PDF - Fixed Ops Magazine

Transcription

TABLE OF C ON TEN TS
March / April 2014 || Fixed Ops Magazine
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It’s Not a Myth -- It’s a Science
24
Considering a Cosmetic Reconditioning
Program?
42
46
54
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58
62
66
Looking Like New in the Se rvice Drive
“Lifetime Fluids”
Till Whose Death Do Us Part?
Grow Your Oil Change Business by
Serving Eco-Responsible Customers
Lear ning From What the Research Shows
p.
Improving the Efficiency of Your
Loaner Vehicle Program
6
p.
74
Reduc ing Loaner Costs an d Exp en se s Throu gh Au tomat i o n
Customer Perception Is Critical In
Service Recommendations
p.
Three Key St ep s to Bu il d in g Tru st an d Con fid en ce
Can Technology Help You Meet Basic
Connection Needs?
p.
Old Sc hool A n swe rs to New School Qu e stion s
You Had Me at Hello
p.
What to Do to Imp rove the Se rvice Experien ce
Shifting Your Thinking About Work
Schedules
p.
Hav e You Out g rown You r Shop or Are You Open Le ss
Than 5 0 Hour s Per We ek?
Top 10 Management Tools for
Increasing Net Profits
… P lus a Few Cr itical Obse rvation s at the NADA Expo
68
Time is My EnemY
70
Your Search Engine Optimization Guide
p.
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Do You Have What It Takes to Re pair Alu min u m?
Maximiz ing Sho rt-Te rm Profitability AND Lon g-Term Cu s to m er R et ent i o n
50
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When the Car Crumples
18
32
p.
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10
Tec hnolog y Beats In efficien cy
Claim Your Busin e ss Listin gs an d Domin ate Local SEO
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l et t er fr om t he p ublis h e r
s ervi c e depar t m en t
C h o o si ng t h e Ri g h t Pa r t ner s to B uild Y o u r
S erv i c e D epart m ent
pa r t s depa r t m en t
76
Pa r t s eC o mm er c e O v er v i ew: T h e R est o f th e S to r y
78
C o lli si o n R epair : T h e H M O o f O ur Ind ust ry
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T h e M y st er i es o f S er v i c e S c h ed uli ng R ev e al e d
82
Tires a nd A lig nm ent s
8
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bo dy s hop
a dmin i s t r at i on
p r i c i n g s ur vey
I n dus t r y N ew s , E ven t s , L e tte r s
Adver t i s er s Di r ec to r y
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83
N ew P r o duc t s
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87
M a rket pla c e
DON’T ”SUB OUT” YOUR PROFITS
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DON’T ”SUB OUT” YOUR PROFITS
CONTACT
TOM PALANCIA
800-227-5536 ext. 242 OR
[email protected]
JIM DORSEY
800-227-5536 ext. 166
[email protected]
letter from the publisher
To listen to some people, you’d think that the kind of printed magazine that we send to
your dealership six times a year is an old fashioned technology that’s soon to disappear.
I hear comments like these:
- “People don’t read printed magazines anymore.” (“People?” Do they mean “everyone”?)
- “Print is old school. Only online publications get read.”
- “Everyone’s always on-the-go. Who has time for a printed magazine?”
- “Printed material just clutters things up. Digital material has no clutter.” (Obviously they’ve
never seen my laptop or my e-mail inboxes…)
- “Digital is cool. Print is not.”
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
And perhaps the best of all:
P ubl ish er / Edito r ial / Advert ising
- “Do you still print Fixed Ops Magazine?”
While much has been written about this print-versus-digital question (and while this space
doesn’t allow for a top-to-bottom discussion) I can tell you that, from where I sit and based
on the comments I hear from both our readers and our advertisers, this kind of thinking
simply doesn’t recognize the reading habits and the informational needs of today’s new
car dealership management.
In September, Fixed Ops Magazine will be ten years old. And I’ve been the publisher for
all but the first 18 months of this publication’s life, witnessing tremendous growth in both
editorial and ad page counts and in industry readership and stature. During those years,
we’ve also seen a number of well-established industry business publications either disappear entirely or switch from printed magazines to digital-only products. The explanations
usually focus on two rationalizations: 1) people don’t read printed magazines anymore (as
I said above), or; 2) digital-only is the way of the future.
Nick West
Phone: 714-803-5476
Fax: 714-276-0255
Nick@FixedOps Mag.com
Ar t Dir ector
Ma r ia P usparan i
[email protected]
Fixed Ops Magazine is published by Prism Automotive,
LLC, 17853 Santiago Blvd., Suite 107-467, Villa Park,
CA 92861; phone 877-349-3367. Subscriptions are free
to qualified subscribers in the U.S. who are active as fixed
Despite the “experts” who believe that print has little place in today’s world and that digitalonly everything would be ideal, you’ve made it very clear that America’s new car dealerships want, need and expect their six printed Fixed Ops Magazines every year.
This publication is designed so that each issue is collection of ideas to build your store’s
revenue, efficiency and customer retention. Fixed Ops is meant to be read, digested, discussed, learned from, acted upon and – perhaps most important – easily shared. And I still
believe that the best way to make a high-quality, low-cost and inviting information-sharing
magazine is to print it and send it directly to your desk – to all 18,000 dealerships in the
United States. That’s what we do. That’s what we’ll always do. Because, as you tell us year
after year, that’s what you want, need and expect.
Now take this new issue and start reading, learning and sharing.
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
In dus t r y N e w s, Event s, Let t er s
Toyota and Mitchell Partner
to Provide Breakthrough
Estimating Tool for the
Collision Repair Industry
Toyota Motor Sales, U.S.A. has announced an all-new way of delivering
recommended repair procedures through a partnership with Mitchell, a
leader in providing technology, connectivity and information solutions to
the collision repair and insurance industries. Mitchell’s new mobile/online
estimating system is being developed to expose Toyota recommended repair procedures during the estimating process. The new solution should
reduce the time required to write a collision estimate by eliminating the
need to reference multiple sources when repairing a Toyota vehicle to its
pre-accident condition.
“Our goal is simple -- to ensure customer safety and confidence,” said Rick
Leos, Collision Program Developer, Toyota Motor Sales, U.S.A. “By combining Mitchell’s expertise in estimating and Toyota’s quality repair procedures, we have found a way to help repair shops save time and money,
while decreasing cycle time and reducing supplements. It’s a win for our
customers, repair experts, and insurance companies alike.”
“Mitchell is excited to offer direct access to repair procedures from Toyota
within a collision repair estimate,” said Jim Brady, Vice President, Product Management, Mitchell. “By capitalizing on Mitchell and Toyota’s core
competencies and strengths, together we will create a dynamic solution
in which Toyota vehicle information automatically appears when parts are
added to an estimate.”
I have a question: To your knowledge, are there any GM dealers successfully marketing Service to customers of other GM makes? (Cross
divisions. For example, a GMC dealer marketing to Chevy or Cadillac
owners.)
While I’m very eager to “crack the code” of marketing to other GM
division’s owner bases, I’m hesitant to ignite a ground war within my
local market. This thinking started a few months ago. That was when
an exasperated gentleman showed up on our Service drive. The
guest explained to my most tenured Service Advisor that he pulled on
the driver door handle of his 4-year-old GMC Denali and he got the
handle but the door did not open. Our dealership is in his neighborhood so he thought it would save some precious time by bringing his
car here. “Can you please work on my car?”, he begged. My Advisor
not only replaced the door handle but sold about $1,500.00 worth of
much-needed maintenance Service. We had all the necessary parts
on-hand and the gentleman was in and out the same day.
This customer interaction caused “the light to come on” for me. Why
not market to the large General Motors SUV owner base in our area?
The vehicles are all built in the same assembly plant and we can order
any GM part through our Parts Department. Technically, our Technicians are thoroughly capable of working on the other vehicles. This
should be easy, I thought. Well, to-date, we’ve had no luck in luring
the other brands into our Service drive. One mailing we conducted included the “normal” number of our brand logos and the usual amount
attractively-priced services. In the second mailer, I took a generic approach, leaving the attractively-priced services but referring to our
Service Department as the XYZ GM Service Center. Still no luck.
Therefore, my question to you, once again, is, “Has anyone mastered
marketing to non-division owners?”
Snap-on Business Solutions and
Insignia Group Form Strategic
Partnership
Insignia Group, leading providers of accessories sales systems and indealership process training, was selected by Snap-on Business Solutions
(SBS), a division of Snap-on Incorporated, to enhance their marketplace
offerings. SBS and Insignia will jointly promote the Insignia System. SBS is
also migrating several hundred Mopar EASy (Electronic Accessories System) customers to the Insignia system across the United States.
“We are excited to partner with Insignia,” says Corey Roberts, Vice President of Global Parts and Service at Snap-on Business Solutions. “Our
collaboration is bringing to market a best-in-class solution by combining
Insignia’s focus on and expertise in all-makes accessory selling with Snapon’s experience and leadership in dealership productivity and Parts selling
solutions.”
“SBS expanded the vehicle personalization market with their EASy system,” says David Stringer, Insignia Group President. “SBS’ quality product and dedicated efforts moved dealerships to recognize a new revenue
opportunity. Assisting our partner in satisfying the growing needs of their
customer base is a privilege. Partnering with SBS, the industry-leading EPC
service provider, is a strategic step in helping dealerships streamline the
procurement-to-delivery process for both Parts and Accessories.”
Name withheld on request
Continued on Page 88
EVENTS
M arch/ April
31-2 / The Car Wash Show
McCormick Place, Chicago, IL
312-321-5199 / www.CarWash.org
JUNE
24-25 / Automotive Summit Series 2014
The Ritz-Carlton Hotel, Marina del Rey, CA
720-287-0145 / www.TLSummits.com
p. 8
Featu r e
When the Car
Crumples
D o Y o u H a v e W h a t I t T a k e s t o R e p a ir A l u m i n u m ? B y R i c h a r d P e r r y
Aluminum has been a hot topic in the
automotive industry lately, thanks in no
small part to Ford’s introduction of the
2015 F-150, which features an aluminum
body and bed. When an OEM makes
significant changes to the country’s
best-selling vehicle, people take note.
But aluminum has been steadily making
inroads into new vehicle construction for
decades.
Aluminum has been part of cars since
the start of the last century. Prior to
World War I, the automotive industry was
aluminum’s biggest market, accounting
for up to half of all aluminum produced,
according to The Aluminum Association.
After the World War I, cost-effective
steel became the most popular choice
for mass-produced vehicles, while aluminum was used primarily for certain
components and high-end European
vehicles. In 1960, there were around 54
pounds of aluminum in an average vehicle sold in the United States. That quantity started to grow annually after federal
fuel economy standards were enacted
in the 1970s. By 2012 there were some
342 pounds of aluminum in an average
U.S. vehicle. By 2025, the International
Aluminum Institute predicts that the pervehicle average use of aluminum will increase to around 550 pounds.
Not only is the quantity of aluminum
used in vehicles increasing, the applications and markets for the metal are
spreading beyond the luxury market.
p. 10
Ford’s 2015 F-150 has generated a lot of buzz about properly repairing collision-damaged
aluminum vehicles. This cutaway of the body-in-white was a centerpiece of Ford’s booth at
the NADA Expo in January.
With the introduction of the 2015 Ford
F-150, aluminum is going mainstream in
a big way.
Why are automakers turning to aluminum? Because it has properties that the
manufacturers need to better protect
passengers and improve fuel economy.
1. Aluminum is strong. The yield strength
of pure aluminum is 7-11MPa, while aluminum alloys have yield strengths ranging from 200 MPa to 600 MPa or more —
the same range as many high-strength
steels. Pound for pound, aluminum can
be up to two and a half times stronger
than traditional steel.
2. Aluminum can absorb nearly twice
the crash energy as steel. Also, aluminum components can be designed
to fold predictably in a crash, allowing a vehicle to absorb more of the
crash forces and reducing the severity of the crash impact that’s transmitted to the vehicle’s passengers.
3. Aluminum is lightweight. Using aluminum to reduce a vehicle’s weight by 10
p. 11
A dent-pulling system and hammer with aluminum head are used to remove a dent from an aluminum hood.
percent can increase that vehicle’s fuel
economy up to 8 percent. In the United
States, automakers have been challenged to almost double fuel efficiency
by 2025 to 54.5 miles per gallon. Reducing vehicle weight is an important first
step toward achieving this goal.
Training Is Critical
If you need to start handling aluminum
vehicles in your body shop, there are
some things you need to know. First, repairs to aluminum bodies require different techniques, repair procedures and
equipment than those used to repair
traditional steel components. There are
an incredible range of aluminum alloys,
forming processes, bonding processes
and frame styles for manufacturers to
choose from, and the resulting combinations are endless. It is imperative
that collision repair Technicians receive
proper training and follow OEM repair
procedures to fix these vehicles. Training is available from many of the vehicle manufacturers, through I-CAR, and
through industry training providers like
Chief University.
p. 12
As you’ve probably heard, you’re also
going to have to invest in equipment
dedicated to repairing aluminum vehicles. Ferrous materials -- even airborne
steel dust particles -- can contaminate
aluminum, causing contact corrosion
and corrupting aluminum welding integrity. As a result, best practices call for
segregating tools and equipment to be
used exclusively on aluminum vehicles.
Getting the Gear
Most manufacturers are specific as to
what equipment is necessary to repair
their aluminum vehicles. Here’s a general overview of the equipment considerations you’ll have to make to prepare to
work on aluminum. Published estimates
suggest that it can cost in the $50,000
range to properly equip an aluminum repair bay.
Dedicated Bay Some OEMs require
dealerships to dedicate a completely
isolated room to repairing their aluminum vehicles. Others recommend a
curtain system that can be employed to
section off a bay when aluminum repair
work is being performed. These bays
also need dust extraction and ventilation systems.
“By 2012 there were
some 342 pounds of
aluminum in an average
U.S. vehicle. By 2025,
the International
Aluminum Institute
predicts that the
per-vehicle average use
of aluminum will
increase to around 550
pounds.”
p. 13
Ford dedicated a section of its NADA Expo 2014 booth to the aluminum repair equipment now available to its dealers through the Rotunda program,
including the aluminum repair station, MIG welder and vacuum system seen here.
MIG Welder Properly welding aluminum
sheet metal requires a pulse MIG inverter welder with a 220 to 240 volt power
supply. This type of welder provides the
additional power necessary for welding
aluminum while minimizing the chance
of burn-through.
One distinguishing feature among MIG
welders is the location of the motor and
drive rolls that feed the welding wire.
“Push” feeders have their motor and
feed rolls at the back of the feeder to
push the wire through a conduit to the
welding gun. Because aluminum wire
is soft, push feeders can suffer from
tangled wire within the system, requiring technicians to stop welding and
cut out the resultant bird’s nest of wire
jammed in the machine. “Pull” style systems place the motor and feed rolls in
the welding gun to pull the wire through.
p. 14
“Most manufacturers
are specific as to what
equipment is necessary
to repair their
aluminum vehicles.
Published estimates
suggest that it can
cost in the $50,000
range to properly equip
an aluminum repair bay.”
Thin aluminum wire is subject to snapping in this type of system. As a result,
the Aluminum Association’s “Practices
for the Repair of Aluminum Sheet Metal”
recommends the “push-pull” torch style.
This system uses two motors and two
sets of drive rolls, one in the feeder and
one in the gun, to maintain constant,
uniform tension on the wire, reducing
the chances of tangling or breakage.
Many OEMs also require shops to use
MIG welders with synergic-pulsed technology. This basically means that the
welder automatically adjusts to Technician input. For example, if the Technician adjusts the current setting, the
welder adjusts for material thickness
and speed accordingly, making it easier
for the Technician to achieve the desired
welds consistently.
“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 3/14
p. 15
“A dedicated aluminum
workstation makes
it easy to store in one
workspace all the
tools and equipment
necessary to
properly repair dents
in aluminum body
panels, hoods and
Properly welding aluminum sheet metal requires a pulse MIG inverter welder with a 220 to 240
volt power supply, preferably equipped with a “push-pull” torch.
other sheet metal.”
Aluminum Dent Repair System A dedicated aluminum workstation makes it
easy to store in one workspace all the
tools and equipment necessary to properly repair dents in aluminum body
panels, hoods and other sheet metal.
At a minimum, the system should be
equipped with an aluminum stud welder, dent-pulling systems and aluminum
hammers.
Unlike steel, aluminum does not change
color when heated all the way to its
melting point. Therefore, in addition to
a heat gun, the aluminum dent repair
system should also include a thermometer to closely monitor the heated area
and heat shield gel to create a barrier to
protect undamaged portions of the aluminum panel.
Frame Measuring System Regardless of what a vehicle is made out of,
the only way to ensure that it’s returned
to pre-accident condition is to measure
it and compare the results to the vehicle’s original specifications. Look for a
measuring system that maps the entire
vehicle in real time, measuring multiple
points of the vehicle simultaneously so
your Technicians can tell instantly what
changes with every pull, section or part
removed. If you will be using the same
measuring system for aluminum and
steel vehicles, investigate whether you
will need any new accessories. For example, aluminum collet attachments to
connect to aluminum vehicles.
p. 16
A stud welder attaches a stud bolt onto an aluminum panel in preparation for pulling out a dent.
Holding System Historically, vehicle
OEM repair procedures for aluminum
vehicles have called for more sectioning
and parts replacement than have been
used on more traditional vehicles.
When a technician is removing a part or
sectioning away a portion of a vehicle
component, it’s critical that the rest of
the vehicle be held securely in place
throughout the entire repair process.
This prevents damage from being added into the vehicle and ensures that the
new part can be returned to the correct
location. It’s most cost-effective if the
holding system works with your shop’s
existing frame rack. (You do still need
a frame rack to pull the steel frame of
many of these vehicles. Make sure it’s
big enough to handle the full range of
aluminum vehicles about to hit the road.)
Additional Equipment Depending on
which OEMs you handle, additional
equipment requirements may include
rivet guns, spot welders for use in weld
bonding, parts storage racks, glue guns,
dedicated hand/power tools and more.
Most manufacturers provide a list of
equipment and training necessary for
their dealerships or dedicated body
shops to achieve aluminum certification.
Richard Perry is Global Repair Product
Manager for Vehicle Service Group, parent
company of the Chief Automotive Technologies and Elektron brands of collision
repair equipment.
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. 17
Featu r e
It’s Not a Myth -It’s a Science
M a x i m i z i n g Sh o r t- T e r m Pr o f i t a bi l i t y AN D
Long-Term Customer Retention
B y L e i g h S i lv e r
It’s important to come to grips with a
major disconnect that exists in many (if
not most) new car dealerships; Dealers
Principals and General Managers don’t
know much about Service operations.
Watching upper management and Service management interact is like watching a football player with attention deficit disorder (ADD) talk to his pharmacist.
Imagine a big, intimidating, quicktempered football player who can’t sit
still for more than a few seconds. Now
imagine a quiet, unassuming pharmacist
who just wants to come in and do his
job, help his customers and head home.
The pharmacist dreads his weekly encounters with his big client because he
knows that during the small amount of
time they spend face to face, the pharmacist -- while admiring his big client -is afraid that he might set off his quick
temper or bore him.
These two professionals are experts
in their respective fields but they often
come from very different places and
have difficulties “connecting”.
To prove this point, let’s shine a light on
a very common situation. Your Dealer
has just come back from his 20 group.
One of three scenarios emerges:
1. You are on the ’‘good side” of the
page in the book and your best idea for
p. 18
Service won first prize so you get a pass
until the next meeting.
2. You are in the middle of the page in
the book and your dealer’s good buddy
presented the best idea and he thinks it
should be implemented immediately.
3. You are on the ‘bad side” of the page
in the book and you need to provide answers as to why your operation is running so poorly.
How often in scenarios two and three do
you need to talk your dealer or general
manager “off the ledge” simply because
they are not experts in understanding
Fixed Operations data? Even though the
Service Department typically generates
most of the gross profit in a dealership
and touches the highest number of paying customers, a large fog of misunderstanding sits over Service operations.
Why don’t most operators learn how to
lift the fog?
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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• Customized Training (Selling Services
• Consolidated Supplier (Products, Supplies,
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Collision, Tools & Equipment)
• Consumer Education Tools.
