by CDK Global | 3 January 2013

5 Ways to Help Your Service Department Win

Service departments across the country are finding ways to increase sales over last year. Find out the 5 things they are doing differently.

1. Increased Traffic: Dealers that improved year over year saw a 13% increase in Service sales due to traffic. But, traffic is just one input into the total revenue produced by any service shop.

2. Billing for Shop Supplies: By billing 38 cents more per RO, dealers that increased revenue year over year were able to recoup more of their shop expense then other dealers.

3. More Hours Per RO: Finding an additional 15 minutes on average per RO helped the improved dealers increase sales by $195,000. There is always another quarter-hour to sell. And they found it.

4. More Parts Per RO: Adding $38 more per RO helped dealers found an additional $680,000 in service dollars. Those up-guys know how to spot parts that need replacing, and they know how to sell them.

5. Less Outside Work: Successful dealers had $1.11 less sublet sales per RO than the struggling dealers. The improved dealers made investments in training, equipment and personnel so they could keep the “big jobs” in house and keep a better margin.

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