Dealerships don't have to follow the latest automotive industry news to know it's getting tougher and tougher to be able to afford to pay the bills. Experts predicted a loss in gross profits in the billions in the automotive industry this year. It's an unprecedented loss that's primarily due to consumers struggling in today's economy.
Large and small dealerships alike are being hit hard by today's economy. It's a grim scenario, but not a hopeless one. To manage to survive and even thrive in today's tough economy, dealerships must look beyond the sales department, or what's always been the "golden child" of gross profits. Now is the time to make a fixed op's invested that can't fail to tap into the massive profit potential that exists outside of new car sales.
One of the best places to start investing in fixed op's to boost revenue and profits is the service department You don't need a complete overhaul to transform a service department into a profit generating machine. To have the biggest and most dramatic impact on sales in the service department, start by investing in service consulting for service directors, service advisors and service technicians.
Service department and fixed op's profitability can be improved in a multitude of ways in most dealerships. A service consultant is the key to recognizing those opportunities and providing the training needed to make every service team member more profitable.
The time has never been better for investing in automotive service consulting. Customers may be reluctant to spend money on new vehicles, but they're eager to keep the cars they're driving running smoothly for as long as possible. They're also very aware of the value of saving money. Service maintenance is almost like insurance against the need for costly repairs. Given a choice, today's customer would much rather pay for affordable maintenance services than repairs that cost a small fortune.
Service consulting can have a powerful impact on how service personnel work together to sell more services. A consultant can train technicians to provide detailed information to service advisors about various services a customer many need. Service advisors can then explain in detail why a particular service is important, when it should be performed and what (if any) other options are available. The director of service can coach, evaluate and support both techs and advisors along the way.
In the long run, service consulting doesn't just benefit the dealership. It benefits the customer, too. Focusing on fixed op's and service will guarantee customers receive exactly the type of service they're interested in today. Greater customer satisfaction will improve customer loyalty, and this will have a positive impact on sales in the future. Discover how a small investment in service consulting is today's automotive industry secret to success.
