PDF - Fixed Ops Magazine

Transcription

TABLE OF C ON TEN TS
J u ly / A u g u s t 2 0 1 4 | | F i x e d O p s M a g a z i n e
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10
Car Wash as Profit Center?
Consider t he P ossibil ities!
26
…A nd Why Par ts an d Service M an agers Ne ed to Kn ow
32
Today’s Vehic les Re qu ire Up d ated Collision Repair Too ls a nd T r ai ni ng
40
I s I t Time to Take An other Look at Au to Dispatch?
46
56
p.
p.
p.
60
64
The Top Four Things Consumers Do Online
It’s Not Just About Aluminum
Right Job, Right Technician, Right Time (Part 2)
Are Your Customers Saying “No Thanks”?
Her e’s a Smar t an d Effective Way to Captu re De cl in ed S er v i c es
Stop Focusing On Hours Per Customer
Pay R.O. and Service Absorption
p.
6
p.
82
T ec h no l o g y a nd Y o u
84
Pa r t s E c o mm er c e: D ea ler A c t i o n P l a ns (Pa r t 2)
p.
Star t Foc using On the Un d e rly in g KPI’s that Really M att er
Tracking Vehicle Fluid Health
p.
A F luid Samp ling Primer
Four Innovative Industrial Storage Solutions
p.
Br ing Out t he Be st in Eff icien cy an d Qu ality Service
Are the OEMs Telling Us the Whole
Truth About Recalls?
p.
How Your Dealership Ca n Profit From R ecalls
86
l et t er fr om t he p ubl i s h e r
s ervi c e depar t m en t
pa r t s depa r t m en t
bo dy s hop
Pai nt & M at er ia l s: A Pat h to Pr o f i ta b i l i t y i n Y o u r
C o ll i si o n C ent er
a dmin i s t r at i on
88
A d va nc ed S er v i c e A d v i so r S el l i ng T ec h ni q u e s (Pa r t 1)
90
Wiper B la d es / Wash er F l ui d
p r i c i n g s ur vey
Becoming the Best You Can Be
70
I s I t a Knowi ng Issu e or a Doin g Issu e That’s Hold in g Y o u Bac k ?
74
Let ’s Get Rollin g!
78
How They Hinder Cu stome r Re ten tion , Su rvey Scores a nd Upsell s
p.
p.
A St r ong Onlin e Pre sen ce Ca n He lp Se rvice De partmen ts Win Bac k C usto m ers
20
52
p.
Repairing Service Profits
p.
8
I n dus t r y N ew s & E ven t s .
Do You Really Want to Sell More Tires?
Service “Appointments” and “Reservations”
p.
91
Adver t i s er s Di r ec to r y
p.
91
N ew P r o duc t s
p.
95
M a rket p l a c e
letter from the publisher
Plan your escape…now.
Longtime readers know that I’m a proponent of industry trade shows, expos, conferences,
seminars – any event that can awaken us all to the many possibilities and options that are
available. But I also know from speaking with many of you over the years that, carrying
such a substantial portion of your dealership’s financial health on your shoulders, makes
getting out of your office a tough proposition.
I’ve heard the explanations:
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
“I don’t have time.”
“I went to a trade show once (in 1997?) and I didn’t find / learn anything new there.”
P ubl ish er / Edito r ial / Advert ising
“My GM says he isn’t going to send his cash register to play in Las Vegas / New Orleans /
Orlando / San Francisco for three days.”
Perhaps it’s time for a new approach to the value of getting out of the office once in a while:
Nick West
Phone: 714-803-5476
Fax: 714-276-0255
Nick@FixedOps Mag.com
Have you prepared your team so that you can be out of your store(s) for a few days without
your well-oiled machine grinding to a halt?
Have you discussed with your management associates why it’s important to the health of
your business to periodically learn and to re-energize your vision for your dealership(s)?
Have you considered how much there is to absorb about the companies, products, services, technologies and solutions that can boost revenue and profitability, improve operational efficiency and raise customer satisfaction and retention levels at industry events?
Have you thought about how investing 1% of your year in an industry learning environment
like a trade show or conference could benefit the other 99% or your year?
If your dealership is like most in the industry, you’ve see rapidly-rising vehicle sales figures, a re-energized business “buzz” and – depending on your brand(s) – perhaps even
a refreshed facility. But are you doing everything that you can to translate all that into
greater Fixed Operations success? The kinds of industry events that we list on page 8 in
this magazine throughout the year are there for you – to help you select a couple of key
opportunities where you can see how “the rest of the world” does things.
The AAPEX / SEMA Shows are here every November. The next NADA Expo still gives you
six months of planning time. Other key events are scattered throughout the year. Make
plans now to get out there. No one else is going to do it for you. And when you get back,
be sure to impress them with everything you’ve learned.
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
postage paid at Fort Worth, TX. POSTMASTER:
Send address changes to:
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
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In dus t r y N e w s & Event s
Dealer-FX Releases
Appointment Ledger 2.0
Dealer-FX has announced the launch of Version 2.0 for their Appointment
Ledger solution. This versatile and advanced tool manages and tracks all
Service leads and appointments generated from multiple sources and departments (online scheduling tool, BDC, Service drive, DMS data feeds, call
center), while also tracking customers throughout their Service lifecycle.
The tool manages Service Advisor scheduling and now offers enhanced
shop loading and capacity management functionality. The new release
complements what was already a dynamic solution, which featured DMS
integration, appointment confirmation email capability and a reporting application. The Appointment Ledger solution is also one of the key components utilized by Mopar’s wiADVISOR Total Service Resource program.
There were multiple upgrades made to the solution in this new release.
Some of the new or updated key features include:
- The ability to access each customer’s full Service history (including ROs,
declined maintenance, write-ups and inspections), giving the Service Department the information needed to confidently present upsell opportunities
- An at-a-glance view of the shop load by hours booked, total appointments
booked, shown, missed and open, ensuring the Service drive avoids overbooking appointments and overloading the shop
- Web-responsive design that gives the dealership the flexibility to use the
tool on a tablet or a desktop PC
“The Appointment Ledger is a dynamic solution that gives dealerships
the ability to better control Service traffic flow, minimizing or eliminating
any rush or lull periods,” said Gary Kalk, President and CEO of Dealer-FX
Group, Inc. “With this tool, Service Departments can ensure there is sufficient time devoted to each appointment for a meaningful write-up process
that enhances customer experience.”
Dent Wizard Introduces Ding
Shield Signature
Dent Wizard International, the global leader in automotive reconditioning
and SMART (Small to Medium Area Repair Techniques) repairs, has introduced Ding Shield Signature, an F&I product that includes bumper repair
service for an enhanced option to the other products in the Ding Shield
portfolio, Ding Shield and Ding Shield Preferred. The new Ding Shield Signature also includes the other services under the Ding Shield Preferred
product, which includes unlimited paintless dent removal (PDR) for ding
and dent repair, windshield chip repair, four cosmetic alloy wheel repairs
and a hail deductible benefit.
All repairs are performed on site at the dealership by fully-trained Dent Wizard and Safelite AutoGlass® technicians using the latest repair technology. The plans provide coverage for up to six years and are backed by an
A.M. Best A-rated insurance company and Dent Wizard’s lifetime limited
warranty. Under Ding Shield Signature, customers are given four wheel repairs and two cosmetic bumper damage repairs. Unlike other appearance
service products, Ding Shield products are reconditioning products from a
reconditioning company – Dent Wizard – with a national service footprint
and a network of trained, insured professional dent technicians, anchored
by well-established back office support.
Continued on Page 96
EVENTS
Ju ly / Au gu st
30-2 / NACE / CARS
COBO Center, Detroit, MI
800-237-3070 / www.NACEExpo.com
Drive-Sure® Service Retention
Program Gains Pre-Approval
for Kia Co-Op Funding
Krex, Inc. has announced that Kia Motors America has pre-approved a customized version of its Drive-Sure® customer retention program for co-op
funding. The program is designed to fully support the Kia Customer 360
philosophy, helping Kia dealerships attract and retain more customers for
Service.
Until now, Kia dealerships that chose to use Drive-Sure carried its entire
cost. “We are eager to assist Kia and its franchised dealerships with exceeding their customers’ expectations and engaging them throughout vehicle ownership,” said Bill Springer, President, Krex Inc. The company anticipates that co-op funding will encourage more Kia dealerships nationally
to begin using Drive-Sure.
Drive-Sure helps new car dealerships contend with increased aftermarket
competition by differentiating their Service Departments. The new Kia customized program increases the value of dealership-specified maintenance
services by providing consumers with renewable Drive-Sure benefits. Customers performing these services at a participating Kia dealership will receive complimentary road-hazard tire protection and emergency rental car
benefits. In addition, out-of-warranty vehicles will receive complimentary
roadside assistance benefits, which were historically lost once warranties
expired. The renewable nature of the Drive-Sure program encourages customers to return for Service at the right time and provides Kia customers the
opportunity to keep benefits throughout vehicle ownership.
Nove mbe r
4-6 / AAPEX
Sands Expo Center, Las Vegas, NV
708-226-1300 / www.AAPEXShow.com
4-7 / SEMA Show
Las Vegas Convention Center
909-396-0289 / www.SEMAShow.com
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
703-821-7000 / www.NADA.org
p. 8
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Featu r e
Repairing Service Profits
A S t r o n g O n l i n e P r e s e n c e Ca n H e l p S e r v i c e D e pa r t m e n t s W i n B a c k C u s t o m e r s If you’re like most dealerships, you’re
missing out on a great opportunity to win
new business. In-market car shoppers
want to know more about how you’ll
service their vehicles after the sale,
yet too many dealerships don’t think
to promote their Service Departments.
It’s a situation that’s leaving consumers
in the dark about the many values that
dealerships provide and it’s causing
dealerships to lose potential long-term
customers.
This is especially unfortunate because
Service market revenue is expected
to grow significantly over the next few
years. But that growth is mostly coming
from national chains such as Jiffy Lube
and Pep Boys and local, independent
repair shops. Fixed Operations revenue
at dealerships, meanwhile, is on the
decline.
Exacerbating the issue is the fact that
more than 80 percent of vehicles on the
road are out of warranty. As their cars
age and go off-warranty, owners tend
to explore their vehicle Service options.
Because most dealership Service
Departments aren’t showing up online,
shoppers leave dealerships for national
chains and local Service providers.
Just as consumers rely heavily on
technology when shopping for cars,
they’re searching for Service and repair
information online, as well. And the
Service Department is often an influence
p. 10
B y J a c k S i m m o n s
p. 11
on a shopper’s decision of whether
to purchase a car from you or from
another dealer. That’s why developing a
strong online presence for your Service
Department is vital for the long-term
success of both the Sales and Service
Departments at your dealership.
Going Digital
Today’s car owners shop for Service
and repair differently than they used to.
Thanks to the Internet, it’s easier than
ever to investigate vehicle maintenance
and repair options. Consumers turn
to digital resources to find providers,
check reviews and credentials, seek out
special offers and, ultimately, to validate
their decisions.
“Just as consumers rely
heavily on technology
when shopping for
cars, they’re searching
for Service and repair
information online, as
well. And the Service
Department is often
an influence on a
shopper’s decision of
whether to purchase
a car from you or
from another dealer.”
A big reason that the national chains
and local repair shops are winning over
consumers is that they’re marketing
effectively on digital platforms while
dealers tend to underutilize these
avenues. That’s created a huge
p. 12
contradiction for many dealerships:
Fixed Operations delivers the majority
of dealership profits, but when it comes
to dealer websites and other online
channels, content dedicated to Service,
Parts or Body Shop is often nonexistent.
According to a recent Harris poll
conducted for Cars.com, nearly twothirds of in-market car shoppers indicate
that a Service Department’s reputation
is a factor when choosing where to
purchase a vehicle. That means not
only are dealers losing out on Service
revenue, but they could be missing out
on potential sales, as well. And because
dealers aren’t reinforcing their value in
Service and repair, consumers are going
elsewhere for fear of overpaying for
Service once their vehicles are out of
warranty.
Price Transparency
Consumers have come to expect
transparency in all aspects of their
lives and they go to the online sources
that they trust for the information they
demand. But because of the lack of price
transparency among dealership Service
Departments, most consumers expect
huge price ranges across different
types of Service providers, making
them nervous that they’ll overpay at a
dealership.
In fact, consumers don’t object to paying
more for quality if they perceive they’re
getting a good value. According to a
report by GfK Research, consumers are
willing to spend 10 to 15 percent more
for Service at a dealership, especially
for specialized repairs where dealership
expertise is at a premium.
Your competitors are making it easy for
customers to find pricing information
online. Building your online presence
-- both on your website and on thirdparty automotive sites -- allows you to
position your dealership in front of a
large, captive audience of in-market car
shoppers. It also shows consumers that
you are reliable and trustworthy and that
your prices are within an acceptable
range of other Service providers.
Consumers have certain expectations
regarding price information. When it
comes to price transparency, dealers
should keep the following in mind:
• Post actual prices on basic services
• Offer price guarantees within an
established range
• Put prices in context with your
competitors
anytime. anywhere.
Streamline all customer information for service, allowing advisors to check-in customers,
perform vehicle inspections, and sign pre-work orders all from your mobile device.
dealersocket.com
866.441.9664
p. 13
Communicating Value
What makes this such a lost opportunity
is that dealers have the initial advantage
for providing Service. At a dealership,
consumers feel they’re getting Service
from a technician who’s an expert on
their particular make and model. That’s
especially important for out-of-warranty
vehicles. That trust factor isn’t as high
when a car owner visits a national chain
or local independent shop, which is why
they’re willing to pay a little more for
Service at a dealership. But too many
dealerships aren’t communicating their
inherent value.
That’s why it’s crucial for dealers to take
advantage of their reputation for quality.
Promoting your expert technicians and
Parts and labor warranties can help
separate your dealership from national
competitors, particularly for specialized
repairs of off-warranty vehicles. By
leveraging your reputation in various
online marketing channels, you’ll be in
a better position to retain off-warranty
customers and win new business.
“That’s created a huge
With an online presence for your Service
offerings, you can promote confidence
because consumers know that:
contradiction for many
•Factory certified technicians mean
the job will get done right
•OEM parts are the highest quality parts
•Parts and labor warranties mean
customers will only pay once
Building Trust
It’s also important to note that price
isn’t the only factor customers consider
regarding vehicle Service. They also
want an unbiased perspective on the
dealership and its Service Department,
typically through first-hand experiences
from other customers.
Online consumer reviews rank as one of
the top three most important factors that
customers consider when choosing a
Service provider. (Technician certification
level and warranties are the other two.)
The Harris poll found that 57 percent of
in-market car shoppers indicate they
would seek out Service Department
reviews before purchasing a vehicle,
while only 10 percent of shoppers said
they would not consider Service reviews
p. 14
dealerships: Fixed Operations
delivers the majority of dealership
profits, but when it comes to
dealer websites and other online
channels, content dedicated
to Service, Parts or Body Shop
is often nonexistent.”
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FROM
LEADERS IN PARTS AND SERVICE SELLING SYSTEMS FOR 24 YEARS
p. 15
before buying from your dealership.
Clearly, this is an important factor in
cultivating long-term relationships with
your customers.
Your store has a unique ability to
differentiate its brand and demonstrate
to customers what they want to know
most -- that they’ll pay a fair price and
have a great experience by having their
car serviced at your dealership. Utilizing
third-party resources can help develop
the credibility that consumers need to
feel confident about the value they’re
receiving from your Service Department.
Maximize Your Online Efforts
Dealer Service Departments are losing
customers to national chains and
independent repair shops because
they’re not getting in front of customers
when and where they’re shopping.
But dealers have a built-in advantage
over their competitors: customers are
already thinking about their Service
Departments during the initial process of
purchasing a vehicle. Today’s consumer
prefers to build a long-term relationship
with a single dealership, but it’s up to
p. 16
dealers to establish and maintain those
relationships.
“According to a report
by GfK Research,
consumers are
willing to spend
10 to 15 percent
more for Service
at a dealership,
especially for
specialized repairs
where dealership
expertise is
at a premium.”
In order to cater to today’s modern
car
shoppers,
dealerships
must
position themselves where consumers
are looking for Service and repair
information. That means promoting
your Service Department on multiple
digital marketing channels to increase
awareness and build confidence among
consumers.
As we all know, Service customers are
often repeat customers. Maintaining
these relationships is crucial for
maximizing Service Department revenue.
But Service is also interconnected
with the initial buying decision. In the
end, establishing a digital presence to
increase the visibility and promote the
value of your Service Department will
help you retain current customers -- and
win new ones.
Jack Simmons is the Dealer Training
Manager
for
Cars.com
and
has
trained more than 100,000 automotive
professionals over the course of his
30+ years in the industry, including both
franchise and independent dealers as
well as professionals from automotive
manufacturers and industry organizations.
A former dealer himself, Simmons has
been on the forefront of helping dealerships
attract the online car shopper, from online
reputation management and optimizing
new car inventory listings to winning
with mobile. He’s a frequent speaker at
industry events, including NADA, NIADA
and the J.D. Power Automotive Internet
Roundtable. Prior to joining Cars.com
in 2010, Simmons served as a National
Dealer Trainer for AutoTrader.com, where
he managed and developed training
programs for dealers, manufacturers and
state automotive associations.
John Jackson
38 years of service
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Steven Smith
28 years of service
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p. 19
Featu r e
Car Wash as
Profit Center?
C o n s i d e r t h e P o ss i b i l i t i e s ! Most auto dealers that invest in an
automatic car wash system view it as a
necessary evil. While washing Service
Department vehicles improves CSI
scores, and using automatic car wash
equipment lowers the cost per car and
reduces management headaches, it’s
still viewed by most dealers as just a
cost of doing business.
But what if the car wash was also used
as a revenue generator? Some forwardthinking dealers are doing just that. Let’s
take a look at the possibilities.
Car Wash Placement
Dealers preparing to renovate an
existing facility or build a new one are
in an ideal position to consider making
the car wash a profit center. By locating
the wash bay in an area on the property
that’s accessible to the public, the car
wash can do double duty by washing
both Service vehicles and being open to
the public as a revenue generator and
a means to attract potential new car
buyers.
Positioning the car wash near the street
is ideal, as it allows the car wash building
to be used as a “billboard” to advertise
that the car wash is open to the public
(subject to local sign ordinances). If
there’s not adequate room near the
street, or if you’re adding a car wash to
p. 20
By Steve Robinson
FIXED OPS ADVANTAGE
The CARQUEST® Fixed Ops Advantage Program is designed to align and support today’s dealerships
aftermarket “All Makes & Models” services philosophy.
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p. 21
an existing facility, you may have fewer
options for where to locate it. But a little
creative thinking might lead to a solution
that allows customers to access the
wash bay without disrupting the flow of
traffic around your property.
Promoting the Car Wash
Good signage is essential to drawing
customers into the car wash. Follow
the lead of convenience stores, which
call out the car wash on their gas price
signs next to the street, by adding “car
wash open to the public” to signage at
the driveways that customers use to
enter your dealership. Once customers
are on your property, directional signs
saying “Car Wash” with an arrow should
be placed at strategic points to guide
customers to the wash bay.
To make the concept of opening your
car wash to the public work, you need
to ensure that your car wash equipment
has the throughput capacity to handle
public washes without disrupting the
washing of Service and other vehicles
during peak hours. Keep in mind that
you can smooth the peaks and valleys
p. 22
to some extent by washing a portion
of your Service vehicles before your
technicians work on them.
But it’s also becoming more common
for dealers to invest in two car wash
systems or bays. This has the advantage
of always having one system available
if the other requires servicing. The
dual-bay approach has been a growing
trend among retail car wash operators
in recent years. In addition, for car
dealerships, it allows you to handle the
additional volume and revenue that can
be generated by having one or both of
the systems open to the public.
Good, Better and Best
Wash menus at retail car washes typically
have three to four wash packages,
starting with a basic wash, to which
extra services are added to encourage
customers to upgrade and pay more. For
example, wheel brushing and a premium
wax chemical are common add-ons
used to drive incremental revenue.
Offering a variety of up-sell features
means adding optional modules to the
car wash system, but the additional
investment required can yield a great
return on a well-marketed car wash.
It’s common for retail car washes to
generate half or more of their revenue
from the most expensive wash package
they offer, a clear indication that, given
a choice of good, better and best, many
customers will choose the best if you
just give them a reason to do it.
