Higher Sales in Service, Parts, and Body Shop
During my conference calls with Managers the most common request is “I need more Sales.” Although I can’t snap my fingers and dispatch more Customers, I can share with you some thoughts that help Dealerships increase their sales and hope to inspire you to try a couple of the ideas.
Because it doesn’t involve spending money on marketing, the easiest way to increase your Sales is to increase your yield per Customer. Whether it’s doing a better job in the Finance Department or upselling in the Service Department; begin by taking a good look at your Profit Blueprints Reports to see where your opportunities are in each Department. Are there services you could offer to your current loyal Customers? Some suggestions to boost sales:
SERVICE LANE UPSELLS: Look at the older vehicles that come into your shop. Customers driving these vehicles may not be ready to buy a new vehicle (or they just love their current vehicle), but they may be in the market for some “upgrades” to their vehicle such as a Bluetooth Car Kit, iPod adapters, and for non-GM Dealers—On Star FMV. Offer to enhance the exterior with window tinting, chipped glass repair, headlight restoration, chrome door handles, or the interior with cargo/trunk liners. Create promotions for these vehicles and market them on the Service lane, in the Parts Department, and on your website.
PARTS DEPARTMENT: I know from speaking to Parts Managers that, with the occasional exception, the retail counter folks could always do a better job at selling. It was pointed out to me by one of the sharpest Parts Managers you could hope to meet that people seek their level of competency and some people are destined to be retail counter people, while others thrive on the challenge of a wholesale salesperson. Yes, we’d like for the counter people to say, “Will you need coolant to go with that radiator cap you just purchased?” but most times it just doesn’t happen. (For training your counter people on upsells ask me for May 2011’s newsletter) Getting to the point, I saw on the Chrysler Financial Statement under the Parts Sales section a line for Service Contract Sales. Duh, who better to sell a Service Contract to than a Customer coming to the front counter for a part(s)! The vehicle is clearly out of warranty and the Customer obviously doesn’t have a Service Contract.
The big question becomes how to motivate the Parts Counter Person to promote purchasing a Service Contract. Well money usually works pretty well. Significant spiffs could make a huge difference in a Counter Person’s pay. Get with the Finance Manager or Service Contract vendor and have them train the Parts folks on selling. Have Service Contract flyers at the front parts counter and encourage the Counter Person to supply the Customer with the flyer. Going back to the March 2012 newsletter, create buttons that say, “Ask me how your next repair can be free!” or whatever you would use to promote Service Contract sales on the Service Drive. This works well if your Dealership has a “disappearing deductible” if the repair work is done at your Dealership.
PS, Don’t forget those Special Order Parts—There’s profit sittin’ on them-there shelves!
BODY SHOP: Being a frequent visitor of Body Shops and the daughter of a serial Body Shop Customer, I can emphatically state there are very few Estimators who do anything other than write the estimate. How easy would it be to offer to do the service on a vehicle that is in your Body Shop? You cannot tell me that every vehicle that comes into the Body Shop has up-to-date maintenance. Not due for service? How about a coupon for $20 off their next service? (Especially if this is the first time a vehicle has been to your Dealership—what a great way to get them to come back.) Not every Customer coming in has a deductible to pay, so offering to take care of something the Customer may need or want could increase your Body Shop sales. The Body Shop could also work with the Sale Departments to handle window tinting or clear bras for new vehicles.
There are plenty of opportunities to increase Gross Profit with our current Customer base—without bringing in any more Customers we’ll just run through our system and then go on to bring more Customers in.
Sharing ideas and business-proven solutions is just one of the benefits of using the Profit Blueprints® System. Each month we talk with Dealers and their Managers to discuss their opportunities and provide them with Dealership-proven solutions. The solutions are designed so your Managers create personalized action plans for under-performing areas in their Departments. For information on how we can help you and your Managers reach your goals with our No Risk Guarantee, call 877.316.7418 or email us at .
