Nitrogen and other additional profit generators..
When we bought this store in August 2007, one of the first things we did was go and buy the "Mack Daddy" of Nitrogen machines - the purigen 98. Not a cheap investment by any stretch of the imagination, but after 3 months of it being installed, it officially paid for itself!
It has been for the most part a very easy sell. We offer it for $39.95 - and we will replenish at no charge for the life of the tires.
As times are growing increasingly difficult, does anyone do anything else out of the ordinary that generates additional revenue?
It has been for the most part a very easy sell. We offer it for $39.95 - and we will replenish at no charge for the life of the tires.
As times are growing increasingly difficult, does anyone do anything else out of the ordinary that generates additional revenue?
Replies to This Discussion
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Permalink Reply by Monica Peck on -
We are prefilling all of our new cars - and putting a sticker on the windows - charging $49.99 (pre-loaded accessories) and getting it paid by the customer with very little push back. Nitrogen has been big for us - as we have had very little "down side" to it, if any. The other thing that we are doing a little out fo the oridinary is a "Scrub club" with our car wash. You can buy a "Scrub Club" card for $99 for unlimited car washes for 1 year. You can bring your car into us on Tuesdays or Wednesdays (or both) - no service needs to be purchased - and we will run your car through the car wash - unlimited number of times for 1 year. It gets the customer coming in whether they need to or not, and we just have a porter hop in their car and take it through the wash for them. Almost pure gross profit.
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Permalink Reply by Chris Stevens on -
Do you just run it through the wash or do you also do windows, vacuum, etc?
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Permalink Reply by Ryan Leoh on -
Chris,
How much did your nitrogen machine cost you and where did you get it?
Who is selling it - service advisers or F&I? What do you have to pay the techs to install it? I am having a hard time understanding where the profits are coming from.
Thanks for your help.
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Permalink Reply by Chris Stevens on
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It is a purigen 98 machine, which we got for $12,000 installed. Everyone sells it. The advisors, salesmen, F&I and my owner will sit down and school people waiting for service. We pay our techs .2 in labor and do roughly 100 a month. We retail for $39.95 and give free fill ups for life of tires. If we do 100 a month, that is $4,000 in gross minus $600 in labor minus $500 in compensation, so we net about $3,000 after the dust settles. Like I said before, the machine paid for itself in a couple months, everything from there on is gravy.
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Permalink Reply by John Fuhrman on -
When we formed our agency, the first thing we did in evaluating which products to offer dealers was the ability to sell them in service as well as in F&I. Having run dealerships over the years, I realized that customers who service with the dealer do so because the confidence level is high. We've added a menu for these products that is customized for service. Now, every product (except GAP) can be offered in our service departments for profit. Best of all, in using the menu, we avoid any back-up in the service drive when things get busy. The dealers who work with us are fully trained in Service Drive selling.
John Fuhrman
http://www.dealerprofitsnow.com
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Permalink Reply by Jim Washam on -
Chris, I love Nitrogen and Monica the scrubb club is a great idea. Tire Pressure Monitoring Systems screams nitrogen inflation.
I just took the wife's wrangler through the car wash yesterday $11.00 wow. What an ideal way for the sales department to see past and future customers too.
Take it one step further... let's train the porter to print off a menu package based on year/mileage as well as check fluids and tire psi and tread depth before taking to car wash.
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