“Beyond the obvious
goal of increasing
Service customer
satisfaction by
returning a clean
vehicle, a little
creative thinking
and marketing can
turn your car wash
into a great tool
for acquiring and
retaining customers.”
ASR Pro
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p. 23
Payment System
Selling
car
washes
necessitates
collecting payments, but the good news
is that you don’t need add personnel
to do it. A wide variety of self-service
kiosks are available that can accept
your choice of payment options,
including cash, credit and debit cards,
promotional coupons and even RFID
systems that allow you to offer monthly
and annual pre-paid wash programs.
The kiosk is located several feet in front
of the wash bay so you can be washing
one car while simultaneously accepting
payment from the next customer,
avoiding unnecessary delays that would
impact throughput. Runners washing
service vehicles can be issued codes
or cards for use in the kiosks to track
the number of non-paid washes being
performed.
Vacuums
Vacuums are a nice extra service to offer
if you have room for them adjacent to
the car wash. Customers appreciate
the convenience of being able to give
the interior a quick once-over after the
exterior wash. Just make sure that the
vacuums don’t impact the traffic flow
p. 24
into and out of the wash bay.
Vacuums can be coin- or card-operated,
but you should also consider making
them free with the purchase of a car
wash, a strategy that has proven
successful in attracting new customers
to retail car washes.
Use the Car Wash as a Marketing Tool
The car wash can be a great tool for
keeping your car buyers engaged with
your dealership over time. Consider
offering car buyers free upgrades or
even free washes for a period of time
after their purchase as a reward and
an incentive to keep them coming
back. As with your Service Department
customers, every time customers come
onto your property to wash their cars
you have an opportunity to pique their
curiosity and get them to check out the
shiny new cars in your showroom and
on your lot.
There’s a reason that your waiting area
for Service customers is ideally located
next to your showroom. With time to
kill, it’s hard to resist checking out the
latest car models and the new features
they offer. By the same token, consider
giving car wash customers an incentive
to visit the showroom before they leave
the property. Offer them a free cup of
coffee from your new espresso machine
if they stop by the showroom after they
purchase a car wash. A simple sign
positioned at the car wash exit is all
that’s needed to create an opportunity
for another customer “touch” that can
lead to a future sale.
Happy Customers
Are you going to transform your
dealership into a car wash business?
Of course not. But beyond the obvious
goal of increasing Service customer
satisfaction by returning a clean vehicle,
a little creative thinking and marketing
can turn your car wash into a great tool
for acquiring and retaining customers.
Every time they drive off your lot with a
clean shiny car you’re one step closer
to another sale and another long-term
stream of highly profitable Service
revenue.
Steve Robinson is Vice President of Business
Development for Arvada, Colorado-based
Mark VII Equipment Inc., the North American
subsidiary of WashTec, the world’s largest
manufacturer of vehicle wash equipment. He’s
responsible for product management, marketing
and sales development.
“Gross labor sales
are up 130%”
Randy Yockey
Co-Owner
Friendly Ford
Roselle, IL
Premium Service Kit – a part of Reynolds Retail Management System.
reyrey.com /rms | 888.853.2617
© 2014 The Reynolds and Reynolds Company. All rights reserved. 1006542-3 6/14
p. 25
Featu r e
The Top Four Things
Consumers Do Online
… A n d W h y P a r t s a n d S e r v i c e Ma n a g e r s N e e d t o K n o w By Kasi Westendorf
Quick question: What are the top four
things that average consumers do when
they go online? That may seem like it has
little or no application to your Service
and Parts Departments, but here’s why
it’s worth thinking about.
Consumers are spending more time
online researching potential automobile
purchases than ever before – almost 12
hours, according to a recent J.D. Power
and Associates study. That’s a half-day
sitting in front of a screen learning about
the products at your dealership – and
at your competitors’ dealerships. After
the purchase, they’re back in front of a
screen trying to find the best place to
service their car, searching things like
best deals on oil changes and Service
Department customer reviews.
What that does for the consumer
is lessen the amount of time they
physically interact with the dealership.
The decision on where to buy and where
to service is made before the consumer
even leaves the house. So, making that
connection online is just as important
now as making that connection face-toface was 30 years ago, before the Web
existed, or even a few years ago, before
the Amazons and Googles and Apples
of the world created a new model for
how retailers do business and how
consumers shop – for everything.
p. 26
Your customers are online for four key reasons. Is your Service Department in sync with them?
What companies like those have
done is give consumers the products
and information they want in the
way they desire it – on a website or
mobile application, and on any device:
computer, smartphone or tablet.
So, what are the top four things the
average consumer does when they go
online? Here’s a hint: they’re the same
things you’re doing.
• They go online to research what they
think they want to buy. They compare
prices, look at product specs and
read customer reviews. They educate
themselves on what they’re buying and
where to buy it.
• They buy something. Or a couple
of somethings. Sometimes many
somethings!
• They catch up with family, friends and
professional contacts on social media –
Facebook, Twitter, Instagram, LinkedIn.
• They look for infotainment – they watch
some YouTube videos, browse some
news headlines, pin things on Pinterest
or play some online games.
These answers contain an important
lesson for dealerships, especially
the Service Department: if you’re not
offering some aspect of those four
things to visitors on your website, you
may not have altogether lost the retailing
war, but you’ve already lost some of the
key battles.
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This new approach to retailing has been
a point of discussion in the automotive
industry for several years now – the right
message at the right place at the right
time – and it’s not a discussion that will
be muted anytime soon. If anything, the
continued advancements in consumer
technology and the way information is
gathered – not to mention the continued
evolution of the consumer shopping
experience – will only crank up the
volume of this discussion.
This discussion is particularly applicable
to the Service Department. Dealers with
a vested interest in vehicle Service need
to inject themselves into the discussion
of how retailing is changing.
Having some infotainment, like videos, on your site can help better
inform and entertain visitors.
Opportunities are plentiful for more
online interaction between Service
Departments and consumers. To
capitalize on those opportunities your
dealership will have to be able to answer
one question: What are consumers doing
on your website? If the answers don’t
align with the four points I mentioned
earlier, your voice in the marketplace
won’t be heard – and your Service bays
won’t be as full as they could be.
Sharing pricing information on common maintenance and repairs (and
coupons for them) can help consumers during the research process.
“The decision on
where to buy and
where to service
is made before the
consumer even
leaves the house.
So, making that
connection online
is just as important
now as making that
connection
face-to-face was 30
years ago .”
Social media is a great way to interact with customers and improve your reputation and brand loyalty.
p. 28
Accessories are often a lost category for dealers, but new technology can help you earn your share of a $40 billion business.
Here’s how to make your voice heard -and fill up your appointment calendar:
• Are you on social media? You should
be, because that’s another way to reach
consumers in this new retail shopping
model. And it also offers ways to further
interact with your customers, which
could lead to better online reviews of
your Service Department. Facebook,
Twitter and LinkedIn are prime social
real estate for dealerships. And visual
platforms like Instagram, Tumblr and
Pinterest are becoming more vital
because they’re visual. (Remember
-- pictures and videos get the most
attention from consumers.) Imagine
sharing images of vehicle accessories,
or a video of a Service Technician
showing how to change the vehicle’s oil
or check for tire wear and tear. That kind
of sharing can earn repeat customers.
• Infotainment is one of those new buzz
words in consumerism and OEMs have
already adapted to it by offering in-car
systems tailored around this new kind of
information-based entertainment. Info-
p. 30
tainment is a perfect pairing with your
social media efforts. Videos posted to
YouTube – that how-to oil change video,
perhaps? – can also live on your website. Informational articles and FAQs
about recommended factory maintenance at specific mileage intervals are
good ideas, too.
“Opportunities are
plentiful for more
online interaction
between Service
Departments and
consumers.”
• Remember, consumers are online
researching the best places to find
vehicle Service. Give them the
information they need to research that
on your website. Show them prices of
common maintenance items like oil,
lube and filter changes, tire rotations
and wheel alignments. Coupons never
hurt, either!
• Consumers go online to buy things, so
give them an option to buy something on
your website. Can your customers pay
for Service ROs online? Can they order
and purchase replacement parts through
an online parts catalog? And what about
an online vehicle accessories portal,
an often-lost business for dealers?
These newer online tools can help your
dealership easily offer service, parts and
accessories to consumers and further
improve your bottom line.
Sometimes the right steps to take are
the obvious ones. Use your experiences
online to help improve how your
dealership markets to and how it reaches
consumers, so you can better meet their
expectations and deliver more traffic to
your Service drive.
Kasi Westendorf is Vice President of Marketing at the Reynolds and Reynolds Company. In that role, she leads the company’s
marketing, advertising, communications
and Retail Management System messages
to the market. During her 16-year career
with Reynolds, she’s built an accomplished
background in sales, marketing and product management.
Featu r e
It’s Not Just
About Aluminum
T o da y ’ s V e h i c l e s R e q u i r e Upda t e d C o l l i s i o n
R e pa i r T o o l s a n d T r a i n i n g Ever since the unveiling of the 2015 Ford
F 150 at the North American International
Auto Show in Detroit in January, the U.S.
automotive industry has been buzzing
about this game changing, aluminum
intensive vehicle.
Dealerships and independent collision
repair facilities across the country
have been trying to determine which
new tools, equipment, products and
materials will be required to repair this
latest generation of one of the bestselling vehicles in the U.S.
While the Ford F 150 and aluminum have
been getting most of the press lately,
there’s a lot more going on in vehicle
design and construction of today’s
vehicles about which repairers should
be aware. In addition, taking steps
toward equipping their facilities with the
necessary tools and the latest training
to repair today’s vehicles has become
critically important.
This investment in tools and training for
today’s vehicles can actually increase
your profitability, improve dealership
operational efficiency and productivity,
p. 32
B y J a s o n B a r ta n e n
and raise customer satisfaction and
retention levels.
Ford F-150 – Designed for Repairability
Following the all-new Ford F-150
announcement,
there
have
been
countless articles about clean rooms,
rivet guns and aluminum GMA (MIG)
welders. Fortunately, Ford has been
proactive in developing a comprehensive
tool and equipment package, available
through Rotunda, for repairers to gear up
for the arrival of the new F 150 (currently
targeted for a November, 2014 launch).
Ford was also proactive in ensuring
that the new F 150 was built with
collision repairs in mind. The new
vehicle will offer a significant number
of collision repair procedures for repair
of the unitized cab structure and the
high strength steel frame. There are a
variety of sectioning options available
for the unitized cab structure and the
“apron tube” offers a more efficient
replacement option. The apron tube on
the current model is attached to the cab,
through the laminated steel cowl, and
requires removal of the instrument panel
for replacement. The new, aluminum
intensive F 150 offers an apron tube
that’s attached to the A pillar from the
factory, with rivets and flow drill screws
(FDS). The replacement procedure
for the apron tube calls for rivets and
adhesives and will no longer require
removal of the instrument panel.
“While the Ford
F‑150 and aluminum
have been getting
most of the press
lately, there’s a
lot more going on
in vehicle design
and construction
of today’s vehicles
about which
repairers should be
aware.”
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p. 33
Although a significant portion of the
unitized structure is replaced using
rivets and adhesive, there are a number
of sectioning procedures available that
will allow for aluminum GMA (MIG)
welding. For any welding done on the F
150, Ford requires a 220V pulse welder
and 1.2 mm 5554 electrode wire.
Ford has also teamed up with the
world’s leading collision repair training
organization,
the
Inter
Industry
Conference on Auto Collision Repair
(I CAR®) to develop training for the F
150. I CAR has been training the Ford
dealership network since May and is
currently providing the same training
to the rest of the industry (independent
collision
repairers
and
insurance
representatives) and this will continue
through the fall. The comprehensive
training course will provide insight into
the construction of the F 150, provide
detailed information on available repair
procedures and provide guidance on
p. 34
the necessary tools and equipment that
will be required to perform complete,
safe and quality repairs for Ford F 150
owners.
It’s Not Just About Aluminum
While the requirements for aluminum
repair have been widely publicized,
the significant changes in steel vehicle
construction have gone largely unnoticed
by many -- and that’s a problem!
“I’ve been repairing cars for 30 years.”
“It’s just a steel vehicle.” These are two
of the most common reasons given
when it comes to collision repairs on
late model steel vehicles. This wouldn’t
be a problem…if we were repairing 30
year old vehicles. However, today’s steel
vehicles are changing at a rapid pace.
Using repair techniques and equipment
from 30 years ago (or even 10 years ago)
WILL compromise the structural integrity
of today’s cars, trucks and SUVs.
“Ford has also
teamed up with
I‑CAR® to develop
training for the
F‑150. I‑CAR has been
training the Ford
dealership network
since May and is
currently providing
the same training
to the rest of the
industry.
p. 35
Today’s consumers shop for 5 star crashrated vehicles and it’s the industry’s
responsibility to ensure that we’re
returning their vehicles to pre accident
integrity, following collision repairs.
Using improper tools, equipment or
techniques limits our ability to do so.
How many stars are you compromising
by not equipping your facility with the
proper tools and equipment?
Let’s take a look at welding as an
example. Advanced materials have
changed the way vehicles should be
welded, which makes staying current
with welding training critical.
Squeeze Type Resistance Spot
Welding
Over the past several years, squeeze
type resistance spot welding (STRSW)
has become the preferred method by
many vehicle makers for the replacement
of high and ultra high strength steel
parts. Some vehicle makers have gone
so far as to require STRSW for part
replacement.
The current (beginning in 2013) Honda
Accord has a handful of reinforcements
made of 1,500 MPa steel. The
reinforcements cannot be straightened
and cannot be sectioned. Honda also
requires STRSW for installation for the
majority of the parts and warns against
GMA (MIG) plug welds: “NEVER perform
“MAG” or “MIG” welding on 1,500 MPa
steel”. (That’s a pretty bold statement.)
Additionally, there are areas of the
vehicle where STRSW isn’t possible,
due to limited access to both sides of
the panel. In these areas, Honda requires
MIG brazing. (More on that in a bit.)
Unfortunately, it’s not quite as simple
as just buying a good quality STRSW
machine. Electrical requirements apply
to all welders. It’s also critical that
your facility has the proper electrical
requirements installed to ensure your
investment performs properly. Too
often (and unbeknownst to them) repair
facility owners invest in this important
piece of equipment, only to find out that
their electrical service and / or wiring
is insufficient. The repair Technicians
p. 36
quickly become frustrated with the
(perceived) lack of performance of the
machine and they resort to their old
ways of repairing collision damaged
vehicles.
When making the decision to invest in a
STRSW machine, it’s important that you
work with the equipment maker and / or
distributor to ensure that your facility is
equipped with the necessary power to
run the machine effectively. This may
result in you also needing to contact
your electrical service provider and
making an infrastructure investment, in
addition to your equipment investment.
Pairing good equipment with the
required electrical power is the only way
to ensure that your welds are quality
welds.
If you’re looking to make the investment
in a STRSW machine, you’ll likely want
to look for equipment that offers inverter
technology, capable of supplying
sufficient current for the number and
thickness of the panels being welded,
while producing the required squeeze
force at the electrode tips. Some
STRSW machine makers also offer
machines that are pre programed with
specific vehicle applications (material
type and thickness), to allow for proper
machine settings. These programs may
include welding in pulse, or a slope-up
and slope-down type of weld cycle and
may include pre-set weld parameters for
welding on specific vehicles.
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Parts & Service Director, Bob King Kia
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Improving service revenue and retention for a decade.
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p. 37
MIG Brazing
Earlier, it was noted that Honda requires
MIG brazing for areas on 1,500 MPa
steel not accessible with spot welding
arms. There are at least 10 locations on
each B pillar reinforcement that require
MIG brazing and an additional handful
on the lower A pillar. The Acura MDX also
uses 1,500 MPa steel to reinforce the
door ring. Unlike the Accord’s multiple
piece reinforcements, the MDX uses a
single 1,500 MPa stamping to reinforce
the front door, to enhance occupant
protection. This 1,500 MPa door ring is
(at the time of this writing) the largest
single stamping of this strength material
used on any production vehicle.
Similar to the Accord, only STRSW and
MIG brazing are permitted for installation
of the door ring. Additionally, a number
of other Honda and Acura vehicles are
also employing 1,500 MPa steel in the
side structures of their vehicles. Testing
by Honda has shown that MIG brazing
done in the pulse mode has higher
strength. Therefore, in order to properly
repair most late model Honda & Acura
vehicles, a welder capable of pulse MIG
brazing is required.
While MIG brazing is unfamiliar to most
collision repairers in the U.S. and not
widely required for repair of vehicles
available in this market, the process
is quite common in Europe and other
markets around the world. There are
some U.S. vehicle makers that allow
MIG brazing on their vehicles, but don’t
currently require its use, or specify
whether pulse, rather than short-circuit
transfer, is required. For example, both
Ford and General Motors allow MIG
brazing to be used for a number of
applications on their vehicles, for almost
every type of steel, other than laminated
steel, found on their vehicles.
Similar to aluminum welding, MIG
brazing will require new equipment, or
an adaptation of existing equipment,
and training to ensure collision
repair Technicians are readied to
install parts using this technology.
Also, similar to aluminum welding,
p. 38
“The advancements
in vehicles – in
addition to what’s
required to repair
them -- will only
get more complex.
Staying current
with training and
equipping your
facility with the
proper tools
and equipment is
critical to your
business and to
your customers.”
MIG brazing requirements often include
pulse welding technology and 100%
argon shielding gas, as opposed to
the 75/25% argon/CO2 mixture (C25)
used for the vast majority of steel
GMA (MIG) welding applications. This
training will ensure that the technician
understands how to set the machine
to limit the amount of heat that will be
transferred into heat sensitive steels,
while producing a strong joint.
Vehicle Advancement Readiness
The advancements in vehicles and what’s
coming down the road – in addition to
what’s required to repair them -- will
only get more complex. Staying current
with training and equipping your facility
with the proper tools and equipment
is critical to your business and to your
customers.
The I-CAR® Welding Training &
Certification™
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 industryrecognized certification test. Pricing
for welding training has been reduced
to make it more affordable for every
Technician to have the hands-on training
needed to complete a proper weld.
(A growing number of OEMs including
Acura, Audi, Chrysler, Ford, GM, Honda,
Infiniti, Jaguar, Land Rover, Lexus,
Nissan, Porsche, Scion, Toyota, Volvo
and Volkswagen include I-CAR Welding
Training & Certification in their network
programs.)
Whether it’s steel, aluminum, other
vehicle construction materials, or a
combination of materials, it’s important
that you equip your facility with the
proper tools, equipment and training
to allow for complete, safe and quality
repairs. These investments can lead
to increased profitability, improved
operational efficiency and productivity
and higher customer satisfaction and
retention levels.
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. 39
Featu r e
Right Job,
Right Technician,
Right Time
Is I t T i m e t o Ta k e A n o t h e r L o o k a t A u t o D i spa t c h ? In Part One of this article in the May/
June issue, I talked about the general
concepts of auto dispatch and my
thoughts on initially setting up your
system. You’ve read article that, right?
(If not, now’s an excellent time to check
out page 40 of that issue.)
In this installment, I’ll cover the “care
and feeding” of an auto dispatch system,
handling of special circumstances and
thoughts on how to thwart determined
technicians who try to secure the best
jobs for themselves, something referred
to as “cherry picking.”
The Care and Feeding of Your Auto
Dispatch System
Getting the right job to the right
Technician is typically accomplished by
matching a Technician who has a certain
skill with jobs that require that skill.
Other than deciding how granular you
wish to make your skills, this is a pretty
straightforward task. It will require only
rudimentary maintenance as Technicians
come and go.
p. 40
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or visiting www.markvii.net.
p. 41
Even though auto dispatch systems are
designed to let the computer make the
decisions, when “stuff” happens, stateof-the-art dispatch systems provide
different methods of allowing shops to
handle extraordinary situations.
The real work comes when you set up
your system to prioritize various jobs
relative to one another. In Part One of
this series, I emphasized the use of the
KISS (Keep it Simple Stupid) principle
during your initial set up and that
principle will serve you well. Yet things
change. Recalls, seasonal maintenance,
successful advertising campaigns and
other external factors can increase the
number of ROs you’re writing each day,
affecting how quickly you’re getting to
your waiters. These kinds of situations
may call for changing your dispatch
settings.
