Recently I was in a Ford dealership on a coaching visit and reviewed labor operation frequencies. I always find this a wealth of information on how well advisors are doing with customers. In this review, differential services were only performed seven times over the last year. Pickup trucks and SUVs in Ford dealerships are the top sellers in the nation, so I estimated that 800 differentials come through this shop every month. If the customer was offered a maintenance service with a good feature benefit presentation every time, they would likely sell seven in one day. Every other maintenance operation illustrated the same trend and as you can imagine generating poor results. The average age of vehicles on the road in the United States is at 11 years old. Imagine the amount of maintenance and repairs that are needed throughout the country that doesn’t even get recommended. Customer retention for dealerships generally revolves around warranty expiration. Independent repair shops take dealership customers right when things are ready to start breaking on the vehicles. My view is dealerships always should have the advantage as they invest in hundreds of thousands of dollars in special tools and technician training. Independent repair shops cannot compete with this type of investment while they work on every brand. The perception with customers on aging vehicles is that dealerships are rip-offs and charge excessive prices. Retaining customers is dependent on dealership processes for customer care. They must know the primary focus is to keep their vehicle safe and reliable for their family. The dealership experience needs to be flawlessly providing the customer with care beyond their expectations. The days of processing customers with the advisor not even leaving the terminal to look at their concerns must end to retain customer pay clients. Many potential changes are making the news recently such as eliminating fossil fuel engines and car ownership with ride-shares. Margins on new cars continue declining to place more emphasis on fixed operations to generate gross profit for the dealership. Wise dealerships are doing everything possible to maximize fixed operation results. If you desire to have your dealership take advantage of changing times give us a call. That’s what we do!

Sincerely,
Rob Gehring, President
Fixed Performance Inc.
Margin Plus
1-888-205-8718
Cell: (419) 282-1351
rgehring@fixedperformance.com

Views: 1

Comment

You need to be a member of DealerELITE.net to add comments!

Join DealerELITE.net

Latest Activity

John Sternal posted a blog post

Lease Credit Approvals Dip Slightly To 68.9% in August

Lease Approval Ratings Drop Slightly in August Following Increase in JulySwapalease.com, the…See More
1 hour ago
Crystal Hartwell posted a blog post

SureSale Certified Increases Used Vehicle Sales and Turn Rates for North Carolina Dealership

 New case study shows how Reed-Lallier Chevrolet leveraged this one-of-a-kind CPO program to…See More
4 hours ago
Bill Wittenmyer posted a blog post

Stop being lead-centric. It’s about the customer experience.

Today’s customers expect and demand an amazing customer experience. The dealership with the right…See More
7 hours ago
Reynalda Lor posted a discussion

Car Dealership Design Ideas?

Greetings!According to our marketing and HR teams, the sitting arrangements, interior and exterior…See More
10 hours ago
Rob Gehring posted a blog post

Overrides

Today’s…See More
yesterday
Bill Wittenmyer posted a video

WittsWiseWords: Super Workers

Are you setting your employees up for success? In this #WittsWiseWords, automotive retail expert Bill Wittenmyer talks about why your super-start employee ma...
Monday
Michael Trasatti posted a video

New Thought Processes in Hiring

Mike Trasatti shares why companies should rethink their hiring processes in this video blog.
Monday
Samuel posted a blog post

Top Anti Phishing Softwares that are Affordable

As the security threat is increasing more, people look for a secure way to increase their data…See More
Monday
Courtney Evans posted a blog post
Friday
Anthony Giagnacovo posted a blog post
Friday
Mike theCarGuy Correra posted a video

Why Buy In is Important When Adopting New Technology

Account Manager Mike Correra shares why staff buy-in is vital to success when adopting new technology.
Friday
Jim Flint posted a blog post
Friday
Damian Boudreaux posted blog posts
Friday
John Sternal posted a blog post

Auto Loan & Lease Origination Data Through April 2019

Here is the most recent auto loan and lease origination data and trends from Equifax.  Key…See More
Sep 11
Bill Wittenmyer posted a video

#WittsWiseWords: F&I - Be the Most Obvious Choice

As dealerships shift their staffing structure to streamline the car buying experience for today's connected car shopper, Bill Wittenmyer explains the benefit...
Sep 11
Mike Esposito posted a blog post

Technology Can’t Replace Process

Dealers often look for new technology solutions to help them solve a problem, and rightfully so.…See More
Sep 11
Erik Nachbahr, CISSP posted a blog post

How to Build a Human Firewall

Cyberattacks are on the rise. In the first six months of 2019, the number of data breaches has…See More
Sep 10
Eliana Raggio posted events
Sep 10
Eliana Raggio updated an event
Thumbnail

FREE WEBINAR: How to Get 5-Stars and New Leads at https://digitalairstrike.com/webinars/How-to-Get-5-Stars-and-New-Leads

September 12, 2019 from 12pm to 1pm
Did you know that nearly half of all consumers are choosing businesses and brands based on online…See More
Sep 10
Jim Flint posted a blog post
Sep 10

Get Newsletter

© 2019   Created by DealerELITE.   Powered by

Badges  |  Report an Issue  |  Terms of Service