July 2010 Blog Posts (22)

Your Customer’s Perception Is Reality

I get it. It’s tough out there. Customer access to information on the internet continues to squeeze margins. Dealerships are just trying to make a buck in a fiercely competitive marketplace. You have to do whatever it takes to stay ahead of the competition.



I also get that some may view compliance as unnecessary, overrated, annoying, a waste of time and money, and downright harmful to profitability. These are perceptions and as they say, perception is reality.



Some… Continue

Added by Jim Radogna on July 31, 2010 at 6:07pm — No Comments

What Strategy Do You Use for Pricing Your Online Inventory?

"We run two different dealerships, used retail and rent-to-own (RTO). For retail, we use the Internet as our guideline and try to stay in the bottom 25 percent of similar models, and recalculate bestsellers every 30 days. RTO stores are priced by ..." - Wayne Lewis, President, Auto By Rent, Inc. & Premier Auto Outlet, Inc., Rogersville, MO



"Black Book values have always proved best over the years of my spending more than $50 million for… Continue

Added by Jenny Murphy Bloodworth on July 31, 2010 at 8:00am — 4 Comments

Auto sites Auto Video Auto Research

We have started a few site for dealers and consumers where you can see or send a video of almost every new car out there along with doing car research

We also have a site for BMW lovers in LA called BMW Los Angeles

Last we started a funny auto video site where people can post almost anything funny about cars

Added by Dave Molyneaux on July 30, 2010 at 12:26am — No Comments

Right to Repair Bill

There hasn't been much discussion on the Massachusetts "Right to Repair" bill on our site.



The Right to Repair bill has been touted as a way to lower the cost of repairs for consumers by making it easier for independent repair shops to compete.



The supposed reason for the law is for parts manufacturers to get access to information to remanufacture original equipment to make cheaper versions.



There is strong support on both sides of this issue.



Is anyone… Continue

Added by Harlene Doane on July 26, 2010 at 10:35am — 13 Comments

Saving Newbee Advisor

In the movie “Saving Private Ryan”, an Army unit is sent to resuce the last surviving brother for a mother in waiting. The team is successful and Private Ryan returns home to live a life of fulfillment.



Nice story. Great plot. Excellent movie.



What has that got to do with Fixed Operations and Service Advisors?



Well, it is more about what you are not doing than what you are doing. And “Saving NewBee Advisor” could just as well be titled “Saving Every Advisor.”… Continue

Added by Leonard Buchholz on July 23, 2010 at 1:27pm — No Comments

Are You Trying to Save Your Way to Profitability?

Getting profitable. Wow. How cool would that be?



You come into the store the first day of the month, open the door to your office, turn on the lights, sit at your desk and open the drawer that you keep your last months financial statement in and read through it until you come to the page that has the final numbers....and you smile a little self satisfied smile....when you realize "we paid all of our bills before we even opened the door this morning."



Sounds like a science… Continue

Added by Leonard Buchholz on July 22, 2010 at 3:21pm — No Comments

Increasing Sales and Gross Profit is all in the Plan.

“Your plan for achieving 100% Service Absorption should focus on what you are going to do differently to increase sales and gross profits. It’s not just about advertising and marketing, it’s about processes” says Don Reed, CEO of DealerPro Training Solutions.

Increasing Sales is the one of the core functions of the Management Team (read Service Manager). And quite frankly, is one area that most Service Managers have…

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Added by Leonard Buchholz on July 21, 2010 at 7:14pm — No Comments

Service Absorption Rule #1

“Maintain your profit margins at 45% C/P Parts and 75% C/P Labor” says Don Reed, CEO of DealerPro Training Solutions.

Maintaining your profit margins is not always easy, and it’s not getting any easier! If you are struggling with profit margins, the first thing you must do is measure what you are getting.

The financial statement is the place to look. On your financial you will find month end data as well as year to date. What we want to take a look at it is the month end numbers from…

Continue

Added by Leonard Buchholz on July 21, 2010 at 11:09am — No Comments

Maximum Accountability Creates Maximum Profitability

After spending the last nine years working with hundreds of dealerships all across our country, I have discovered an amazing phenomenon permeating fixed operations. One could compare this phenomenon to cancer. The good news is this cancer is 100 percent curable for every single dealer who really wants to be cancer-free! The cancer is called “Lack of Accountability.” I find maximum accountability for everyone’s performance in the sales department, but when I…

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Added by Robin Heywood on July 20, 2010 at 9:09pm — No Comments

