How to Make Service Department Stronger
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Satiate Knowledge Share Center
Newsletter Date 08th October 2015
How to make Service Department Stronger?
Satiate Consulting Pvt Ltd., #155,3rd Cross,3rd Main,Minhaj Nagar JP Nagar Post,Bangalore-560078. Ph:+91 9900246597,+91 9980015212
www.satiateconsulting.com
Satiate Consulting Pvt Ltd., #155,3rd Cross,3rd Main,Minhaj Nagar JP Nagar Post,Bangalore-560078. Ph:+91 9900246597,+91 9980015212
In tough times like these, it is natural to make an effort to bolster your service department in an attempt to maximize
cash flow. As consumers are putting money into what they’ve got, rather than buying new, there are many dealers mar-keting their service departments to take advantage of every available vehicle cash. As you consider leaning on your service department for survival, there are 10 things to consider:
1Involve the team in marketing and promotions to ensure that you don’t promote something that is difficult or impos-
sible to deliver. Promotions may involve more staff, hours or parts, and these needs should be run past the departments responsible for providing the service. I’ve seen some great ideas that come from involving the team, such as using the vehi-cle show to hand out discount cards for new service customers that do work with you during the slow season, or launching education clinics on the effects of ethanol and what services can be done to prevent problems.
2This is no time to have your tech plunging toilets or changing the oil in your car. Review all the things that are keeping
your techs from turning wrenches and work at removing these revenue robbers.
3Parts and paperwork need to be organized now more than ever. Track the open repair orders, the job status, the sub-
lets, and organize the vehicles on the lot so you can get to the jobs with minimal effort.
4Remember the old Queen song, “We Are the Champions,” and apply it to your service department. The people who
work in service and parts tend to be very motivated by recognition for their ability to “get’r done” when times are tough. Let them now they are your champions, and they are likely to pull harder for you.
5Customer communication is vital. If you stay in touch, you can charge, and the customer will be happy; but if that
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Satiate Consulting Pvt Ltd - www.satiateconsulting.com
Satiate Consulting Pvt Ltd., #155,3rd Cross,3rd Main,Minhaj Nagar JP Nagar Post,Bangalore-560078. Ph:+91 9900246597,+91 9980015212
6Track each technician and their efficiency, and the total shop hours billed daily. Share this information with them to
keep the communication and labor hours flowing. Tracking efficiency is as simple as looking at how many hours you are able to bill, including internal work, warranty work and customer pay work, compared to how many hours we were at work today. It does not have to be fancy or complicated.
7Crank up the hours per R.O. (repair order). This is a number that, along with efficiency, should be reviewed regularly.
What else can we sell? What else does this vehicle need? Pull the service history on the vehicle, run a recall and TSB info report and look at the vehicle as if it were yours. What would be a nice upgrade? Some new electronics? A prop? Just a good solid detail? Every vehicle you see has something else it needs if you would only find it and sell it.
8Dig through this past year’s work orders history to see what work was not done that you had documented as a need.
There are so many reasons why the work was not done. It could be due to parts not being available, no time to do the work, customer wanted the vehicle back asap, etc. Dig and find the available hours. Some may be jobs we already spent the time diagnosing and creating a parts list for. It is time to collect.
9Go on a “treasure hunt,” looking for all available cash floating around the service and parts department: warranty
work, parts, claims, unpaid work orders, the pile of scrap metal that can be taken to the dump. There is bound to be some-thing back there.
10Lastly, you may need to revisit the job descriptions of your team. Have you cut staff? Have you put additional
responsibility on certain peoples’ plates? Make sure the job descriptions reflect this – even if it is only temporary. The work we do tweaking our service and parts efficiency and attracting new customers to our service department can really help us to gain market share when things turn around. No matter what the market is doing, it is always beneficial to have a service and parts department that you can count on.
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Indian Commercial Sales & Market Share Analysis
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