Sales, Service, and Parts the big circle in any dealership! If we don't sell them, service suffers. If service does not take care of them sales suffers. The big circle.

So why is it that a lot of dealerships create an adversarial relationship between sales and service?

Case in point: xyz motors runs a pre-owned car with 59,000 miles on it through the shop, service comes back with a shop estimate of $1145.00 to get the car front line ready. the GM or used car manager flip out over the estimate and go back to service writer who explains the vehicle needs two tires, brakes and rotors, a muffler and it is recommended to do the 60k engine service which includes new timing belt etc.

The first thing manager say's is how much is 60k service? $400.00 is the reply. Manager says to hell with that just change the oil and forget the service. Next he asks how much are 2 used tires? $75.00 instead of $175.00. So now bill is down to $645.00. The manager smiles and say's to sales staff, service was trying to juice me on that used Toyota you took in last week. I fixed them, saved $500.00 on the shop bill. Meanwhile the service writer is mad because sales never listens to half his recommendations.

Next service customer walks in and deals with a service writing who just had his paycheck cut and is in a bad mood. How well do you think this is going to go?

 

Skip ahead to a couple days  later and Toyota hits the lot! Your number one salesman has a appointment on the car with a customer he has been working for about a week. Off on the test drive they go. They get back from the test drive and customer gets out and starts really looking vehicle over. he notices miss matched tires from front to back, then he asks if the timing belts have been replaced as the factory recommends? You see where this is going right?

 

They go inside and sit down, customer tells salesman he will buy today provided he get's 4 new tires and the 60k service done before he takes delivery. He takes this offer to manager and manager flips. Dam service put mismatched tires on car etc.

He calls service and gets a quote of $750.00 to do all work customer wants. He pencils deal at full price and sends salesman out to close deal.  Customer takes one look at worksheet and say's "I'm not paying that price for that car, it's rough. I will pay $1500.00 less and I still want all the other stuff done.

And so the back and forth begins. 

WHY?

 If the manager had just bargained a little bit with service on total bill car would of been front line ready. Instead he has a car half done and customer is picking it apart from the start. I still believe there is enough piece of the pie to go around. Create a positive relationship with your parts and service people. Throw them a freebie every once in a while and you will be surprised how quickly  they will be to help you when you really need it. If you are always beating them up, human nature is to always be defensive.

 

A successful and prospering dealer needs all departments to work together like a well oiled machine.

I still say you always make your money on pre-owned when you take it in at the door or when you buy it at the block. On new cars take the shorter deal instead of adding $500.00 to ACV just to make deal look better.Take them in for the RIGHT money and then you can prep then right and then demand a premium price for them. If your cars are stand up grade A ready the grosses will actually increase, and parts and service profits will also increase. Everyone wins.

 

Like I keep saying, we need to get back to basics. It's not rocket science!

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