Business Development Centers Can Maximize Service Appointments

I recently reviewed some research findings from a Detroit 3 manufacturer that revealed a very disturbing statistic: “The average dealer has a drop rate of about 35% on incoming service calls.” This simply means the customer hangs up the phone without speaking to anyone. This is disturbing, particularly in light of the declining warranty and retail repair order counts we are experiencing in our industry today. As a dealer or general manager, would you allow 35…

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Added by Robin Heywood on July 20, 2010 at 9:07pm — No Comments

Missed Profit Opportunities

In the pursuit of additional profit opportunities in your service department, you must focus on maintenance of your customers’ vehicles. This is a missed opportunity for many dealers who do not perform complete, thorough inspections of their customers’ vehicles and do not make recommendations for preventative maintenance based on time, mileage, local conditions, etc. The value of these missed profit opportunities might surprise you.…

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Added by Robin Heywood on July 20, 2010 at 9:06pm — No Comments

The Meaning Behind the Term "Fixed Operations"

Why do we classify half of our dealership as variable and the other half as fixed? What is the difference between the two? Should they operate independently of one another or operate as one? Is one more important than the other? As a dealer or general manager, which one deserves more of your time? These are interesting questions that are worthy of much discussion for the dealer who wants to survive and thrive in today’s marketplace.…

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Added by Robin Heywood on July 20, 2010 at 9:04pm — No Comments

Recruiting Top Performers: How To Hire What You Want And Need

Do you plan on hiring additional fixed operations personnel this year or possibly replacing someone who currently isn’t getting the job done? I’m talking specifically about technicians, service advisors, parts managers and service managers. If so, do you have a well-thought-out strategy for recruiting top performers?



What is a top performer? It is simply someone who can perform above the industry’s performance…

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Added by Robin Heywood on July 20, 2010 at 9:03pm — No Comments

Service Absorption Rule #2

“Maintain your hours per C/P Repair Order (RO) at a minimum of 2.5” says Don Reed, CEO of DealerPro Training Solutions.



If you are currently at the national average of 1.5, then this might seem a bit of a stretch. It’s always a stretch when it’s as big as an elephant. And we know how to eat an elephant, right…..one bite at a time.



So, let’s break it down into bite sized pieces.



In the pursuit of HPRO the first thing we must have is…

Continue

Added by Robin Heywood on July 20, 2010 at 8:34pm — No Comments

Service Absorption Rule #1

“Maintain your profit margins at 45% C/P Parts and 75% C/P Labor” says Don Reed, CEO of DealerPro Training Solutions.



Maintaining your profit margins is not always easy, and it’s not getting any easier! If you are struggling with profit margins, the first thing you must do is measure what you are getting.



The financial statement is the place to look. On your financial you will find month end data as well as year to date. What we…

Continue

Added by Robin Heywood on July 20, 2010 at 8:29pm — No Comments

Service Absorption Rule #3

“Maintain a 6 to 1 ratio of C/P RO count to total vehicle sales” says Don Reed, CEO of DealerPro Training Solutions.

That sounds simple enough. If you are currently selling 100 New and Used a month, then that pencils out to 600 Customer Pay Repair Orders per Month, not including Warranty and Internal. It’s the CP RO count we are after.

So, you just realized that your RO count is low, right? What are you going to do about it? If you are thinking that you need a big production…

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Added by Leonard Buchholz on July 19, 2010 at 4:44pm — No Comments

Recruiting Salespeople - Step 2 - Design The Ad

Next - design the ad. This will make the difference between wondering if your ad ever ran and having a dealership full of qualified applicants. Let's look…

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Added by Michael Rees on July 16, 2010 at 12:03pm — No Comments

Recruiting Salespeople - Step 1

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Added by Michael Rees on July 16, 2010 at 11:50am — No Comments

Service Absorption Rule #2

“Maintain your hours per C/P Repair Order (RO) at a minimum of 2.5” says Don Reed, CEO of DealerPro Training Solutions.



If you are currently at the national average of 1.5, then this might seem a bit of a stretch. It’s always a stretch when it’s as big as an elephant. And we know how to eat an elephant, right…..one bite at a time.



So, let’s break it down into bite sized pieces.



In the pursuit of HPRO the first thing we must have is well trained personnel. This…

Continue

Added by Leonard Buchholz on July 13, 2010 at 6:00pm — No Comments

Celebrity chefs, singers and mo-dels dump limos

Have the auto manufacturers gone ‘celeb’ mad? A couple of weeks ago I read that Kate Perry did a three-song set at the unveiling of the new Volkswagen Jetta in New York’s Times Square. I assume she performed this before heading off to do that topless shoot which was featured on Yahoo’s home page the other day.…

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Added by Charles Bayer on July 7, 2010 at 10:29pm — No Comments

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