That kind of feedback is invaluable.
There’s no need to reinvent the wheel.
Before you dive in, make sure you have
a plan, and a good plan starts with
making sure you understand what’s
happening today and how you’d like the
system to act differently. Keep changes
small and isolated to a specific area so
that you can clearly see the effect that
your change has on the dispatching of
jobs. If you change multiple settings and
something goes wrong, it’s difficult to
understand and isolate what caused the
problem.
In the Heat of Battle: What To Do
When Things Go Wrong
The most common way is to simply
change the settings on a particular RO
or line to force the system to bump it up
in priority. Most systems allow you to
change a priority value. Some have an
ASAP setting that will bump a job right
to the top of the queue to help you deal
with FOD (“Friend of Dealer”) customers.
As I cautioned in Part One, use these
settings judiciously. When everything is
important, nothing is important.
If Murphy was a man of fewer words, his
famous law about the inevitability of bad
and / or unexpected things occurring
might have been simplified to “stuff
happens.” Indeed, “stuff” seems to
happen more often in a Service shop and
the dispatching of jobs is no exception.
One minute, everything is humming
along. Then the dealer’s “best friend”
shows up with a job that “has to be
done right now.” All of your scheduled
appointments are late and your best
Technician called in sick. (Murphy must
have been a Service Manager…)
Another way to handle extraordinary
cases is simple manual override,
or directing certain jobs to certain
Technicians. Manual override is a simple
but powerful feature, but overuse is
discouraged. If you find that your Service
Advisors need to override the system
regularly, it’s probably time to take a
look at your overall system settings to
see why manual override is necessary.
But this won’t happen to you, because
you’ve been caring for and feeding your
system all along, right? Of course you
have.
Above all, utilize the experience of the
support staff at your DMS vendor. They
will likely have suggestions and be able
to relay the experiences of other dealers.
p. 42
“Before you dive in,
make sure you have a
plan, and a good plan
starts with making
sure you understand
what’s happening
today and how you’d
like the system to act
differently.”
p. 43
Cherry Picking
It probably doesn’t happen in your
shop, but in other shops, there’s
high competition for gravy jobs, and
Technicians will sometimes go to great
lengths to secure those jobs. When
there’s a human in the mix, sometimes
friends and favorites of the dispatcher
get a higher percentage of plum jobs.
It’s tougher when a computer is passing
out the jobs, but the urge to figure out
how to game the software is strong.
for a setting that specifies the maximum
number of jobs and / or maximum number
of cars that a Technician can have active
at any one time. Modern dispatch
systems typically allow a Technician to
have multiple jobs assigned to them
simultaneously, while still only allowing
them to physically work on one job at
a time. This can optimize the use of a
Technician’s time in situations like a
parts hold. It’s also very useful for shops
that have multiple bays per Technician.
One commonly-tried technique is
something one of my customers
refers to as “licking the cookie”. This
is when a Technician repeatedly asks
for work, putting each on hold until he
finds a good job. Those jobs on hold
end up gumming up the works. Other
variations are possible based on what
your dispatch system allows and how it
determines when a Technician can have
more work.
By adjusting the maximum active jobs
/ cars settings, you can give your more
trusted and experienced Technicians
the flexibility to optimize their work
according to their past experiences. It
also allows you to restrict the active jobs
for rookie or problematic technicians,
putting a tight control on the amount of
work to discourage bad behavior. It’s
also important to know if jobs that are on
hold count as active jobs. If they don’t,
you leave yourself vulnerable to the “lick
the cookie” technique outlined above.
Another place to add some control (if
your system allows it) is to remove the
Thwarting this kind of behavior depends
on the system and the security it
provides, but the first place to look is
p. 44
ability of a Technician to put any jobs
on hold himself. In order to put a job
on hold, the Technician needs to come
get approval from someone of sufficient
authority. The tradeoff, of course, is the
time taken up by this human interaction,
but it’s a very simple way to take back
control over a Technician playing “hold”
games.
The goal of auto dispatching is to
increase Service gross and customer
satisfaction.
Auto
dispatching
increases efficiency by assigning the
right Technician to the right job at the
right time. Service Departments using
auto dispatch typically see a 15-30%
increase in labor hours sold. Imagine
what it could do for your dealership.
Larry Colson has 30 years of software
development experience in the insurance, real
estate and auto dealership markets. He leads the
Fixed Operations software development team at
Albany, New York-based Auto/Mate and loves
creating software that makes dealerships work
better. And yes -- he’s a bit of a nerd.
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p. 45
Featu r e
Are Your Customers Saying
“No Thanks”?
H e r e ’ s a S m a r t a n d E f f e c t i v e W a y t o Cap t u r e D e c l i n e d S e r v i c e s How often have you heard “I’ll be
back” after recommending a repair? On
average, only 2% of all declined service
events are captured through proper RO
write-ups. Declined services alone could
represent over 10% of all ROs written,
so if you’re not doing everything you can
to capture this business, you’re leaving
money on the table – and it adds up
fast. That’s why having a solid declined
services program will help you recapture
this revenue and contribute to a strong
showing on your bottom line. So why do
so many dealerships operate without
such a program? These are some of the
common objections we’ve heard.
Objection #1: “I can’t get my advisors
to put declined services into my
DMS.”
Service Managers need to establish
this task as part of a Service Advisors
daily routine. Share with them how much
revenue can be generated by this action.
Start by coaching your Service Advisors
to capture declined services on the ROs.
There are programs that don’t require
special op codes, so entering declines
becomes a relatively easy task. Here’s a
tip to check whether declines are being
put into your DMS: grab a couple of
declined Service estimates then go to
your DMS. Pull up the last RO for each
customer to see if it was documented as
a declined service. It’s really very simple;
you can easily check a dozen ROs in just
10 minutes or less. A good rule of thumb
is 10% of your total ROs should have a
declined service.
p. 46
By Lauren Rheaume
Objection #2: “I don’t want to give a
discount to a loyal customer.”
No one likes to discount their work,
especially to a guest you would classify
as loyal. It’s important to remember
that it’s more cost-effective to keep an
existing customer than to cultivate a
new one. This customer is your “bird in
the hand” – they already come to you
for their maintenance and repair work
– so don’t lose the Service opportunity
when it arises and the valuable revenue
it generates. Offering a small discount is
an excellent tool to entice that customer
back in to have the work completed.
Objection #3: “I don’t have the time or
the staff.”
This is a common complaint from many
dealerships. Try and make it a goal to
carve out 5-10 minutes at the end of
each day to review the ROs with your
Service Advisors, quickly identify any
missed declined service opportunities
and enter them into your DMS. These
“almost-missed
opportunities”
will
translate into revenue!
In addition, identifying and documenting
declined services can also protect you
from liability, which is no small thing.
If a customer says no to a safetyrelated repair and later is involved in
an accident, you’re covered since you
documented the declined service.
“On average, only
2% of all declined
service events are
captured through
proper RO writeups. Declined
services alone could
represent over 10% of
all ROs written.”
p. 47
Now that you know the benefits declined
services programs offer, increased
revenue and protection against liability,
how do you find the program that’s right
for you? Let’s review the top three musthaves to look for when researching and
ultimately choosing a declined Services
program for your Service Department.
“Communications
that simply state
“Needs service
at 165,000 miles,”
“Recommended
Maintenance”
or “Declined
Additional Repairs”
are too vague
and have been
shown to not be
impactful.”
First, look for a program that offers clear,
concise messaging on all customerfacing products. Communications that
simply state “Needs service at 165,000
miles,” “Recommended Maintenance”
or “Declined Additional Repairs” are too
vague and have been shown to not be
impactful. A better program will spell
p. 48
out exactly what the repair or service
is, such as, “Needs Left Front Rotor,”
“Recommended Maintenance: Repair
Wire Connection” or “Recommended:
Tires
Due.”
In
addition,
these
messages need to stand out. Effective
communications use a strong bold font
or color to highlight the declined service
from the rest of the messaging. This type
of messaging increases response rates
significantly. Be sure that any declined
services program you’re considering
executes the actual repair or service
needed effectively in all customer-facing
communications.
Second, look for a program that sends
out communications via all available
media channels. In today’s world,
you need multi-channel marketing
techniques to effectively convey your
messaging. Customers may be easier
to reach, but you have to use a variety
of methods to capture their attention.
An e-mail might work on one segment
of your audience, whereas a letter or
postcard is more effective with another.
The best way to check out a program’s
effectiveness is to review the touchpoint
schedule to see what channels are
used to communicate declined services
messaging.
Third, a truly effective declined services
program is backed by state-of-the-art
data-analytics to determine what, when
and how communications are sent. The
firm you choose should also have a team
in place that reads your actual ROs. We
have found it to be the most-effective
way of capturing all the declined
services. Combine these attributes with
24/7 online reporting and you have a
program that will exceed your goals
for capturing this all-important Service
revenue.
Consider this: assume an average
dealership writes 800 RO’s per month.
Then assume a $250 average CPRO.
If declined services accounts for 10%
of your RO’s, you potentially can earn
an additional $20,000 per month in
declined services revenue alone. So,
instead of focusing on the time and
effort that declined services take, think
of it as an opportunity to capture this
lucrative market segment.
In summary, declined services is an
important part of your overall CRM
efforts. Don’t leave revenue on the
table. Do the research; find an effective
program that consistently brings back
customers who have declined a service
or repair and watch your revenue grow!
Lauren Rheaume is the Vice
President
of
Marketing
at
Calabasas, California-based Peak
Performance. She is responsible
for all PEAK marketing initiatives
from strategy to execution,
including
OEM
customer
engagement programs, dealer
Service retention communication
programs and ad-hoc marketing.
NOVEMBER 4 - 6, 2014
SANDS EXPO | LAS VEGAS, NEVADA
WWW.AAPEXSHOW.COM/GROW
p. 49
p. 50
p. 51
Featu r e
Stop Focusing On Hours
Per Customer Pay R.O.
and Service Absorption
S t a r t F o c u s i n g O n t h e U n d e r ly i n g K P I ’ s
t ha t R e a l ly Ma t t e r This article is the second in a series, the
first article being written by Leigh Silver,
titled “Wrong Expectation = Wrong
Behavior = Wrong Result”, published in
the May-June 2014 issue of Fixed Ops
Magazine.
Every time I hear someone kicking
themselves
(or
worse,
bragging)
about their HP-CP-RO (Hour’s Per
Customer Pay Repair Order) average,
without focusing on the underlying
measurements that really matter, it
brings tears to my eyes. Same thing with
Service Absorption, as when people
relate it to the health of their Service
Department. Yikes! What the heck is
going on in our industry today? Your
HP-CP-RO average tells you little about
the health of your Service Department
-- and your Service Absorption tells you
even less! Without quantifiable KPI (Key
Performance Indicator) measurements
to support what these values should be,
then how can you possibly know if these
are “good numbers” or not?
I hate the cliché of suggesting that you
should “think outside the box”, but I’ll
use a variation of that in better keeping
with what I am suggesting: get a new
box. Then get your head out of the 70’s,
80’s and 90’s ways of thinking!
p. 52
By David Stonham
After 30 years in the automotive
industry, with 20+ of that spent directly
in retail (both front and back ends of the
store, at all levels), I’m amazed at how
much we’ve talked about “management
advances”, “new ways of thinking”,
“technology advances”, etc., and yet
the vast majority of our industry is
completely stuck in the methods of
30 years ago. Think about how much
money we’re currently spending on
technology that doesn’t produce the
desired results. Additionally, we’re not
putting these available resources, best
practices, analytical data, funds and
logic to best affect.
Why is the Industry Standard HP-CPRO Measurement So Misleading?
Without measuring your results against
your real opportunity (real opportunity
= true potential based on the daily workmix coming through your shop), then
how can you possibly know if your HPCP-RO is a “good number” or not? So
what do I mean by “real opportunity”?
Please ask yourself these questions:
1. Of all of the customers coming
through your Service Department today
(or this week, month, quarter, etc.), how
many of those “qualified” for one of your
maintenance menu opportunities? Then
ask:
a. How many of those real opportunities
were sold?
b. How much of the true potential money
was actually collected?
c. How much of that money was LOTT
(Left-On-The-Table)?
d. How do each of your Advisors, Tech’s,
Groups or Teams rank in these above
measurements Daily, Weekly or Monthly
and how have they been trending
throughout the year?
2. How about your Multi-Point Inspection
(MPI) opportunities and upsells (with the
same sub-questions from above)?
If you say that you don’t need know the
answers to these questions, then I’d
strongly suggest you remove yourself
from the retail automotive industry.
Without these answers (and a whole
bunch more) you have no hope of
maximizing retention, nor building a
strong base for the future.
Please Note: If you don’t have a
maintenance menu in your Service
Department, or a sound MPI process,
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p. 53
to better communicate with your
customers. (And no, I’m not in the menu
or MPI business.) These tools do not
need to be expensive, nor high-tech, nor
do they need to include a bunch of highpressure upsell stuff. (And no, I’m not
against up-selling, either.) At a minimum,
these tools need to coincide with the
manufacturer’s recommendations and
meet needs of your customer’s vehicles.
These tools are a “must-have”, along
with the ability to track performance.
So, how can these things be measured
without hiring an entire team of people
to do daily drill-down of every closed RO
running through your shop? In reference
to question #1 above, please see in this
article a Maintenance Menu Summary
Report that’s the first step in answering
some of these important questions:
What would this measurement of
performance / accountability look like
in your store? Is your store missing
maintenance menu sales to any extent
such as this? If so, what’s it doing to
your customer retention, your brand’s
image (because less maintenance =
more breakdowns), and to the longterm viability of your business? Because
if you don’t know the answers to these
questions, then you need to know.
What’s the point of placing any credibility
in your HP-CP-RO measurement if you
don’t know how much real opportunity
your shop has to work with?
So ask me this: “Is 2.3 HP-CP-RO
good?” And here’s my answer: “I don’t
know. Based on what?
Shifting to another misleading
measurement near, but not so dear, to
my heart:
Why is the Industry Standard
Service Absorption Measurement So
Misleading?
On its own, this has always been one
of the most misleading economic
indicators in our industry, because it
tells you nothing about the underlying
health of your Service Department.
What’s the point of measuring the
performance of something (gross profit),
related to something else (operating
p. 54
expenses) if you still don’t know
the underlying true potential of that
something (gross profit)? What could
this, or should this, absorption rate
really be, based on the real opportunity
in gross profit?
You must measure how big of a real
opportunity pond you’re swimming in,
or you can’t gauge how far you have
yet to go in your to journey to success.
Otherwise you’re just out in the pond,
flopping around, hoping for the best.
Without knowing the underlying true
potential, your Service absorption
tells you zilch about the health of your
Service Department business. Much
the same as so many other “so what”
comparison rankings will tell you; like
the ones that so many Dealers and GM’s
don’t necessarily understand, but often
times beat Service management up
over. If the true potential of these other
stores is not known, then it’s an apples
to guava comparison. “Oh, but we have
the same franchise”. So what? Without
knowing the real opportunity of every
store in the groups, such as with the
questions related to maintenance and
MPI sales above, then how can anyone
reasonably gauge a level of “success”
(or an accurate ranking)? Consider
these points with regard to your real
opportunity:
In Summary
• Effective Labor Rate Potential
• Maintenance / Repair Work Mix
• Parts and Labor GP Management
• Op Code Utilization and Management
• Pay Type Management
•Pricing Policy Management and Control
(Accountability)
• Share Value
• 1-Line-Item RO’s
If you’re working hard 10-12 hours per
day, without measuring true potential, or
what you’re actually trying to manage,
it’s an exercise in frustration and
inefficiency, best defined as the “oldbox” management ways of the past.
As long as you’re coming into work
every day and busting your hump, then
why not build the best “Management
Toolbox” of resources available? Do
some homework, reach-out for those
resources that are right for the future of
your store (and your career) and make it
a great day!
David Stonham’s career has
included roles in retail (from
Technician, to Dealer and MultiStore Operator), as well as with
top US and international based
third-party providers and senior
leadership positions with vehicle
distributors, while working in Asia
and the Middle East. Associated
with Raleigh, North Carolinabased
KEEPS
Corporation
(ROAMS) for 20+ years (beginning
as the company’s Co-Founder),
David works as the company’s VP
of Business Development from
the company’s West Coast office
in Las Vegas, Nevada.
7
100
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*From Modern Tire Dealer Magazine, “Facts Issue 2013.”
p. 55
Featu r e
Tracking Vehicle Fluid
Health
A F l u i d S a m p l i n g P r i m e r Fluid analysis is one of the best tools in
the preventative maintenance arsenal to
maintain the health of a vehicle’s engine.
These include coolant, brake fluid,
crankcase oil, differential fluid, power
steering fluid and transmission fluid. The
information that’s available in the fluids
not only holds the key to their health but
also to that of any wear modes existing
in the components of the vehicle.
When historical data is maintained on
a vehicle, the Service provider is able
to trend the fluid testing results and
understand what’s going on inside the
vehicle. Many people regard drawing
fluid samples as an activity that will be
done “as time allows, taken from where
it’s convenient” thereby failing to reap
the benefits that good fluid sampling has
to offer.
Sampling, testing, recording and analysis
of the results over time should be taken
seriously and be performed with the
utmost regularity, care and diligence.
It’s not enough to take a sample by
just filling a bottle with fluids from the
system and passing it on to a Service
Advisor. The steps must be performed
properly to accurately analyze and trend
the data. This is especially important
today, as the average vehicle age in
the U.S. has climbed to over 11 years.
With over 250 million gasoline-fueled
cars and light duty trucks on U.S. roads,
approximately 51 percent of them are
from model years 2000 to 2008, making
fluid analysis critical for the vehicle’s
p. 56
By Ron Schornstein
proper maintenance, longevity and safe
operation.
(Important: do not take samples from
an operating (running) vehicle or
pressurized system.)
The first step to accurately track data
from your fluid samples is to identify
the proper location from which the fluid
samples will be taken. Samples should be
extracted from the accessible, turbulent
or “live” zones within the systems.
Pulling a sample from unplanned and
inconsistent locations may not allow
reliable accurate representation of
the condition of the component to be
made. Wear particles, contaminants
and water settle to the bottom thus
making samples from the bottom of the
systems difficult to analyze and trend.
Do not sample from the bottom except
when you are specifically looking for the
presence of contaminants, like water in
fuel that collects only on the bottom of
the system.
Drop-tube
sampling
should
be
minimized. This involves a vacuum
sample pump, a length of tubing and
the fluid reservoir of the machine you
are testing. With this method, it’s
challenging to get the tubing into a live
zone of the oil and to repeat the same.
Sampling from inconsistent locations
leads to poor trending of data and as a
result skews the accuracy of the data.
The sample valve that is used should be
located in a turbulent area of fluid flow.
This can be found after pumps or in
elbows where the fluid turns and begins
to flow violently. Sample upstream of
any filters to ensure that valuable data
due to filtration is not lost.
Some systems may have only one
sample port or place from which to
sample. For instance, sample with a
stainless steel tube extension so that
the end of the tube (where the sample
will be drawn from) is close to the gear
teeth and at least two inches away from
any of the walls of the gear case. When
sampling, use the same port and draw
fluid from the same place every time. By
doing sampling in the same fashion each
time, it’s possible to have consistent and
trendable data. It also makes spotting
any abnormalities in the fluids easy.
“Sampling, testing,
recording and
analysis of the
results over time
should be taken
seriously and
be performed
with the utmost
regularity, care
and diligence.”
p. 57
Systems may have several sample
ports. A primary port is a location in
the system downstream of the working
components where you can get a good
representation of the system as a whole
with one sample. As you draw samples
from this location and trend the results,
you may begin to see an increase in
wear debris. When you see an increase
in wear debris, secondary ports allow
you to track where the increased wear
is coming from in the system. Generally,
secondary
ports
after
individual
components can be used to further
identify the cause of wear metals.
For example, if you are sampling the
return line of a hydraulic system and
see an increase in wear debris, you
would want to track where that debris
is coming from within the system. In a
typical hydraulic system, you would
need to have a secondary port after
the pump and after any cylinders or
hydraulic motors in the system. This
would allow you to identify where the
increase in wear is originating.
The choices for sampling components
in an automobile varies by model
and manufacturer. Check the Service
manuals to identify the best place and
conditions for sampling. The following
are suggestions for typical sampling:
- Power steering fluid is best taken from
the reservoir cylinder with a pipette.