• Aggressive and Consistent Pricing Across a
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Great people, great products, great prices!SM
CARQUEST.com
p. 19
lift the fog? The Service operations can
be viewed as a combination of running a
sales floor, in conjunction with a manufacturing plant, in combination with a
shipping yard, in the disguise of a medical practice. The work needs to get sold,
then make sure it can get completed on
time, which includes making sure that
all of the necessary parts are there or
get there in time, as well as deal with
customers who don’t really want to be
there and are willing to sue the dealership if you “look at them funny”. This
is an incredibly complex, multi-faceted
operation.
There is a way to lift the fog and gain
the most important insight. We will call it
OPERATIONAL CLARITY. This is a clear
understanding of the drivers of your Service operations and how to manipulate
those levers for the purpose of the ultimate goal; maximizing short-term profitability AND long-term customer retention.
p. 20
Here’s a list of important questions to allow someone to self-evaluate the level
of operational clarity they currently have
(applicable for all upper and Service
management):
• How does my rate of selling new, used,
and CPO vehicles translate into customer retention and Service profits?
• What will happen if I implement processes for quick Service?
• What will happen if I extend my Service
hours or change my staffing?
• Should I sell Service menus with a
“good, better, best” proposition or
should I strictly sell factory-scheduled
maintenance?
• What are the short- and long-term effects of lowering or raising prices?
• Am I collecting appropriate revenue for
all the work that is being performed?
• How thorough and consistent is my
multipoint inspection process and what
should I be guiding my Technicians to
recommend?
We are going to lift the fog and provide
operational clarity on all these key drivers of profit and retention by using repair
order data analysis to isolate every variable within a Service operation so they
can be managed to the ultimate goal of
maximizing short-term profit AND longterm retention.
“The Service operations
can be viewed as
a combination of
running a sales floor,
in conjunction with a
manufacturing plant,
in combination with
a shipping yard,
in the disguise of
a medical practice.”
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p. 21
This series of articles will provide the
readers with proof using a knowledge
base gathered over the past 20 years
with results drawn from forensic repair order analysis conducted on over
50,000,000 repair orders from over 500
different dealerships.
Let’s start by identifying the three major
profit drivers, which can have significant
effect, over and above customer requested services:
1. Menu and Maintenance selling on the
drive
2. Multipoint inspection selling during
the visit
3. Pricing consistency and control for
customer pay work
Now let’s look at the common Key Performance Indicators used to gauge the
success of a Service operation:
• Number of repair orders
• Labor sales and gross profit percentage
• Parts sales and gross profit percentage
p. 22
• Hours per repair order
• Effective labor rate
to the actual work of behavior change
and process implementation.
If one wants to manage their profit centers effectively, they need to have the
ability to “inspect what they expect”
from their employees. This means the
capability to drill down from store totals to individual performance. This is a
straightforward task that all dealer management systems accomplish. However,
it starts to get difficult when the next
level of drill-down is required -- the individual repair order analysis by the employee.
Starting in the next issue, we will address each profit driver with tips on how
to grow your short-term profit and avoid
hidden cliffs that erode customer retention. Over the next twelve months you
will see your profits (as well as your retention) rise. It will happen in the best
way possible; increases that can be
sustained. We will answer all of the important questions that have been posed
and provide abundant proof that might
surprise (and possibly shake up) the way
the industry has measured success. We
are going to lift the fog of Service operations and provide OPERATIONAL CLARITY for the betterment of dealership
management, employees and Service
customers.
I’ve had the pleasure (or curse) of conducting hundreds of manual repair order
analysis over the years and it has provided me with a world of insight. The
downside was the amount of time it took
to do this properly. Just looking at 50 to
75 repair orders per Service Consultant
or Technician took me anywhere from a
half to a full day of just data entry before
we could even review the results and get
Leigh Silver is Senior Vice President and General
Manager of the KEEPS Corporation, developers
of the ROAMS technology. Prior to his tenure at
KEEPS, Leigh worked at Service Repair Solutions
(SRS) specializing in business development and
advanced repair order analytics. SRS was the parent company of MPI where Leigh spent over eight
years working in the field helping sell, implement
and consult to the MPI EDGE solution.
p. 23
Featu r e
Considering a Cosmetic
Reconditioning Program?
L o o k i n g Li k e N e w i n t h e S e r v i c e D ri v e By Bill Buckley
Dealerships today are looking for every
opportunity to capture revenue whenever a customer – new or existing – visits
the dealership. Precious square footage
previously dedicated only to showroom
floor models is now being used for selling anything from branded apparel to
customized aftermarket products, while
creating a welcoming atmosphere for
customers that encourages them to stay
awhile. Once reserved for highline dealerships only, such strategies are now
working well at dealerships selling midpriced cars and at multi-franchise locations.
Dealership Service drives have picked
up on such strategies for capturing
added revenue. One opportunity that’s
gaining momentum is cosmetic reconditioning services. Some of the services
offered include: PDR (Paintless Dent
Removal) to repair minor dents and
dings; minor paint repairs of scratches,
scrapes, creases and road rash; repairing damaged bumpers; wet sanding and
buffing fine scratches; and the refinishing or straightening of alloy wheels damaged by curb rash and abrasions.
Such services, performed with quality
and speed, give customers the satisfaction of driving a vehicle that always feels
“brand new,” while increasing revenue in
the Service Department – in some case
over $500,000 a year. These offerings
also increase customer satisfaction -and without increasing the customer’s
start-to-finish Service time.
p. 24
“Dealership Service drives have picked
up on such strategies for capturing
added revenue. One opportunity that’s
gaining momentum is cosmetic
reconditioning services.”
When one considers industry and consumer trends, cosmetic reconditioning
appears to be the right service at the
right time.
“While studies have
Traditional revenue opportunities in
the Service Department are declining
consumers may be
According to the annual J.D. Power and
Associates U.S. Vehicle Dependability
Study, now in its 24th year, three-yearold cars, trucks, crossover SUVs and
vans (all brands sold in the U.S.) are
more dependable than those manufactured even just a few years earlier. In
the 2009 report, overall vehicle dependability averages were 171 PP100 (171
problems per 100 vehicles). In the 2013
report, the averages dropped to 126
PP100. That’s a 26% improvement in
that metric over just four years.
That’s good news for car owners -- and
bad news for dealerships. Obviously,
fewer problems with the car mean fewer
visits to the Service drive.
Furthermore, according to the NADA’s
2013 State-of-the-Industry Report, net
profit in the Service and Parts Departments at the average dealership was
down 17.4% from 2011 to 2012, and
that figure has gone down steadily since
the industry’s ten-year high in 2008.
p. 26
shown that
lax on preventative
Also in that NADA report, traditional
Body Shop operations in dealerships
continue to be less of a factor in Service
drive revenue generation. The percent of
dealerships with on-site body shops fell
to 34 percent in 2012, from its ten-year
high of about 42 percent in 2006. And
especially in down
dealership Body Shop sales have been
relatively flat since 2009. Total dealership Fixed Operations (Service, Parts
and Body Shop) sales were flat from
2011 to 2012.
economies –
Most customers want to keep their
cars looking new
maintenance –
aesthetic upkeep
tends to be lower
cost to the
car owner and,
therefore, more
consistently
addressed.”
“No other man-made device since the
shields and lances of ancient knights fulfills a man’s ego like an automobile.”
-- Lord William Rootes, British automotive pioneer
in most Western cities and cultures, car
ownership is a sign of achievement and
independence, a channel for personal
growth and, sometimes, an expression
of one’s position in the social hierarchy.
Pride of car ownership is expressed in
many ways. Certainly one of the most
common is keeping the car looking new.
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While studies have shown that consumers may be lax on preventative maintenance – especially in down economies –
aesthetic upkeep tends to be lower cost
to the car owner and, therefore, more
consistently addressed. Plus, it makes
good economic sense for the car owner:
keeping up the car’s appearance adds
value at resale, or reduces penalties at
the end of a lease.
Lexus of Bellevue: “Over half a million
in gross profit per year”
One dealership that has found success
with a cosmetic recon program in their
Service drives is Lexus of Bellevue. Located near Seattle, Washington and one
of nine dealerships in the O’Brien Auto
Group, Lexus of Bellevue has been using a cosmetic reconditioning program
in their Service Department since 2008.
General Manager of Lexus of Bellevue,
Mark Babcock, said he knew a cosmetic
reconditioning program would work for
them because of the volume of vehicles
coming through their Service drive every
day with cosmetic damage. Babcock estimates that about 30% to 40% of their
Service Department customers need the
service. He says that about 10% of his
customers buy the service, resulting in
about $100,000 per month in sales, and
p. 28
$50,000 per month to the department.
“That’s over half a million in gross profit
per year,” said Babcock.
Getting the Lexus of Bellevue cosmetic
reconditioning program to that point of
productivity took some investment of
space, time and training. “We considered doing this program using in-house
personnel, and we also looked at using
a variety of outside service providers,”
said Babcock. “Ultimately we decided
on using a consolidated service because
of the uniform quality of their work and
the reliability to get the work done. Essentially, we just put a ‘box’ over parked
Service vehicles and turned it into a
profit center.”
Derrick Albrecht, Service Manager at
Lexus of Bellevue, says moving to an
integrated repair program really helped.
“Previously we had been using four different mobile vendors. By changing to
the program on site, we quadrupled the
volume of higher quality and precision
repairs. We couldn’t accomplish that
magnitude using mobile outfits.”
Convenience for the customer also
plays a role in the success of a cosmetic
reconditioning program. Dent Wizard
research shows that about 60-70% of
cosmetic repair sales are due strictly
to the convenience factor. If not for the
same-visit repair experience, most customers will leave the flaws un-repaired.
That’s substantial profit driving out of
dealerships every hour.
The company also helped Lexus of Bellevue with training personnel on how to
sell the service. Training is done on-site
and at Service Advisor meetings.
“Research shows
that about
60-70% of
cosmetic repair
sales are due
strictly to
the convenience
factor.”
“Adding more cosmetic recon services,
such as minor paint or alloy wheel
repair, and thereby truly having a menu
of cosmetic recon services to sell
to your customers, will require space
and equipment – space and equipment
designed for quality, efficiency and
same-day turnaround.”
Babcock says they used an incentive
program to help get Service Department
Advisors to focus their attention on the
program.
Another benefit of the program and its
training is that it reinforces the importance of doing a multi-point inspection
of each vehicle when it arrives. This
practice greatly reduces the expenses
associated with in-Service damage
claims.
Beyond increased revenues, Albrecht
says the dealership has recognized
other benefits, such as increased CSI
scores. “Customer feedback has been
p. 30
very positive. Customers love the added
service and convenience.”
However, adding more cosmetic recon
services, such as minor paint or alloy
wheel repair, and thereby truly having a
menu of cosmetic recon services to sell
to your customers, will require space
and equipment – space and equipment
designed for quality, efficiency and
same-day turnaround. To rationalize the
program with a reasonable return on investment, a manager needs to consider
the following:
Do you have the right volume of Service repair orders per day to generate the necessary volume of sales
opportunities? You should look for six to
eight sales opportunities per day.
Do you have the available space? Figure
on approximately 1,500 square feet of
dedicated, sheltered workspace.
Implementing a Cosmetic Recon
Program: Options and Investment
Do you have high performers on your
team of Service Advisors? These are the
people who will sell the service regularly
and fuel the program.
Is a cosmetic reconditioning program
appropriate for every dealership Service
Department? That depends on what you
consider a “program.”
By asking yourself these questions, you
may learn that your Service Department is in the right position to welcome
a whole new revenue stream!
Certainly, adding PDR to your Service
menu requires a fairly low investment
and operational impact. A PDR technician – an employee, an independent or
part of a multi-service resource – can
perform his duties using limited space
and investment.
Bill Buckley is the Project Manager for
Bridgeton, Missouri-based Dent Wizard
International’s MINT dealership-based cosmetic reconditioning retail program.
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Featu r e
“Lifetime Fluids”
Ti l l W h o s e D e a t h D o U s P a r t ? There are a few things in life that we can
count on . . . death, taxes and nothing
lasts forever -- especially in the automotive world. For the most part, we
all share the same basic needs: a job,
food, shelter and reliable transportation
-- usually in the form of an automobile.
As we go through life, we discover that
we have little control over death and
taxes. Getting something to last forever
seems to be up for debate, at least in
the automotive industry. This is what the
term “Lifetime Fluids” implies. Is this a
reliability factor? And whose lifetime is
the manufacturer talking about? Our lifetime? The lifetime of the car? The lifetime of the transmission? Or the lifetime
of the fluid? Is it subject to the terms of
the warranty? If so, what’s the OEM’s
drivetrain warranty? And how about fluid
service requirements? Do they refer to
normal or severe operating conditions
as a determining factor?
What first appeared to be an exciting
new fluid service discovery has raised a
multitude of important yet unanswered
questions. The most important of which
is this: Are “Lifetime Fluids” a product of
technology or a marketing strategy?
“Lifetime Fluid” -- although this buzzword sells cars for the OEMs, at what
expense to the dealerships? And are
new car owners now stuck with a ticking
time-bomb?
p. 32
B y R o n McE l r o y
p. 33
“It’s estimated that over 13 million
automatic transmissions fail every year and
most of these failures occur in vehicles
with perfectly running engines. So why don’t
transmissions last as long as engines?”
Technology has made major improvements to the internal combustion engine
over the last 15-20 years. These innovations have increased efficiency, extended Service intervals and improved performance and reliability. For instance,
with the advent of fuel injection as opposed to carburetors, oil change intervals have doubled. The common 3,000
mile interval has been replaced with a
5,000- to 6,000-mile oil change for most
cars.
But not all so-called improvements go
as planned and sometimes recalls are
p. 34
necessary to make adjustments. For
instance, GM’s extended oil change interval via the dashboard warning light.
They discovered that the algorithm that
sets off the service oil light was not aggressive enough to prevent lubrication
failure and the resulting damage to their
engines before they were out of warranty. This is a good example of what
most of have learned by experience. If
we test our oil and change it before the
additives are depleted (regardless of
what the owner’s manual says) we can
expect our vehicle’s engine to last well
over 200,000 miles.
Technology has also transformed the
transmission, downsizing it into a smaller, lighter mechanism with improved
efficiency and performance. But what
about reliability? It’s estimated that over
13 million automatic transmissions fail
every year and most of these failures occur in vehicles with perfectly running engines. So why don’t transmissions last
as long as engines? After all, they are an
integral component of the drivetrain and
are usually covered under the same OE
warranty as the engine.
There are several basic reasons why
transmissions are stressed more severely today than those from the past and
why we’re seeing so many transmissions
fail. First, they’re more complex, having
morphed from 4-speed to 6- and now
even 8-speed capabilities. And new fuelefficient transmission designs including
the Continuously Variable Transmission
(CVT) and the Dual Clutch Transmission
(DCT) require unique fluid technologies
to meet their increased performance requirements. They’re smaller and lighter
despite increased engine horsepower.
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p. 35
Today’s transmissions are subjected to
higher torque and -- most importantly
-- they often experience an increase in
operating temperatures. The Automatic
Transmission Rebuilders Association
(ATRA) estimates that 90% of all transmission failures are due to overheating
of the transmission fluid. Perhaps the
number one culprit is failed automatic
transmission fluids due to OEMs marketing and promoting “Lifetime Fluids”.
Automatic Transmission Fluid (ATF) is
the most complex of all lubricants and is
often transmission specific. It must reduce friction to prevent wear, yet at the
same time, it must allow a certain level of adhesion so clutch materials can
properly engage. (Plus a host of other
requirements.)
“Perhaps the
number one culprit
is failed automatic
transmission fluids
due to OEMs
marketing and
promoting
“Lifetime Fluids”.”
ATFs contain a wide variety of chemical
compounds including anti-wear additives, rust and corrosion inhibitors, detergents, dispersants and surfactants,
kinematic viscosity and viscosity index
improvers and modifiers, seal swell additives and agents, anti-foaming additives and anti-oxidation compounds to
inhibit oxidation and boil-off, cold-flow
improvers, high temperature thickeners,
gasket conditioners, pour point depressant and petroleum dye. In other words,
there’s a whole lot more going on between the gears.
Despite all the intense demands and
requirements of ATF to provide proper
OEMs insist that their ATF (as well as
p. 36
performance and protection, many
brake and power steering fluid) is formulated so that the owner never needs to
change the fluid. They refer to them as
“Lifetime Fluids”. But does anyone really believe a car will last forever – especially if you don’t change the fluids? Or,
have these car makers discovered a new
fluid alchemy; one that defies everything
we know about tribology and fluid maintenance?
“Friction” and “Heat” are the dynamic
duo that drives the oxidation rate of
vehicle fluids. The normal operational temperature for transmission fluids is approximately 170° Fahrenheit.
At this temperature the fluid’s service
life under “normal driving conditions”
should reach or exceed 100,000 miles.
But what about severe driving conditions; after all, most vehicles fall into
this operational category. For every 20°
increase in the fluid’s operating temperature, the resulting rate of oxidation doubles, thereby cutting the fluid’s
service life in half. The following chart
clearly demonstrates the vulnerability of
ATF when subjected to operating temperatures above 170°.
The approximate life expectancy of ATF
at various temperatures can be seen
here:
p. 37
The operating temperature limits of ATF
clearly show why shorter fluid maintenance intervals are strongly recommended for vehicles operated under
severe driving conditions (most cars).
When the fluid exceeds 300° damage
may occur. The metals in the transmission, depending on how severely they
are overheated, may warp and become
distorted.
“So with all of this
data showing that
transmissions need
servicing to maintain
performance and
reliability, and to meet
the expected
conventional service
life standard, why are
the OEMs shifting from
a regular preventative
maintenance schedule
to promoting a sealed
transmission with
a “Lifetime Fluid”
that never requires
servicing?”
The industry consensus is that fluids
are good for the lifetime of the fluid and
nothing more. Once a fluid is dirty and
worn out it must be changed. So with all
of this data showing that transmissions
need servicing to maintain performance
and reliability, and to meet the expected
conventional service life standard, why
are the OEMs shifting from a regular
preventative maintenance schedule to
promoting a sealed transmission with a
“Lifetime Fluid” that never requires servicing? Could it have something to do
with an OEM offering FREE SERVICE
during the warranty period of the vehicle
and lifetime fluids are just another way
for them to lower their costs?
It’s interesting to note most OEMs offer
similar models across the board in both
price points and performance. So then,
what’s the new paradigm shaping car
p. 38
sales? New car sales are often driven
by J. D. Power Consumer Satisfaction
Surveys. The survey results clearly show
that drivers want cars that they don’t
need to service or maintain. Hence,
sealed mechanical systems and lifetime
fluids.
The cost of ownership is another major
factor. How much will it cost to perform
required maintenance to satisfy the vehicle’s warranty? The program is great
for the warranty period and the first
owner will rave about the low maintenance car for which he received four
free oil changes and maybe a brake job.
These marketing programs dramatically
reduce maintenance costs for both the
auto manufacturer and the driver -- at
least until the warranty runs out. It’s a
scientific fact that fluid preventative
maintenance prolongs the service life
of a vehicle. Therefore, no-maintenance
practices are more likely market-driven
than engineering-driven. And this is
where the rubber meets the road. SO
-- as Service providers, what is our responsibility to our customer and to the
dealership? Whether they are leasing or
buying, do we owe it to our customers
to qualify their driving habits and the
way they operate their vehicle in terms
of “normal” or “severe”? Do we use fluid
diagnostic tools to evaluate and show
them when fluid services are needed
and tell them benefits of servicing fluids
before they become depleted? Or, do we
just pass the buck. No servicing, “LIFETIME FLUID” – “SEALED SYSTEM”, regardless of the fact that the service is
warranted and that it’s good business
for the dealership to do so.
p. 39
One of these scenarios is manifesting
into a class action lawsuit against one
OEM for allegedly misrepresenting that
certain models of their vehicles with automatic transmissions supposedly do
not need to have the ATF replaced during the life of the vehicle. The OEM coins
this term “lifetime” fluid. According to
the lawsuit the “key selling feature” of
these vehicles has been its Service and
Warranty program, which “promises to
‘maximize vehicle safety, reliability and
resale value by minimizing breakdowns
resulting from wear, and minimizing cost
and inconvenience.’” It’s further alleged
that failure to replace the transmission
fluid leads to sudden and premature
catastrophic failure of the transmission
and that the owners are forced to shell
out the cost of repair / replacement despite express instruction that replacing
the fluid was not “necessary”.
