Tag Archives: phone skills training

Top 10 Reasons Why Dealerships Don’t Train With DealerPro

Number 10.

“We’ll do it ourselves.” And most Service Managers and Service and Parts Directors really believe they can. “The Real Truth” is different from the Reality.  Most of the time  they find it hard to devote 30 minutes to a vendor or the factory let alone the hours of training required to make a change in an Advisors behavior.  Lasting change in a Dealerships Operation does not happen without a change in the behavior of the personnel employed there.  We help people change their behavior so they can be Successful.

Number 9.

“It’s too expensive.” We have a saying at DealerPro.  “Never let money stand in the way of training. “ Our Performance Based Training Program is a perfect example. We don’t get paid unless you get an Improvement.  DealerPro assumes all the risk. We even back what we say with a Performance Guarantee Clause in our standard agreement. Try finding another Training organization that does that.  

No, Mr. or Ms. Dealer, it’s too expensive to do nothing. Every day you wait, you are losing Gross Profit. Those days of Lost Opportunity add up to months and then years. When is it too late? Unless your doors are closing, then the answer is Never!  Let us help you achieve your Goals for your Dealership.

Number 8.

“It’s not the right time.” When is it ever the right time?  Everyday there is a new challenge. People quit, the computer system crashes, the parking lot is being repaved…there is no right time. In fact, waiting for the right time is the exact opposite of the right time. It is always the wrong time to wait and it is costing you money Mr. or Ms. Dealer.

Number 7.

“I’m in the middle of hiring new people.” What a perfect time to get them trained properly. What benefit is there to waiting for training? None, there is no benefit. Every successful organization on the planet has a training program for new hires that gets them started on the right foot. You want them to be properly trained don’t you?

Number 6.

“We do things differently around here. Your program won’t work.” In the 11 year history of the company that refrain has been heard thousands of times. And in every state in the country and even internationally, time and time again, we have proven that our system does work without regard to location or region. It works because it’s based on people. And everywhere you and I go, we love to be taken care of by people who are well-trained. Ever go into a restaurant and say “Please send over the waiter in training and oh by the way, I’d like the busboy to cook my steak tonight” …you wouldn’t want that experience and neither do your Customers.

Number 5.

“My people won’t like it.” That may be true. If they are under achieving, they won’t like our program. This program is designed for Dealerships that are looking to improve their bottom line, not stay the same. And when you start making changes and improvements, people who have been comfortable get well…uncomfortable. Why? Because if you want to Succeed, you have to do things differently.

And comfortable people want to stay comfortable, don’t they.

The Truth… if you have some go getters, anyone on your team that has been waiting for a chance to Excel, will embrace this program because it will give them a chance to reach new goals and make a difference. They will support this program because they have been waiting for change.

Number 4.

“We are too busy to do training.” Mr. or Ms. Dealer, this is exactly why you need to do training. If your level of “busy” matched your level of profits, we wouldn’t be having this conversation. There are busy Dealerships and then there are Dealerships that appear to be busy. In the latter, we find that there is a lot of wasted time and opportunity.  Your Customers are coming in and not being handled properly. And that means Lost Profit.  We can help. We will analyze your Dealerships capacity and make sure that it is being maximized while Training the personnel in Service how to properly handle your Customer.  This means Loyal and Returning Customers and higher Gross Profit.

Number 3.

“What if I don’t like the Trainer?” We are a Performance Based company Mr. or Ms. Dealer, and as such, everyone is measured all of the time. If there is a Performance issue, chances are we already know and will be talking with you and your Trainer to identify the problem. If it is a personality issue, we will work with you to resolve those issues. If there is still an unresolved issue, we will make a change that is good for your Dealership and DealerPro.

Number 2.

“I have a friend/consultant/the factory with a similar program and we want to use them.” While we support Training and certainly respect anyone who can provide a program, the differences between DealerPro and the “other guy” is tremendous. Here are a few items to consider.

  1. Will the friend/consultant/the factory return every month for 13 months for one week of training in the service drive? Shoulder to shoulder, Repair Order to Repair Order with the Advisors and Managers?
  2. Do they have any “skin in the game”? In other words, are they fee based or performance based?
  3. Do they have an Automotive Retailer background? Our average Trainer has 20 Years experience as a Service Manager or Service and Parts Director.

If the answer to any of these questions is no, then you really need to consider DealerPro as your first choice.

Number 1.

“I’m not really sure about all of this. Isn’t this what I am paying my Service Manager for?” Mr. or Ms. Dealer, we find that most Service Managers and Service and Parts Directors are good at doing lots of things.

 We are the best at one thing, Training Service Personnel.

And because we are really, really good at Training, our Dealers enjoy an average 40% increase in Gross Profit. At the end of the program more than likely, your Service Manager and Service and Parts Director will be able to train on the processes we teach. This means you get to keep the Training and continue enjoying the benefits of Trained Personnel for as long as you like.