- Engine coolant is best taken from the
overflow bottle after the engine has
operated at normal temperature with
the heater turned on. Do not remove the
radiator cap when the engine is hot.
- Brake fluid is best sampled from the
master cylinder and motor / crankcase
oil is best sampled from the dip stick
or reservoir after the engine has been
turned off.
- Transmission Fluid is best sampled
from the top thru the dipstick port. The
engine should have just been turned off,
after reaching operating temperature.
The most uniform samples are obtained
when the transmission is in Neutral, at
p. 58
idle speed and at operating temperature.
A sampling tool made up of a syringe and
tubing can be used to obtain a sufficient
sample. If sampling from the top cannot
be accessed, a sample can be drawn
from the bottom of the transmission
from the transmission fluid check plug.
The car must not be running.
“The choices
for sampling
components in an
automobile varies
by model and
manufacturer.
Check the
Service manuals
to identify the
best place and
conditions for
sampling.”
- The differential oil sample can be
drawn from the differential drain plug.
After sampling, either properly dispose
of the syringe and tubing or clean them
with warm water and a mild detergent.
Using proper sampling techniques is very
important. For very dirty environments,
keeping the sample bottle in a sealed
bag while you draw a sample will help
minimize data disturbance by outside
sources.
Examine the sample bottles you’re using.
Bottle cleanliness makes a difference
in the results. If the results are high,
consider purchasing sample bottles that
are certified “clean” or “super clean” to
make certain that the disturbance is not
in the bottle. For systems in which the
samples are extremely critical, use glass
bottles that are certified “ultra clean.”
In summary:
• Use documented “best practices”
• Take samples from the “Live zone”
• Sample upstream of filters
• Sample downstream of machine
components
• Keep the sampling tools and bottles
clean
• Use an easy to use sampling tool (i.e.
Dip and Clip or Syringe)
• Keep sampling valves and sampling
devices clean
• Sample at regular planned frequency/
intervals
• Record VIN, mileage/hours, fluid type,
date, results, sampled-by, etc.
• Keep track of fluid flushes on the
vehicle maintenance record
• Report make-up fluid volume added
prior to sampling (if any)
• Review the trend of the data at each
sampling event
• Review and record results once the
lab test data becomes available
Fluid analysis data has a wealth of
benefits for those who utilize it properly.
By ensuring that you are sampling
properly, data will be trendable and
better understood. Tracking historical
results is a must for any good fluid
analysis program. Always pay attention
to what your fluid is trying to tell you by
trending the results. (Look to the next
article on best practices for tracking
sample readings.)
Ron Schornstein, President and
Founder of Mountain Lakes,
NJ-based Acustrip Company,
is an entrepreneur with over 30
years of global experience in
Finance, Product Development,
Manufacturing,
Logistics,
Customer Service, Operations,
Sales and Project Management.
Ron
has
lead
organizations
through start up, sales, mergers,
acquisitions
and
process
improvements
involving
the
invention and implementation of
new products and technologies.
Ron holds a number of patents,
and trademarks and is an active
executive member of ASTM, SAE,
AMRA/MAP, and TMC.
p. 59
Featu r e
Four Innovative
Industrial Storage
Solutions
B r i n g O u t t h e B e s t i n E f f i c i e n c y a n d Q u a l i t y S e r v i c e By Joe Micek
Auto dealerships provide a critical
service to society: our vehicles get
us to and from work, transport goods
and help us lead lives of purpose and
excitement. An industry held in such
high esteem should run at maximum
capacity at all times, but occasionally
this is not the case. Disorganized or
overinflated inventories are a major issue
facing dealerships today and some are
simply running out of space to increase
inventory and, ultimately, increase sales.
Fortunately, there are companies
working diligently to design and
produce efficient, durable workplace
storage solutions to assist dealerships
in their quest to increase the bottom
line. Storing parts, tools, tires and
other equipment is a fundamental
requirement of auto dealerships, and
maintaining an organized inventory can
be a daunting task. Several products
are revolutionizing the way dealerships
keep products organized and increase
the efficiency of Service personnel.
As you continue to move toward
the creation of a space-saving,
ergonomically advanced workplace,
here’s some food for thought:
More Really is Merrier
More space means more inventory and
more inventory means more Service.
Profit sits atop a chain of dependent
variables, all reliant upon the amount
of in-demand and up-to-date inventory
p. 60
available at your dealership. That’s why
it’s critical to maximize storage space
and reduce your storage footprint,
ultimately allowing you to expand and
access inventory with optimal efficiency.
So what’s the best way to increase
storage space? Spatial issues in
warehouses have necessitated building
up rather than building out and this
concept is echoed in space-saving
storage at dealerships. Modular storage
cabinets take advantage of vertical
space and are tailored to your needs.
As those needs expand, so do these
adaptable storage systems. Buildingblock-like flexibility allows for the
addition of one or more cabinets to
accommodate a growing inventory and
you can reconfigure them as much and
as often as needed.
In addition to their organizational
capacities, modular storage cabinets
actively protect your parts, tools and
other equipment by eliminating the
wear and tear of open shelving. Fully
extendable drawers that keep contents
at eye level make finding parts simple
and protect them from dust and
unnecessary handling when closed.
Two modular storage cabinets can store
the entire contents of five conventional
shelving units, so imagine the fiscal
possibilities as you continue to grow
your inventory and maximize the use of
space at your dealership.
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p. 61
Organizing Success
A prolific inventory can be a blessing or
a curse, depending on its storage. Think
along the lines of “too much of a good
thing” and it’s easy to understand why.
Inflated inventories mean blindly rebuying parts you already have, carrying
too many older parts when newer ones
are in demand and an unnecessary
mishmash of new and old parts for your
personnel to sort through. To prevent an
excessive inventory and ensure efficient
retrieval of parts, modular cabinets
assist in implementing the ultimate in
organized storage.
Modular storage cabinets systematically
protect and control inventory by providing
distinct and easily-identifiable locations
for specific products. By maximizing
organization,
restocking
happens
quicker and overstocking declines
drastically. Likewise, retrieval time is
also greatly reduced. With conventional
shelving, over half of retrieval time is
spent simply getting to -- and finding -stored items. However, customizing the
height, width, color, number and layout
of drawers trumps standard shelving as
a more organized method of storing and
retrieving parts. The unity of speed and
efficiency in the storage and retrieval
processes eliminates wasted time,
excessive inventories and the hassles of
searching for parts.
Organization is further improved with
the use of accessories in modular
storage cabinets. Foam inserts are cut
precisely to cushion your tools and
parts, while adjustable partitions and
dividers in each drawer can be removed
for expedient handling, issuing and
counting. The setup of partitions and
dividers -- or loading diagrams -- can be
configured in virtually infinite ways from
drawer to drawer within one cabinet.
These organizational accessories are
conducive to fast and easy retrieval of
parts and tools, cutting the time it takes
to dig around for items in half, and
simultaneously reducing the wait for
customers and Service personnel.
Workstations That Work For You
What good is increased storage without
p. 62
an area to use your equipment? Service
personnel need suitable workstations
to ensure the utmost quality of and
efficiency in their work. Workstations
should be tough and durable with easy
access to tools, parts and other items.
Your dealership is unique, and your
dealership needs to mirror this distinction.
In response, innovative customizable
workstations can be created using your
exclusive specifications. Try kicking
your workstation up a notch by adding
various accessories, including kick
plates, modesty panels and foot rest
shelving. These accessories assist you
in meeting your technical requirements
while also providing the maximum
amount of comfort for your personnel.
Make the Most of Mezzanines
Believe it or not, your storage can still
be more effective with the ultimate in
maximum storage: the mezzanine. When
you need to bump up storage density
while saving floor space, mezzanines
can save the day.
An Automatic Hit
After installing your new modular
storage cabinets and customized
workstations, you may feel as if you
have it all. However, there are still
more ways to convert empty space
into ergonomic and efficient storage
with the use of automation. In the auto
industry automated storage devices are
revolutionizing the Service Department.
Motorized
Parts
carousels
are
constructed with vertical space in mind,
essentially converting air to money as
you grow your inventory and increase
sales. One person easily and safely
operates these devices and, as the
carousel delivers parts to the picker,
physical labor and the risk of injury
decrease.
When you’re starting to run low on
space in your facility, perhaps it’s
time to consider new workplace
storage solutions. Modular cabinets,
organizational accessories, motorized
carousels and mezzanines are just a few
of the space-saving, efficiency-boosting
products available to the auto industry
today. Don’t settle for disorganized or
overinflated inventories, antiquated
storage systems, or risky retrieval
methods. Instead, contact a highlytrained expert to assist you in designing
a storage system tailored specifically to
your inventory and business needs.
For dealerships, tires are also a major
source of revenue. Luckily, automated
picking devices don’t stop at Parts.
Motorized tire carousels have been
specially designed to aid in the storage
and retrieval of tires. The most important
benefit of motorized tire carousels is
the virtual elimination of potential injury
to operators. Tires are retrieved and
delivered by the carousel and placed
at floor level for ease of access to
operators. This system makes it easier
and faster for operators to retrieve tires,
allows for more tires to be stored and
ultimately results in an increased ability
to store and sell tires.
Forget the limitations of ground-floor
storage and build a second level
equipped with all the bells and whistles
you need. Walkway support systems,
grating, stairs and railings are readily
available to elevate storage space and
ensure workplace safety. And don’t worry
about configurations: These mezzanines
are completely customizable, as well.
Keep customers happy and serviced
by maintaining a stocked inventory
that runs smoothly. Investing in storage
solutions that improve your workplace
means investing in quality service and
care as well as investing in a more
efficient business.
Joe Micek is the Vidmar Manager
of National Accounts, Industrial
and Automotive Supply. Joe has
32 years of service at Vidmar
where he is responsible for
industrial sales and is dedicated
to client satisfaction. He has
completed
various
material
handling
courses
including
Management by Fact Training,
Six Sigma and BLS and GDP
Training. He has 40 years of
experience covering a variety of
industries including automotive,
construction, agriculture, power
utilities and manufacturing
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. 63
Featu r e
Are the OEMs Telling
Us the Truth
About Recalls?
H o w Y o u r D e a l e r sh i p Ca n P r o f i t F r o m R e c a l l s
Pa r t T w o of a Si x - Pa r t S e r i e s B y Br i a n A l l e n
Our company identifies vehicles and
vehicle owners with open recalls in the
vicinity of our client’s dealerships. So
far, we’ve done this type of list work for
over 2,000 dealerships nationwide. So
when we say that some manufacturers
are doing less than a stellar job of
accurately identifying the vehicles with
open recalls and the owners of these
vehicles, we know what we’re talking
about.
We work for individual dealerships
and dealership groups, not for the
manufacturers. And because of this, we
don’t have to promote the manufacturers
or say what a wonderful job some of
them are doing in making vehicles safer.
Over the last five years, our dealership
clients have told us quite a few very
surprising stories about how some
manufacturers and their representatives
are ensuring that the bare minimum
of recalled vehicles are repaired, thus
saving money for the manufacturers of
the vehicles and for their corresponding
parts manufacturers.
This means that, on average, we have to
analyze just three Hyundai VINs for open
recalls to find one with an actual open
recall.
First of all, let’s look at the sheer
numbers of open recalls for most of the
major vehicle lines around the country:
With all the recent press about Toyota
and GM recalls and with some people
calling for their heads on a platter,
p. 64
we find, in fact, that Toyota and GM have
the highest ratio of completed open
recalls and the most cars on the road.
So, now let’s get to the stories that we
hear our client dealers being told by
some manufacturer representatives,
some on a regular basis.
#1: Factory Recall Lists Provided to
Dealers are Comprehensive
As far as we know, a comprehensive
list of all open recalls in a market area
has never been provided to any dealer
at any time. Some manufacturers may
provide a list of a small percentage of
recent open recalls in the dealer’s area
of responsibility but no dealership (as
far as we know) has ever gotten from
the factory a complete list of all open
recalls within their franchise lines in their
PMA’s. Wonder why? Read on.
“Most
manufacturers
realize that
repairing
open recalls
is good
business.”
#2: Factory Recall VIN Ranges Provided
to NHTSA Have Accurate Owner
Information
When the factory reports to NHTSA the
VIN ranges that are subject to a particular
recall, they are providing virtually 100%
accurate data. But whether a particular
owner of that vehicle still owns that
vehicle or if that vehicle is in operation
may often be inaccurate.
The manufacturer is at the mercy
of R.L. Polk to provide accurate
records of vehicle owners with open
recalls. And since R.L. Polk only uses
DMV registration data to obtain this
information, the data may be terribly
inaccurate. (DMV registration data is
often several years old and over half of
all individuals who move do not leave
correct forwarding addresses.)
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p. 65
In addition, it’s estimated that close to
3% of all U.S. households have someone
in that household moving every month.
In our experience, we have seen figures
as high as 70% inaccuracy in whether an
individual still owns a particular vehicle
and where they currently live, on random
samplings of manufacturer information.
Our company uses data provided to
us and cross-referenced from sources
such as insurance carriers, selfreported websites, aftermarket warranty
companies, quick-lube shops and even
satellite radio stations. And even though
we do not have every unit in operation
in our system, our data is virtually 100%
accurate, as the above referenced
types of companies have a self-interest
in making sure that they know which
vehicle is in which driveway, since that’s
how they make their money.
As I said earlier, the R.L. Polk Company
provides the address information on
individuals with open recalls and much
of the data is inaccurate because it
comes from DMV registration records,
which can be several years old.
p. 66
“Occasionally, a manufacturer will have
a clause about not soliciting warranty
work and then talk specifically about
the allowable language that must be in
a recall notice. But never have we seen
recall marketing absolutely prohibited
at the dealership level.”
#3: Your Manufacturer Agreement
Prevents Your Dealership from Marketing
to Vehicle Owners with Open Recalls
We’ve heard this from over one-hundred
dealers of various brands who’ve told
us that they were told this directly by
their manufacturer representatives and,
occasionally, by higher-ups in their own
dealership group organizations.
“Don’t think
In each of these instances, we have
asked to speak with whoever was telling
this to the dealership management
or to the Service or Fixed Operations
Director and to show us where this
is not permissible. The result? Not
once in over one-hundred times has
anyone ever shown us anywhere in
any manufacturer agreement where a
dealership is prevented from notifying
individuals with open recalls in their own
PMA ZIP codes that they have an open
recall on their vehicle.
Occasionally, a manufacturer will have
a clause about not soliciting warranty
work and then go on to talk specifically
about the allowable language and text
that must be in a recall notice. But never
have we seen recall marketing absolutely prohibited at the dealership level.
small. Be greedy
and be good.
Perform as much
recall work as
your dealership
can properly
handle. Get as
many unsafe
vehicles off the
road as you can.”
p. 67
Now bear in mind that there are
regulations about the way in which you
solicit recall work:
1. The notice cannot have sales or other
non-safety related Service offers.
2. The notice must have the official
NHTSA recall logo on it.
3. The notice must not be misleading
or tell people that they definitely have
a recall on their vehicle when, in fact,
the dealership isn’t certain if they do or
don’t have an open recall.
But all three of the above rules have
nothing to do with the manufacturer
regulations.
With all of this now said, you’re probably thinking about how you can take
advantage of all of the open recalls
in your market area. The answer is:
Don’t think small. Be greedy and be
good. Perform as much recall work as
your dealership can properly handle.
Get as many unsafe vehicles off the
road as you can. And, most of all, don’t
only go after those vehicles with recalls
on your own customer database. Go after all of them.
Most manufacturers realize that repairing open recalls is good business. But
some need to take a more serious look
at their recall notification processes.
p. 68
“The manufacturer is at the
mercy of R.L. Polk to provide
accurate records of vehicle
owners with open recalls. And
since R.L. Polk only uses DMV
registration data to obtain this
information, the data may be
terribly inaccurate.”
“In our experience,
we have seen
figures as high as
70% inaccuracy
in whether an
(and future Parts sales from the manufacturer) go up dramatically every single
time that particular vehicle owner enters
a Ford dealership and the brand name is
reinforced.
Your dealership(s) can bring in hundreds
or thousands of new Service customers
by simply using better sources of data
than the manufacturers are currently using and by going after ALL of the open
recalls within your franchise lines.
Service
Marketing
programs
with
guaranteed
Return
on
Investment? Nobody else offers
anything like this because no
one else can deliver the results
that www.PistonData.com can.
Irvine, California-based Piston
Data is the company that Brian
Allen founded and he is the
company President. Piston Data
is number one in the nation for
delivering new Service customers
to
franchise
dealerships.
Considered by many to be one
of the most creative minds in
automotive Service marketing,
Brian began his career with
Service Specials Direct (Picture
Perfect Promotions).
individual still
owns a particular
vehicle and where
they currently
live, on random
samplings of
manufacturer
information.”
Advertising 101 teaches us that the
more times a company name is heard,
the more likely an individual is to use
and re-use their products and services.
For example: an owner of a Ford vehicle
with an open recall (who is currently
servicing at an independent facility)
gets a notice from his local Ford dealer
that his vehicle has an open recall. The
owner brings the vehicle into the Ford
dealership for his recall repair.
This is a win, win, win situation. The
owner of the vehicle gets a free repair.
The dealership recaptures a customer
from an independent and the dealership
now has a chance to retain that customer with proper care and servicing of
the customer’s individual needs. And the
manufacturer wins, since the likelihood
of a new car sale from that manufacturer
p. 69
Featu r e
Becoming the Best
You Can Be
Is I t a K n o w i n g Iss u e o r a D o i n g Iss u e
Tha t ’ s H o l d i n g Y o u B a c k ? Have you ever thought about what
keeps you from becoming the best you
can be? Hopefully, not only have you
thought about this in the past, but you
think about it on a regular basis. Though
this thought process can apply to any
employee, manager or owner, today
I will focus on managers in the Fixed
Operations Departments.
Let’s consider the following situation for
our example: The General Manger meets
with you to review your department’s
past performance. During the meeting,
the GM states that she wants to have a
minimum of a 50% increase in net profit
in your department this year. How do
you react?
When faced with a challenge, most
people have one of three natural
reactions. The first one is the simplest
and goes something like this: You agree
and believe that the requested 50%
increase in net profit is obtainable -and you already have ideas on how to
make it happen. You develop your plan,
communicate your plan and actually
perform your plan. At this point the stars
are aligned, life is good and you are on
your way towards achieving the set goal.
p. 70
By Steve Hall
The second and third types of
reactions aren’t as simple as that. And,
unfortunately, they’re more common
than the first reaction.
Let me explain the second type of
reaction that we can have when a target,
goal or objective is presented. Again,
we’ll use the above example, where the
boss has mandated a 50% increase in
profitability. You may not have a plan to
obtain the needed profit. You know that
you work hard every day and you just
can’t see where the increase is going
to come from. You’re not sure whether
you need additional sales, additional
margins, good old-fashioned expense
reduction, or a combination of all three.
You want to perform to the requested
level, but you just don’t have the answer
to how to perform to that level. We
consider this a “knowing issue.”
The best part about knowing issues is
that they are fixable. Our industry has
many ways to tap into the knowledge
base of highly successful people. Here
are just a few ways to gain knowledge
that could help you overcome a knowing
issue to accomplish the objective.
“The second and
Automotive Training Companies These companies can provide a wide
range of solutions to overcome most any
obstacle. You can attend two-, three- or
five-day courses that will cover a variety
of topics to overcome challenges faced
by today’s managers. A side benefit of
this type of classroom training is that,
in addition to the course curriculum,
you get to engage other students and
learn from their experiences. It also
gives you time to get away and work on
your business, rather than just in your
business.
third types of
In-Dealership Consultants or Retail
Operations Coaches - Consultants or
business coaches are another effective
way to get very specialized knowledge.
These people will work hand-in-hand
with you, on your turf, to come up with
solutions that will meet your needs.
reactions aren’t
as simple as that.
And, unfortunately,
they’re more
common than the
first reaction.”
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p. 71
Webinars, On-Demand Video Training
and e-Learning Seminars – These
on-demand and scheduled training
segments are becoming an efficient
way to learn new ideas or to help you
understand the solutions that are
available on a wide variety of topics.
Print and / or Digital Magazines and
Blogs – These are easy to access and
search. They’re full of timely and useful
information. Whether you’re looking
for information on products or timeproven tactics to help you achieve your
objective, much can be learned using
this format.