“It’s a scientific
fact that fluid
preventative
maintenance
prolongs the
service life of a
vehicle. Therefore,
no-maintenance
practices are
more likely
market-driven than
engineering-driven.”
Previous to “Lifetime Fluids” OEM “time
/ mileage” Service recommendations
were the industry standard. But replac-
p. 40
ing fluids too late leads to premature
component wear and damage that may
lead to expensive repairs or shorten the
useful lifetime of the vehicle. Replacing
fluids before they’re needed costs consumers millions of dollars each year and
can be considered environmentally taxing. With the advent and proliferation of
“fluid-science” and “instant lubricant diagnostics” tools, the landscape of preventative maintenance has significantly
changed to include fluid condition as a
qualifying standard for recommending
fluid services.
“That’s why we’re now testing the fluids
for our customers and showing them the
actual condition of their vehicle’s vital
fluids” said Todd Renfro, Service Director for the Buchanan Auto Stores, “so
they can make an informed decision on
the preventative maintenance of their
cars. We see using fluid diagnostics
technology to identify the condition of
specific fluids to be an excellent method
to install and maintain integrity with our
clientele.”
A crackdown and investigation was recently conducted by the California Bureau of Automotive Repair (BAR) that focused on Service providers performing
unwarranted fluid services. The BAR’s
initial position on Service recommendations was taken directly from OEM
vehicle owner’s manuals. Any services
performed outside these OEM specifications were suspect. Aftermarket associations including Automotive Maintenance and Repair Association (AMRA/
MAP), California Automotive Business
Coalition (CalABC), Automotive Oil
Change Association (AOCA) and industry chemical and tool manufacturers
presented white papers and scientific
documentation to the BAR supporting
their Service recommendations. The
aftermarket demonstrated that the fluid
service recommendations being offered
to consumers were in their best interest,
regardless of whether they were in alignment with OEM recommendations. Consumer benefits include prolonging the
vehicle’s useful service life, maintaining
performance, maintaining efficiency, reducing breakdowns and reducing overall repair costs over the vehicle’s service
life.
So how about “Lifetime Fluids”? Once
again, does anyone really believe that
a car will last forever – especially if you
don’t change the fluids? Are we really
expected to buy into and sell “To Infinity and Beyond” as the famous Disney
character says?
You’re in the automotive Service industry. Your Dealership relies on your Fixed
Operations Departments to generate
profits and instill trust, confidence and
loyalty in your customers. You are there
to provide them with the services they
need to maintain their vehicle’s performance, reliability and service life -- INCLUDING FLUID SERVICES. After all,
that’s why they came to you in the first
place.
Ron McElroy is CEO and Founder of Fluid Rx Diagnostics by Magna-Guard, Inc. He has received two “Best New Product Awards”
and four “Product Innovation Awards” for creating and bringing
to the automotive market innovative new products that have revolutionized the way we integrate aftermarket electronics into OEM
systems and that have changed the dynamics of performing fluid
preventative maintenance services.
p. 41
Featu r e
Grow Your Oil Change
Business by Serving
Eco-Responsible Customers
L e a r n i n g Fr o m W h a t t h e R e s e a r c h Sh o w s By Curt Knapp
Does your Service Department offer on
its menu of services an option that’s
better for the environment? If not, you
could be missing out on a proven way
to add revenue, reach new eco-responsible customers, wow current customers and contribute to your dealership’s
sustainability efforts. Here’s why, along
with tips on adding green oil changes to
your dealership’s Service Department
offerings.
Green proof and profit
Will customers purchase (or even pay
more for) green oil changes? A couple
of studies help answer this question.
The first (the 2001 Mintel Green Living
Report) found that 38 percent of adults
18+ almost always or regularly purchase
‘green’ products. The second study,
conducted by Maslansky Research in
2011, found among consumers who
wanted to protect the environment, they
would pay an average of $6.47 more per
oil change. The most eco-responsible
people said they would pay an average
of $12.50 more per oil change.
What would charging $6 to $12 more
for an oil change do for your Service
Department’s bottom line? Of course,
not every customer will choose or pay
extra for an eco-friendly oil change. But
the fact that your dealership offers this
p. 42
“Among consumers who wanted to protect
the environment, they would pay an average
of $6.47 more per oil change. The most
eco-responsible people said they would pay
an average of $12.50 more per oil change.”
714-803-5476
p. 43
alternative shows your commitment to
customer service and environmental
protection.
Here’s additional proof: re-refined motor oil is now sold by over a thousand
DIFM installers. If you don’t sell a green
oil change to eco-responsible people,
somebody else will. Offering a green oil
change option can help attract or keep
customers who care about the environment. Differentiate your dealership from
competitors with a change for the better.
Additionally, many federal, state and
local governments (as well as private
fleets) mandate or prefer the use of rerefined oil and look for installers that offer it. So, this can be another source of
growth for your dealership.
Not just green, but great motor oil
High quality re-refined motor oil meets
the same quality and industry standards
as oil made from virgin crude.
With the highest quality re-refined motor oils, for example, it’s quality merits
have been tested and verified, meeting
or exceeding the toughest standards for
p. 44
engine protection, including SAE, API
and ILSAC. You’ll also want to look for
lubricants that meet every OEM’s standards for motor oil quality.
the loop contributes to your dealership’s
recycling or sustainability program while
keeping the focus on driving revenue
and satisfying customers.
Greening your dealership
Think green this spring
In a closed-loop system, used oil is collected, re-refined and redistributed as
re-refined motor oil. This cycle can be
repeated again and again, saving energy
and resources.
For eco-responsible people, it’s about
making green choices that are better for the planet. Your dealership can
help serve this green market by offering
green oil changes and a used-oil collection service that ensures the oil is rerefined and reused.
To illustrate, Safety-Kleen, the largest
re-refiner in the world, reclaims over 200
million gallons of used oil each year from
tens of thousands of locations. That oil
is refined using a process that requires
85 percent less energy than oil made
from virgin crude, but it is of equal or
better quality.
Closing the loop offers a much richer
story to share with customers. Instead
of just charging a fee for recycling used
oil, you can talk about oil’s sustainable
journey and how the used oil collected
today with someday soon be installed in
someone else’s vehicle.
Offering green oil changes and closing
By doing so, you can improve profitability from your oil change service, better
serve new and existing eco-responsible
customers and contribute to the dealership’s green program. All this plus
sleep better at night knowing the impact
you’re making!
Curt Knapp is Executive Vice
President, Marketing and Oil ReRefining Sales, for Safety-Kleen,
the largest collector, recycler and
re-refiner of used oil in the world
(www.safety-kleen.com). SafetyKleen is a wholly owned subsidiary of Clean Harbors, Inc., the
leading provider of environmental, energy and industrial services
throughout North America.
Get Fixed.
Digitally.
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But there’s more.
Fixed Ops Magazine has several free online online resources. And if you and your associates aren’t
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p. 45
Featu r e
Improving the Efficiency
of Your Loaner
Vehicle Program
R e d u c i n g L o a n e r C o s t s a n d E x p e n s e s Thr o u g h A u t o m a t i o n Loaner fleets have become increasingly popular customer service features
at dealerships and, in many cases, are
mandated or heavily supported by the
OEMs. Although loaners help to improve
CSI scores and provide consistent, onbrand service to customers, they can
become one of a dealership’s largest
costs if not managed properly.
Many dealerships write-off loaners as
a cost and pay little attention to them,
which can simply result in costs continuing to creep up even further. But there
is a solution: investing in automating
your loaner fleet can significantly reduce
your costs and expenses while providing even more efficient and effective
customer service to customers utilizing
your loaner vehicle service.
Reduce Fuel Expenses
Depending on the policies in your Loaner
Department, you could slowly be bleeding money through the gas tank. Automated loaner software provides dealerships with a built-in fuel consumption
report. This report shows how much fuel
is being lost by customers not replacing
p. 46
By Shawn Concannon
gas or diesel fuel, which is particularly
important if the dealership does not
charge the customer for fuel or often
waives fuel charges as a courtesy.
A fuel consumption report also saves
time and ensures accuracy for dealerships that do charge their customers
for fuel that is not replaced. The report
automatically calculates the fuel charges on the loaner agreement, providing
a fast and straightforward approach to
charge the customer for missing fuel.
“Although loaners
help to improve CSI
scores and
provide consistent,
on-brand service
to customers, they
can become one of
a dealership’s
largest costs if
not managed
properly.”
Reduce Damage Expenses
There are several steps necessary to
ensure that your customer—not your
dealership—is responsible for any damages done during their loan period. The
first step is ensuring that their contract
is valid. Dealerships without automation
are using handwritten contracts, which
come with a number of risks and which
increase your liability
The first is the possibility of an incomplete contract through human error. A
missed element can quickly void the legality of the contract, therefore exposing
your dealership to risk and liability. The
second is the fact that handwritten contracts are paper -- and paper is easy to
lose. An automated loaner system provides solutions to both of these issues.
p. 47
First, the system will ensure that all required fields are complete prior to printing the contract. If the fields are incomplete, the system will notify the user of
the missing elements and will not allow the agreement to print without the
requirements. While the software will
print a contract for the customer to sign,
the option also exists to sign and store
the contract electronically, and even to
e-mail an executed version to the customer, eliminating the chances that the
contract will become misplaced.
The second step in ensuring that a customer is responsible for any damages
is to correctly document the state of
the car during the vehicle check-in and
check-out. An automated system provides a damage report and requires a
unit inspection during the creation and
close of a contract. Once damage is
noted on the contract, it’s saved to that
specific vehicle until repairs are made
or the damage notifications are cleared
p. 48
from the system. A mobile loaner software app also allows the staff to do live
and instant documentation of any damage, directly at the vehicle, helping to
ensure that the Service Advisors and
loaner staff do not miss damage on any
vehicle.
Reduce Parking Ticket & Toll Violation
Expenses
Parking tickets and toll violations can
be a huge and unnecessary expense for
loaner fleets. Recovering them can be
a tremendous effort on the part of staff
when a system is not automated. Looking up the loaner agreement for the time
of the violation and then billing the customer for the violation and collecting on
the bill can cost more than simply paying the violation.
Some loaner management systems
have interfaces with toll and ticket violation companies that completely take the
process out of your hand. Through the
interface with your loaner system, the
violation companies are able to automatically call up the driver at the time of
a violation and bill them directly, paying
you for each violation without requiring
you to do any work.
“The first risk is the
possibility of an
incomplete
contract through
human error.
A missed element
can quickly void
the legality of
the contract,
therefore exposing
your dealership
to risk and liability.”
For any other violation or question, it
takes only the click of a mouse to look
up exactly who was in a vehicle at any
given time. This ensures you have the
accurate information available to you
to correctly bill customers for any issues and also saves time that your staff
would normally spend looking through
paper contracts for the right date and
time.
“Many manufacturer
programs rely upon
the loaner vehicles
being sold at a very
specific time in order
to recover costs. It
can be difficult to
keep depreciation
information in order
and to sell in a timely
manner when a
loaner fleet is
not automated.”
Today, the idea of offering customers alternate transportation vehicles
to improve CSI and increase efficiency
within your dealership is becoming increasingly popular. Although loaner
fleets are a large expense, dealerships can reduce loaner fleet expenses
through automation by using the right
loaner management software. Automating your fleet says time, money and -most importantly -- increases customer
satisfaction.
With almost twenty years of Software
and Sales experience with TSD and
Enterprise Rent-a-Car, Shawn Concannon, Senior Vice President of
Sales and Business Development
at TSD, has provided assistance to
hundreds of dealership and vehicle
rental companies worldwide. Shawn
serves as the National Account Manager with all OEM partners, including
BMW and MINI of North America,
Mercedes-Benz, Infiniti, General Motors, Lexus, Nissan, Toyota Motor
Sales and more.
Gain an Accurate Picture of Fleet
Holding Costs & Depreciation
Part of running a loaner program successfully is knowing how long to hold
vehicles and when to sell them. In fact,
many manufacturer programs rely upon
the loaner vehicles being sold at a very
specific time in order to recover costs. It
can be difficult to keep depreciation information in order and to sell in a timely
manner when a loaner fleet is not automated.
However, an automated system provides
reporting that gives an overview of the
fleet’s status with the click of a button.
You can customize reports to show you
precisely which vehicles should be sold
soon, which provides you with a better
ability to plan your fleet. It also ensures
that you make the maximum profit on
each vehicle in your fleet by selling at
the right time and that you stay within
the qualifications of your manufacturer
loaner program.
p. 49
Featu r e
Customer Perception
Is Critical In Service
Recommendations
Thr e e K e y S t e p s t o B u i l di n g Tr u s t a n d C o n f id e n c e Over the years, there have been countless articles written on why consumers
should avoid being upsold when having
their car serviced. Just Google “dealership Service upsell” and you will find articles from sources with huge consumer
audiences, including such places as Edmunds, Time Magazine and MSN Autos.
In 2009, Angie’s List did an undercover
report and found that many of the independents they visited recommended unnecessary service based on a comprehensive vehicle inspection.
For many dealerships, the Service Department is the backbone of their financial stability. Achieving a high absorption rate is extremely desirable. I’ve
heard reports of a couple dealerships
that had absorption rates as high as
117 percent -- all being led by a former
Service Director promoted to dealership
General Manager. There’s no doubt that
your Service Department has the potential to bring in revenue and solidify
relationships with your customers. It’s
also the department in your store that
holds the most promise of profitability.
The Sales Department may be where the
most attention goes, but it’s your Service Department that’s “the man behind
the curtain.”
In a 2011 report by J.D. Power and Associates compiled from nearly 100,000
consumers, only 7 percent reported that
their dealer attempted to sell them Service work they perceived as unnecessary.
p. 50
By Rich Holland
However, this small percentage of
consumers impacted overall satisfaction by nearly 140 points (780 vs. 642
on a 1,000 point scale). Jon Osborn, a
Research Director for J.D. Power explained, “…it is key for dealerships to
properly train their staff in the subtleties
involved in adequately explaining the
necessity and value of additional services without placing undue sales pressure on the customer.” He went on to
state, “By becoming more competitive
in terms of cost and convenience, dealer Service facilities are making progress
in capturing share from non-dealership
Service facilities.” In addition, he said,
“…maintaining service customer share
and loyalty will be vital to dealers…”
you’re recommending is necessary. The
2009 Angie’s List undercover investigation found that Service recommendations were extremely varied. When
compared to a pre-investigation inspection, they ranged from minimal Service
recommendations that didn’t include
the necessary Service reported to them
during the pre-investigation inspection,
to recommendations that included items
that even the manufacturer reported as
unnecessary. In many cases, the investigation found that Service providers
never asked any questions about their
previous vehicle services prior to making recommendations. It also found that
Service recommendations varied based
on the gender of the investigator.
There’s no doubt that a dealership
should make Service recommendations
and inform their customers of potential
issues. If they don’t, consumers lose
confidence in the dealership. Consumers bring their vehicles in for Service and
rely on the servicing dealership to notice
and inform them of any issues discovered on their vehicles. However, there
exists a fine line between recommending services and having the customer
perceive them as being necessary.
Every Service decline is for one of two
reasons: Either the customer cannot afford the service, or they don’t believe
it’s necessary. Increasing trust in your
Service recommendations will increase
revenue and positively influence both
consumer perception and CSI scores.
A side benefit is that the more satisfied
a consumer is with their dealership Service experience, the more likely they are
to purchase a vehicle from your store.
According to the 2013 J.D. Power CSI
Report, 38 percent of vehicle owners
overall indicate that they ‘definitely will’
purchase or lease their next vehicle from
the same brand, which increases to 59
percent among owners who are ‘delighted’ with their Service experiences.
Many dealerships struggle in explaining
recommended service to their customers. The challenge is explaining it in a
way that a consumer will understand,
while building consumer trust in what
p. 51
Since 2011, the industry has seen a 14
percent shift from repairs to maintenance -- from 63 percent maintenance
visits in 2011 to 77 percent in 2013. This
increases the importance of ensuring
that consumers perceive the recommended service as necessary. It’s one
thing to explain to a customer why they
need a repair that compromises safety
or the operation of the vehicle and quite
another to relay the importance of certain preventative maintenance types.
The bottom line is that if a consumer
can’t see or doesn’t understand the recommended Service, they are less likely
to perceive it as necessary. This, in turn,
hurts your credibility with the consumer
and affects all future decisions by the
consumer when it comes to Service recommendations.
This shift also presents dealers with a
greater challenge in retaining market
share from independent service facilities.
While consumers feel more comfortable
taking their vehicles into the dealership
for repairs, the opposite is true when
p. 52
it comes to preventative maintenance.
Consumers perceive that independent
repair shops, with their many locations,
15-minute oil changes and low advertised price points, are more convenient,
according to an article by Edmunds.
The following best practices can help in
building consumer trust in Service recommendations:
1. Service History – To make an effective
recommendation, the servicer needs
to know the vehicle’s Service history.
Dealerships have quite the advantage
here. Independents will typically only
know the Service history of a vehicle
as it relates to work performed at their
store. This information will not include
any warranty repairs or servicing done
by other facilities. No comprehensive
Service history will exist with any one
provider other than franchise dealers.
Explaining the importance of this to your
consumers can help greatly in establishing trust and building value in your Service Department.
““In a 2011 report
by J.D. Power and
Associates compiled
from nearly 100,000
consumers, only
7 percent reported
that their dealer
attempted to sell
them Service work
they perceived
as unnecessary.”
Make sure that your Service Advisors always ask your customers whether they
have had any Service work done since
they last visited your dealership. Explain
to the customer that you want to ensure
that their Service history with the dealer
is complete and that you want to be able
to factor that knowledge into any Service recommendations you give them.
Consumers will appreciate that your Advisors are taking the time to truly know
their vehicle and will have more confidence in your advice.
2. Consistency – If your customer
comes in to your Service Department
and your Advisor recommends a particular service and the customer declines it, make sure that every time that
customer returns for future service, the
same service is recommended. Assuming that the customer didn’t have the
work completed elsewhere (which they
will tell you), if you do not recommend
the service consistently, the consumer
will not have confidence that the service
recommended was necessary. Ensure
that your Technicians are being consis-
tent in their recommendation and that
your Service Advisors are relaying this
information to the customer. There are
simple ways to test the consistency of
your Technicians’ recommendations. I
advise that you find one that works for
you and use it.
“There’s no doubt that
a dealership should
make Service
recommendationsand
inform their customers
of potential issues.
If they don’t, consumers
lose confidence in
the dealership.”
3. Support Your Recommendations – In
many cases, explaining Service recommendations to your customer isn’t
enough. Support your recommendations
with photographic and video evidence
of the repairs needed. This helps build
trust through better understanding. If
there’s a worn part or a leak someplace,
showing them an actual picture of the
leak or worn part will, in most cases,
help a consumer better understand the
necessity of the service.
Create efficient, accurate and accessible Service histories for your customers
and deliver consistent and accurate recommendations in a way that consumers understand. This will help increase
service and sales revenue, build consumer confidence and loyalty and help
in maintaining the high levels of CSI that
your manufacturer (and your dealership)
demands.
Richard Holland is President of AutoPoint, a leading provider of revenue
and retention solutions for automotive
dealership Service Departments. Prior
to joining AutoPoint (formerly MPi), Holland was the founder, solution architect
and president of Arkona, where he was
responsible for navigating Arkona from a
“start up” to being the most successful
entry into the Dealer Management System (DMS) space in the last 40 years. He
negotiated the 2007 acquisition of Arkona by DealerTrack, Inc.
and remained to lead the management team through a successful transition.
p. 53
Featu r e
Can Technology Help
You Meet Basic
Connection Needs?
O l d S c h o o l A n s w e r s t o N e w S c h o o l Q u e s t i o n s By Lance Boldt
It’s widely acknowledged that Fixed Ops
is a major driver for dealership profits. In
fact, if Fixed Operations were taken out
of the equation, many, many dealerships
wouldn’t turn a profit at all. So generally, management provides Fixed Ops
with the resources needed to take care
of Operations: training, tools, equipment
and research options. Unfortunately,
you’re often neglected from a marketing
perspective. (You really need more than
postcards these days…)
Here are some efficiency and leverage
principles – which you are likely already
using in your Fixed Operations Departments – that can be applied to your marketing efforts to increase your top-line
results.
