu template and financial statement analysis insights.
V
Bo 201 isit
ot 5 us
h NA a
#2 D t
44 A
1S
CAPTURE MORE SALES
WITH THE POWER OF PHOTO AND VIDEO INSPECTIONS
1
2
3
Build trust and improve
customer satisfaction
CAPTURE
Add photo and
video evidence
to your vehicle
inspection reports.
Providing visual evidence of
repair inspections makes your
customers feel more in control
of their service experience,
and makes it easier for you to
explain the extent of the repair,
SHARE
Send your customers
a trustworthy digital
report and estimate
for self-authorization.
required parts, labor and price.
Comprehensive eMPI with
integrated VIN-precise menus.
SELL
Increase sales
conversions and
improve customer
satisfication (CSI).
NEW!
www.superservice.com/trial
[email protected]
youtube.com/superservicesolution
@infomediaLtd
LEADERS IN PARTS AND SERVICE SELLING SYSTEMS FOR 24 YEARS.
MK1423_FO_2
1-888-929-5599

PDF - Fixed Ops Magazine

Transcription

Similar documents

Window Sticker

www.autofile.co.nz | 17 e get a lot of questions from dealers wanting

A New Way to Target In-Market Auto Consumers

Industry Forum - Collision Industry Conference

Car Insurance Basics PDF

IT`S YOUR PROGRAM! OUR GUARANTEE TO YOU: TruServ

View our Safety Solutions PDF - Acklands

All Warthog sewer tools are sold through StoneAge authorized

MAXIMIZE YOUR AUTOTRADER IMPACT

March 2014 - Reliable Professional Maintenance