Lastly, don’t forget other resources
for information. These include digital
automotive groups, discussion forums,
professional
networks,
personal
acquaintances -- the list goes on and
on. In today’s world, we’re never short
on being able to find information and
ideas.
Knowledge issues all come down to
this: If you really want to know how
to accomplish something, with a little
research or investment, you can find
p. 72
suggestions and best practice methods.
Since we can see that information for
solutions is readily available, this brings
us to the third possible reaction. This
may be the hardest to address. I call this
one a “doing issue.” Continuing with our
example above, you may understand
your boss’s request and even have the
knowledge or solutions to obtain the
target, but are you willing to do what it
takes to achieve it?
a department and even a career.
Unfortunately, they happen way too
often.
This reaction can get tricky, partly
because, often, managers disguise it as
a knowing issue, when it’s really more of
a doing issue. They know ways to impact
the desired result, but for whatever
reason, they decide not to take action
and do it.
Be introspective and figure out why you
refuse to “do what it takes.” Is it because
the solution is illegal, immoral or unjust?
If it is, then find a solution that doesn’t
cross these non-negotiable boundaries.
If it is just because it sounds like more
work than you want to do, then find a
way to make it manageable and make it
happen, or find a suitable solution that
requires less energy, investment or time.
You must realize there are many ways to
overcome every obstacle.
They may justify their decision with
thoughts like, “The solution sounds like
too much work,” or, “If I do that, it might
upset (you fill in the blank),” or, “I’m
happy enough with the way things are,
so I’ll just wait this out and hopefully it
will go away.”
These particular types of responses
can be devastating to a business,
So how can you overcome this negative
reaction? I’m going to give you two
solutions. The first one is to personally
take control, or ownership, of this
reaction. If you know that you are the
stumbling block, then you can change
and become the solution.
As an example, if you are having
production capacity issues, don’t
just convince yourself that you are
maxed out and can’t grow. Maybe
you’ve looked at instituting a four-day,
10-hour work schedule to increase
capacity, but for some reason, decided
that it was not a good fit. Now you have
convinced yourself that there are no
other options. Since you don’t want to
do a 4-10 schedule, you just muddle
along, not growing month after month -and just making excuses.
“Don’t forget other
resources for
If we kept that same attitude, how great
could we become? If you start evaluating
every challenge as a either a knowing or
doing issue, you will be better equipped
to know what path you need to take to
find that “one way” to make it work for
you. That’s a key to ultimate success for
your dealership, your department and
your career.
Steve Hall is a full-time instructor
for the NCM® Institute Center for
Automotive Retail Excellence and
is responsible for the development
of the Institute’s Fixed Operations
training curriculum, with emphasis
in express Service management,
Collision management and Parts and
Accessories management. Over the
past 25+ years, Steve’s experiences
have encompassed almost every
aspect of Fixed Operations and
management, serving as Service and
Parts Director and Vice President of
Fixed Operations over 19 stores, as
well as having an equity position in
two dealerships.
information. These include
digital automotive groups,
discussion forums,
professional networks,
personal acquaintances
-- the list goes on.”
If you truly decided that the 4-10 option
wasn’t the solution for you, does it stop
there, or do you go back to the drawing
board looking for other ways to improve
capacity? Again, it comes back to a
“knowing” or a “doing” issue.
Did you consider the possibility of
using a second or even a third shift,
or possibly increasing your hours of
operation or days of operation? Maybe
a team system would help to gain stall
density. Or a three-day 13-hour shift
program is another option. You could
look at a reduction of the bays-totechnician ratio, or utilizing “community”
bay programs. These are just samples
of a variety of methods to increase your
Service bay utilization and production
capacity. There are many more potential
solutions for the example, but you must
research solutions, find the one that fits
your situation the best and then actually
do it!
To help with doing issues, I like to use
the Thomas Edison philosophy. When
Edison was asked how he felt about
failing so many times when trying to
develop the incandescent light bulb, he
said that he didn’t look at it as failure,
but rather that he had found 10,000
ways not to make a light bulb. But he
added that he only had to find one way
that it would work.
p. 73
Featu r e
Do You Really Want
to Sell More Tires?
L e t ’ s G e t R o l l i n g ! By Chuck de Martigny
In my last article, I outlined how to build a
marketing plan for tires. This time, I want
to focus on the actual implementation of
the plan – specifically, the three key steps
that you and your team need to execute
to make your program a success.
Most car dealerships today are involved
in tire sales. What differentiates those
who succeed and those who don’t isn’t
their commitment. To understand the
difference of being involved and being
committed, I am reminded of the old saw
of “Bacon and Eggs”. The chicken that
provided the eggs was involved; the pig
that provided the bacon was committed.
#1 – Show and Tell: Let Your Customers
Know You Mean Business
You need a great display and you need
great signage if you want to have great
tire sales success. Putting up a tire
display rack is a good start, but the pointof-sale signage adds the horsepower.
From the time your customer arrives in
the Service drive to the time they leave,
make sure they know you’re serious
about tires.
Your tire displays should present your
selection in a clean, organized and
accessible way that makes it convenient
for customers to inspect and compare
choices relevant to their specific vehicle
p. 74
and requirement. Each tire on display
should have signage to show not only
the price, but the key features and
benefits of that specific tire. Benefits
should include the expected mileage
(warranty) and handling or performance
characteristics, such as stopping
distance, run-flat capabilities, weather
and driving conditions and other
performance attributes.
We
recommend
that
the
OEM
replacement tire is identified as THE
BEST VALUE tire, because the ride
and handling characteristics match
what they received when they bought
their vehicle. If your customer liked the
way the car handled on their original
test drive, that’s what they will get
when they replace the tire with your
Best Value OEM replacement tire.
And it’s the one best suited to their vehicle
as determined by the manufacturer. Your
Best Performance tire needs to show
value added benefits that justify its
higher price, while your BEST PRICE tire
identifies why it is a cheaper alternative,
such as like a shorter mileage warranty
or a lesser-known brand.
“Putting up a tire
display rack is a good
Ancillary signage re-enforces the valueproposition you bring to the replacement
tire business. These signs clearly explain
your program and the value benefits you
add to the tire replacement process.
Although these signs won’t necessarily
generate a sale today, they plant the
seed and leave a lasting impression with
your customer that when it comes to
tires, you mean business. And when it’s
time to replace their tires, they’ll think of
you first.
Well-designed signage can be decorative
as well as informative, so don’t overlook
the merchandising opportunities in the
customer lounge and Parts Department
for signage and displays to help build
sales.
start, but the point-ofsale signage adds the
horsepower. From the
time your customer
arrives in the Service
drive to the time they
leave, make sure they
know you’re serious
about tires.”
Additional signage close to the display
should include a TIRE INSPECTION
poster that identifies the major causes
of tire failure. This tool is vital for addon service required to correct problems
such as alignment, shocks, ball joints
or other related issues that will lead to
another tire failure if not corrected. (You
can generate $1,500 in additional ROs
for every $1,000 of tire sales. That’s why
this tool is so important.)
PRICE MATCH GUARANTEE and
VEHICLE MATCH GUARANTEE are our
other two favorite signs because they
set the stage for making the sale. The
price guarantee disarms the higher
price perception of most customers.
It assures your customer that you are
as competitive as anyone and you
guarantee it. The vehicle guarantee adds
the value of your unique knowledge
and expertise to buying tires from you.
You know the vehicle brand better than
anyone and you know which tires are the
right tires for your customer and their
vehicle. Together these signs are the
one-two punch that will knock out your
competition.
p. 75
#2 - Supercharge Sales with
Promotional Tires
Once you’ve set the stage with your tire
merchandising displays and signage,
supercharge your program with a special
promotional display. In most retail
stores, you’ll find end-bunks and special
promotional display tables for special
sales or promotions. These are part of
the overall program but differentiate
themselves with special pricing or
features that create an immediate call
to action. We prefer rolling racks to
promote four-tire deals, especially those
featuring a mail-in rebate that adds an
extra kick to the sale.
Promotional racks can generate one
or more extra sales each and every
week. That’s an extra $2,000 a month or
more of incremental tire sales. Keep it
stocked and move it around your drive
to stimulate those additional sales.
Last but not least, promote your tire
business. Let your customers know
you mean business with signage that
p. 76
customers will see as they enter your
drive. If you don’t have space for a sign,
be creative!
“We recommend that
the OEM replacement
tire is identified as THE
BEST VALUE tire, because
the ride and handling
characteristics match
what they received
when they bought
their vehicle.”
#3 – Stock-up: You Can’t Sell From An
Empty Wagon!
You need the inventory on-hand to
successfully sell tires. I know you can
run down the street if you need to. Or
your vendor can do a quick turnaround
order for you. But relying on these
types of fill-in solutions to run your tire
program is misguided. There are just too
many other things going on to make this
work consistently and still maintain a
high level of customer service. In reality,
this is, at best, a stopgap measure, not
a plan. And it usually ends in chaos,
with poor CSI ratings and frustrated
customers and staff.
If you don’t have tires, your Service
Advisors will know and they will stop
trying to sell what they know you don’t
have on hand. Get the inventory you
need and maintain it.
You need at least five tires for every tire
you display. That’s five tires, not four.
You do not want to use your display
tires to fill an order. Rationalizing that
you will replace it later has a tendency
to become much later, leaving a sorry
looking display that actually hurts you
sales.
Space for inventory can also be an
issue. Find the space. Don’t be afraid to
put your inventory on the drive with your
display, if you need to.
Although your inventory is not
“merchandising”, it can be incorporated
into your tire display with the added
benefit of showing your customers (and
staff) that you actually have the stock onhand and available for immediate install.
Just make sure you add appropriate
signage so your inventory ties into your
display esthetics.
were dirty. My answer: you don’t have
dirty cars in the showroom; why would
you have dirty tires on your tire display?
display will continue to generate sales,
increase CSI and promote customer
retention for years to come.
• Keep your displays stocked. Make
sure to replace every tire you sell when
you sell it. Most suppliers offer a stock
replenishment program to do this. If not,
make sure you do it yourself.
A final though: don’t add clutter.
#4 – Maintain to Sustain: Be Vigilant
and Keep Your Displays Current
• Update your pricing stickers each
month to reflect current pricing at
all times. If you change a tire model,
make sure you update the features and
benefits sticker.
Once your merchandising program is
implemented, it’s imperative that it be
maintained.
• Keep the displays clean and neat.
Tires should be cleaned every week and
sprayed with a luster sealant. You need
a product that’s not sticky or slippery
when dry, because it will attract dirt. The
last thing you need is a customer with a
black smear on his or her white clothing
because it came in contact with a dirty
tire. (I once had the Service Director of
a big dealership tell me he would not
display tires in his store because they
• Update mail-in rebate stickers, making
sure to remove out-of-date offers and
adding the latest offers to your displays.
• Make sure all your signage is current
and that any new offers or specials are
clearly displayed.
• Update your rack promotion every
month with a new offer.
A
professional,
well-maintained
tire
Just because it’s free doesn’t mean
you have to use it. Get rid of useless
temporary banners and signage that
isn’t part of your merchandising design.
It detracts from your merchandising
esthetics and will actually hurt your tire
sales performance.
Now go sell some tires!
Chuck de Martigny is CEO and Founder
of Jungle Cat Marketing, Inc., 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 (Cabbage Patch Kids,
Coleco Donkey Kong and the Grolier CDROM Encyclopedia). Most recently Chuck
has focused on tire merchandising, helping dealerships achieve extraordinary sales
growth and increased customer retention
through replacement tire sales.
p. 77
Featu r e
Service “Appointments” and “Reservations” H o w Th e y H i n d e r C u s t o m e r R e t e n t i o n ,
S u r v e y S c o r e s a n d Ups e l l s By Jeff Cowan
In my workshops, I always like to have
plenty of Q&A time so that I can address
the real concerns that Service Advisors
believe keep them performing at their
highest level. One concern that never
fails to be mentioned revolves around
the issue of Service appointments and
reservations.
Typically,
when
your
Business
Development Center (BDC) or your
Service Advisor sets your customer up
with an appointment or reservation, the
customer assumes it means the same
thing as it does at a restaurant: when
they arrive at the given time, their seat
will be ready with no waiting. And just
as when they make airline reservations,
they expect to be on the plane backing
up from the gate at that scheduled
time. When you set up a reservation
or an appointment for your customer,
they have been trained by business
in general to believe that the work will
begin at the appointment time. No
matter how many times or how well you
try to explain to your customers what is
really going to happen upon arrival, the
mere usage of the words “reservation”
or “appointment” reinforce their belief
that the work will begin at the exact time
of the reservation.
This is a serious problem. According to
what I hear from your Service Advisors,
p. 78
and based on what we witness when
providing our training on your Service
drive, three-quarters of the customers
that your Service staff work with
everyday have this misunderstanding
at the initial write up. As your Service
Advisors try to explain that the time set
for the appointment was for the purpose
of gathering information, the exchange
with the customer can quickly turn
sour. Therefore, the write- up and the
relationship begin with a disagreement –
a disagreement that your staff can’t win;
that takes about six minutes to resolve;
that only gets the customer thinking that
what they were told was just a ploy to get
them in and that reinforces the mindset
that you don’t do what you promise.
Anytime you start out a relationship
like this, you put yourself at a big
disadvantage toward accomplishing the
goals of customer retention, high survey
scores and the chance to acquire any
necessary up-sells.
The simple and easy solution to stopping
this and turning it around is as simple as
implementing the following two steps.
Step 1. In your Service Department,
never use the words “appointment” or
“reservation” again. Not verbally. Not
on signs. Not in print. Not online. Not
anywhere. Appointment and reservation
times imply an exact time that an event
is going to begin. “Check-in time”
implies that waiting will be involved. For
instance, when you go to the airport, you
are encouraged to arrive two hours prior
for check-in. Once you check-in, the
next step is to wait for the reservation
time when you will board the plane and
take off.
“By changing your
From now on, you are going to start
scheduling “check-in” times for your
Service customers so that after they
check-in, they will wait for the appointed
time set by the Service Advisor after
they have had a chance to talk with the
customer in-person about their needs.
In the customer’s mind, appointment
and reservation times indicate that
the event will commence at that
specific time. Check-in time however,
precedes an appointment time. In the
customer’s mind, check-in time refers to
a preliminary period designated for the
collection of information. After the information is given, an exact time for work
to begin can be determined. Check-in
time and its implications are familiar to
customers.
WWW.BORROUGHS.COM • MADE IN THE USA.
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verbiage from
appointment or
reservation to
CHECK-IN TIME and
by delivering these
three simple word
tracks, you will
experience immediate
impact and the
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disagreements will
end forever.”
p. 79
Step 2. Now that we have replaced the
words “appointment” and “reservation”
with “check-in time”, the following
word tracks are how you are going to
explain check-in times and stop the
disagreements forever.
The first word track is to be said by your
BDC or by the person scheduling the
check-in time:
“Mr. Customer, now that we have
established your check-in time for
9:00AM tomorrow, allow me to take
a minute to explain to you what that
means and what will happen once you
arrive. First, you will want to arrive as
close to your check-in time as possible.
Getting here early means you will have
to wait and getting here late could result
in you loosing your place in line. Once
you arrive, your factory-trained Service
Advisor will be ready with all of the
information you just gave me. During the
first part of the check-in process they will
go over all of this information to ensure
that I wrote everything down correctly,
p. 80
to make sure they understand what
your concerns are and to see if anything
needs to be added to your Service
list. The second step in the check-in
process is when you and your Service
Advisor will walk around your vehicle to
collect numbers off your vehicle and do
a quick visual inspection. The third part
of the check-in process is when it will
be determined which department and
which factory-trained Technician will
be the one best-suited to diagnose and
repair your vehicle. That decision will
be based on what you and your Service
Advisor discussed and saw during the
earlier part of the check-in process.
Once that’s determined, we will then
look at the schedule for that department
and Technician and that will determine
approximately when your vehicle will
enter our shop.”
By using this one minute long word
track, I have fully explained to the
customer exactly what to expect
when they arrive, exactly what
happens if they are early or late, and
exactly what will happen and why.
I have explained that the check-in
time does not mean reservation or
appointment. I have explained and
prepared them to wait. Once they arrive
prepared, the Service Advisor has two
word tracks to deliver:
“Mr. Customer, thank you for arriving on
time to get your vehicle checked-in. Now
that you are here let me explain to you
what we will be doing to get your vehicle
checked-in. First, I will be going over all
of the information you gave us on the
phone to ensure that it was written down
correctly, to ensure that I understand
your concerns and to add anything that
needs to be added. Once that’s done,
we will both walk around your vehicle
to collect some numbers off of it and to
do a quick visual inspection. Based on
what we discuss and what we see during
the visual inspection, we will select the
department and Technician that will be
best-suited to address your concerns
today. Once that’s determined, we will
take a look at their schedule which will
dictate approximately when your vehicle
will enter our Service Department.”
After the Service Advisor completes
everything as they said they would, they
follow with this final check-in time word
track:
“Mr. Customer, now that we have
reviewed all of your original concerns
and done our visual inspection, I believe
the department / Technician that would
be best to diagnose and repair your
vehicle would be ____. Right now they
are working on another customer’s
vehicle, so it’s likely your vehicle will be
entering our state-of-the-art facility at
approximately _____. Let’s give them
about one hour to an hour and a half to
complete your diagnosis, meaning you
can expect a telephone call from me
between ____ and ____ with an update
on the status and findings regarding
your vehicle. Fair enough?”
all possibility of one arising. You can
always tell a great Service Advisor
by the number of scars they have on
their tongues from years of biting back
argumentative words. The solution I
have presented here will do two things;
stop the disagreements before they
start and save your Service Advisors
from acquiring unnecessary scars.
Jeff Cowan is President and
Owner of Jeff Cowan’s PRO
TALK, Inc.
By using these two word tracks, which
combined take one minute to deliver,
you have done the following:
1. You’ve started the relationship on an
up-note and not with an argument.
2. You’ve done everything to the letter
that your BDC told them you were going
to do.
3. You’ve established the reality that
when you say something is going to
happen, it’s going to happen. They can
count on you.
4. You’ve saved about four minutes at
the write-up by being in control of your
customer and the write-up itself.
5. You’ve slowed the customer down
giving yourself more time to build
rapport and inspect their vehicle, which
will substantially impact customer
retention, survey scores and your ability
to get necessary upsells.
6. The customer has been educated that
speed is not the most important thing in
getting their vehicle repaired.
It’s really that easy. By changing
your verbiage from appointment or
reservation to CHECK-IN TIME and
by delivering these three simple word
tracks, you will experience immediate
impact and the disagreements will end
forever. I have always felt the best way
to win a disagreement is to eliminate
p. 81
SERV I C E D E PT.
Technology and You
“ Technology” -- the application of
scientific knowledge for practical
purposes, especially in industry.
In 1968 a bank in New York City installed
one of the first ATM’s in the country. Six
months later it was removed due to a
lack of usage. In 2008 there were 92,000
ATM’s throughout the country and by
2015 there will be a estimated halfmillion of them.
It has always amazed me how the word
“technology” has different meanings
for the car business. We know that the
manufacturers are making vehicles more
advanced than ever, but very few pieces
of technology used in vehicles are
proprietary. For vehicles to use things
like Bluetooth or syncing your iPhone to
your vehicle isnʼt something developed
by the car business. These are things
that have been used by people for years.
And now they end up in your car and
the car business calls that “advanced
technology.
I had a recent experience with a Service
drive that was going to involve using a
tablet for a write-up and it was presented
as if a tablet was something that was
just delivered by the gods yesterday. I
hate to break it to you but 5-year-olds
use them. They’re not that advanced
anymore.
Technology not only involves the
specific nature of hardware and
software, but it can also include trends.
Now such a trend would include mobile
devices and the application for your
business. Examples would be having
text reminders for appointments or
status reports on your vehicle during the
Service process. Here’s another news
p. 82
By Rex Weaver
flash -- kids text. As a matter of fact, Iʼm
starting to think that the next evolution
of humankind will be two more thumbs.
Of course the greatest marketing
technological strategy is your online
presence. Itʼs fun to hear people talk
about SEO now. (I missed the boat on
that one too....)
“Itʼs apparent
that using
automated
technology
for Service
transactions
is becoming
such a part of
our everyday
lives that they
are almost
commonplace.”