Help From My Friends
My dad was a serial and parallel entrepreneur. He always had one or two
businesses going. He excelled at operations and developing relationships with
customers, vendors and the community.
When I was a kid he had the Northern
Nevada (from California to Utah) distributorship for the San Francisco Chronicle, The Examiner, Wall Street Journal,
Salt Lake Tribune, Deseret News and
some local newspapers. As you can
imagine, there were a lot of logistical and
personnel issues to keep that operation
running smoothly. And he was always
looking for ways to increase circulation.
p. 54
Tourism is very important to Nevada’s
economy and Dad saw an opportunity
with the dozens of small town motels
along the highways. Now these motel
operators weren’t about to lay out any
money to give their guests a free newspaper, so Dad went to neighboring tourist-related businesses and sold them ad
space in a flyer. He had his guys insert
the flyers into newspapers and gave
them to the motels. The motel got a zero-cost amenity for their guests, nearby
restaurants and stores got a low-cost ad
in the hands of travelers and Dad moved
a ton of papers, making many times the
newsstand price.
The lesson I’ve taken away from this is
to look for someone else’s budget and
someone else’s customers to help drive
your business pursuits. Establishing
these kinds of synergies makes the pie
bigger for everyone involved. How does
this lesson apply to Fixed Ops? Well,
every dealership customer in the showroom or in F&I is a potential Fixed Ops
customer. And you can leverage those
Departments’ marketing budgets, too.
“The lesson I’ve taken
away from this is to
look for someone
else’s budget and
someone else’s
the traffic cops would know where and
when to wait for him if they needed to
meet their ticket quota. “Egon, you were
going pretty fast there,” the cop would
say. His reply: “I wasn’t going that fast,
was I?” “Well, I could see four inches of
daylight under your tires when you went
over the railroad tracks,” the police officer would respond.
I’ve found that creating a routine or procedure for common tasks helps me get
them done quicker, freeing up time to innovate. Part of our company’s culture is
to always look for opportunities to create an “Easy Button” (thank you Staples)
for our customers in how they work with
us and how our products work for them.
customers to help drive
your business pursuits.
Establishing these kinds
of synergies makes the
pie bigger for
everyone involved.”
The dealership is spending a lot of money to get people through the doors. You
can add a little from your monthly budget (and I’m talking the cost of a couple
of cooling system or transmission services) to place dynamic digital signage
in the showroom and in the F&I offices to
promote maintenance, repairs, tires, collision repair services and accessories.
Sales and F&I are getting screen time for
their products, as well, so they are enjoying a tangible benefit right along with
you. You can drive this low-risk initiative
that benefits the Variable side while you
kick-up Fixed Ops revenues.
Do It Right, Do It Fast
Dad was a stereotypical German immigrant: strictly efficient. He could step
into any position on the assembly line in
his snack food or wholesale deli businesses and package more trail mix,
make more sandwiches and build more
pizzas than anyone else. Unfortunately
for us employees, his productivity rates
became the shop standard and no one
could hit the benchmark. He achieved
that efficiency by studying the task,
experimenting and establishing a procedure. He had two modes: asleep and
100 miles per hour – literally. He would
get speeding tickets several times a
year. Because of his regular habits,
p. 55
From time to time, I do an informal audit
of the Fixed Ops presence on dealership websites. For the most part, they
are very static pages: Hours, Schedule
an Appointment, perhaps a few Service,
Parts or Accessories specials, etc. Now,
your dealership probably spends a lot of
money and time on its website to feature
the rolling stock, so I suspect that asking for some more space and dynamic
content on the site for Fixed Operations
would trigger fears that it would require
similar effort and expense. But that
doesn’t have to be the case.
The same technology that powers the
digital signage throughout the dealership can direct Fixed Ops content to
your page(s) on the dealership website.
Your webmaster sets it up once on the
website and then you can swap out
content on your own schedule from any
web browser. You can feature services,
schedule promos – basically, let internet
searchers know what you do. (There’s a
huge library of Service and Repair vid-
p. 56
eos to choose from.) You can upload
content from the brands you carry, or
anything else you wish. Once again the
monthly cost is less than a differential
service – and once it’s set up, you never
have to talk with your IT folks again. It’s
fast and efficient and makes it easy to
create procedures to quickly plan and
update your online Fixed Operations
marketing messages.
the value in using technology to improve
efficiency, leverage his time and to edge
out the competition. The biggest benefit
of this mindset was his ability to spot
emerging trends and turn them into opportunities.
Leverage Time & Money
My Dad was an early adopter when it
came to technology. He brought home
the first electronic calculator I ever saw.
Same goes for a microwave oven, radar detector, fax machine, boom box
(two and a half feet long!), a Magnavox
Odyssey game system (pong, hockey &
tennis) and a radio car phone. And we
were the only house on the block with a
quadraphonic 8-track player in our stereo console. Occasionally some of the
pricier items would disappear the next
day. (I’ve always suspected that Mom
played a role in that…) Dad could see
every dealership
“How does this lesson
apply to Fixed Ops? Well,
customer in the
showroom or in F&I is
a potential Fixed Ops
customer. And you can
leverage those
Departments’ marketing
budgets, too..”
Now you know this and have the same
mindset as you direct Operations. The
latest diagnostic and Service equipment, online tools and work flow management tools – you’re all over that. If
you don’t invest in increasing capability
you’ll lose customers to better-equipped
and better-trained competition.
“The same technology
that powers the digital
human interaction. Your digital communication helps them evaluate your
corporate culture, make judgments as
to whether or not your solutions match
their needs and decide to take the next
step towards a relationship – before
they make that human connection. It’s
the electronic version of combing your
hair and wearing a clean shirt – a virtual
first impression. The good news is that
the right technology and content can
make for an awesome first impression.
It’s so painless for you to come up with
a plan and utilize inexpensive technology to implement it. That’s the way Dad
would have done it.
Lance Boldt is Vice President and
Co-Founder of AutoNetTV Media, Inc.
AutoNetTV produces video, motion
graphics and 3D animation content
for automotive digital menu boards,
digital signage and automotive websites.
signage throughout
the dealership can
direct Fixed Ops
content to your page(s)
on the dealership
website. Your
webmaster sets it up
once on the website and
then you can swap out
content on your own
schedule from any
web browser.”
The same principle applies to your marketing technology. If your competition
has better ways to communicate their
services on the web, better ways to
upsell at the Service counter and better ways to cross-sell and improve CSI
in the Service lounge, they are going to
end up with customers that should be
yours. Content management and delivery technology have made all of this
simple and ridiculously affordable.
People are people are people. We need
to make a connection with the people
and companies with whom we do business. That hasn’t changed. The gateway to that connection, however, has
increasingly become some form of
technology. Consumers use technology not just to leverage their time, but
to screen out the unpleasant bits of
p. 57
Featu r e
You Had Me at Hello
W h a t t o D o t o I m p r o v e t h e S e r v i c e E x p e ri e n c e By Jason Sideris
That phrase from the movie Jerry Maguire came to mind recently when a colleague forwarded a Forbes article to me.
Titled “The Single Simplest Way to
Radically Improve Your Customer’s Experience,” author Carmine Gallo wrote
about how the best customer service
brands have figured out not only the key
to customer satisfaction, but also the
key to a pleasing customer experience
– one that keeps customers loyal to the
retailer and the brand.
Brands such as Apple, Starbucks and
The Ritz-Carlton remain top-of-mind
with consumers, in large part, because
these companies invest in and, in many
ways, have perfected delivering customer service that leads to an outstanding
consumer experience. Combined, both
are what help keep customers coming
back.
And what’s the single simplest thing
you can do to keep customers coming
back and improving your customer’s experience? According to Gallo – and the
brands he’s studied – it’s a warm, friendly, prompt greeting. And personalized, if
you can.
In other words: “You had me at hello.”
p. 58
The best customer service keeps customers coming back with a warm, friendly, prompt greeting.
As a customer, it’s hard to disagree with
the influence of a warm, friendly and personal greeting. It’s also hard to disagree
with Gallo when he makes the case for
the importance of that type of greeting. Among the examples he cites to illustrate his point, Gallo includes focus
group research performed in AT&T retail
stores. Two groups of customers were
studied. Here’s how Gallo describes it:
“One group of customers walked into
a store and waited approximately three
minutes to be served by an employee,
but they were not greeted. The other
group was greeted within ten feet and
ten seconds of walking through the door
and they were told that an associate
would help them ‘in approximately three
minutes.’ Each group waited exactly
three minutes to be served. The results
were clear. Those customers who were
not greeted gave much lower scores
to the overall experience than those
who were greeted warmly. The greeting
made a significant difference in the customers’ overall evaluation of the experience. Today ‘10 feet or 10 seconds’ is a
key customer service guideline in each
of AT&T’s retail stores in North America.”
the opposite of the clean, shiny and impressive showrooms.
There’s an important lesson there for
dealership Service Departments.
But the Service Department is also one
of the more important touch points – and
potentially most memorable touch point
– between the consumer and the dealer,
as well as between the consumer and
the car brand. So manufacturers and
dealers have a vested interest in making
sure the Service experience is all that it
can be in the eyes of the consumer.
For many retailers, including automotive
dealerships, the term “customer satisfaction” is being replaced by the term
“customer experience.” No longer is it
enough (from the perspective of a dealer) for a customer to merely be satisfied with their latest visit. Instead, many
dealers I know are equally interested in
the customer’s total, end-to-end experience with the dealership and its staff.
Was it engaging? Was it personal?
And one area that can deliver a strong,
lasting impression for the consumer is
the dealership’s Service Department.
We all know Service isn’t sexy in the
eyes of the consumer. Service Departments can be hectic and crowded
places, especially at the peak times of
morning drop-off and afternoon pick-up.
They also can appear gritty and noisy –
“The initial customer
greeting made a
significant difference in
the customers’ overall
evaluation of the
experience. Today
‘10 feet or 10 seconds’ is
a key customer
service guideline in each
of AT&T’s retail stores
in North America.”
p. 59
Extend the concept of the warm, friendly greeting by going digital and incorporating RFID technology in the Service drive.
A consistent, friendly, personal greeting can go a long way toward creating
the best possible experience for Service
customers and making that experience
all that it can be.
That theme – the best possible experience for Service customers – was one
of the highlights that impressed me
most from this year’s National Automobile Dealers Association Expo. Everyone
from OEMs and dealers to third-party
specialists and service providers was
talking about Fixed Ops, and most were
asking the same question: What can I
do to improve the Service experience?
What are the technologies and tools
dealers need in Service to adequately
meet the needs of today’s consumers?
I’d also add to those questions: What are
the elements that will extend the warm,
personal greeting to an overall positive
Service experience with the dealership?
I’d point to three. Leadership. Process.
And technology.
p. 60
Leadership. The one advantage that
the Ritz-Carltons, Apples and Starbucks
of the world have in common is the expectation, from the top down, of a commitment to the process that will deliver
a friendly greeting, a personal engagement and an individual experience.
Process. Disney, Ritz-Carlton, Apple
and AT&T’s retail stores (to name only
a few brands) all train their employees
in customer-friendly greetings and engagement. Training reinforces the leadership point of view that customer service is critically important and training
creates an expected standard that every
employee meets.
Technology. The best retailers also rely
on technology to help with customer engagement and to support the processes
and expectations put in place by the
leadership. For auto retailers, the best
technology for Service will work with the
DMS so that all of the dealership’s information about the customer is available
at the right time in the right manner to
the Service Advisor who is in front of the
customer – at that moment.
That formula of leadership + process +
technology is tailor-made for dealership
Service Departments.
“No longer is it enough
for a customer to
merely be satisfied with
their latest visit.
Instead, many dealers I
know are equally
interested in the
customer’s total,
end-to-end experience
with the dealership
and its staff.”
That formula helps extend the customer’s Service experience from a warm,
prompt greeting to an overall personalized customer experience. And that
extension is the key to answering the
question I posed earlier: What can I do
to improve the Service experience? Here
are some suggestions:
• Allowing the customer to schedule
Service appointments online from their
mobile device – anytime, anywhere.
• Greeting the customer as soon as they
arrive – whether it’s a digital greeting
made possible by RFID technology, or
a verbal greeting from the Advisor – to
standardize the greeting process.
tomers. The great customer service
brands do the opposite. They know that
your experience is based on how employees make you feel and it all starts
with a warm welcome.”
But don’t let it end there.
customer service experience and capture every customer at ‘Hello.’
With the right leadership, processes and
technology, your Service Department and
dealership can create the best possible
Jason Sideris is the Director of
Product Planning for Fixed Operations at Reynolds and Reynolds.
Through nearly 20 years experience
working in the automotive industry,
Sideris has gained a deep understanding of how innovative technology and solid processes come
together to enable operational
excellence for dealers and improve
the customer experience with the
dealership.
WWW.BORROUGHS.COM • MADE IN THE USA.
NADA BOOTH #2372
• Performing the vehicle inspection at
the vehicle with the customer using tablet technology.
• Quoting customers the exact price for
parts and labor upfront and then delivering the service at that price – all transparent.
• Updating the customer through technology in the waiting room so they’re
aware of their Service status. Or, if the
customer isn’t waiting on the vehicle,
communicating with the customer based
on that individual’s preference – phone,
e-mail, text – and making the communication personalized and specific to that
individual customer.
• Offering customers flexible and simple
“point-of-purchase” pay technologies –
online, mobile or in-store and through
the payment method of their choice:
debit card, credit card or direct payment.
Personalizing the customer’s experience
with the dealership not only mimics the
customer experience at places like the
Apple Store, Starbucks and Ritz-Carlton, it also extends the customer experience beyond the four walls of the dealership.
• Iron-Clad Warranty
• All Steel Construction
• 400 lb. Capacity Drawers
• Tip-up, Slide-in Upper Cabinet Doors
• Swing Doors for 100% Accessibility
on Lower Cabinets
Workstations, Toolboxes, Mobile Carts, & Racks
Easy to Configure
Optimizes Floor Space
Retrieve Tools Quickly
As Gallo wrote in his article: “Most
brands go out of their way to minimize
contact between employees and cus-
p. 61
Featu r e
Shifting Your Thinking
About Work
Schedules
H a v e Y o u O u t g r o w n Y o u r Sh o p o r Ar e Y o u O p e n
L e s s Th a n 5 0 H o u r s P e r W e e k ? Have you grown your business to where
you’re considering adding on to the
shop? Is your Service Department open
less than 50 hours per week? Both of
these situations have a huge cost! The
cost for adding on is obvious, but the
cost of not being open longer hours isn’t
quite so obvious.
How many successful retail businesses
are open so few hours? Not your competitors. Pep Boys, Goodyear, Midas
and all the others -- they have you beat.
Are you open so few hours because it
would be difficult to staff and you don’t
want to work the extra hours yourself?
Do you think it will be hard to get coverage for longer hours?
Some dealerships have a backlog of
work and can’t get cars through the
shop fast enough. This is a two-part
problem. First, you aren’t able to accommodate customers that want to come in
now. And when they do, you don’t have
the time to up-sell the additional work
that your staff has found. This causes a
chain reaction. Customer service goes
p. 62
By Roger Smith
down because you have to hurry to wait
on the next customer. Technician pay
drops because they don’t get as many
of the profitable add-on sales and because they spend more time bringing
cars in and out of the shop. Their lower
hours put pressure on wages and the
next thing you know, they’re looking for
a raise.
“Both problems can be
Both problems can be addressed for little to no cost while driving up CSI, profits, productivity, attitude and employee
retention. The Service Manager doesn’t
need to work 80 hours either. Here’s how
all these things can be accomplished.
productivity, attitude
Imagine having your shop open 7:30AM
until 9:00PM Monday thru Saturday.
That’s 81 hours of operation that are
convenient for your customers and employees. In a short time, your staff won’t
want to switch back. Believe it or not,
most Techs will not leave you because
they will love their new schedule and
new Technicians will hear about it and
want to come to work for you.
addressed for little
to no cost while
driving up CSI, profits,
and employee retention.
The Service Manager
doesn’t need to work
80 hours either. Here’s
how all these things
can be accomplished.”
Here’s how it works: the Monday, Tuesday, Wednesday shift works 7:30AM
until 9:00PM. Then they’re off until the
following Monday. The Thursday, Friday,
Saturday shift also works 7:30AM until
9:00PM and then they’re off until the
following Thursday. After they take two
half-hour breaks, they work 12.5 hours
per day or 37.5 productive hours in three
days. At 120% Tech efficiency, that’s
45 hours per week. Need some extra
money? Work an extra day on the other
shift (if there’s enough work) and you’ve
got 50 hours worked and 60 hours produced. One Advisor on each shift acts
as the Assistant Manager and is responsible while the Manager is out. The Manager can work flexible hours, stopping
into the dealership at any time. Threeday work-weeks aren’t just for Techs
and Advisors; the Parts Department can
work this schedule too.
For staff that has a long commute, they
have huge savings on miles, gas and
their time, making their trip only three
days per week instead of five.
Don’t worry about the Thursday-Saturday shift always working the weekends.
Every month they do a shift change and
work the opposite shift for a month.
Due to these shift changes, you have
what’s called Heaven & Hell weeks.
Heaven week is for the shift that worked
Monday through Wednesday all month
and is now off until the following Thursday. Hell week is for the Thursday
through Saturday shift that is off Sunday
and back to work on Monday. Everyone gets six weeks off per year (Heaven
weeks) and everyone has six Hell weeks
per year, but they all still work 52 weeks
and get a paycheck every Friday. Most
people take pay instead of vacation time
due to the six weeks off, making coverage a non-issue. But when someone
is off, remember that you have half the
shop off-shift that you can schedule for
extra days, so you’re never short-handed.
p. 63
Your Sales Department will love having
Service and Parts open when they have
a late vehicle delivery. Employee retention will increase and the great schedule will be a draw for adding staff. Being
able to schedule “off-shift” Techs when
it gets busy means that you won’t have
to overstaff your shop to cover the busy
days. This means every Tech earns more
and runs out of work less.
Split shifts with extended hours like
these works whether you have 6 Techs
or 60. The first reaction of almost everyone I explain this to is, “We aren’t busy
enough for that.” It may seem hard to
believe, but with the same volume of
work, you may be short-handed and
need to schedule a few Techs to pick
up an extra day and then add a Tech as
your business grows.
Let’s not forget about the customer.
This is worth doing just for them. They
get three benefits: 1) the convenience
of extended hours; 2) no morning line
p. 64
up or five o’clock rush, and; 3) a better
explanation of repairs. It’s hard to provide great customer service when your
main focus is hurrying to serve the next
customer. Being open extended hours
allows you to schedule your customers
evenly throughout the day. And customers can pick up vehicles anytime.
They don’t need to worry about getting
there before the dealership closes and
the person explaining the charges will
be the same person that quoted them
on the repairs. Don’t be surprised when
you start seeing more plate frames from
the competition in your shop!
Don’t run out and have a shop meeting
right now to roll this out just yet. You’ll
need to have a solid game plan for staff
communication. Communication between shifts and with management is
critical. You’ll want a system for messaging between Technicians, Advisors,
Parts, Detail and Managers to keep
things on-track and to improve accountability. It should be a permanent record
tied to the route sheet, eliminating even
the need to call on the phone.
You’ll need a process for comebacks
and jobs that carry over from one shift
to another, but I assure you that the
biggest problem here will be your old
mindset. These are easily dealt with by
having a plan that everyone understands
and agrees to and the software that has
provisions for both situations.
You’ll want a clearly defined walkaround process, because with the extra
time, you’ll be able to sell more while
providing a superior customer write-up
experience. Another process often overlooked is the explanation of repairs and
cashiering. The Advisor should be doing
an active delivery whenever possible,
but always reviewing the charges and
explaining the repairs. Some stores will
go as far as having the Advisors cashier
their own customers. Those that do
rarely go back when they have the process down to a science. Your CSI should
show immediate improvement.
