Optimizing Your Dealership's Profitability
Do you know what your monthly average productivity is by Technician? How can you maximize productivity and improve utilization to empower your dealership and keep customers coming back? Finding the areas your dealership can improve in is key to your success and can help drive your dealership to healthy profits.
Get the right work to the right Technicians
Are the right Technicians getting the right work for their skill level? Assigning less skilled Technicians to more complex jobs with higher billable hours can reduce productivity and efficiency at the dealership. A beginner Technician shouldn’t be working on service issues that take longer than three or four hours, while a skilled Technician shouldn’t work on something that would take less than 30 minutes. Experienced Technicians should get more complex jobs because they can get it done faster, which can greatly improve productivity.
Get Service to make more money to absorb fixed dealership costs
Vehicle inspections should be performed while the customer is dropping off their car. The Service Advisor should be looking over the vehicle for things like worn windshield wipers, paint damages, worn tire treads, filters, and outstanding warranty work. Ideally, the Service Advisor is using an iPad integrated with the DMS to record findings, capture pictures and pull up outstanding work history to make service recommendations while the customer is still present.
You can also optimize profitability when vehicles are on the lift. Having a process to quickly communicate with customers about repairs when the vehicle is already in for service can greatly increase the acceptance of work during that visit.
Make sure you have a solid Service appointment process
Do you have someone handling an appointment process for the Advisors to follow? Don’t wait for customers to come to you. Use outbound calls to set appointments and get those regular maintenance buckets filled to hit OEM customer retention numbers. Proactively creating processes that are measured can grow a sustainable business.
You may think your Service department is doing well, but what about the untapped revenue you’re leaving on the table? These suggestions can help grow your dealership by building short- and long-term business objectives, utilizing metrics to track performance, and tracking key reports to help manage productivity and efficiency.
CDK Consulting can help drive your dealership’s success. Our approach is focused on identifying dealership’s goals and needs, then establishing benchmarks and metrics to track those goals. Learn more about CDK Consulting.