You have manufacturers going 100%
e-mail in surveys now and we all bow to
the online review in social sites like Yelp
or Google Reviews. And our worlds are
all crushed if someone on your Facebook
page says something not nice.
In a prior article I cited statistics that
remind us that the online world is
becoming so polluted that by 2015 youʼll
never know whatʼs a made-up review
from a company that specializes in online
reputation and whatʼs an honest review
from a true client. As previously stated
as well, online reviews only include a
very small percentage of your customer
base, so this ship has also sailed and
the car business is just getting to the
dock.
Now, there’s one thing that brings a lot
of these trends together and that’s the
development of the content. The reason
that people find the content of social
media so interesting is the most basic
of all human interests -- you define
the content yourself. And lets face it
-- the thing that people find the most
interesting is themselves!
We’ve all become very fascinated with
what we do. If the popularity of the selfie
doesnʼt prove that point, nothing does.
Either we love taking our own picture that
much or we just donʼt have any friends
to take the picture for us anymore. But
either way, it just proves the point.
Now, to take the importance of this
trend even further and how it applies to
our business, Iʼm not sure I ever heard
of anyone posting a bad selfie and the
reason is obvious: youʼre taking the
picture yourself, of yourself and posting
it on your page.
Itʼs interesting that
people becoming
with themselves and
interacting with other
anyway.)
the trend is of
more fascinated
less interested in
people. (In person
We love communicating with people via
e-mail or text or even through posting
things on our Twitter or Facebook
pages, but thatʼs not actually talking
with people in-person. There was a
recent statistic that shows the number of
people wanting to deal with automated
systems is increasing. Baby Boomers
were the group that acted as if they
couldnʼt stand an automated system in
any format, but moving forward, we see
that every generation since has been
increasing their desire to use automation
of basic transaction and inner actions.
My recent experience was canceling
a doctor appointment. I had to wait
for business hours to make the call to
begin with and then once I did, I was
greeted with a rapid....”can you hold?”
and then CLICK....I was on hold. I was
holding for 5 minutes and then I was
disconnected.......why couldnʼt I just
cancel my appointment online?
There are, of course, a couple of ways
to have one, but weʼll just mention two
of them.
We can either observe an experience,
like going to a concert, or we could
participate in an experience like
karaoke. One you watch and one you’re
being watched. (The classic subject /
object comparative.) If you were to be
a judge on American Idol, your certainly
would be more critical of the concert
than your own karaoke. If youʼre using
an automated system to design your
appointment setting and to ensure
that pricing is accurate and you have
the opportunity to be educated about
the numerous Service options, itʼs a
little difficult to be unhappy with that
experience.
Itʼs apparent that using automated
technology for Service transactions is
becoming such a part of our everyday
lives that they are almost commonplace.
Whether Iʼm checking in to get a boarding pass at an airport or using a touch
system pad to make my sandwich at
lunchtime and getting the money to pay
it from an ATM, itʼs all with us today.
The question that we need to ask ourselves is, “Are we continuing to do what
the car business always does and be
behind technology or are we going to
do something that car business never
does?” And thatʼs to be ahead of a piece
of Service technology.
Rex Weaver is the Service Manager for
Rothrock Motor Sales in Allentown, PA.
One of the great opportunities that
we’ve seen is the online appointment
system. We discussed in a prior article
that the possibility to structure your own
appointment at your own time and then
include the chance to be educated to
make Service choices was exciting for
both parties.
You have clients designing their own
content in their Service experience and
you have a real-time online appointment
system that fills your appointment
system with quality appointments -the true event to enhance the client
experience.
All your manufacturers keep discussing
how you can enhance your clients
experience but they do this without
really understanding the most applicable
definition of the word “experience.”
p. 83
PA R TS D E PT.
Parts eCommerce – Dealer
Action Plans (Part 2)
Dealer Action Plans are a popular
component in my Parts eCommerce
presentations. With help from dealers and
solution providers, I recently broadened
and expanded the full set of Dealer
Action Plans for Fixed Ops Magazine’s
readers. These charts are checklists
to use in planning, implementing and
running Parts eCommerce. In the last
issue of Fixed Ops Magazine, Dealer
Action Plans for Retail Parts eCommerce
were presented and explained. In this
installment, I‘ll cover the Action Plans
for Wholesale Collision Parts.
Wholesale Collision Parts trade is a
major business for over a quarter of U.S.
and Canadian dealerships and, in recent
years, order placement has been rapidly
shifting from phone / fax to online.
Two-thirds of the parts consumed by
professional collision repairers (by dollar
volume) are “New OE” – all supplied
by dealerships. No area of Parts
eCommerce is more active, supports
more distinct types of solutions, nor
is more contentious (as measured by
lawsuits filed or invective shouted).
Over a dozen firms provide online
Parts procurement (a.k.a. eCommerce)
for Collision parts and more are in the
wings. (Some are declared, others are in
stealth mode.) The current chaotic and
disruptive changes in online wholesale
Parts trade will produce winners and
losers in the dealer community.
Automaker-Sponsored (Portals)
Automaker and dealer-centric portals
make up the bulk of eCommerce in
place at dealerships today for wholesale
p. 84
By Ted Fellowes
collision trade. (Over 7,500 participating
stores in the U.S. and Canada.)
The strength of these portals is their
automaker support in terms of Parts
pricing programs, data / information and
marketing muscle. Nine of the top ten
automakers have “price matching” (or
similar programs) integrated into these
portals. Many shops view portals as the
way to reduce parts most likely to have
fit and finish problems (by substituting in
new OE parts). These OEM-sponsored
portals also provide dealers with VINlevel confirmation of Part fit and shops
with an optional view of the automaker’s
digitized Parts catalog.
The choices for participating dealers
boil down to a few items. First, how
aggressively do you respond to shop
requests for help (additional discounts)
in converting aftermarket parts not
covered by your automaker’s price
matching? Second, do you invest in
DMS integration (to generate quotes
and invoices including non-matrix prices
(resulting from OEM price-matching
programs)? Third, how hard do you work
to bring your current shop customers
into the portal (for those that aren’t
already in)?
OEM-sponsored portals are available for
multiple makes from OEConnection and
Infomedia. In a few cases, automakers
offer their own “captive” solutions, such
as BMW’s PaSS.
Insurer-Sponsored Parts eCommerce
At present, the U.S. and Canada each
have one insurer-sponsored collisionrepair Parts online procurement solution
that covers new OE parts. (State Farm’s
PartsTrader in the U.S. and Intact’s
ProgiParts in Canada.) PartsTrader also
operates as an independent solution,
enabling participating shops to send
requests for quotes (and offers to buy)
to any participating Parts suppliers
(including dealers).
“OEM-sponsored
portals are
available for
multiple makes
from OEConnection
and Infomedia.
In a few cases,
automakers offer
their own “captive”
solutions, such as
BMW’s PaSS.”
be ordered through PartsTrader. Dealer,
via OEM-sponsored portal, identifies
which part(s) written aftermarket or
repurposed will be “price-matched”.
◊ The shop, via PartsTrader, sends
request for quote to dealer
◊ The dealer, via PartsTrader, quotes on
part(s) written aftermarket or repurposed
(often at or near prices that are the
Shops participating in State Farm’s
Select Service program are required to
use PartsTrader to source Parts when
repairing State Farm insured vehicles.
Shops may send their Parts requirements
as either: (1) a request for quote; or (2)
an order. When sending a request-forquote on one or more parts, the shop
can chose a single dealership, multiple
specific dealerships, or all dealerships.
In any case, the list of all parts will also
be provided to participating recycled
parts suppliers to quote. Participating
dealers have access to all parts (even
those ‘written’ aftermarket or recycled)
and can bid on all parts. PartsTrader
does not support “pricing matching” or
other OEM programs. However, dealers
and shops can use the following process
as a manual work-around:
◊ The shop, via OEM-sponsored portal,
sends estimate to dealer. (dealer thus
‘sees’ all Parts plus any aftermarket or
recycled pricing on the estimate.) Shop
includes ‘note’ that Parts will ultimately
insurers’ reimbursement amount to the
shop as provided in OEM-sponsored
portal via the EMS file).
◊ The shop accepts dealer offer of new
OE part to replace part initially written
aftermarket or repurposed at discounted price offered by dealer in both PartsTrader and in OEM-sponsored portal.
◊ Dealer and shop each complete /
close transaction in both PartsTrader
and OEM-sponsored portal.
Independent Collision Parts Solutions
This important and growing eCommerce
category will be coved in my next article.
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.
SAVE NOW - SPECIAL SUMMER PRICING!
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p. 85
BOD Y S H OP
Paint & Materials: A Path to Profitability in Your Collision Center
By Ted Williams
In a successful dealership Fixed
Operations Department there’s a
constant focus on efficiency and gross
profit improvement. Your collision center
is a key contributor to your results and
is often an overlooked goldmine for
improvement.
The most successful dealership collision
centers focus on continuous process
improvement in order to develop
their business. Focus areas include
a 100%-accurate repair analysis,
part correctness, express repair and
segmentation of labor. So why, with all
of the potential areas for improvement
in your collision center, should you first
take a fresh look at paint and material
profitability? There are three reasons:
• The shop has direct control over the
items that impact paint and material
profitability.
• The process around paint and material
profitability teaches the shop lean
principles.
• The shop can quickly see and measure
the results of their efforts.
Let’s start with understanding where
your results currently stand. Some
dealers separate liquid from dry goods
on their financials. However, to truly
benchmark your results, you should
consider adding all of associated
products used in the vehicle repair
(such as fillers, abrasives and tapes)
to the paint purchases. The reason for
p. 86
this is that insurance reimbursement is
calculated on paint labor hours. This is
the main source of reimbursement for all
of the supplies used on the vehicle. Not
including these items gives the shop a
false sense of profitability. Exceptions to
the list should be tools or adhesives that
can be itemized on an estimate.
Using a combined number for paint
and material purchases you should
then benchmark your results. Industry
benchmarks for paint and material cost
should be 5% or less of total revenue
including parts and paint and material
revenue should be 10% or more of
total revenue including parts. In this
scenario profit is 5% of total revenue
including parts.
Ironically, the material profit in most
shops is equal to half or more of their
total net profit.
So how do you change your results?
Paint materials reimbursements are
based on paint labor hours sold, so
estimating is critical:
• Invest in training your estimators to
write complete estimates.
• Understand the estimating database.
What is included and not included? I
tend to leave shops printed copies of
the Estimating Guides for their database
provider.
• Damage Analysis and Blueprinting
of the vehicle leads to more accurate
estimates and fewer supplements.
• Involve shop experts in estimating.
Body Techs and Painters should map
out the repair at the beginning with
the estimator. Color and repair process
should be verified by the painter before
the vehicle enters production.
• Ask for what you really need, but not
more. Be clear and document needed
procedures for the insurer. This builds a
trusting partnership.
Specified Approved Material List
• Define a list of approved products built
around best demonstrated practices for
the repair.
• Focus on items where cost and quality
intersect.
• Never downgrade products that are
delivered to the customer on the vehicle,
• Cheap is not better if it causes
additional labor operations to correct
shortfalls (more buffing, cleaning redos,
etc.)
• Bar-coded ordering systems minimize
inventory, eliminate ordering mistakes
and reinforce adherence to approved
lists of products.
“The most
successful
dealership
collision
Application
• Refine product application technique
for best results. Use the right equipment
and technique for right job.
• Learn to spray to coverage. There’s
often a tendency to over-apply
waterborne, in particular, after it has
covered.
• Use tinted or similar color undercoats
to achieve coverage
• Have your painters trained on a
regularly scheduled basis.
Not all paint suppliers are alike. Look for
a paint and material vendor that wants to
be your partner. The best vendor is one
whose culture is built around the interest
of the partnership. Look for these other
attributes for a good paint partner:
• Willingness to work with your team on
your shop floor.
• Mentality of selling the customer
just what they need and not more.
Having the tools available to improve
results.
• Investing in providing the training your
shop needs.
• Focusing on providing daily support to
help you grow and develop your business.
• Staffing with a factory-trained, knowledgeable support structure to provide
results.
In a competitive market, shops have to
invest to grow. If they’re not profitable,
then they cannot invest. Paint and materials are a great starting point for a profitable, continuous improvement process
in your collision center.
Ted Williams is the Business
Consulting Manager for SherwinWilliams Automotive Finishes. Ted is
a second-generation collision repairer
and former Skills USA/VICA Collision
Repair Champion. He has 26 years
experience in the collision repair
industry and developed the SherwinWilliams “Secrets of Material Profitability
Revealed” curriculum.
centers focus
on continuous
process
improvement in
order to develop
their business.”
Measurement
• Track redos and put a program in place
to address these sources.
• Mix history of paint products tracked
and measured.
• Use a suggested mix by RO hour’s
feature that allows for mixing accurate
amounts for the repair.
• Accountability for results. Recognizing
good behavior is equally important as
pointing out bad.
• KPIs to measure improvements and
identify areas of improvement.
• Use technology like smart scales to
eliminate waste.
p. 87
A D MI N I S TR ATI ON
Advanced Service Advisor Selling Techniques
Pa r t 1 of a 2- pa r t a r ti cl e By John Sheriff
The test drive is a vital and fundamental
selling process that’s critical to the
effective closing sales in dealerships
New and Used Vehicle Departments.
Is there a similar sales process in the
Service Department that’s crucial to
attaining benchmark sales performance
as well?
Absolutely -- or at least there should be
one in your Service Department if you’re
serious about cash flow, improved
Technician production, net profit and
improved Fixed coverage.
What is this process called?
It’s called the Service Advisor Interactive
Reception or Walk-Around. This process
is performed by Service Advisors with
your customers on the Service drive.
Let’s discuss why it’s essential that you
should implement an effective walkaround process and:
- Why dealers struggle to implement it;
- What Service Advisors should not say
when they make Service sales closing
statements;
- How to perform the walk-around
properly;
- How much it costs dealers by not
having an effective walk-around and
point-of-sale process
The Service Advisor walk-around is as
important to the Service Department’s
selling performance as the demo test
drive is to the New and Used Vehicle
p. 88
Sales Departments. In both cases, it’s
the point of sale opportunity to present
features and benefits of the product
or service to the customer. Of course,
to the consumer, it’s more exciting to
purchase a new vehicle rather than
spending money on a 30,000-mile
service. However, in both cases, the
dealer has spent thousands of dollars
per month to attract customers to the
dealership and each department has
a responsibility to ensure that their
sales personnel are properly trained
to effectively handle customers. While
there are many components and
processes to an effective walk-around,
here are some examples of ineffective
walk-arounds we see too frequently at
dealerships.
Examples of an Ineffective Service
Advisor Walk-Around Process.
The Service Advisor:
- Walks around the vehicle without the
customer;
- Only walks around the vehicle to
inspect for damage;
- Walks around the vehicle without an
inspection sheet;
- Does not discuss features and benefits
of the Service suggestions;
- Does not open the hood and misses
the opportunity to discuss maintenance
services such as fluids, filters, belts,
battery cables and terminal condition;
- Does not have a sales plan and is not
organized to present potential up-sell
recommendations;
- Suggests maintenance when the
customer’s prime concern is a diagnostic
issue such as a check engine light,
which adversely affects the credibility of
the presentation.
The walk-around, if being performed in
dealerships, can vary greatly from one
store to another. The interactive reception
entails the Service Advisor interacting
with the customer at their vehicle
When the technician gets the repair
order, he first completes the vehicle
inspection. If the Technician finds safety
issues needing immediate attention,
he will bring the repair order back with
Parts pricing to the Advisor so that the
customer can be informed of the safety
issue and pricing. This process ensures
that the preventative maintenance is
not performed until the customer is
provided an opportunity to determine if
the additional unforeseen safety related
Service item is within their total budget,
even though they’ve already approved
the recommended maintenance services
and pricing.
which is the point-of-sale following the
meet and greet. The most common issue
we see is the lack of interaction between
the customer and Service Advisor
during a walk-around in dealerships that
claim to have the walk-around process
implemented.
Effective word tracks for Service
Advisors, whether they do or don’t know
the customer’s vehicle history prior to the
walk-around, is imperative. The Advisor
should make Service maintenance
suggestions to the customer with an
emphasis on the features and benefits of
the services recommended. The Advisor
opens the hood of the vehicle to discuss
what the Service Department provides
complimentary for the customer during
the service (such as topping off fluids,
etc.). At this time, the Service Advisor
discusses with the customer what’s
in good operating condition visually
and maintenance services to be
recommended based on mileage and
current condition. In addition, future
Service needs may be mentioned at this
time, as well.
How to Desk the Deal!
Once the walk-around with the customer
is completed, the Service Advisor goes to
his or her computer, reviews the history
and tailors the online factory-compliant
menu based on the findings from the
walk-around and vehicle history. The
Advisor checks the appropriate box on
the Service menu to include the dealer
recommended services and then makes
the visual menu presentation to the
customer. The customer is also informed
that a complimentary vehicle inspection
will be performed and that they will be
notified if any items need immediate
attention.
The repair order now has the captive
sale services that the customer initially
requested
and
the
point-of-sale
maintenance services that were just
upsold and authorized. In addition, a
potential follow-up sale is in process
by way of the vehicle inspection sheet
that is ready to be dispatched to the
Technician.
The walk-around presentation and
interaction at the point of sale is one
of three distinct stages of a Service
sale. The point-of-sale transaction has
significant labor hours per repair order
associated with it.
If there’s no point-of-sale process in
place in the dealership,
tens of1:42:11
thousand
FIXEDOPS.pdf 1 5/9/2012
PM
of dollars are potentially being left on the
table every month!
Besides an effective point-of-sale /
walk-around process, the word track
utilized by Service Advisors will determine the outcome of the sales presentation. While there are numerous effective
word tracks for closing a potential Service sale, these are some sales closings
we often hear in dealerships.
Part 2 of this article will be published in
the September/October issue of Fixed
Ops Magazine.
John Sheriff is the owner and founder of
Warwick, RI-based Sheriff 5-Star Fixed
Operations Consulting. He has consistently
generated proven results by increasing Fixed
Operations profits and customer satisfaction
in both domestic and import retail automotive
dealerships throughout the United States for
over 22 years. John has a unique, real-world
savvy and a proven approach with dealership
management and personnel to attaining their
buy-in of the processes that generate bottom
line results. He is recognized as a keynote
speaker for Fixed Operations seminars for
Ford Motor Company, Dealer 20 groups and
auto accountancy firms.
C
M
Y
CM
MY
CY
CMY
K
p. 89
P R I C I N G S U R VEY
THIS ISSUE:
W ipe r Blad e s a n d Wa s h e r F lu i d
Oakland, Ca
2011 GMC Sierra 1500, 4.8L, V8, 4WD
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
Refill Washer Fluid
Wiper Assembly
Installation of Wiper Blades
Brand of Wiper Blades
Free
$35.98
$6.00
Bosch
Free
$30.95
$4.00
Valvoline Aqua
Free
$47.98
Free
Service Central
Free
$45.00
Free
GMC
Free
$49.62
Free
OEM
Bergen, NJ
2011 Buick Regal CXL, 2.4 Ecotec in-line 4, DOHC, FWD, Auto
Refill Washer Fluid
Wiper Assembly
Free
$19.98
$6.00
$2.39
$26.00
Free
Free
$29.90
Free
$3.50
$45.00
Free
$3.00
$46.00
Free
Oklahoma City, OK
2012 Honda Civic DX, 1.8L in-line 4, Auto, FWD
Refill Washer Fluid
Wiper Assembly
Bosch
Rain-X
Bosch
General Motors
General Motors
$1.99
$25.98
$4.00
Valvoline Gold
Free
$19.98
$6.00
Bosch
$2.99
$29.98
Free
Rain-X
Free
$72.25
$29.99
Honda
Free
$49.98
Free
Honda
Baton Rouge, LA
2013 Toyota 4Runner Limited, 4.0L V6, DOHC, Auto, 4WD
Refill Washer Fluid
Free
$2.00
Free
Free
Free
Wiper Assembly
$19.98
$19.98
$21.98
$25.68
$16.54
$6.00
Free
$4.00
$10.00
$11.88
Bosch
Anco
Valvoline
Toyota
Toyota
Hours of Operation
M- SA 7AM - 7PM, SU 9AM - 5PM
M-F 7AM - 6PM, SA 8AM - 2PM
M-F 7:30AM - 8PM, SA 7:30AM - 7PM, SU 9AM - 6PM
M-F 7AM - 6PM , SA 7:30AM - 4PM
M-F 7:30AM - 5:30PM , SA 8AM - 4PM
Hours of Operation
M-F 7AM - 7PM , SA 7AM - 6PM , SU 9AM - 4PM
M-F 7AM - 6PM , SA 7AM - 5PM
M-F 7:30AM - 5:30PM , SA 8AM - 1PM
M-F 7:30AM - 5PM , SA 8AM - 12PM
Hours of Operation
M-SA 8AM - 7PM , SU 11AM - 5PM
M-F 7AM - 6:30PM, SA 7:30AM - 4PM
Hours of Operation
M-F 7AM - 7PM, SA 7AM - 6PM, SU 9AM - 5PM
M, Th 8AM - 8PM, TU, W, F 8AM - 6PM, SA 8AM - 5PM
M-F 7AM - 7PM, SA 7:30AM - 6PM, SU 9AM - 5PM
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 Wiper Blades and Washer Fluid. 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 Wiper Blades and Washer Fluid, 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. 90
N ew p r od u c t s
Advertisers Directory
Repair Aluminum Hood and Panel
Dents with New Elektron Stud Welders
Chief Automotive and Elektron introduce two powerful new aluminum-capable stud welders for use in removing dents from aluminum hoods and body
panels. The MultiSpot M22 AL is designed specifically for aluminum repair
and is a featured component of the ElektronMultiTool Aluminum Dent Repair
Station. The MultiSpot M25 AL is a high-output stud welder that can also be
used on mild steel, galvanized steel, stainless steel and brass surfaces. Both
the M22 AL and the MultiTool Aluminum Dent Repair Station are included in
the Ford 2015 F-150 Collision Repair Program.