You’ll also need an appointment system
and process to properly load the shop
so that Saturdays are just like any other
day of the week. Get this wrong and the
three-day work-weeks will fail fast, so
it’s worth some planning. A properlyworded appointment script is the first
step, along with a new mindset as to
what a properly-loaded shop looks like.
Special-order parts is another area that
will need a good system and process.
Most stores report that they struggle in
this area already. The right system will
allow for the customer to be scheduled
to return before the part is ordered. This
will greatly increase Parts and Labor
sales and reduce obsolescence when
a much higher percentage of your customers return to have their special order
parts installed.
I was the Service Director of a dealer
group for 25 years where we ran threeday work weeks with extended hours
and split shifts. It worked so well, we
even ran it when we opened new facilities with more than enough bays. Our
largest store had 36 Techs with only 18
bays. Adding a night shift for recalls,
PDIs and used car recon will take them
even further.
I wish I worked just three days a week!
After 25 years as Fixed Operations Director of a mid-size dealer group, Roger Smith wanted
to create process solutions for
dealerships. As the CEO and
founder of Williamsville, NYbased Service Dynamics, he’s
designed Auto Arrival RFID & the
Shop Watch Service management
system with solutions such as
web appointments, scheduling,
integrated route sheets, texting,
e-mail, digital display boards,
menus & inspections, Service reminders and consulting.
p. 65
Featu r e
Top 10 Management
Tools for Increasing
Net Profits
… P l u s a F e w Cri t i c a l Ob s e r v a t i o n s a t t h e NA D A E x p o Some of you may be expecting me to tell
you about some profound new technology, a new software product or maybe
how to improve your “social networking.” Well, if that’s the case, you should
have gone to the NADA Expo and Convention in New Orleans where you could
have seen and heard about all kinds of
new “stuff” for Fixed Operations. You
know, things like the latest CRM program, loyalty programs, text messaging,
using the newest apps on your smart
phone, social networking, e-mail marketing, website development, managing
your database, online Service appointment scheduling, etc. I think you get the
message, but this was one of my favorites: “You can eliminate your Service Advisors by utilizing a computer kiosk instead.” In other words, let the customer
do it all and save a lot of money. I guess
the logic is similar to that of the airlines’
check-in kiosks we find at most airports
these days, right?
Since I’ve surpassed the Million Miler
Club at Delta, I’ve had the opportunity
to visit a few airports and I notice that
those ticket agents (Advisors) are still
there checking in and tagging those
suitcases, handling upgrades, scheduling new flights due to “overbooking”
and handling those tacky flight cancellations.
p. 66
So what are we trying to accomplish at a
dealership by eliminating the interaction
between the customer and their Service
Advisor?
Many dealers today are spending thousands of dollars a month on many or all
of the products and services listed above
in an effort to bring more customers into
their Service and Parts Departments.
When I ask dealers and managers why
they are spending all this money, I hear
things like: ”I’m building my owner retention — I want to increase my CSI — I
want to increase traffic in my new Quick
Lube facility, etc.”
Here’s one I would like to add. How
about: “Increase Net Profit”?
Don’t get me wrong -- all of these are
worthy goals. But if you like my initial
question, then here are 10 management
tools for Increasing net profits by at least
30%. If you’re a good manager, you can
do all 10 of these in about 4 hours a day
depending on the size of your Service
operations.
1. Hold a daily sales Meeting each
morning with your Service and Parts
team (15 Min)
• Review month-to-date performance:
sales-gross-margins-# of customers
By Don Reed
MTD versus goals for each Advisor
and Parts person
• Praise top performers for a job welldone
• Identify opportunities for improvement for all underachievers
• Review your plan for the day (weather, no-shows, walk-arounds, spiffs)
2. Stay in the Service reception area
each morning during your busiest
times (60 min)
• Observe the customer reception process / proper meet & greet / welcome
to your dealership / verify prime Items
• Observe and critique vehicle walkarounds
• Evaluate menu presentations
• Shake a few hands and tell your customers you appreciate their business
3. Inspect and evaluate the dispatch
process to your Technicians (15 min)
• Is there an equitable distribution of
customer pay repair orders?
• Are “waiters” identified and monitored?
• Measure Technician wait time for
next job
• Are Technician skill levels properly
utilized?
4. Observe a Technician performing a
27 point inspection (15 min)
• Review mileage on vehicle
• Is inspection thorough?
• Was an estimate prepared in writing
for needed repairs or maintenance?
• Did Advisor review results of inspection with the customer?
5. Listen to Incoming Service calls either recorded or live; Advisors-BDCAppointment Coordinators (15 Min)
• Are ALL customers offered an appointment?
• Are appointments scheduled 15 minutes apart by the Advisor?
• Are employees properly trained to
avoid quoting prices for mechanical
repairs and sell the appointment?
• Are employees avoiding diagnosing
over the phone and selling an appointment for a diagnosis by a “factorytrained Technician?”
• Are your customers being put on
hold?
6. Review Technician’s daily productivity performance (15 Min)
• Who’s performing above 100%?
• Who’s performing below 100%?
(Find out why.)
7. Review a daily exception report for
Service and Parts personnel (15 Min)
• Identify the “discount Kings and
Queens” who are giving away gross
profit
• Confront those giving ‘unauthorized
discounts”; find out why and stop it
8. Observe back Parts counter for
Technicians (30 min)
• Record Technician’s lost time waiting
on parts
• Listen for unauthorized discounts
• Record fill rate for Technicians and
review with Parts Manager
9. Review Service Advisor daily performance reports (30 Min)
• Number of RO’s per Advisor (Customer Pay and Warranty @ 12-15)
• Dollar sales per RO
• Hours per RO
• Profit margin on Labor and Parts
• # of upsells MTD versus goals
• Develop a plan for coaching underachievers
10. Prepare a repair order analysis for
each Advisor (25 Min)
• Measure number of one-item repair
orders (should be under 15%)
• Are shop supplies being charge out
properly?
• Are completed inspections attached
to RO?
• Measure all of the above by mileage
category: 0-25K, 25-50K, 50-75K, 75100K, over 100K
All of the above is going to consume
about 4 to 5 hours of your workday. Often times I have Managers tell me they
don’t have the time to do all of these
processes. Please note that all of these
processes are designed to observe the
performance of your Team, evaluate that
performance, praise a job well done, critique the underachievers and then coach
them to achieve a higher level of individual performance. You can use your
existing staff to help you with the reporting process, such as Warranty Clerks,
Cashiers, Dispatchers, Parts Managers,
etc. Most likely, you’ve heard these old
sayings before: “You can’t manage what
you don’t measure” and “inspect what
you expect.” It really is that simple and
you can expect your net profits to increase by 30% or more!
So you can invest in all the modern technology you like but the bottom line is
what are you going to do with these new
customers when they actually show up?
Do you want to train your Service and
Parts team to exceed your customers’
expectations on each and every visit to
your dealership by providing them with
the highest level of service possible to
insure they are driving safe and reliable
vehicles or do you want to train your
customers to talk to a computer screen?
After 26 years in the automobile business
as a Dealer, GM, Sales Manager, Service
Manager, Service Advisor and Salesperson, Don Reed decided to start to a new
career as a Consultant and Trainer, “turning around” dealerships that were in need
of building their profits. As CEO of DealerPro Training, he has worked with hundreds
of dealerships and major dealer groups
across the U.S., Canada and the United
Kingdom to increase profits in Fixed Operations. He has been published in multiple
industry magazines and has conducted
workshops for NADA 20 Groups, state
dealer associations, OEM’s and the RVDA
Convention and has been rated a Top 10
Speaker at the NADA Convention for four
consecutive years.
p. 67
Featu r e
Time is My Enemy
T e c h n o l o g y B e a t s I n e f f i c i e n c y Over the last several years the used car
market has taken on a very different role
in the automotive community. If there’s
one thing that every single department in
a dealership is tied to these days, it’s the
process of getting the used vehicles to
the front line. As dealers learn to mix in
their own resources with multiple thirdparty vendors in order to run their business as efficiently as possible, a whole
new set of challenges comes into play.
The moment we buy that pre-owned vehicle the clock is ticking and that vehicle
depreciates at an average of $22.00 per
vehicle every day. When you talk $22.00
times the number of vehicles you have in
stock, that number can be astonishing.
By increasing your cycle time by just two
days, it can make a six-figure bottomline improvement for any volume-sized
operation.
Most dealers have a dream of doing everything in-house, but due to the volume
of some reconditioning repairs such as
ding or glass repairs, it’s unrealistic for
many reconditioning operations to handle 100% of their repairs in-house. Adding outsourced vendors adds even more
time due to logistics and communication. Typically, this process is handled
through phone calls, PO’s and paperwork nightmares for the Service Department and the Accounting Department.
p. 68
By Doug Grimaldi
How often has the sublet invoice come
in days after the car has been sold? How
frustrating is it for the vendor costs to
be charged to your cost of sale due to
timeliness of their paperwork ultimately
not allowing for inventory pricing adjustment for that repair?
Outsourced vendors can be a smart
option for many reasons, such as fulltime associate expense, time management, damaged vehicle expense and
your overall bottom line. That being
said, vendors need to be managed as
closely as (or even closer than) your
in-house associates. Unlike an associate that takes pride in your organization
and fears losing his job and benefits, the
worst scenario for a vendor is losing one
of many accounts.
The most magical number in the
dealership
What’s your reconditioning cycle time?
The common answer is the number that
your Service Manager may have pulled
out of his back pocket. The fact is, you
can’t prove him wrong because there’s
nothing in the world that truly tracks that
number. Many managers believe they
have a way of tracking it but how do
you really know? How many times have
you taken a stock number and looked at
days in stock vs. that made-up number
for cycle time that one of your staff gives
you? “It didn’t get to me for a week”; “I’m
waiting for the dent guy”, “We didn’t get
approval for a week.”
I believe it can be done simply with the
“magic” happening in the background.
We’ve been working hard on a solution that can be dummy-proof and used
without a manual.
As we move forward to take advantage
of technology, we’re finding that we
have grown accustomed to inefficiency
and inefficiency sucks in the production
world.
Apple did it. Steve Jobs was focused
on simplicity and had the goal of having every five-year-old in the world using
his products. I can attest that he succeeded, since my five-year-old shows
me new tricks regularly. Google has had
a little success with looking simple but
being a massive machine behind the
curtain.
As Steve Jobs said, “How does somebody know what they want if they
haven’t even seen it?”
Until now, most people have accepted
the recondition dysfunction as “the way
it is”.
We soon will have the tool to fix this
problem or we’ll die trying. We’ll have
the tool that will provide the data to
show you where the problems are in
real time and give you the data to improve your process. But that’s not our
ultimate goal. Our goal is not simply to
provide data, but to simplify the entire
process for everyone and make the cars
fly through the system in the right order,
with minimal human involvement.
We can fix it. And we will fix it!
Doug Grimaldi is the President of Jacksonville, Florida-based KleanTrac by
Greencloud Process. Doug has over 20
years of experience in the automotive,
financial and management industries,
including roles in senior management
at Enterprise Rental Car. Most recently,
Doug has focused on collaborative
development of software solutions for
dealerships that successfully create efficiencies and optimize profitability.
Once that clocks starts, we’ve got to
move that vehicle through several departments, vendors and employees. If
only we can use technology to bridge
this gap.
The few companies that have attempted
to build a better mousetrap have failed.
They’ve failed because they try to take a
very challenging problem and overcomplicated the attempted solution. The solutions have built systems that take an
engineering degree in computer science
to use and ultimately make your eyes
bleed from the 100 fields of drop-downs
and required buttons.
p. 69
Featu r e
Your Search Engine Optimization Guide
C l a i m Y o u r B u s i n e s s Li s t i n g s a n d D o m i n a t e L o c a l SEO Car dealerships big and small rely
heavily on the local community for
sales more than any other business.
There was a time when simply hanging a colorful banner and some signs
would bring people in by the droves.
Then, it was all about purchasing a
page in the phonebook, producing a
TV ad, or a radio spot. Those things
are still good to have on your marketing plan in today’s world, but the serious return on investment is in SEO
– search engine optimization. Dominating the local search results online
is the single most important thing
to do for your dealership because it
reaches your customers when they’re
looking to buy your service.
97 percent of consumers start their
search for a local business on the Internet. More importantly, 70 percent
of mobile searches and 59 percent
of consumers who used a PC lead to
action within one hour. That ends up
p. 70
being around two thirds of consumers
running a search query on a weekly
basis.
You may be wondering: what exactly
is a local search? A search is considered local when a person includes the
name of the city and/or town within
the search term (example: Hyundai
dealers in Houston, TX). Since the
majority of consumers are looking for
your business in this way, it is terribly
important to have accurate information shown across the web.
Major search engines such as Google,
Yahoo, and Bing rely heavily on 3rd party data providers for nearly all the data
that shows up in their local business
listings. There are five different types
of directories that house business
data: data-aggregators, horizontal directories, industry-specific directories,
region-specific directories, and unstructured citations.
By Peter Martin
Data-aggregators are organizations
such as Localeze and Acxiom that
compile information from detailed
databases on businesses and then
sell that information to others. These
types of data providers basically feed
your business info into a ton of other
influential third-party sites, including
Google.
Horizontal directories are listings on
review sites such as Yelp and Yahoo.
These listings are free to manage and
increase our business’ relevance and
prominence in a specific city or region.
They are almost always connected to
maps and mobile searches.
Industry-specific directories are sites
such as Carhelp and DealerRater.
These are sites that are only focused
on the business information in your industry. Many times, these listings are
organized geographically, so it’s very
beneficial for you to have your listing
included on them.
Region-specific directories are sites
such as Denver.com/places. These are a
lot like the web edition of Yellow Pages
because they contain business information for a specified region. Search engines trust these listings because they
are local.
Unstructured citations can come from
a ton of different places, blogs and social media being the main ones. They
include the business name, address and
phone number, but not in any particular order. (That’s why they’re considered
unstructured.) Popular sites in this category are Facebook, YouTube and Twitter.
By ensuring the information across all of
these types of directories is accurate on
your business, you are increasing your
local SEO exponentially.
A Note about Mapping
It’s not hard to notice that Google maps
holds a dominant spot in search engine
results. When people are searching for a
local business, they want to know exactly where it’s located. It’s the single most
clicked on feature in any search result
or listing and leads consumers back to
your website. It’s also the most eyegrabbing piece in local search results.
Mapping is also huge in the mobilesphere; 80 percent of smartphone owners use their phones for GPS and to
find local businesses. The ease of use
is what makes this so popular among
people looking for a service. It provides
all of your information in one spot with
intuitive design and easy-to-find directions. By ensuring your business has a
marker on maps, you are guaranteeing a
presence on local search.
Categories
Categories are the single most important
part of your listing (under your name,
address, phone and website). Search
engines use this information when deciding which businesses to show for a
particular search query. Many times, if
your business isn’t categorized properly (or at all), it isn’t showing up in local
search. People run their search based on
the category of business they are looking for. This idea stems back from the
days of the Yellow Pages. It’s simple and
easy to find exactly what you’re looking
for if it’s organized and straightforward.
What every listing needs
Now that you know the importance of
local directories and listings, it’s time
to get into the nitty-gritty of what information you need to include. Every
site is different in the way they are organized, but the information is basically
the same. I’m going to go over the top 3
things every listing needs and why.
Many business listings have an option to
use more than one category under your
primary category. A lot of dealerships
don’t put a lot of thought into this when
they really should. You can double your
traffic if you choose the right keywords.
Make sure your categories are relevant
and describe what your business is rather than what it offers.
“Industry-specific
directories are
sites such as
Carhelp and
DealerRater.
These are sites
that are only
focused on
the business
information in
your industry.”
p. 71
your rank down because it’s unclear
which listing is correct.
Photos and Enhanced Content
Photos increase engagement. Engagement increases your ranking in
the search engine. It’s that simple.
Google has put a lot of emphasis on
photos and videos when determining
where a business ranks in the local
pack. Photos are also featured prominently in search results. They add
value to your page and make it more
resourceful.
There are some simple guidelines to
remember when enhancing your listings with photos. Make sure the photos are clear and compelling. They are
a representation of your business and
should be considered as such. You
don’t have to go out and hire someone
to take professional shots of your store;
using your phone is completely okay.
Consistent Business Information
We’ve already touched on this subject, but it’s worth mentioning again.
All of your listings should have the
same name, address, phone number
and web address. All in the same format. For example, if your business is
A&B Dealership at 555 W Car Street,
every listing needs to have it in exactly the same wording. Don’t have the
abbreviated “W” on one listing and
“West” on another. Or list it as “A and
B Dealership” on one and “A&B” on
another. Keep it consistent. Different
variations in this information will negatively impact your SEO.
How does it impact your local SEO?
According to Google, they improve
search results by aggregating information about your business from all
over the web. If it isn’t consistent,
Google may not attribute reviews from
third-party sites, or it may get confused with which information is right
and create two listings instead of one.
You may think two listings would help
you get a boost, but it actually brings
p. 72
Take a bunch and choose only the
best. If you’re having an event or sale,
it’s a good idea to take pictures then,
too. It’s just like what you would do
to increase Facebook engagement.
Let the people know who you are and
what you look like. The clicks will follow.
“Categories are the
single most important
part of your listing
(under your name,
address, phone
and website). Search
engines use this
information when
deciding which
businesses to
show for a particular
search query.”
Keyworded Business Description
Your business description is what connects your listing to the people. It tells
them all about your history and who you
are. It needs to be appealing to readers
and also contain SEO keywords that will
help you get found. Do not write a business description that just has SEO keywords in it and doesn’t make any sense.
The keywords need to be sprinkled in
tastefully. You can use Google AdWords
to find the hot keyword search terms to
use.
What’s Next?
Now that you know the basics about your
listings and what they need, you need to
start getting out there and claiming your
listings. I’m going to go over the main
ones to focus on first, with a small list of
others that should be utilized. Claiming
and optimizing your listings takes time,
so be patient. It’s not something that is
going to immediately shoot your listing
to the top overnight.
Google+ Local - Google is THE provider for search and maps. By claiming
and optimizing this listing, you are staking claim on both mobile and desktop
searches. It’s also directly connected
to all android devices. Best of all, it’s
free. The process can be a little lengthy,
but when done right, you won’t regret
it. Before you do anything though, run
a search to see if you already have a
Google Local business page. If you do,
all you have to do is claim it and fill in all
the blanks from the information I gave
you above. If you don’t, you’ll have to
create one. There are countless guides
out there on this.
Bing Places for Business – Bing is the
second most used search engine. This is
an opportunity for you to increase visibility on the web. Bing is also connected
to Apple’s iPhone as the default search
engine for Siri. The mobile presence
alone should be enough to convince you
the importance of this listing.
Yahoo Local – Coming in as a close
third, Yahoo Local is equally important.
You can add or claim a basic listing for
free, but if you want to enhance it with
photos etc. it’ll cost you. This is the one
listing where I would say a photo doesn’t
matter as much. As long as you have
your business name, address, phone
and website information on there, you’re
covered. You also have the option to
add products and services to this listing
for free. This is beneficial when someone is looking for a particular make of
car you offer.
Other Listings – Once you claim and
optimize the above three, you should get
working on these listings as well. Yelp,
Yellow Pages, Localeze, infogroup, Superpages, CityGrid, hotfrog and Nokia
Here.
If you want to dominate the local pack,
get out there and start claiming those
listings. Using my guidelines, you’ll be
on your way to the top of the search
results.
Peter “webdoc” Martin is renowned
for creating innovative and cuttingedge programs, systems and tools
to facilitate the auto dealer’s success in today’s market. Martin is the
President of Cactus Sky Communications and the Co-Founder of ADT
(Automotive Digital Training), a comprehensive web-based video-on-demand training and testing platform
for the auto industry. Cactus Sky
Communications is recognized as
one of the premier digital marketing
companies in the country.
p. 73
SERV I C E D E PT.
Choosing the Right
Partners to Build
Your Service Department
Creating (or remodeling or expanding)
a dealership Service Department is a
huge undertaking, which involves many
stakeholders and requires some important decisions. In addition to being a
major investment, the Service Department represents the dealership’s image
and must convey to your customers that
they have chosen the right dealer.
To avoid the headaches that can come
with building a Service Department, you
first have to ensure that you choose the
right people with whom to work. To do
this, here are some tips to guide you in
your choice of partners and suppliers.
