While some dealerships have done an incredible job of surviving the storm that is the COVID-19 pandemic, in many cases, sales and service have decreased. Customers still want to buy cars and service their vehicles, but a good amount are still in a self-isolation.
As a result, most dealerships have experienced a decline in service revenue at a time when they are also having to invest in expensive concierge-type services such as pick-up and delivery. These additional services are now part of the “new normal,” rather than optional. The dealership now faces the expense of employees for vehicle pick up and return. And, if the customer does not receive a loaner vehicle, it requires TWO employees to accomplish this service properly. Imagine how the margins decrease when a customer wants a simple oil change and declines service recommendations. The dealership has already committed to picking up their vehicle and bringing it back to the owner. The dealership might even see a loss of revenue in this scenario.
Your dealership can aim higher. Here is where being vigilant on a full and thorough inspection, as well as ensuring that you conduct recall lookups and repairs, can help. Every dollar in revenue, whether factory reimbursement for a recall repair or recharging the air condition, matters. A few minutes more to properly inspect a vehicle not only translates into revenue but also may define whether a consumer views your service and attention to detail as exceptional. This is the perfect opportunity to identify ALL services a customer’s vehicle needs, not just the requested service and recommended services, but also any recall work. This helps keep the roads safer and bolsters service revenue.
Take the time to research and identify open recalls for each vehicle that comes into your service department. Regardless of whether you proactively reach out to a customer specifically about the recall or simply notify the customer that one exists when the customer’s vehicle is in your service department, the customer is much more likely to agree and allow you to perform the recall repair while you have their vehicle in for repair anyway. This, in turn, provides additional fixed ops revenue and a better customer experience.
Yes, times are tough, but all the more reason to increase revenue by exploring ALL available options, including any outstanding recall work. Now is the perfect time to get that service business, increase revenue through recall repairs, and make your customers happy.