Industry discussion is focused on the Ford 2015 aluminum F-150 that will be
available this year. But there are millions of aluminum hoods and body panels
on vehicles already in use. Elektron stud welders aren’t just for shops that are
preparing to service the new F-150. They’re for anyone interested in properly
repairing the vehicles their customers have now. The M22 AL, M25 AL and
MultiTool Aluminum Dent Repair Station are part of Elektron’s new family of
collision repair equipment designed specifically to fix aluminum vehicle components. The line also includes the MultiMig 511 and MultiMig 522 MIG/MAG
inverter welders.
NitroFill™ Introduces
NitroShield
NitroFill, the leader in nitrogen tire inflation products
and programs, has introduced its new permanent tire
protectant product, NitroShield. NitroShield protects
tires against cracking, discoloration, aging and other damage caused by
UV rays and ozone in a single application. Prior to its release, NitroShield’s
performance and durability were tested and documented by a certified third
party testing company and also underwent over five years of real world use.
NitroShield is designed for professional application by auto Service technicians. Since NitroFill supplies tire maintenance solutions and protection programs to consumers via 6,500 auto dealership Service Departments, more
than one-third of North America’s franchise automotive dealerships may soon
add NitroShield products. NitroShield is being offered to this dealer network
as a completely new and separate opportunity to create more touch points
with customers and produce additional revenue opportunities.
Three features set NitroShield apart from other types of cleaners and protectants.
- NitroShield is permanent. A single application is designed to maintain shine
and protection throughout the life of the tire. Users are provided with small
quantities to make touch-ups in case of curb dings or other unexpected
scrapes.
- NitroShield is safe for the tire and the environment. It doesn’t cause tires to
deteriorate more rapidly or damage them in any way. NitroShield is solventfree, water based, environmentally friendly and responsible to use.
- Customers who purchase a NitroShield treatment, or a vehicle equipped
with NitroShield, receive a free membership in the NitroShield Customer Care
Club, a customer benefit program that includes tire repair and replacement
coverage, roadside assistance and other valuable benefits.
Phoenix Systems BrakeStrip FASCAR
Rating scale / 400 cards per box
Business card-sized informational card with color scale rating system and
user instructions on the front and educational information on the back. Twosided, 400 cards per box.
Features:
- Two-sided information card
- Color scale matches strip to scale
Benefits:
- Takes the guessing out of testing
- Easy to read
3M Automotive Window Films Pages 9 and 95
AAPEXPage 49
ACT Auto Staffing
Page 95
ASR Pro
Page 23
AutoPointPage 37
AutoZonePage 33
Bardahl / Protex
Page 83
BG Products
Inside Back Cover
Borroughs Corp.
Page 79
Carquest Auto Parts
Page 21
Cars.com
Pages 50 and 51
Dealer-FXPage 39
DealerMinePage 69
DealerPro Training
Page 87
DealerSocketPage 13
EcoPower / Safety-Kleen
Page 95
Eneos / Nippon Oil
Page 89
Hunter Engineering
Page 67
I-CARPage 11
Infomedia / Microcat Live
Page 15
Infomedia / Superservice
Back Cover
Kendall Motor Oil / Phillips 66Pages 18 and 19
Mark VII Car Wash EquipmentPage 41
Mighty Auto Parts
Page 43
NADA University
Page 27
NAPA PRO Link / NAPA Auto Parts
Page 95
NCM Associates
Page 65
NitroFillPage 55
NitroShieldPage 57
PartsVoicePages 47
PDQ Vehicle Wash Systems Pages 31 and 95
Pedego / Ford Electric BicyclesPage 59
Phoenix Systems
Page 71
Piston Data
Inside Front Cover and page 3 and page 95
Reynolds and Reynolds
Page 25
ROAMS-KEEPS
Page 75
Rome Technologies
Page 77
Rotary Lift
Page 17
Royal Purple
Page 29
Simoniz USA
Page 5
TerraClean Products / Uview Page 45
TireMerchandising.com / Jungle Cat Marketing
Pages 85 and 95
TSD Rental Management Software
Page 35
WHI Solutions / eBay
Page 7
WildeckPage 81
XPELPage 53
XtimePage 73
p. 91
n ew p r od u c t s
XPEL Now Offers TRACWRAP
Temporary Paint Protection Film
XPEL has expanded its product line with the addition of TRACWRAP, a temporary paint protection film designed to prevent rock chips and other paint
damage. Unlike traditional paint protection film, TRACWRAP can be easily
self-installed for temporary use.
Temporary paint protection has long been popular with those who truly care
about their cars. XPEL felt they could provide a higher-quality, easier-to-use
alternative to the commonly used masking tape and spray-on products.
TRACWRAP is a quick, cost-effective way for consumers and professionals to protect vehicles when they need it most. Designed initially to protect
vehicles at race tracks, TRACWRAP also answers a need for short-term paint
protection for vehicles, motorcycles or RVs during road trips, vehicle delivery
or long-distance service. TRACWRAP is an 8mil thick urethane film, which
provides robust protection for automotive paint, unlike other extremely thin
protection films on the market. Automotive dealerships can use TRACWRAP
to protect vehicles during transport and during customer delivery. For extra
protection, TRACWRAP can be used in addition to traditional paint protection
films, such as XPEL’s ULTIMATE or STEALTH paint protection films.
New Hofmann monty 8600 Tire
Changer From Snap-on Equipment
The Hofmann monty 8600 is easy to use and makes quick
work of changing tires when servicing passenger cars, light
trucks and SUVs. The monty 8600 is specially designed to reduce technician
fatigue and provide a safe method of tire removal and mounting.
The powered wheel lift helps reduce the chance of injury from handling heavy
tires and wheels. When using the new Hofmann monty 8600 leverless tire
changer, Service Technicians maintain an upright and ergonomic body position, which provides the benefits of reducing Technician fatigue, reducing the
possibility of injury due to lifting and reducing the possibility of wheel damage due to manually handling heavy assemblies. For tire demounting, a laser
pointer indicates precise tool positioning and a leverless de-mounting tool
lifts the tire bead over the wheel rim edge for easy removal without damage
to the tire bead or the wheel edge. Shop productivity is enhanced with a twospeed turntable. Seven and 14 rpm turntable rotation shortens the de-mount
and mounting process. Performing more tire changes this efficiently can provide a great boost to shop productivity and the bottom line. The premium
features of the monty 8600 are all designed to avoid tire and wheel damage.
Featuring center wheel clamping for precise wheel centering combined with
electronically synchronized rotating dual-disc bead breakers with servo drive,
tire beads are broken effortlessly with precise force.
Champion Splash Lubricated,
R-Series Compressors
Champion R-Series Compressors are loaded with features designed for day-in, day-out performance. Loaded with rugged features, these compressors deliver high performance and tremendous value.
This compressor pump comes with a 5-year pro-rated warranty. As a result,
R-series compressors offer long, trouble-free service with unbridled operating efficiency.
Specifications and Features:
- 1 ½ - 35 hp
- Up to 175 psig
- 9.7 - 202 acfm at 175 psig on electric driven units
- Gas and diesel engine drive models available
- Tank- or base-mounted, Simplex & Duplex Models
- Single & two-stage splash-lubricated pumps
- Prorated 5-Year warranty on pump
- Factory filled with ChampLub lubricant
p. 92
Car-O-Liner Quick 42 Alignment
Bench
Fast set-up, easy access, on-wheels measuring, quick
anchoring and adjustable working height are some of
the Car-O-Liner 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. Quick 42 is a 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.
Features and benefits include:
- Universal set-up reduces time, cost and space
- Quick and efficient diagnosis of structural damage while the vehicle is
supported on its wheels or in a clamped position
- Powerful 10-ton draw aligner offers 3,000 kg (6,600 lbs.) pulling force and
pulls from almost any angle, 360o around the vehicle
- Integrated multi-function power unit keeps floor clear of hydraulic and air
lines
- User-friendly hand control with all-in-one functions for automatic bench tilting, lifting, 10-ton pulling and hydraulic jacking
- Flexible installation; fixed, mobile or pit mountings
- Meets a majority of OEM equipment requirements
JohnDow Industries’ Dynamic
Brand Cleans Up with New
Chemical Line
JDI’s Dynamic brand has introduced its Pro Series Shop Chemical line. The
Tire & Wheel Care category of products includes a professional grade Dynamic Tire & Wheel Cleaner containing a special polymer surfactant that breaks
the bond of road soil and brake dust residue from all types of wheels. Also included is the Dynamic-Tire Shine that contains a unique emulsified silicon formula making this product easy to apply, resulting in an even, glossy wet finish.
The Specialty Shop Products category includes the Dynamic-PrePrep7,
specifically formulated to clean the wheel surface in preparation for applying adhesive wheel weights. It’s fast-drying and leaves no surface residue.
This category also includes a general purpose cleaner/degreaser called the
Dynamic-Super Shop detergent. This product has unlimited applications from
general cleaning of shop equipment to use as a degreaser for parts and tools.
Borroughs Full-Mat / Catwalk
Shelving Systems
Full-Mat Shelving Systems
Proven solid, strong and versatile, Borroughs bins have the strength to support an upper level system of bins, racks and walkways. A “second floor” of
grating is built over the entire lower level. The full mat allows relatively unlimited shelving placement and offers a practical and economical alternative
to freestanding mezzanines. Since no post-to-post match-ups are required,
second level storage units of differing sizes and types can be used.
Catwalk Shelving Systems
Utilize aisles attached to the shelving itself and a second level of shelving,
either vertically continuous from or stacked as an extension of the lower level
shelving. This requires post-to-post match-ups between levels but makes
catwalks less expensive to construct.
N ew p r od u c t s
Challenger CL7P Two-Post Lift
Asymmetric fixed-pad drive-on style two post car lift features fixed pad ramps mounted on Challenger’s CL10 series
two-post automotive lift. Comes standard with 4 two-position adapter blocks. Perfect for quick vehicle spotting and express service
such as quick lubes, tire rotations and balancing, brake work and other general service when productivity is essential. CL7P car lifts expedite brake and
tire work with an optional heavy-duty tire hanger Kit which allows tires to be
stowed at an ergonomic height for quick access.
Interchangeable pad to swing arm design allows you to easily remove the
fixed pads and replace them with optional Versymmetric® swing arms. Optional swing arms for CL7P car lifts available in two productivity configurations:
Maximum Productivity - Versymmetric® Plus offset 3-stage front + 3-stage
rear arms with double telescoping screw pads or
Complete Productivity - Versymmetric® offset 2-stage front and rear arms
with double telescoping screw pads
Other standard features include heavy-duty pulley and cable equalization
system, 48” elongated carriage, rubber door guards, adjustable arm restraint
shafts, single point mechanical lock release system and padded overhead
shut off system.
John Bean V3400 Wheel Alignment
System: Latest in Alignment
Technology
John Bean introduces its new V3400 Wheel Alignment System. Fast, accurate and built-to-last, the new John Bean® V3400 provides unsurpassed
features and benefits that make this alignment system unlike anything on
the market today.
The new John Bean V3400 Wheel Alignment System features unsurpassed
advantages, including:
- Fast, accurate readings
- Fully featured hardware
- Software productivity enhancers
- Comprehensive vehicle database
Chief LaserLock™ Live Mapping™
System Improves Cycle Times With
Better Blueprinting
One of the best ways to improve a collision repair shop’s cycle times is to
measure every vehicle that comes in and blueprint a specific repair plan
for each one. Since many shops only have one frame rack, though, the
prospect of tying it up for estimating may be daunting to users of traditional
computerized measuring systems. To address this concern, the new LaserLock™ live mapping™ system from Chief Automotive Technologies features
a portable laser scanner with out-of-level measuring capabilities that can be
used for blueprinting throughout the shop, even on two-post vehicle lifts.
LaserLock frees up the frame rack to be used exclusively for repairs, which
increases productivity and generates more profits.
In addition to the laser scanner, LaserLock includes 45 targets with a wide
range of attachments, dual flat screen monitors, a computer, color printer
and exclusive Chief software. An aluminum collet kit is available for use
with aluminum vehicles like the 2015 Ford F-150 pickup. The system is
contained within its own rolling cabinet, so it can be moved throughout the
shop without having to be dismantled or loaded onto a cart. An optional
tripod is available for raising the scanner to measure a vehicle mounted on a
two-post lift. To accommodate any bay layout, the scanner connects to the
rolling workstation with a 20-foot cable.
Hunter’s Quick Check™ Inspection
System Fastest in the Industry
Hunter’s Quick Check inspection system performs a
comprehensive vehicle inspection in under three minutes. Valuable information about a vehicle’s alignment, brake performance,
battery health, emissions and tire health can be handed to vehicle owners
as they wait. Quick Check allows shops to carefully examine every car that
comes to the Service lane, increasing revenue and improving customer retention.
The Quick Check inspection system expands on Hunter’s award-winning
alignment Quick Check™ system. The new premium inspection system features an integrated printout. Quick Check inspection system results can also
be sent to Hunter’s popular HunterNet for storage and analysis.
Reelcraft Series V Exhaust Hose Reels
Reelcraft’s Exhaust reels conveniently store lengths of large
diameter exhaust hose. Designed to divert hazardous carbon monoxide gasses away from the workplace, these industrious reels are spring retractable and feature a latching mechanism that
maintains the desired working length of hose.
Benefits:
• Safety -- Proper installation eliminates hazardous carbon monoxide gasses
in the workplace
• Dependability -- Reel features two high-quality industrial strength carbon
drive springs to ensure hose retraction every time
• Corrosion Resistance -- Components are individually powder coated providing excellent protection
• Versatility -- Reel may be mounted from the ceiling, wall and / or floor
Coats Unveils New ProGuard Plus
Leverless Tire Changer
Hennessy Industries, manufacturer of Coats tire changers
and wheel balancers, has added the ProGuard Plus™ Leverless tire changer to its lineup. This changer is an advanced
version of Coats’ current ProGuard tire changer that is designed to tackle
the most advanced applications in the industry. In addition to leverless operation, it comes fully equipped with the following advanced features:
· Pneumatic wheel clamping system
· Dual-bead roller system
· Semi-automatic top roller indexing
· Auxiliary bead depressor
· Robo-Arm®
· Built-in adjustable wheel lift
XADO Atomic Metal Conditioner
Maximum With 1 Stage Revitalizant®
XADO Atomic Metal Conditioner Maximum with 1 Stage
Revitalizant® is an advanced anti-wear engine treatment that utilizes nanotechnology to rebuild metal, reduce friction and reliably protect engine from
future wear. Only XADO’s patented component -- Revitalizant® -- rebuilds
worn engine parts and coats them with a unique, smooth diamond-hard
ceramic-metal layer, thus providing tools-free restoration and anti-wear protection Adding just one bottle to motor oil helps to extend the service life of
the engine, reduce fuel consumption, noise and vibration, and increase engine power for 60,000 miles. XADO Maximum works in all types of engines.
p. 93
n ew p r od u c t s
Lista Introduces New Tech
Drawer Pull
Lista, a Stanley Industrial & Automotive proudly announces its new line of
Lista Tech Drawer Pull aluminum anodized drawer handle covers. Available
in three attractive finishes, these sturdy handle covers are rugged, easy-toclean and dependable, making them ideal for automotive settings. The new
Tech Drawer Pull has been carefully designed to stand up to even the roughest working environments. Sitting flush with the cabinet, Lista drawer handles
improve safety and appearance by eliminating protruding edges which could
snag on clothing. A secure fit to the drawer front ensures that the handles
remain firmly in place, and the anodized finish protects from harsh conditions
by providing increased corrosion resistance. With three finishes to dress up
new or existing cabinets, the handle covers are available in brushed silver,
chrome color or gloss black. Easily cleaned, the new shape has no pockets
or ridges to catch debris. They can be included on new cabinets, or ordered
separately to replace existing handle covers.
MacNeil Wash Systems Introduces
Industry’s Premier Virtual Tunnel
Configurator
Prospective car wash purchasers looking to visualize their facility now have
an advanced and cutting edge technology tool in the MacNeil Carwash
Configurator, a software-based virtual simulator from MacNeil Wash Systems. Developed exclusively for MacNeil distributors and sales associates,
the state-of-the-art configurator enables clients to build and customize both
three-dimensional perspective and plan-view layouts of a car wash tunnel
with a simple series of clicks and drag-and-drop movements where the future
operator can move various components of the wash into place and expand
and contract the tunnel based on planned space availability. Integral to the
new tool is an “overlap” feature, which creates an internal proof of the tunnel
rendering to root out any design flaws or tunnel configuration errors so that
they can be easily edited. Upon completion, the eye-catching tunnel illustrations can then be exported in a colored JPEG format and immediately handed
to the client or e-mailed to the customer for other uses, such as obtaining
financial approvals.
3M Introduces
Scotchgard™ Paint
Protection Film Pro Series
3M has introduced the latest in its long line of industry-leading paint protection films -- Scotchgard™ Paint Protection Film Pro Series. The new Scotchgard Pro Series reinvents paint protection film with installer-friendly features
that make it just plain better than the competition.
Chief among the innovations offered by Scotchgard Pro Series is a flexible,
clear top coat with exceptional stretch, making it much easier to install and
reposition. The new film also enables faster cutting with less scrap, helping
installers save both time and materials. Scotchgard Pro Series has unrivaled
scratch and stain resistance, making it easier to clean and harder to scratch,
ensuring that it keeps the vehicle looking newer, longer. The film’s innovative
technology also has self-healing properties, which allow minor scratches to
disappear by themselves.
The exceptional clarity of Scotchgard Pro Series makes it one of the clearest
films in the industry and virtually invisible on a vehicle. Its durability is also
excellent, enabling superior resistance to yellowing and cracking. Best of all
for your customers, Scotchgard Pro Series is maintenance-free, so they can
wash and wax their vehicles as they normally would while continuing to enjoy
the showroom-quality finish. And for installers, 3M Automotive offers excellent training and marketing resources to back up its innovative film solutions,
as well as reward programs that help installers grow their businesses with the
unrivaled power of the Scotchgard brand.
p. 94
AMSOIL Synthetic CVT Fluid
AMSOIL has introduced a new synthetic fluid for continuously
variable transmissions (CVTs). AMSOIL Synthetic CVT Fluid
provides outstanding metal-to-metal frictional properties and
excellent protection and performance for CVT transmissions
throughout vehicle manufacturer recommended drain intervals.
AMSOIL Synthetic CVT Fluid is a cost-effective, premium-quality alternative
to original equipment manufacturer (OEM) fluids.