Find a team that listens to your needs
Every dealership has its own unique
characteristics and way of working.
Therefore, when building your Service
Department, find partners that are responsive to your individual needs. You
should look for suppliers that will take
the specific requirements of your team
into account in each of your project’s
phases and who will not just try to sell
you a “one-size-fits-all” solution. Your
dealership is unique and the solution
provided to your Service Department
should be customized to reflect this.
The physical structure of your dealership should be considered when creat-
p. 74
B y C h a r l e s - A l e x a n d r e Pa r é
ing your Service facility. For example,
depending on your building’s structure,
you may want reels suspended from
the ceiling or integrated into the workstations. Furthermore, the Department
may not necessarily be housed in a new
building. When a dealership is expanding or being moved to a new location,
your partners must offer you a suitable
solution. For example, they must consider the old equipment that you want to
reintegrate into the new Department. For
expansions, they must ensure that new
products harmonize with old ones and
that they present a uniform image.
How your team is organized is also a
consideration at the planning stage.
Do you have more than one Technician
working at the same workstation? What
tasks are performed at each workstation? Are tool boxes shared by more
than one Tech? What equipment needs
to be integrated into the workstations
themselves? All these questions should
be analyzed and the right partners
should guide you when looking for the
most appropriate solution.
Ergonomics is also an important factor
when building a Service Department. For
example, some companies offer workstations at different heights, so you can
create a safe and pleasant workplace
for each member of your team. Similarly,
the location of reels and air tools must
be carefully thought out to simplify the
work of each Technician.
Whatever the specifics of your dealership, in terms of your team and the
building itself, it’s crucial to find companies in touch with your needs and that
will make every effort to customize a
solution for your specific requirements.
Familiarize yourself with the different
products offered
The expenses involved with setting up a
Service Department can be significant.
It’s therefore very important to become
familiar with as many products as possible so you can make the best possible
choice. There’s a wide range of products
available on the market with as wide a
range of features.
Contact your suppliers and ask for their
suggestions. Some companies have
portfolios that allow you to quickly view
their products’ features. Also ask to see
what finishes, colors and options are
available. You will then be able to quickly ascertain whether a certain product is
suitable for your dealership. This will allow you to make a preliminary analysis
to determine which products you should
study in greater detail.
Product quality is difficult to determine
from a brochure or website. You can
certainly get some ideas, but the best
way to judge the quality of a product is
to physically touch it. To do this, visit
other dealerships to familiarize yourself
with the product and visit the companies
your are interested in at trade shows.
This way, you will be able to look at important details, such as drawer sliding
systems.
It’s also a good idea to visit Service Departments built at different times. Product quality is essentially determined
based on its life expectancy. If you go
to a dealership built in the last five to ten
years and the products work as well as
in a brand new Service facility, you will
know that the products are of high quality. By visiting existing Service Departments, you will also be able to ask questions to those who use the products on
a daily basis.
Find products that fit with your image
Your Service Department is a key part of
your dealership. It needs to harmonize
well with all aspects of your store so that
a uniform image of your company is presented. Find partners who understand
the image you want to portray and who
will take it into account for your projects.
To make sure your Service Department
reflects the image of your dealership,
don’t be afraid to think a little differently.
Several companies offer various options for personalizing this Department.
For example, try using a combination of
vivid colors to give a dynamic image to
your dealership. Some companies offer
dozens of standard colors and can even
create a color that complements your
dealership palette. Choose cabinets
with integrated sinks and reels for your
workstations for a neat and uncluttered
look. Look for partners who will help you
create a personalized and original solution.
Choose a flexible team
When you create (or re-invent) your Service facility, you will have many stakeholders who need to work with each
other in partnership. It’s important to
ensure that each of these partners can
coordinate with the others. Therefore,
choose a team that will respect deadlines. Stakeholders must be diligent in
each of the project’s phases. For example, manufacturers must be able to
both manufacture products by a certain
deadline and deliver them on-time so
that installers and electricians can finish
the installation.
Dealership re-locations present other
considerations. For example, when
you’re moving a dealership to a new location, product deliveries need to coincide with the arrival of the various teams
to avoid delays to the dealership’s reopening. Your suppliers must therefore
take all deadlines very seriously.
Creating a Service Department is a major undertaking. Skilled partners who
understand your needs are key to the
project’s success. Find partners who will
work with you as a team and who will
take the time to get to know your business, your needs and your priorities before offering you the right solution. Your
dealership is unique and your Service
Department should be no different.
Charles-Alexandre Paré is Director of Sales and Marketing at
Québec, Canada-based Rousseau Metal, Inc.
p. 75
PA R TS D E PT.
Parts eCommerce
Overview: The Rest
of the Story
This article wraps up an overview of
Parts eCommerce that started in the
January/February issue of Fixed Ops
Magazine. The first article concluded
that, for new-vehicle dealers:
- Parts eCommerce consists of several
distinct markets
- A one-size-fits-all solution doesn’t exist – and wouldn’t work if it did exist
- A half-dozen distinct types of eCommerce solutions are profitably used by
dealers today
- Successful dealerships participate in
at least several eCommerce solutions
- Dealers face a challenge in wisely selecting from many choices (over 50 solutions)
I’m on your side in navigating the “traffic jam” of solutions and suppliers. None
are duds; some are spectacular. However, which will fit your store is often not
clear – quality and even availability of
eCommerce solutions varies with make
and DMS type, as well as other factors.
This series will help dealerships move
beyond the confusion and adopt solutions that work well for their operations.
It will be essential for all Parts Departments to master eCommerce and successfully market and sell online.
I will address approaches to selecting
eCommerce solutions that match your
needs – by market and/or solution type –
in future articles. Future installments will
each cover in detail one solution niche
(from marketplaces to locators to collision wholesale).
p. 76
By Ted Fellowes
The ASA – Automotive Service Association – reported on 2013 collision-repair
Parts purchases by part-type. The summary of shop data highlights the tremendous success of automaker programs:
During visits to body shops and dealers,
I have noticed a ‘domino effect’ with
OEM-funded price-matching: for some
parts not covered by OEM programs,
dealers are offering (and shops are requesting) new OE parts at the price
(sometimes a bit more) that the insurer
will pay for the specified AM or recycled
part. Dealer-funded price-matching may
be nearly as large now as OEM-funded
price-matching.
A few years ago, few (if any) parts sold
as “OEM Price-Matched”. But in 2013
volume grew to an astounding 16% of
collision repair parts! These are all parts
that were “written” as salvage or recycled parts on an insurance estimate and
which were then sold as new OE parts
by dealers largely due to automakers’
targeted price incentives.
Finally, it’s worth noting the other relatively new category of “OEM Seconds”
– which first appeared in the market five
years ago and consists of parts with
minor cosmetic flaws that would otherwise be scrapped. These parts are now
typically sold by collision repair certified
dealers who specialize in these parts
(often on a truckload basis).
A Slice of Numbers
The evidence is growing that OEM programs, overall, are successful in boosting OE Parts sales. The best example:
parts sold wholesale for collision repair.
In total then, OEM programs account for
18% of collision Parts sales – and over a
quarter of Parts sold by dealers.
How eCommerce Helps
Consider this:
- Precisely-targeted OEM price promotions enabled by eCommerce are already capturing sales for dealers that
would otherwise be lost to alternative
parts
- Dealer-funded price promotions are
simplified by access to pricing likely to
win the order – and are generating incremental sales
- In some cases, eCommerce can identify “related” parts potentially boosting
order size
- When eCommerce includes high-quality Parts catalog access for the buyer,
order accuracy likely improves further
- Customer Satisfaction is improved as
buyers experience faster and more convenient ordering with fewer errors and
improved information on availability and
order status
In summary, eCommerce will help dealerships sell more parts with fewer errors
while generating a superior customer
experience and, perhaps, some labor
savings.
Looking Back
The preceding 12 months were packed
with events in eCommerce – including:
Acquisitions. ◊ Solera, global leader in collision repair
solutions acquired DST, parts eCommerce provider to WDs – particularly
Ford/Motorcraft (eCounter) and GM/
ACDelco (WIP)
◊ Reynolds acquired AddOnAuto – Izmocars’ accessory sales solution business
◊ Insignia acquired EASy (accessories
sales solution) from SBS and gained
SBS as a distribution partner
Marketplaces
◊ ADP/PartsVoice (eBay-Made-Easy)
and OEConnection (MarketplaceDirect)
each launched eBay listings services –
TradeMotion and WHI reported high usage of their listing services (launched
pre-2013)
◊ Amazon redesigned “Part Finder” to
more clearly identify which parts fit a
specific vehicle
“ADP/PartsVoice
(eBay-Made-Easy) and
OEConnection
(MarketplaceDirect)
each launched eBay
listings services –
TradeMotion and
WHI reported high
usage of their
listing services.”
Collision
◊ PartsTrader revealed fees – starting
January 2014 – that dealers must pay for
access to Parts requests for most State
Farm insured collision repairs
◊ Infomedia (Auto PartsBridge) optimized DMS and estimating systems
integration as well as adding Kia and
Hyundai in Canada
Integration
◊ Certified Integration implemented
for TradeMotion’s eStore and PartProtection (extended warranty) with ADP,
Dealertrack and Reynolds DMSs
◊ Integration between WHI’s NexPart
portal and Elite Extra expanded to OE
parts for dealers
Locators
◊ OEConnection launched EasyParts, an
OE parts locator for consumers, which
finds dealers’ inventory (updated daily)
via Google and Bing searches
◊ Parex appointed Pentana as North
American distributor for its solutions
including Jaguar and LandRover’s new
Parts locator (which was integrated with
Infomedia’s Microcat Land Rover EPC
as well as Jaguar’s JEPC mid-year)
◊ PartsEye was chosen as the sole
OEM-endorsed locator for Nissan
What to Expect
The rest of 2014 is likely to be as eventful for online solutions. What industry
leaders are saying -- plus a few predictions:
Collision
◊ OEC is planning (mid-year) to launch
its next-generation collision-repair shop
application with new workflows including direct access to automaker EPCs
(parts catalogs and illustrations)
◊ Infomedia to launch Auto PartsBridge
to U.S. Chrysler dealers – 1st half 2014
(also additional deployments of Canadian OEM programs expected)
OEM Programs
◊ Price incentive programs to expand in
2014 (new automakers participating and
additional Parts covered)
◊ Automakers will expend more resources to support dealer participation
in eCommerce for Parts, Accessories
and merchandise – training, funding,
programs
Integration
◊ DMS integration for parts eCommerce:
(1) real-time check of availability and
customer price; (2) writing a Quote (or
invoice), possibly printing pick-ticket –
will be fully deployed for several additional DMSs
◊ Some eCommerce platforms will integrate outside DMS certification
Future Fixed Ops Magazine articles will
focus on specific markets and products
(examples: wholesale collision, marketplaces and accessory eStores). See you
then!
During 30 years focused on Service Parts systems and information services from the dealership, vehicle-maker and buyer perspective,
Ted Fellowes has been a leader in dealer systems innovation – first EPC, first dealer Parts
e-commerce and first web Parts locator. He
has served in executive roles with Bell & Howell (now, Snap-on) and OEConnection. Five
years ago he launched Fellowes Research which now has clients
in North America, Asia and Europe, including vehicle manufacturers, consulting / investment firms, DMS providers and Fixed Ops
solutions providers. Fellowes is the leading expert on automotive
Service Parts e-commerce.
p. 77
BOD Y S H OP
Collision Repair:
The HMO of Our Industry
Did you know that the number one
profit center of a dealership is Collision
repair? Collision repair is the only department within a dealership that is not
dependent on the demographics and
marketing dollars of the dealer or the
OEM. In fact, it’s the only department
that is not exposed to the retail market
roller coaster of the buying public, and it
is also buffered from economic change.
A much larger industry with vast resources and demographics defines the
marketplace for collision repair – that
of the insurance industry. In this type of
relationship, collision repair centers are
no longer simply Body Shops, but rather
HMOs. Their growth and market share
are determined by satisfying the two
things that the insurance industry wants
from their partners: a quality repair in a
timely manner and a satisfied customer.
It seems simple. In reality, however, it’s
a tremendous challenge because most
shops operate in an “old school” (reactive) manner. As a result of this, income
opportunities for growth and stability
that come from the insurance industry are given to a relatively small number of shops. The industry is evolving;
small shops are shrinking and going
away, while large shops are expanding.
The reason for this is that the insurance
industry wants to reduce overhead by
p. 78
having fewer relationships and offering
less overhead for administration, while
maintaining the same volume of repairs
in the marketplace. This is accomplished
through low cycle-time and a high level
of customer service.
B y Sc o t t V. R o m e
available by the insurer, we have to reduce cycle-time and increase customer
service, ensuring a greater number of
repair opportunities.
In today’s Body Shop, we are no longer
simply collision repair facilities. We are
factories. We can no longer operate reactively, learning as we go. In order for
the industry to direct work to your shop,
quality repairs in a timely manner (i.e.,
low cycle-time) and a satisfied customer
must be the cornerstones of your operation.
Cycle-time is the length of time you possess the vehicle, keys to keys. Customer
service is the level in which you maintain the expectations of the customer by
keeping them informed and on-schedule. Low cycle-time and a high CSI (customer satisfaction index) guarantee that
your shop will appeal to the insurance
industry. In doing this, you guarantee
that work is directed to your shop rather
than a competitor.
We must operate proactively, because
as an HMO, we have to sustain a much
higher volume of activity to be profitable
due to shrinking margins. To gain this
HMO status and receive the work made
In order to accomplish this, we need to
understand the fundamental stumbling
block of our profession – every job is
custom. We can overcome this by approaching the process in a new way.
We need to understand the full vision
of the repair, in all its detail, before we
begin the repair process. The ticket
should be “closed” before we start. Your
supplement percentage should be three
percent of your overall revenue rather
than 30%, which represents the average
reactive shop.
Once the software receives this “blueprint,” a measure-to-manage decisionmaking model based on exceptions to
the forecast, is triggered. Several different forecasts need to be considered
in order to maintain the cycle-time and
customer service needed:
1. The number of days in the shop,
based on hours worked per man, per
day, per car.
2. Projected profitability by income category.
3. Collision typing and severity.
4. Load on the men, writer, department
and shop.
5. Key parts needed to start the job.
6. Scheduling.
7. Customer service call cycle.
8. Production cycle-timetable.
Each of these becomes a parameter allowing us to make decisions when an
exception to the forecast arises. With
real-time notifications, we are able to
react faster, solve problems quickly and
get back on track.
Next, we need to consider technology
in order to take full advantage of the
process and software. In order to fulfill
the type of proactive administration that
the insurance company seeks and to
achieve the performance goals required,
we need the technology in the Body
Shop to be paperless, wireless and to
utilize Technician stations.
Body Shops must be paperless because
it’s important to have centralized control of information and limit the administrators’ ability to work outside of the
system. The timesaving component of
locating information and delivering it to
insurance companies or members of our
team without having to search for a file
folder is also a huge benefit.
Body Shops need to be wireless because writing the estimate at the car
where the information exists will not only
reduce cycle-time, but also significantly
upgrade and improve the quality of documentation that we produce. The estimate is written only once, at the source
of the information – on the shop floor, at
the torn down vehicle. Insurance companies want estimates written sooner,
more accurately and completely. This is
one of the primary reasons that they began programs that bring their own employees into collision facilities.
Having the estimate written sooner will
ensure that parts can be ordered in a
timely manner. A Body Shop can only fix
the cars it has the parts for and we can
only buy parts if we have an estimate.
Another benefit of the wireless environment is that it allows you to set the stage
for daily production on the walk-around,
from the shop floor.
Finally, a Body Shop must have Technician workstations. These provide a realtime feed of information from the shop
floor to the front office, to ensure a realtime status of our production forecasts.
Managers can react sooner, solve problems faster and stay on track with the
help of these important data-gathering
centers. Technician workstations also
support administration, as they eliminate payroll via automatic flagging and
provide customer service through automatic texting and e-mailing to both insurance companies and customers.
As the collision center industry shrinks
overall and body shops increase in size,
the need to operate in a proactive, factory-based, measure-to-manage framework is critical to becoming a competitive insurance company partner. In order
to become an HMO in our industry, process management, software, and technology are the three cornerstones that
must be implemented. With these elements in place, your Collision Center will
become the number one profit center of
your dealership.
Scott V. Rome is the President of Pasadena, Maryland-based Rome Technologies, Inc.
p. 79
A D MI N I S TR ATI ON
The Mysteries of Service
Scheduling Revealed
By Greg Criss
In 2008 and 2009 there was a change
in Service scheduling. Because of the
economy, people simply weren’t coming
into Service Departments like before.
In trying to fill bays and sell time, Advisors began telling guests to, “just bring
the vehicle on down.” That method was
probably the best method to drive traffic into your Service Department. So, we
continued doing it.
And, during that time, many of the manufacturers rolled out their quick oil change
programs that encouraged customers to
drive in without an appointment. Many
of the advertisements were geared for
“No Appointment Necessary.” And, even
to this day, we see issues that this has
created in the quick oil change lanes.
More times than not, our Technicians
in these lanes are paid hourly. And it’s
normal to see really flat down-times and
really crushing busy times. One hour you
may feel that you should hire 6 more oil
changers. Then the next hour, after you
rush through your guests, you may have
your staff sitting on buckets reminiscing about the last hour. “Wow, was that
bad…”
Walking the Tightrope
Our inventory is time – and it hasn’t
changed. We need to sell every minute
of every hour of every day for us to be
successful. And, we all get that when a
Technician is sitting, we’re not selling
that time. So, is there a more productive
p. 80
way to do business? And, are we missing business because we have adopted
these techniques?
Appointments in “Quickie Oil
Change?”
As I travel across the country and explore this concept with dealerships,
many of them are latched onto the programming that they’ve received: “It has
to be NO APPOINTMENT NECESSARY.”
My point is this. I travel almost every
week to a dealership. MY most precious
asset is time. My life revolves around
finding services that address this need.
For example, I would never go to a “NO
APPOINTMENT NECESSARY” place to
get my haircut. I’m not willing to sit on
a bench for an undetermined period of
time until they can get to me. My time is
too precious. So, I get my haircut where
I can get an appointment -- and where
they are very respectful of those appointment times.
To another point: there are thousands of
airline flights everyday, filled with people just like myself, and I’m guessing
that you don’t have to fly to have time
management issues. If we don’t take
appointments for these services, are
we pushing away customers that would
love to do business with us, but simply
can’t be a part of our “first come, first
served” business process? I think that
we need to adapt to both philosophies.
Some people don’t want to make an ap-
pointment. They may never know when
they are going to have time available.
I believe that we have to configure our
Departments for both kinds of customers. After all, we want to increase repair
order count and customer loyalty.
“Our inventory is
time – and it hasn’t
changed. We need
to sell every minute
of every hour of
every day for us to
be successful.”
The Fix
A great way to fix this is to employ both
concepts, which may mean having appointments in the non-peak times. This
means that we can capture new customers and sell off our non-sold hours. We
can also convert walk-ins to appointments by offering to make them “the
next appointment.” Let’s have a followup system to call them a few days ahead
of time. My dentist does it well. My optometrist does it well. My barber does
it well. And what are they selling? Oh
yeah…time.
Repair Shop
Let’s talk about your Service Department. In a lot of the stores that I visit,
we count cars. We back into the figure
that we need. “I need $200,000 in labor
sales. My effective rate is $100 per hour.
I have 24 working days in the month.
That’s $8,333.00 per day or 83.3 hours
per day. We write 1.8 hours per repair order. I need 46 repair orders per day. And
if I want to book 80% of my work to allow for emergencies, walk-ins, internals,
etc., then I need to book 37 appointments per day.” I get it. I also get that
there are no guarantees in a scheduling
process. People show up. People don’t
show up. People show up early. People
show up late. People who weren’t going
to wait, suddenly are. It’s the same everywhere I go. We’ll come back to these
thoughts. Let me move on.
The first real issue to fix in the Service
Department is this 2008-2009 mentality.
It’s not a good situation for everyone to
come down first thing in the morning.