Bottom Line, there really is no reason not to start Training. Let us help you get the Profits you deserve and have a Dealership you can really be proud of.

Send an email to lbuchholz@dealerprotraining.com or call 888-553-0100 for more information and find out how you can increase your Gross Profit through Training.

Crunching Your Service Numbers

Information

Information (Photo credit: heathbrandon)

It is not enough to measure.

That’s right, I said it.

Measuring your numbers is a waste of time if you don’t do anything with the numbers you measured. In order for the numbers to mean something, you must do something with the information they provide. It is not enough to just gather and store the information.

“You must measure what you need to manage”…..and….”you must inspect and evaluate the efforts of your people  daily” says Don Reed, CEO of DealerPro Training Solutions.

So, what do you need to measure so you can manage the Service Department?

Lets look at the 5 Basic Daily Measurements.

  1. The Service Advisors HPRO from the day previous. (Hours Per Repair Order)
  2. The Service Advisors EFL from the day previous. (Effective Labor Rate)
  3. The Service Advisors Labor Gross Profit Margin from the day previous
  4. The  Service Advisors Parts Gross Profit Margin from the day previous.
  5. The Service Departments overall results in HPRO, EFL, Labor and Parts GPM tracking for the month.

This is really all the information you need on a daily basis to see where you are for the month and what direction you are headed. Are there additional measurements?

 Yes, of course.

Every Dealer Principal, General Manager and Service Director look at different numbers. And, you need to measure more than the Daily 5 to keep the Service Department on track.

Crunching the Daily 5  helps keep the focus on the big picture and points to areas that need attention. However, if you are just gathering information and not making adjustments based on the what the numbers are telling you, you got a problem.

It’s like standing in a darkened room with your hand on the light switch and complaining that you can’t see.

Of course, this does not make any sense at all. Yet, that is exactly what you are doing when you have the information available and then choose to do nothing with the information you have collected.

And you need to have a standard to measure against. For the record here are the standards for the previously stated Daily 5.

  1. HPRO should be at 1.5 or greater. Anything less requires immediate attention and intervention. In order to get to 2.0 and above you need to have daily interaction and repair order review with your Service Advisors.
  2. EFL should be at 90% of door rate. Anything below 75% requires immediate attention and intervention. In order to get above 75% you must inspect and review repair orders daily with your Service Advisors.
  3. Labor Gross Profit Margin at 75% of Labor Sales. Anything less than 60% requires immediate attention and intervention. In order to get above 60% you must inspect and review repair orders daily with your Service Advisors.
  4. Parts Gross Profit Margin at 45% of Parts Sales. Anything less than 30% requires immediate attention and intervention. In order to get above 30% you must inspect and review repair orders daily with your Service Advisors.

And of course for the overall picture, you must take a look a decide if you need to make adjustments based on what the entire picture is really saying. These measurements are really signposts along the path to increased Profitability.

Measuring and crunching your Service Numbers are not that difficult if you know what you are measuring, why you are measuring and more importantly what you are going to change to get to the numbers you need. Use these Daily 5 as a baseline. Interact and review daily and you’ll find yourself “crunching the numbers” for results.

If you are wondering how you “measure up”, send an email to info@dealerprotraining.com or call 888-553-0100 and schedule an evaluation of your Dealerships Fixed Operations and Profit Potential.

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.

On your financial look at your total labor sales for C/P ROs. Now look for your gross profit. Next to that will be gross profit expressed as a percentage. This percentage is what we are after.
Notice I did not reference your last RAP or 3611 or Advisors report.

Why?

 Because what is on the statement is all that matters. At the end of the month will the Dealer Principal ask you about your Advisors report or the financial?
If your GP percentage is at less than 75% we need to start looking at several factors, the most critical is how much do you discount?
The number one reason why GP is low in many dealers is the because the Profit  is being given away. Not only by the service advisors mind you. How about those guys in Parts?

The more you discount, the less Gross Profit you have.

Control your discounts, control your Gross Profit.

If you look on that same statement, usally right across the column, there will be the parts numbers. If you look at the C/P RO parts sales, there will be gross profit and percentage as well.

If this number is less than 45% then we need to look at how the parts are being billed on the repair order. In other words, is the part being billed at the correct price or is it the discounted price?

Most GP for Parts is lost the same way it is in Service, it is simply given away.

So, what’s next?

 Most times a serious conversation and follow up is enough to bring it under control. However, do not hesitate to remove the capability of giving a discount from those who are abusing the privelege. Recheck the numbers at the end of the following month and keep track of changes.

The key to increasing Gross Profit is not only knowing where to look but also what to look for!

If you are looking for ways to become more Profitable and learn How to Hold Personnel Accountable, send an email to lbuchholz@dealerprotraining.com and schedule a Profit Potential Analysis.

 The key to better performance is not only what you measure, it’s how you measure it and how you hold your personnel accountable to those measurements.