- Excellent frictional properties help prevent belt and chain slipping
- Outstanding wear protection helps extend CVT service life
- Resists varnish and thermal breakdown
- Superior wet-clutch performance for outstanding ant-shudder durability
AMSOIL testing showed that AMSOIL CVT Fluid lasted six times longer than
longer than Nissan NS-2 CVT Fluid in the JASO LVFA Anti-Shudder Durability Test, translating into improved anti-shudder durability and reduced noise,
vibration and harshness.
Vidmar Adjustable Racking Adds
Flexibility to Facilities
Vidmar’s adjustable racking adds flexibility three ways:
Moveable pallets: Vidmar’s adjustable racking system is based on moveable
pallets, as opposed to fixed shelves, that can be continually adjusted or expanded to meet a facility’s evolving storage needs. Pallet racking provides
25,000 lb. capacity per storage selection and is available at a height of up to
16 feet for maximum vertical storage space. (Top shelf storage also allows for
storage over 16 feet.)
Versatile solutions: With the Vidmar® STAK System, removable, adjustable
pallets and a captive lifting and handling device, operators can handle loads
weighing up to 4,000 lbs. and fully operate in as little as 250 square feet. Plus,
the system doesn’t require a separate forklift or forklift license.
Custom-configured: Both the STAK System and adjustable racking system
provide the opportunity for custom-configured storage solutions.
Proven Results: By using the STAK to squeeze more parts into less space,
HYDAC Corporation tripled storage capacity for its 60,000 square foot facility
in Bethlehem, PA.Omaha Public Power District used STAK to improve workplace efficiency by storing (and having the ability to quickly retrieve) a host of
items from the smallest computer components to oversized valves.
Castrol EDGE Engine Oil
Castrol EDGE is the oil of choice for many leading car manufacturers and a trusted technical partner of some of the world’s
most demanding motorsport teams. Castrol EDGE delivers
strength for advanced power and protection.
Engine oils need to be able to constantly respond to the ever-changing environments in an engine. Every second of the drive an engine oil needs to be
able to react to the needs of different metal-to-metal contact points, each
with different demands, pressures and temperatures. Castrol EDGE provides
the highest level of protection for critical engine parts, helping your customers’ vehicles to perform at their maximum.
Castrol EDGE delivers:
- Performance: Superior performance for the oil change interval recommended in the owner’s manual
- Power: Fights 42% more power robbing deposits
- Protection: Superior engine protection versus conventional and synthetic
blend oils
MA RK E TP L A CE
3M™ Automotive
Window Film
Crystalline Series
3M.com/autodealers
SUPERCHARGE YOUR TIRE SALES!
See us at:
www.TireMerchandising.com
p. 95
I N D US TR Y N E WS
Continued from page 8
Xtime Revolutionizes Service
Marketing
Xtime, the leading retention solution for the automotive industry, has announced Marketing 7. Marketing 7 is the industry’s first and only Service
marketing system that enables dealerships to visualize unsold Service opportunity, launch targeted, time-based promotions and measure program
performance in real-time. As part of the Xtime Retention System, Marketing 7 is responsible for generating increased Service demand, followed
by Scheduling 7 for capturing and booking that demand and ending with
Check-In 7 for increasing the value of that demand.
“A typical dealership utilizes only 75% of their service capacity on a weekly
basis,” said Neal East, CEO of Xtime. “We designed Marketing 7 to monetize the other 25%. Based on NADA data, the average dealer’s unsold
Service capacity is worth $400,000 a year in high-margin Service revenue
and $7 billion a year across all U.S. dealerships. It’s a problem that needs
solving, since low Service retention leads to low repurchase loyalty. So
much so, that just a 1% increase in loyalty adds $155,000 in revenue per
dealer per year.”
Marketing 7 uses the Xtime Cloud to access one of the best-curated customer and services databases available. By analyzing over 750 million repair orders and the buying behavior of over 100 million customers, Xtime
provides dealers with the intelligent data they need for communicating accurately with their Service customers. When combined with the VIN-specific recommendations, shop control and service pricing engines built into the
Xtime Cloud, dealerships now have the industry’s most powerful Service
marketing system, which works by analyzing past appointment and walk-in
behavior and uses it to accurately project future unsold opportunity. It then
automates the creation and distribution of time-based promotions to optimally load the Service Department. Dealers can identify owners by specific
vehicle and consumer demographics to win back lost business, promote
declined services and build loyalty with new customers.
Reynolds’ ERA-IGNITE DMS
Now Widely Available to
Canadian Dealers
Reynolds and Reynolds has announced that its ERA-IGNITE DMS is widely
available to Canadian automotive dealers after four successful years in the
American market. ERA-IGNITE is the foundation of the company’s vision for
Reynolds Retail Management System, a comprehensive set of retail management solutions for automotive retailers that’s designed to increase productivity and profitability in the dealership, as well as improve the consumer
experience of buying a car.
“Delivering ERA-IGNITE to dealers in Canada is the first step in helping
them capitalize on the changing retail environment of the automotive industry,” said Ron Lamb, President of Reynolds and Reynolds. “ERA-IGNITE
is the foundation of a retail management system that extends beyond the
traditional DMS. It offers our customers greater flexibility and functionality
to help them manage and grow their business at a time when the retailing
battle is engaged consistently beyond the four walls of the dealership.”
Among its advanced features, ERA-IGNITE offers dealerships the tools to:
- Work more efficiently with streamlined applications that leverage the
capabilities of a graphical user interface to reduce the number of keystrokes
and screens it takes to perform core business transactions.
- Work faster with a familiar Windows® point-and-click environment, including drill-down fields and hyperlinks.
- Work more effectively with additional business information available at
users’ fingertips.
p. 96
DealerSocket Reveals New
Products During User Summit
2014
DealerSocket has unveiled a slew of new products, upgrades and Part 2
to their successful We Are Automotive campaign at their 5th Annual User
Summit.
We Are Automotive: Part 2 visually illustrates what an automobile symbolizes to its owner and how technology has evolved the automotive industry
through data accumulation. With data from a variety of large and small dealerships, DealerSocket’s presence and market share within the automotive
industry empowers dealerships the ability to research a wide spectrum of
essential industry specific data through one easy location.
Dealerships can now find in-depth performance rankings and specific data
through DealerSocket’s latest product DealerSocket Analytics. A robust reporting dashboard that will integrate My Enterprise and My Rank to create
an all-in-one portal where dealers own data can be viewed in a scoreboard
with such factors as region, brand, like-dealers and much more.
DealerSocket completely revamped their Service suite with a mobile checkin tool, Recommended Services, and a new user interface for web based
Service scheduling. They also introduced a new critical dealership revenue
generator product, MarketPlace Loyalty. Allowing dealerships to offer a
competitive pre-paid maintenance package, which in turn, promotes Service retention for the dealer and drives long-term customer loyalty.
Lastly, DealerSocket is relaunching DealerSocket Connect, a community
forum that enables customers and employees of DealerSocket to connect
and have interactive discussions about thoughts, ideas, strategies, products, and services that will help grow and improve DealerSocket.
Ford Motor Company’s Quick
Lane Tire and Auto Center
Opens 700th Store
Ford Motor Company has reached a significant milestone with its Quick
Lane®Tire & Auto Center business, opening the 700th U.S. store in Texas. Ford’s Quick Lane vehicle maintenance business remains one of the
fastest-growing service brands in the industry. Quick Lane operators sold
a record 1.4 million tires in 2013 – up 12% versus an industry average of
1.1 percent. In addition, Quick Lane posted record sales of nearly $800
million for 2013. Due to the brand’s success in the United States, Ford is
now offering Quick Lane globally, opening more than 100 additional stores
outside the U.S. where the business is also growing rapidly. Quick Lane offers routine vehicle maintenance such as oil and filter changes, light repair
services including brake repair and tire replacements on all vehicle makes
and models.
“With our new Quick Lane Tire & Auto Center, our customers don’t have
to sacrifice speed over quality – we can provide both,” said Chaz Gilmore,
General Manager and Partner of Ford’s 700th Quick Lane store located at
Grapevine Ford Lincoln in Grapevine, Texas. “We have a separate Service
facility with a dedicated staff that can provide timely and convenient services for all vehicle maintenance and light repairs, while providing the peace
of mind of factory-trained Technicians and quality parts.”
“Quick Lane works for everyone – the customer, the dealership and the
community,” said Frederiek Toney, Vice President, Ford Motor Company
and President, Ford Customer Service. “For the customer, it’s easy in, easy
out, and fast, high-quality service all around. For the dealer, it provides a
steady stream of new customers from all makes, a significant portion of
who sometimes transition to Ford vehicle ownership.”
Mobile Service Scheduling
through Service Dynamics
Service Dynamics, makers of Shop Watch, have announced the release of new mobile web appointments.
In addition to scheduling a VIN-specific Service appointment from a dealership website, the new mobile-friendly
version allows customers to schedule easily from any
smart phone or tablet device without the need to scroll or resize content.
And there’s no need to download an app.
These mobile appointments automatically resize to any brand smart phone
or tablet for quick, seamless integration with Shop Watch’s internal schedule module. This release also involves a reworking of the existing web appointments designed to be an easy customer-facing scheduler.
Roger Smith, Owner and CEO of Service Dynamics, says, “This is the easiest on-line appointment solution on the market. People are dependent on
their smart phones and tablets and this enables them to quickly and easily
make an appointment any time it’s convenient for them.”
Peak Performance Takes
Customer Engagement to a New
Level for Lexus Dealerships
Calabasas, California-based Peak Performance is proud to partner with
luxury automaker, Lexus, on one of the most comprehensive, intelligent and
robust Owner Communication Programs in the industry -- Lexus ENGAGE.
This cutting-edge program is being used by a record number of Lexus dealers to enhance customer retention and engagement at the dealership level.
Lexus dealers are enjoying strong results. In the year since the launch of
Lexus ENGAGE, the program has continued to evolve, offering advanced
analytics, new methodologies, including state-of-the-art reporting, new
touch-points and customized technology messaging. This and other advancements continue to cement the strong relationship between Peak Performance and Lexus.
“We are proud of our 17-year business partnership with Peak Performance.
Together, we have worked diligently to kaizen (improve) Lexus marketing
and retention programs. Our most recent success was PEAK’s development of our leading-edge owner communication program, ENGAGE. Every
detail was thoughtfully designed to reinforce and elevate the Lexus brand
with our owners. We count on PEAK’s experienced and talented team of
professionals, working with us and our dealers, hand-in-hand, to achieve
our Service marketing and retention goals,” noted Dana Heyward, National
Strategic Planning, Voice of the Customer, Business Development & Marketing Manager at Toyota Motor Sales USA, Inc. – Lexus Division.
Richard Ross Retires From Bardahl
After 32 Years
Richard Ross has announced his retirement from Bardahl Manufacturing
Corporation effective June 1st. Richard joined Bardahl in 1982 and over
the years has held various sales management positions and guided the
development of their fluid maintenance products for both professional and
consumer use. In 2006, he was promoted to Vice President of Sales and
Marketing, responsible for all business in the United States and Canada.
Hugh McNeil, President and CEO of Bardahl, praised Ross, stating, “Richard was instrumental in expanding our business by adding many new products and entering new markets. His contribution to our company all these
years has been tremendous and he will be greatly missed by our employees
and customers.”
Mighty’s 50th Anniversary Year Sets
All-Time Sales Record
With final figures in, following their 50th year in business, Mighty Auto Parts
President and CEO Ken Voelker hailed 2013 as a golden year. “The icing on
the cake from our 50th celebration was a hefty sales increase of 5.4% over
the previous year, which represents the best year ever in our company’s history. It shows that our unique business model is resonating with customers
here and abroad.”
Mighty’s all-time record in sales comes at a time when, according to industry sources, annual growth in the aftermarket is at about 2% at best. Citing reasons other than the company’s service levels for gaining significant
traction in sales, Voelker included “a focus on dynamic product lines like
our premium VS7 chemicals, tire service products and meeting the product
needs of emerging market segments like new car dealerships. Our international sales and expansion into Canada also contributed to our record year
and bode well for Mighty in 2014 and beyond.”
Norcross, GA-based Mighty Distributing System of America, a franchisor
of sales and services in aftermarket auto parts oversees 114 distributors
in 41 states and four international markets. The Mighty System features
local service, inventory management expertise and on-site and classroom
training in conjunction with extensive offerings of OEM quality undercar, underhood and chemical products. The Mighty business model has attracted
new car dealerships, independent repair shops and tire centers across the
nation and abroad.
Nissan Canada Selects
OEConnection’s Collision Parts Procurement
Technology
OEConnection LLC, the parts e-commerce technology leader for original
equipment manufacturers (OEM) distribution networks, has announced that
Nissan Canada has selected its collision parts ordering and fulfillment solution – CollisionLink − for the automaker’s national network of dealerships.
As part of the agreement, Nissan Canada’s Market Shield program will integrate through CollisionLink, giving dealerships the opportunity to compete
more aggressively with low-priced aftermarket suppliers, while providing
body shops with incentives to use more Genuine Nissan Parts in the repair
process. Nissan Canada is the fifth automaker in Canada, and joins nine
automakers in the U.S., to utilize OEConnection’s Parts Marketing Administration (PMA) technology platform for the management of a nationwide
OEM parts program.
“We are honored to support the wholesale parts marketing goals of Nissan Canada and we welcome their franchise dealerships to our parts ecommerce marketplace,” said OEConnection President & Chief Executive
Officer Chuck Rotuno. “Since its launch in Canada less than two years ago,
CollisionLink has experienced widespread adoption among the collision
repair industry for its ability to drive efficiencies, increase parts ordering accuracy and serve as the single gateway to OEM discount parts programs.”
Eric Ledieu, Director of AfterSales at Nissan Canada, said, “Providing our
dealerships with the best technology to streamline the parts ordering process and boost efficiencies is a top priority at Nissan Canada. CollisionLink
has a proven track record for increasing OEM parts sales while meeting the
needs of body shop customers and vehicle owners and OEConnection’s
technology enables us to effectively manage our Market Shield program
and facilitate greater access to Genuine Nissan parts throughout Canada.”
p. 97
I N D US TR Y N E WS
J.D. Power Reports:
Increased Engine and
Transmission Problems Contribute to Decline
in Vehicle Dependability
Owners of 3-year-old vehicles report more problems than did owners of
3-year-old vehicles last year, according to the J.D. Power 2014 U.S. Vehicle
Dependability StudySM (VDS) released recently. The study, now in its 25th
year, examines problems experienced during the past 12 months by original
owners of 2011 model-year vehicles. Overall dependability is determined
by the number of problems experienced per 100 vehicles (PP100), with a
lower score reflecting higher quality. The study finds that overall vehicle
dependability averages 133 PP100, a 6% increase in problems from 126
PP100 in 2013. This marks the first time since the 1998 study that the average number of problems has increased.
“Until this year, we have seen a continuous improvement in vehicle dependability,” said David Sargent, Vice President of Global Automotive at
J.D. Power. “However, some of the changes that automakers implemented
for the 2011 model year have led to a noticeable increase in problems reported.”
Engine and transmission problems increase by nearly 6 PP100 year over
year, accounting for the majority of the overall 7 PP100 increase in reported
problems. The decline in quality is particularly acute for vehicles with 4-cylinder engines, where problem levels increase by nearly 10 PP100. These
smaller engines, as well as large diesel engines, tend to be more problematic than 5- and 6-cylinder engines, for which owners report fewer problems, on average.
“Automakers are continually looking for ways to improve fuel economy,
which is a primary purchase motivator for many consumers, particularly
those buying smaller vehicles,” said Sargent. “However, while striving to
reduce fuel consumption, automakers must be careful not to compromise
quality. Increases in such problems as engine hesitation, rough transmission shifts and lack of power indicate that this is a continuing challenge.”
ADP Announces Plan for
Spin-Off of Dealer Services
Business
ADP has announced that the company’s Board of Directors has approved a
plan to separate the Dealer Services business into an independent publicly
traded company through a spin-off of 100% of Dealer Services to ADP
shareholders. ADP expects to complete the separation in the early part of
the fourth calendar quarter of 2014.
“Consistent with our strategy to grow our position as a global provider of
HCM solutions, we have concluded that the separation of Dealer Services
will allow both companies to focus on their respective industries,” said
Carlos Rodriguez, President and CEO, ADP. “The Dealer Services business
remains attractive in terms of long-term growth opportunities; however, we
believe this transaction will benefit ADP’s shareholders by allowing each
management team to better focus on its own business and strategic opportunities. ADP Dealer Services is a leading global provider of retail and
digital marketing solutions to automotive retailers and manufacturers. The
global automotive market is the strongest it has been since 2007 and the
volume of U.S. vehicle sales continues its recovery to pre-crisis levels. This
recovery, combined with Dealer Services’ global breadth and depth of Service offerings, makes it the appropriate time to establish this business as
its own stand-alone public company. With revenues approaching $2 billion
annually, most of which is recurring in nature, along with good profitability
and strong cash flows, we expect Dealer Services will be an independent
public company with solid long-term growth prospects.”
p. 98
Auto/Mate Announces
Integration of TimeHighway
with AMPS DMS, Expanding
Fixed Ops Service Offerings
Auto/Mate Dealership Systems has announced that TimeHighway has
completed integration of its Service scheduling solution with Auto/mate’s
Automotive Management Productivity Suite (AMPS) dealership management system. Auto dealers using both Auto/Mate’s DMS and TimeHighway’s Service scheduling solution will benefit from real-time data exchange between the two systems.
“Many dealers are focused on improving Service Department processes,” said Mike Esposito, President and CEO of Auto/Mate. “Having an
online scheduling solution makes it easy for customers to schedule appointments at their own convenience and allows Service Department
employees to spend more face time with customers, improving customer
service.”
Auto/Mate’s Service merchandising module is a robust, user-friendly system featuring a mobile Service lane solution, one-screen access, automated dispatch, electronic RO’s, a graphics-rich calendar that Service
Managers can view “at-a-glance,” and an “OEM button” providing instant
access to manufacturers’ online information.
“Service Departments can really benefit from having their DMS integrated
with an online scheduling solution, as customers can easily set appointments online and will receive confirmation and reminder e-mails,” said
Karen Dillon, President of TimeHighway. “DMS integration ensures that
appointment information gets added to customer histories and makes
converting appointments into RO’s a snap, streamlining Service processes.”
Hennessy Industries Receives NAPA
Supplier of the Year Award for
Unprecedented Seventh Time
For the seventh time in 16 years, Tennessee-based Hennessy Industries,
the largest full-line wheel-service equipment manufacturer in North America, was named Supplier of the Year by the National Automotive Parts
Association (NAPA).
“At Hennessy, we pride ourselves on exceeding expectations to provide
quality products with exceptional customer service,” said Kevin Keefe,
Hennessy Industries’ Vice President of Marketing. “Our continuous focus
on lean manufacturing and management is an absolute priority and it
guides us as we develop the best products and provide the best service
possible for our customers. We’re honored to receive this award again. It
belongs to everyone who works in our headquarters and manufacturing
facilities in La Vergne, TN and Bowling Green, KY and it’s a great reminder
about why we do what we do.”
Each year, NAPA recognizes one supplier based on an overall rating
relative to customer expectations and satisfaction. The criteria include
customer expectations and satisfaction, with a focus on quality, delivery,
sales growth and commercial support. Hennessy is the only company to
receive the award seven times. Hennessy was selected from nominees
across the country by NAPA tools and equipment sales team members.
In conjunction with the award, NAPA also recognized Hennessy for its
97% order fill rate.
Give Your Service Revenue a Lift
Finally, inspection-based selling that’s fast, profitable and measurable
» Maximize hours per RO by identifying
and selling additional repairs
» Increase workshop traffic by proactively
“Superserviceisaprofitgenerator.Yousellmore.It’snot
justlaborsales,it’salsopartsandtires,andithelpsus
sellacrossanumberofdepartments.”
—David Sheldrake, Aftersales Director (BMW Dealer)
following up on “declined work”
Superservice™ is the only aftersales solution that
integrates electronic multi-point inspection, VIN-precise
service pricing, OE parts catalog, online service booking
and customer satisfaction survey. It’s fast, it’s accurate and
it uses genuine OE data. Simply watch your profits grow.
www.superservice.com/trial
1-888-929-5599
[email protected]
youtube.com/superservicesolution
LEADERS IN PARTS AND SERVICE SOLUTIONS FOR 24 YEARS.

PDF - Fixed Ops Magazine

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