Count your Advisors. Isn’t that number
the maximum number of appointments
we can have at a given time. How can
you have three appointments and two
Advisors? Someone is going to be inconvenienced. “If I have an 8’oclock appointment, I am expecting to come into
your Department and be acknowledged
and waited on at 8:00AM. I didn’t sign
up to get up early so that I can watch
you fumble quickly through all the customers to get to me. I signed up to be
waited on at that time.”
Reality
I see dealerships that will schedule customers correctly, but still have the barrage of retired people trying to get donuts and coffee. So, they come in at the
same time your business crowd comes
in. Your business crowd has a faster
pace. They need to come in, communicate and get to work. Your retired customers don’t have that same agenda.
Many times they’ll want to show you
pictures of the grandkids and talk about
that trip they’re getting ready to take.
They may not have an appointment, but
our businessperson behind them does.
So we are late in getting to our business
appointment because we took this walkin. We rush through the pictures of the
grandkids and rush through the experience with the businessperson. We lose
either way.
Retraining Your Guests
“Wow, you really want me to train my
guests?” Yes, I do. We trained them
back in 2008 that you don’t need an appointment. Just come on down! Now we
need to train them again. Create wordtracks for your staff, so that the outcome
is what you want. You want a warm approach that shows the benefits of having
an appointment. It’s really that simple.
Example: “Mr. Smith, we’re starting
to get very busy again. In the future, I
recommend that you please call our appointment center prior to coming over.
I would never want to turn you away or
see you wait a long time.”
The Results
When we don’t control arrival times, Advisors try to handle the customers the
best they can and as expediently as
they can. But, in most cases, the customer leaves feeling they were “rushed”
through the experience. Remember, our
goal is to create great relationships in
the service lane and how can we do that
when we have our customers lined up
and impatient?
Suggestions
• If you have 7 Advisors, let’s leave one
of them open during each appointment
time slot to handle any walk-ins or emergencies.
• Train your Sales staff to wait until after
peak times to see an Advisor for service.
Too many times, in that line of waits, I
will see dealership Salespeople. Your
dealership’s own Salespeople should
be treated as walk-ins. And, we should
have an Advisor ready to handle their
needs. The Salespeople should not all
line up after the sales meeting. This creates issues with customers who have
called in for appointments.
• Schedule your appointments throughout the day. This will be easier for everyone. And the belief that you can’t
fill the 11:00AM spots and the 2:30PM
spots because no one wants to come in
at those times is bunk.
• Offer two times and two days. Don’t
ask the customer when they want to
come in. When you do that, you either
have to be prepared to put them in
where you don’t have enough time, or to
tell the customer “no” if they choose an
unavailable time.
• Predetermine “wait” appointment
times. “Waiters” don’t all have to compete for the television remote. Spread
them out during the day to minimize the
number of appointments in your waiting
room. This will accommodate their personal space and make them feel comfortable. And managing multiple waits
creates an environment that makes it
hard to up-sell additional work.
In Japanese, Kaizen is engineering a
process that begins at the needs and
desires of the customer. Let’s approach
our appointment system that way to
better accommodate the needs of our
customers. By doing so, you will create
more demand which will, in turn, create
a need for solid and improved processes
at your dealership.
Greg Criss is the President of
Cranberry Township, PA-based
Criss Consulting, LLC, dedicated
to Fixed Operations improvements
in profitability and customer retention. Mr. Criss has over 20 years of
experience in automotive retail operations and over 15 years of experience in consulting. He’s a webinar
instructor for Dealers Edge, and
has moderated the Chicago Auto
Trade Association Fixed Operations
Group. He has worked for NCM Associates as a Field Consultant, and was Vice President at Second Opinion Consulting. He can be reached at www.CrissConsulting.net
p. 81
P R I C I N G S U R VEY
THIS ISSUE:
Tires a n d A l i g n me n t s
Orange CA
2011 Taurus SE, Sedan, 3.5L, V6
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
**They do not offer Front Wheel Alignments.
Tire Rotation
Tire Rotation & Balance
Front Wheel Alignment
Four Wheel Alignment
Tire Patch/Repair
Tire Rotation
Tire Patch/Repair
Tire Rotation
Tire Patch/Repair
Tire Rotation
Tire Patch/Repair
$20.00
$67.96
$20.00
$68.00
$25.00
$40.00
$9.95
$59.95
$29.95
$64.00
Kansas City KS
2013 Camry LE, Sedan, 2.5L in-line 4
$20.00
$22.00
$20.00
$29.95
$29.95
Hunterdon NJ
2009 Chevy Equinox, 3.4L, V6
$39.99
$44.00
$67.80
$49.95
$49.95
$15.80
$55.80
$20.00
$67.80
$20.00
$47.96
$19.95
$69.95
$19.95
$35.95
Knoxville TN
2012 Honda CRV EX, SUV, 2.4 i-VTEC in-line 4
$19.99
$15.99
$15.00
$16.95
$24.95
$47.96
$34.99
$59.96
$36.95
$54.95
$89.99
$69.95
$89.99
$89.95
$74.95
$69.99
NA**
$79.95
NA**
$99.95
NA**
$79.95
$79.99
NA**
$89.95
$89.99
$70.00
$84.99
$69.95
NA**
$89.99
$69.95
$89.99
$89.95
$149.95
$79.99
$79.99
$79.95
$79.95
$99.95
$89.95
$79.95
$79.99
$79.95
$89.95
$89.99
$70.00
$84.99
$89.95
$89.95
$20.00
$16.95
$24.99
$25.00
$32.00
$25.00
$20.00
$19.95
$19.95
$20.00
$16.00
$32.95
$29.08
$24.95
$39.95
$19.99
$21.00
$19.00
$36.95
$29.95
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 Tires and Alignments. 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 Tires and
Alignments, 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. 82
N ew p r od u c t s
Advertisers Directory
JohnDow Smart Wall™ Innovative
Storage System
JohnDow Industries announces the addition of the new Smart
Wall™ Modular Storage System to its JohnDow Automotive Service Equipment brand. Smart Wall™ is designed as
a better option for storage of tools and parts. The system keeps workshop
tools and supplies organized, secure and accessible at all times. Don’t lose
a minute of productivity looking through overflowing toolboxes and cluttered
shelves. And available storage space is maximized. All of these benefits will
impact the bottom line.
Sliding storage panels mounted in a heavy-duty steel frame make the Smart
Wall™ one of the highest quality storage systems available. Smart Wall™
panels accommodate a variety of tools, supplies and parts. Storage layouts
can be customized using accessories including shelves, parts, bins and
hooks. JohnDow’s new system is available in two, three or four sliding panel
modules. Additional modules can be added as required. A four-panel system
provides 144 sq. ft. of storage in a compact 25 sq. ft. area. Features include:
·
·
·
·
·
·
·
·
·
All steel construction
Durable powder-coat finish
Reinforced punch steel storage panels
Panels hold up to 250 lbs.
Panels extend to view entire storage area
Mount up to four sliding doors in one cabinet
Easily expandable
Provides secure storage of special tools and parts
Measures 46”W x 76”L x 89”H
Nussbaum TSK 8000 Inground
Lift
ASR ProPage 27
AutoCheckMatePage 67
AutoNetTVPage 53
AutoPointPage 25
BG Products
Inside Back Cover
Borroughs Corp.
Page 61
CarfaxPage 7
Carquest Auto Parts
Page 19
DealerMinePage 63
DealerPro Training
Page 69
DealerSocketPage 17
EcoPower / Safety-Kleen
Pages 23 and 87
Infomedia / Superservice
Back Cover
Kendall Motor Oil / Phillips 66
Inside Front Cover and page 3
Mark VII Car Wash Equipment
Page 21
Mighty Auto Parts
Page 9
NADA Academy
Page 31
NAPA PRO Link / NAPA Auto Parts
Page 87
NCM Associates
Page 47
NitroFillPage 39
The TSK 8000 provides a level of flexibility not found
in other commercial lifts. Its construction design allows it to be used wide range of vehicles, from small cars to vans.
PartsVoice
Pages 29 and 87
PDQ Vehicle Wash Systems
Pages 11 and 87
Features:
Hydraulic 2-piston lift with lifting arms
Fire galvanized canister both inside and out
Silent internal oil-submerged motor with external control panel for wall
mounting
Pedego / Ford Electric Bicycles
Page 41
Motor City Wash Works Fleet
Clean Systems
Fleet Clean Systems are specifically designed for
new car dealerships, rental car agencies and fleet
operators seeking to incorporate a vehicle wash
into the nucleus of their operation, either as a fleet cleaning workhorse, a
value-added customer service, or as an additional profit center. Motor City
Wash Works systems are rugged and built to stand up to the toughest conditions. They require minimal space and include engineered plumbing and
electrical solutions. The Fleet Clean is simple to operate and ensures superior
cleaning power with maximum throughput and up-time, and boosts customer
satisfaction and bottom line revenues. Fleet Clean has four models to choose
from.
PennzoilPage 87
PowerPusher / NuStar
Page 87
ReconTRAC / Green Cloud
Page 65
Page 15
ROAMS-KEEPSPage 51
Rome Technologies
Page 59
Rotary Lift
Pages 49 and 87
Rousseau Metal
Pages 87
Royal PurplePage 13
Shell Premier Network
Page 33
Simoniz USAPage 5
TerraClean Products / Uview
Page 37
TSD Rental Management Software
Page 35
WildeckPage 55
XtimePage 57
p. 83
n ew p r od u c t s
ITW ProAP AutoEKG® Fuel
System Analyzer
Regularly scheduled AutoEKG Fuel System Analyzer
check-ups and Professional Fuel System Cleanings will
help prevent the buildup of heavy carbon deposits in your
customers’ engines, ensuring their vehicles will continue
to perform the way they were designed.
Today’s advanced fuel system cleaning formula is designed to remove the carbon buildup from engines in just under 30 minutes.
In vehicles where carbon buildup is causing performance issues, a fuel system cleaning will improve fuel economy, restore lost power and performance
and reduce pollutants.
SONNY’S -- The
CarWash Factory
Washing cars since 1949, SONNY’S The
CarWash Factory is the largest manufacturer of conveyorized car wash equipment, parts and supplies in the world.
Proudly designed and manufactured
in the USA.SONNY’S remarkable financial stability is recognized by Dun &
Bradstreet, the world’s leading source of commercial information and insight
on businesses. We make car washing easy!
Only SONNY’S Foundation Frame architecture delivers over 23,000 custom
equipment configurations from standard inventoried components to easily
handle your unique wash requirements. When we re-engineer a component
to improve safety, performance and efficiency – whenever possible – we create an affordable retrofit kit to bring your existing equipment up to the latest
technology – keeping your tunnel system at peak performance for generations to come.
TSD Loaner Products Provide
Management Tools for Your
Courtesy Car Fleet
Service loaner programs are essential customer service components for
many dealerships, but they can often come with administrative headaches,
liabilities and high costs. TSD Loaner Products are designed to solve these
issues while providing a more efficient customer service experience within
your Service Department. TSD’s partnerships with a variety of systems used
across your dealership ensure more efficient processes and customer service.
Trusted by manufacturers including BMW of North America, Mercedes-Benz
USA, LLC, Lexus, Cadillac, General Motors and many others, TSD is the industry leader in providing a loaner management software solution for dealers
across the nation. TSD Loaner Management Software is a complete, enterprise-wide solution for manufacturers across the world.
There are several benefits:
- Reduced liability exposure with professional loaner agreements
- Reduced length of loan & outside rental expense
- Ease of use & flexibility for your Service Department
- Improved customer service index (CSI)
p. 84
Snap-on Business Solutions
Service Shop Equipment
Ineffective service shop equipment, less efficient technicians, unprofitable
service operations -- the three go hand-in-hand. With Snap-on Business Solutions, you connect to one source for all of your Service equipment requirements, guaranteeing you get access to the best solutions for your needs.
Snap-on maintains contractual relationships with more than 250 industryrecognized vendors, ensuring that we provide complete, cost-effective solutions from the best sources. From consumables to heavy iron, from exhaust
systems to tool carts, we provide it all.
Snap-on’s U.S.-based product specialists can assist you with all your Service
equipment questions. Snap-on serves all of North America and they know
and understand the products they sell. There are several levels of support to
make sure you get the right equipment to meet your needs. Quality customer
service is one of the key benefits you can expect from Snap-on; it’s one reason why dealerships do repeated business with Snap-on Business Solutions.
Uview ExtenDye Enhanced A/C
Package
Several years of engineering went into creating an all new
dye from UView. A/C ExtenDye™ contains an enhanced
additive package that boosts performance and increases the longevity of the
A/C system.
1. The friction modifier increases lubricity (less friction) of the oil, improving
efficiency (friction coefficient) by over 50%.
2. The anti-wear additive creates a film that prevents contact between metal
parts reducing friction and heat thereby extending component life as well as
effectively quieting noisy compressors.
3. The antioxidant stops the oxidation process, which reduces acidity and
prolongs oil life.
When combined, Uview refers to this exciting new additive package as QuietCool Technology™.
In addition to these great new features, A/C ExtenDye™ is a superconcentrated dye. This means that you get the same fluorescence as Uview’s existing Universal A/C Dye per application. A/C Extendye™ is SAE J2297 certified
for use in R134A and R1234yf systems and is solvent free.
Automotive LS Service
Manager 360
Automotive LS has always believed in easing the customer appointment experience and freeing the customer from the inconvenience of having to call
the dealership for an appointment, which takes valuable time away from the
receptionist and Service Writers while the customer can make real-time appointments 24 hours a day. To those skeptics who think that customers are
not ready to manage their appointments online, Automotive LS says that 75%
of the population uses the Internet to plan their vacations. Service Manager
360™ gives the customer the ability to monitor the progress of their vehicle
being serviced via mobile, online and in-person.
Online appointments affect the workshop’s potential workload, a tool increasing customer retention and a smooth experience. When customers create an
appointment online, e-mail and phone are updated automatically updated in
Service Manager 360™ and your DMS. So all your customer informations are
up to date in one click!
N ew p r od u c t s
Rotary Lift Introduces New Lighting
Solutions for Vehicle Lift Users
Rytec Auto Dealership Doors
Rotary Lift is shedding some light on the vehicle repair process with Tech Lights, an innovative new line of LED shop
lights. The Tech Lights series offers powerful lighting options
that can be adapted to meet a variety of Service bay needs.
Each light comes with mounting clips that are magnetic, so the lights can be
set up in a variety of locations without drilling.
Lower Energy Costs
Whether it’s the Service bay or the drive-in customer service entrance, less air infiltration leads
to better climate control and lower heating and
cooling costs. This benefit alone can justify the
cost of Rytec doors in busy dealerships.
Technicians can always use more light under the vehicles they work on, but
fixed lights that are built into the vehicle lift itself are not as useful as something that can be repositioned. Rotary’s Tech Lights lamps’ magnetic mounting clips make it possible for Technicians to attach the lamps to a lift’s columns, its arms, a tool cart or the vehicle itself. As a result, Tech Lights lamps
are ideal for both close-up inspection work and general purpose lighting.
Increase Productivity
Waiting periods for conventional overhead doors are eliminated. Minutes can
add up to hours of non-productive time. The time saved over a year can easily
justify the cost of Rytec doors.
Tech Lights shop lights are available in three kits. The two-post lift kit (P/N
FA5701) includes two 32-inch line light units, each embedded with 96 LEDs
and fitted with two magnetic mounts. The kit’s power cable is more than 25
feet long to ensure it covers the distance between the lift and an outlet. From
the power supply box, each light is further fitted with a coiled cord that offers
more than 15 feet of range for moving the light to different locations. The light
housing is a slim one-inch diameter so it can illuminate compact work areas.
Tire Profiles TreadSpec NS
(Non-Stop)
The first affordable and easy to use tire wear and
suspension geometry diagnostic system for passenger cars and light trucks.
1. The customer drives his vehicle over TreadSpec on arrival at the reception
area.
2. A machine-generated TreadSpec vertical diagnostic report is in the hands
of the Service RO writer in seconds.
3. 70% of customers will buy their new tires from the first person to recommend one.
Convert stubborn customers by providing them with a highly visual report.
Increase trust, build loyalty. By involving the customer in the maintenance
process in the reception lane, you can increase your sales conversions for:
- Tire replacements
- Tire rotations
- Vehicle alignments and wear parts
The TreadSpec system generates management reports for whichever periods
you specify to inform Service Managers of potential sales for each Service
Advisor, allowing them to target incentive and coaching efforts more effectively.
New MacNeil Quad Pak: Double
the Cleaning Power in a Compact
Area
MacNeil Wash Systems announces the release of the new Quad Pack RS701/
RS400 Combo Wrap, a unique configuration that places MacNeil’s RS-400
Low Side Washer beneath the powerful Long-Arm RS-701 Superflex WrapAround brush. Easily installed into new or existing sites, this Quad Pack doubles the cleaning power into a smaller, more compact area saving operators
valuable tunnel space. It is available with the 22”, 30” or 45” RS-401 brush
models to suit every tunnel. The Quad Pack is a great addition to clean the
corner panels of the car and underneath the mirrors.
Lower Maintenance Costs
Unlike conventional overhead doors, Rytec doors are engineered for hightraffic, high-cycle environments and require only minimal maintenance. Since
bumps will happen, Rytec fabric roll doors are designed to withstand vehicle
impact and be reset, without tools, in just seconds.
Improved Working Environment
Due to the nationwide shortage of highly-skilled automobile technicians,
many dealerships are looking for ways to attract and retain the best mechanics available. By better maintaining Service bay temperatures and offering a
modern, architecturally-inspired look, Rytec doors help improve the working
environment which dramatically improves employee morale and pride. Satisfied employees stimulate and improve customer satisfaction.
Penray Brakemate Brake Flush Machine
- A fully automatic brake flushing machine that can service all
four wheels in under nine minutes.
- Select sequence feature allows Technician to easily select the
desired sequence for flushing.
- Complete master cylinder adapter set with carrying case
15-foot lines
- Sight glasses
- Drain reservoir function
- Top-off ability
- Fast 9-minute automatic process
- Full 4-wheel flush
- Pressure tests
- Separate ABS line
- Automatic shutoff on new fluid tank
- Easy to use
- Adapter case storage bracket
Petra Diesel Fuel System Cleaner
Carbon deposits build up in a diesel fuel system over time
and cause your customers’ vehicles to lose power, run less
efficiently and reduce the performance each vehicle had
when it was new.
With Petra’s Diesel Fuel System Service vehicles will be restored to like-new performance. A vehicle’s injectors, valves
and combustion chamber will be cleaned. This service will help eliminate
rough idle, decrease emissions and hesitation problems.
p. 85
n ew p r od u c t s
Nussbaum TSK 8000 Inground
Lift
The TSK 8000 provides a level of flexibility not found
in other commercial lifts. Its construction design allows it to be used wide range of vehicles, from small cars to vans.
Features:
Hydraulic 2-piston lift with lifting arms
Fire galvanized canister both inside and out
Silent internal oil-submerged motor with external control panel for wall
mounting
Rousseau GT Workcenter
The Rousseau GT workcenter is the first and only completely modular system that provides the best solution for
dealership needs: functionality, productivity, durability and
esthetics. Rousseau’s most comprehensive workbenches
for Service facilities with painted or stainless steel drawers,
can even include lift control units, computers, power feeds, reels, etc. Whether you choose one of Rousseau’s preconfigured models (single or double) or
do your own layout for your GT benches with drawers for your Technicians,
they have the solution for you. Standard widths available for the work surfaces
are: 48”, 60”, 72”, 84”, 96”, 120” and 144”. The workcenters have a standard
height of 36” but other heights are also available.
Hunter Announces New
Generation Swing Air Jacks
Hunter’s RX16 lift rack is now shipping with new generation 9,000-lb swing air jacks.
The new generation jacks make vehicle service easier and safer with lower
clearance height, a 6-inch wider reach and many other productivity improving
features. The new jacks are also compatible with older RX16, L44X, and P44X
rack models capable of accepting 9,000-lb jacks
The new jack design first previewed for customers at SEMA 2012 and marks
Hunter Engineering’s first ground-up, swing air jack redesign since Lee Hunter’s initial design 40 years ago.
Nova Verta Velocity Series Paint
Booths
Paint more cars in less time with Velocity Cure.
In-field testing proves this downdraft paint booth
system provides increased airflow that cuts flashing time in half, raises paint
surface temperature for baking several minutes faster and slashes cure times
by half or more.
Since Velocity Cure operates without adjustable blow nozzles or additional
fans, this paint system minimizes air turbulence, helping ensure cleaner paintwork and trimming the need for cutting and polishing. During the Bake Cycle,
Velocity Cure doesn’t just raise the booth temperature, it channels the heat
where it’s needed: onto the paint surface. Even waterborne paints cure faster
with Velocity Cure because the booth’s indirect heat effectively extracts humidity from the air.
p. 86
EnerSys® Introduces Group 65
Battery to ODYSSEY® Performance
Series™ Product Line
EnerSys® has expanded its ODYSSEY® Performance Series™ battery product offering to include the Group 65 battery designed specifically for consumer applications. The ODYSSEY® Performance Series™ 65-760 battery
features 762 cold cranking amps (CCA), 129 reserve capacity (RC) minutes
and deep cycle capability up to 400 cycles at 80 percent depth of discharge.
Engineered with Thin Plate Pure Lead (TPPL) technology, ODYSSEY® Performance Series™ batteries feature rugged construction, high reliability and
deep cycling capabilities to deliver more overall power and longer service life
than conventional batteries.
The starting power and long service life of the ODYSSEY® Performance Series™ 65-760 battery makes it reliable for truck enthusiasts and ideal for powering the number of onboard accessories found in today’s passenger vehicles
and SUVs. The Group 65 battery provides a wider selection to customers.
PFlow Vertical Reciprocating
Conveyor (VRC)
- Safely transport materials from one level to another.
- Install in new or existing dealership.
- Customized to your application needs.
- Less costly to install, operate and maintain than elevators.
- Safer than using a forklift to move materials between levels.
- Move loads of all shapes, sizes and weights from 1 lb. to 200,000 lbs.
- Designed for mezzanines, through-floor and other multi-level applications.
- Install in unused elevator shafts.
- Proven in over 15,500 applications.
- Safe, efficient, convenient means of moving materials vertically.
- Meet or exceed OSHA regulations.
- Hydraulic, mechanical and fully automated systems.
- Equipped with advanced safety features to protect men and materials.
- Turnkey installation available.
- Guaranteed code approval in every state.
Fluid Rx Diagnostics® Now
Reads Nissan CVT Fluid
Fluid Rx Diagnostics, the leader in instant lubricant testing and evaluation, has expanded its
line of chromatographic technology analysis tools to include Nissan’s newest
proprietary Continuous Variable Transmission (CVT) fluid.
As with all modern lubricants, Nissan’s new CVT fluid contains additives that
inhibit breakdown. As these additives become depleted, the fluid can rapidly
degrade, making it unable to perform its intended function. Nissan’s new CVT
lubricant presented a special challenge. Its unique and proprietary formula
required Fluid Rx Diagnostics to perform extensive laboratory analysis to determine its breakdown rate. Once that was documented, the company was
able to correlate radial planar chromatographic images to the lab reports. As
with all of their fluid analysis tools, only one drop of the Nissan CVT fluid is
needed to accurately measure the condition of a vehicle’s fluid.
Fluid Rx Diagnostics has created a complete Nissan Vital Fluids Analysis Report Card in conjunction with its OEM dealership relationship with Fluid-Science. This Instant Lubricant Diagnostics kit provides Service personnel and
customers alike with a simple on-the-spot evaluation that shows the actual
condition of all Nissan and Infiniti fluids, including brake, power steering, CVT
transmission and transfer case fluids.
MA RK E TP L A CE
T:3.5”
T:2”
AMERICA’S MOST
TRUSTED OIL.*
pennzoil.com
*Based on a survey of licensed drivers conducted by a leading research firm January 2005 – December 2010. ©2011 SOPUS Products. All rights reserved.
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p. 87
I N D US TR Y N E WS
Continued from page 8
MPi Changes Name to AutoPoint
New ProDemand™ 1Search™
Feature Delivers OEM and
Experience-Based Repair
Information Together
MPi, a leading provider of revenue and retention solutions for automotive
dealership Service Departments, has announced that the company has
gone through a major product lineup enhancement and branding evolution,
emerging with a new name, AutoPoint. As AutoPoint, the company is establishing itself as the new standard of automotive service. The new platform
enables automotive Service facilities to operate at the highest levels of performance by increasing productivity and effectiveness, thereby improving
the customer experience and raising Service standards.
Mitchell 1 has announced powerful new search technology in its ProDemand™ repair information software that delivers complete OEM and experience-based information together in a single lookup. ProDemand with
1Search™ streamlines the search process by integrating data from the
SureTrack™ diagnostic resource to provide comprehensive, categorized
repair information in a user-friendly interface, making it easier than ever
for users to find the complete information they need to repair vehicles accurately and efficiently.
“AutoPoint is Service evolved,” company Managing Director Rich Holland
stated. “The new name provides us with an umbrella under which we will
continue to add and enhance products and services that deliver exceptional value and ROI in the automotive Fixed Operations space. With our
eye on creating a global presence, the AutoPoint brand will be our unified
flagship moving forward.”
“Last year, Mitchell 1 introduced SureTrack to the marketplace and it has
been an amazing success story,” said Ben Johnson, Director of Product
Management, Mitchell 1. “This year, we have integrated the SureTrack
data into ProDemand, our premium source for OEM content. With this new
global search feature, users can improve their efficiencies by keying in their
search term from a single location to retrieve a wealth of information sorted
into easy-to-use categories.”
The AutoPoint Platform is a fully comprehensive suite of integrated applications that allow a dealership to optimize their current and future Fixed
Operations revenue opportunities. Proven, reliable and easy to implement,
AutoPoint also stands alone in the marketplace with its 400 percent ROI
Guarantee.
“We are also excited to announce the consolidation of our five offices into a
single facility in South Jordan, Utah in February, 2014,” Holland added. “As
we plan for significant growth, we look forward to taking advantage of the
synergies created by a centralized environment, as well as providing a truly
state-of-the-art training facility to our clients.”
One Command and Wildfire
by Google Introduce New
Product to the Auto Industry
OneCommand, the leading customer marketing and loyalty automation
platform for auto dealers, has announced a cutting-edge product to enhance their offering to the automotive industry. Together, OneCommand
and Wildfire by Google, one of the world’s largest social media marketing
software providers, have brought to market Social Roots™, a turn-key social media solution that monitors, engages and grows a dealership’s social
communities through proven, results-driven methods.
Social Roots™ provides dealerships a positive online social presence to
capture the attention of ready-to-buy prospects who are turning to the Internet before making an in-store purchase. This unique solution provides
access to Social Community Specialists; these social marketing trained
resources will leverage industry-leading tools and reporting to maximize results. With Social Roots™, dealerships can feel confident their social presence is in the hands of professionals.
“Dealers understand the power of social media marketing. However, they’re
unsure about where their customers and prospects are spending their time,
what to say to their social communities and how to best manage the forever
growing and evolving world of social media. Through countless hours of social media marketing research and our partnership with Wildfire by Google,
we saw the need for Social Roots™. This solution provides dealers with the
answers to these questions, along with the advantages of real-time social
monitoring and an understanding of what motivates their social followers to
act with and engage with their brand,” comments Jeff Hart, President and
CEO of OneCommand.
p. 88
Combining OEM and experience-based information provides immediate
visibility to complete content to help Technicians quickly solve the repair
problems for the vehicles in their Service bays. Vehicle-specific data in
SureTrack is generated from millions of successful fixes from professional
technicians and consolidated from numerous sources, eliminating the need
for technicians to log in multiple times to access different sources to gather
and analyze information.
DealerRater Surpasses 1.2 Million
Dealership Reviews
DealerRater, the world’s premier car dealer review web site, has announced
that it has surpassed 1.2 million submitted reviews, furthering its position as
the authority in supplying car buyers with comprehensive, go-to dealer reputation information. Reaching that milestone, DealerRater now maintains
more car dealership reviews than the next five consumer sites combined.
Specifically, DealerRater offers 43% more reviews than Google+, Yelp, Edmunds, Cars.com and Yahoo! Local combined.
Further attesting to the growth of the DealerRater platform and the importance that dealership reviews play in the car-buying experience, the company also announced it has surpassed four million monthly exposures, defined as the number of users exposed to either a DealerRater review or their
branding each month.
According to DealerRater, while credibility is essential, customer satisfaction is the key factor in driving positive word-of-mouth.
In addition, DealerRater emphasizes the significant impact that consumer
feedback can have on a dealer’s reputation and ultimately, their business.
When a user submits a review describing a negative experience at a particular dealership, there is a two-week period during which the onus is on
the dealer to privately reconcile with the consumer and reaffirm their commitment to quality service. Once the two-week reconciliation period is over,
the review posts in its original form unless the consumer decides to edit it
based on their interaction with the dealership.
“When consumers are more informed about their car buying experience
and dealers get rewarded for providing quality customer service, everyone
wins,” explains DealerRater Founder Chip Grueter. “In addition to the data
and information it provides car buyers, DealerRater.com helps dealers with
exceptional reputations to differentiate themselves from their competitors,
steering more qualified potential customers their way.”
Canon’s IDEAS Paperless
Document Management
Solution Now Available to
Volvo Dealers
Canon’s IDEAS -- Integrated Dealer Electronic Archive System -- is now
available to North American Volvo dealers. This system uses Canon’s Scanless Automatic Filing Engine (SAFE™) technology to significantly reduce
and even eliminate the need for any manual processing of service and warranty related documents. IDEAS is the ideal solution to facilitate paperless
document processing for auto dealership Service Departments, the largest
producer of paperwork in the dealership.
With IDEAS, Canon Solutions America helps optimize dealership operations
by utilizing the latest imaging technology to automatically capture critical
warranty information and vehicle diagnostic data for archiving. Unique to
IDEAS, the automatic capture of critical diagnostic and warranty documents
helps lead to reduced operating costs, improved efficiency, increased productivity and profitability.
Dealers say IDEAS saves them money five ways:
1. Reduces OEM warranty chargeback costs: Using IDEAS, some dealers
have reduced warranty chargeback costs to less than 1%.
2. Improves productivity: Fewer paper documents being handled by Techs
can save 30-50 minutes a day, improving productivity and Service bay utilization.
3. Reduces processing: Document printing, scanning and copying are reduced or eliminated, saving time and money to otherwise print and file paper documents.
4. Improves security and compliance: Keeps sensitive customer financial
information away from prying eyes and helps dealers comply with consumer protection laws.
5. Reduces costs: Frees staff once needed to search for misfiled documents
and frees document storage space and budget for revenue-generation.
Acquires XtreamService
Reynolds and Reynolds has announced that the company has acquired
XtreamService, a software company focused on helping automotive dealerships reach customers more effectively and deliver improved Sales, Service
and customer retention results.
“Xtream strengthened customer retention capabilities in Hendrick Automotive Group dealerships,” said Rick Hendrick, Chairman of Hendrick
Automotive Group and one of the founders of Xtream. “Our stores served
as proving grounds for the software with employees providing feedback,
which helped to further develop and enhance the product. Xtream has even
more untapped potential and the expertise of Reynolds and Reynolds can
take it to that next level.”
Xtream is a data mining tool for dealership management systems (DMS)
that enables dealers to identify customers that are most likely to purchase a
new vehicle. The software helps dealerships turn their database into a daily
work plan for their Sales and Service teams, while also supporting their
customer retention strategies. Xtream is both an analytic program used to
compile dealership data and a tool for customer follow-up.
“This is a product that clearly was developed by people who know the car
business,” said Robert Burnett, Senior Vice President at Reynolds who
oversees business development. “It’s already delivering results for a number
of large dealership groups and stores. For Reynolds, it’s part of strengthening our Retail Management System that will help dealerships work more
efficiently and reach customers more effectively. What we see ahead for
XtreamService is more growth and a larger presence in the industry.”
eBay Motors Study Shows Nearly
a Quarter of Automotive
Do-It-Yourselfers Want to Buy
Parts Via Mobile Devices
Automotive parts buyers are moving to mobile, according to a new eBay
Motors survey unveiled at the 2013 SEMA Show in Las Vegas.
eBay Motors, one of the largest online marketplaces for buying and selling
all things automotive, unveiled a new survey showing that 23% of automotive do-it-yourselfers (DIYers) want to purchase vehicle parts through
their mobile devices. Additionally, 48% of automotive DIYers said they will
consider purchasing vehicle parts online. Automotive DIYers, as well as
their automotive do-it-for-me (DIFM) consumer counterparts, cited 1) cost
savings (64%), 2) effectiveness in finding the right part (45%) and 3) direct
shipping (33%) as their top reasons for purchasing parts online.
“This data shows that parts buyers want options in how they purchase and
receive parts, whether it’s buying on their phone or buying online from sites
such as eBay,” said Bryan Murphy, head of eBay Motors. “Our data reflects
this trend and indicates that our focus and investment in mobile technology
is paying off, with approximately 830,000 parts and accessories sold every
week through eBay mobile.”
Auto/Mate Integrates with
Volkswagen’s ElsaPro,
Enhancing Dealers’ Access
to Electronic Workshop Manual
Auto/Mate Dealership Systems has announced that its AMPS DMS is fully integrated with Volkswagen Group of America’s ElsaPro, an electronic
workshop manual that dealership Service Departments use to diagnose
and repair vehicles. Volkswagen and Audi dealerships using Auto/Mate’s
DMS will greatly increase efficiencies in the Service Department by instantly
turning Volkswagen recommended repairs into work orders, viewing what
the standard time for work performed is, and more.
Volkswagen Group’s ElsaPro is an electronic program for diagnosing
and repairing vehicles. The manual includes a description of technology
of repair, auto maintenance, diagnosis of various vehicle systems, wiring
diagrams, bodywork, standard time for work performed and more. Volkswagen and Audi dealers will benefit from the integration by being able to
download information from ElsaPro directly into Auto/Mate’s DMS, allowing
them to instantly and accurately update the following in their Fixed Ops
modules: repair order data, ops code / labor guide, special Service vehicle
campaigns, Service history, special Service bulletins, recall information and
vehicle specifications.
ClearMechanic Plus
Automated VIN Scanning
Feature
You can now scan VIN bar codes directly from the ClearMechanic Plus
iPhone and Android applications! When the VIN is scanned, the ClearMechanic program instantly searches national databases and retrieves available vehicle information. This vehicle information automatically appears in
your dealership’s custom Inspection Form.
The new Automated VIN Scanning feature is available at no extra charge.
Pricing remains a simple, flat monthly subscription fee.
The updated “ClearMechanic Plus” mobile application is now available on
all Apple and Android devices, both smartphones and tablets.
p. 89
I N D US TR Y N E WS
Demand Advantage Joins
Carfax Service Network
Demand Advantage, one of the leading web-based shop management and
CRM software providers, has joined the Carfax® Service Network. Demand
Advantage makes it easy for its subscribers to also become members and
get automatically enrolled in the Carfax Service Loyalty Program as well.
Through all Demand Advantage software products, users now can take advantage of Carfax resources that help reach new Service customers, and
increase retention and revenue.
“We are elated that Demand Advantage joined the Carfax Service Network,” said Larry Zide, owner of Agoura Lube and Smog in Agoura Hills,
Calif. “Our technicians now can take full advantage of the Carfax Service
Loyalty Program tools we rely on from within Shop Advantage. Being part
of the network has helped us significantly increase customer loyalty and
drives new business to our shop as well.”
Demand Advantage users have direct access to no-cost benefits of the
Carfax Service Loyalty Program like Carfax® QuickVIN™ and Carfax® Service History Check™. Participating shops also are featured on Carfax Vehicle History Reports and in the myCarfax app when car buyers and owners
are looking for local shops to help keep their car well-maintained.
“Our partnership with Carfax adds yet another way Shop Advantage brings
business to our independent auto repair shop customers,” said Joseph
Vandertol, partner at Demand Advantage. “Unlike other repair order software, we provide integrated marketing tools right in our work order system.
The Carfax QuickVIN service speeds work order creation and Carfax Service History Check allows our customers to offer the best Service options
and maximize per work order revenue.”
TradeMotion and
PartProtection Complete
Integration With Dealertrack
TradeMotion LLC and PartProtection, LLC
have announced the certified integration of
its Parts eStore and PartProtection Parts &
Service Point-of-Sale service contract portal with Dealertrack Technologies’ Dealer Management System (DMS).
The integration, approved via Dealertrack’s Opentrack Certification program, allows a dealership using Dealertrack’s DMS to create, price and sell
both Part Only and Parts & Labor extended coverage plans on retail and
wholesale Parts sales, as well as on repairs being performed in the dealership’s own Service Department. The integration ensures a quick and secure
exchange of data between the Dealertrack system and both PartProtection
and TradeMotion’s eStore offerings.
“Completing these interfaces with Dealertrack is an example of TradeMotion’s commitment to providing industry leading products that are compatible with the dealership’s existing systems and processes,” said Shawn
Lucas, Founder and President of TradeMotion. “Dealertrack dealers that
want to take advantage of TradeMotion’s Parts eStore and PartProtection
products can now do so with confidence that we can meet their technology
needs.”
“This integration gives Service Writers and Parts countermen the ability to
easily create and sell PartProtection’s extended Service contracts on both
individual Parts sales and Service jobs at the point of sale,” says Chris
Rand, President of PartProtection. “This unique approach allows dealers
to increase customer retention and margin on existing sales and increase
Parts sales to wholesale accounts by outcompeting the aftermarket, all
while simply using the information that already resides within their DMS.
Parts and Service associates are busy and this integration makes it easy for
them to add a quick step to their normal processes that benefits everyone.”
p. 90
AutoNetTV Collision
Center-Specific Content For
its Digital Display Platforms
AutoNetTV content is viewed by consumers
as they wait for their estimate to be completed
or on the collision center’s website and is designed to address the question, “What should
your potential customer know when you return
to discuss their estimate?”
The new content educates your customers in the following areas:
General Collision Knowledge The typical vehicle owner will visit a collision
center just once every seven years. AutoNetTV content steps in to help
them understand their consumer rights in respect to auto body repair, parts
sourcing, the center’s menu of services, how their insurance company fits
in and the extent of their service guaranty.
Common Technical Questions The content educates on commonly asked
questions such as, “Do I have frame damage?” – an opportunity to explain
unibody construction – and, “Why didn’t my airbags deploy?”
Upsell Opportunities Promote additional services like detailing, bumper
restoration and minor dent repair.
Mechanical Work Incidental to Collision Repairs In addition to collision
specific content, collision centers have access to AutoNetTV’s full content
library to promote aligned services such as headlamp restoration, A/C service, wiper blade replacement, wheel balancing, tire rotation, wheel alignment and battery replacement.
Other Mechanical Work For those collision centers that also provide full
mechanical service, the AutoNetTV content library covers Service and Repair topics with hundreds of videos, 3D animations, images and templates
for customizing the center’s digital display.
Volvo to Integrate Xtime
Into its New Connected Car
Platform, Sensus Connect
Xtime, the leading cloud-based customer retention platform for automotive manufacturers and dealership Service Departments, has announced
that Volvo Cars North America will integrate Xtime ServiceTelematics into
Volvo’s Connected Car platform, Sensus Connect.
Sensus Connect will use Xtime’s ServiceTelematics to ensure that Volvo
drivers can easily access Service at a Volvo dealership. When notified by
an in-dash alert about needed maintenance or repair, the owner will be able
to schedule Service with a dealer in Volvo’s network directly through the indash system and mobile devices, never having to leave the vehicle. Once
the Xtime-powered, in-vehicle scheduling experience is complete, the indash alert will turn off automatically.
“Technology should make your life easier, especially in the car. This fundamental consumer insight underpinned the development of Sensus Connect.
It’s not about offering a thousand apps. It’s about giving you precisely what
you need, before you even knew you needed it,” says David Holecek, Connectivity Brand Manager at Volvo Cars.
“We are thrilled to be an integral part of Volvo’s Sensus Connect platform,”
said Xtime CEO, Neal East. “The innovations introduced by Sensus Connect, including those powered by Xtime, demonstrate Volvo’s vision of how
advanced technologies can connect the brand, vehicle, dealer and customer to create a superior ownership experience.”
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.

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