Tag Archives: service advisor

People say the darnedest things, don’t they.

We hear many things in Service.

Many people, many messages.

Stand on any Service Drive on any given day and you will hear Customers describe all kinds of noises related their vehicles. The variety of sounds people make describing their vehicle and situation is utterly amazing at times.

And no doubt you will hear conversations between Service Department personnel as they conduct their daily business.  Everything from “When will that part be here?” to discussions about lunch and everything else in between. In Service more words are exchanged on an hourly basis than nearly anyplace else on earth.

But there are things that you will never hear in the Service Department or even in the Dealership.  Here are a few of them.

  1. “Don’t take care of the Customer.” Is there ever a situation when you would not take care of your Customer? Maybe…I can’t think of one.  The chances are that 99.9% of the time you will be doing something.  Whether that is driving to their home to deliver a car to making sure that the waiting room coffee pot is full. The first word in your Department’s name is “Service.”
  2. “You are doing way too much maintenance work.” We recommend Service and Maintenance because that’s what we are supposed to do. The person doing that job is called the “Service Advisor” not the “Service Guy” or “Service Man/Service Lady” or even “Service Writer.”  The Service Advisor needs to be the most Professionally Trained and Knowledgeable person in the Dealership.  You can’t talk to a Customer intelligently about the vehicle and the maintenance required to keep it functioning as it is designed if all you know how to do is punch letters on a keyboard and say “Have a seat in our waiting room.”
  3. “You don’t need to be profitable this month/this year.” Just not going to happen. The Service Department is the heartbeat of the Dealership. Have you ever been to a Dealership where the Service Department was on its last wheezing gasps? That’s a Dealership in trouble because just like a human, you can’t live without a heart.
  4. “You can close early every day this week.” Nope, not going to happen either. Service stays open because vehicles break and more importantly Customers need us at to be open. For some people the family car is the one and only thing they have to get them around. For others it is the difference between making it to the doctor’s appointment or not. Service stays open because there isn’t a crystal ball made that can predict when it can be closed.
  5. “You don’t need to Train anymore.” There is not one single Successful business, military branch, professional sport, popular band or orchestra that does not Train on a regular and continuous basis. Not one. It’s impossible to put a marketable product, military presence, winning team or great sounding band into the world’s eye without it. Training is the beginning of Profit and the basis of Professionalism. You can’t have one without the other.

Take a listen the next time you walk through the Service Department. You will hear many things. Some of them might even be humorous. But chances are, you won’t hear these 5 things anytime soon.

The one word every Advisor needs to hear…

There is one word every Service Advisor needs to hear.

This word is the key to their future…whether they become a top-notch superstar a middle of the road average Joe or a washout…they need this word.

It defines greatness as well as highlights deficiencies.

The word is…No.

Since our company trains in Dealerships all over the country, we are exposed to every possible Service Advisor imaginable.

From the greenpea who is day one in a new job to the old dog who knows every customer who has come in for the past 5 years!

And in the Seattle area there is a Service Advisor named Chad who became a believer in the word No!

Chad was new to the Service Advisor business at that time. He did not come from an automotive background, unless you count driving a car, and he had no  special skills. And he does not come to work wearing a cape nor does he possess the ability to see through concrete.

When we first started training in Chad’s store and introduced Professional  Selling Skills, Chad was skeptical just like everybody else.

After being trained on the 12 Step Process and ASR Presentation Skills he went back to work in the service drive. At first, he did some of the 12 Step Write-up processes some of the time and followed the ASR Presentation process sometimes… and just like everybody else, he got what you might expect…some results.

But Chad was a little different.

He understood the value in presenting all of the recommended repairs and maintenance to the customers but didn’t always follow through. Like many other Advisors, he didn’t want to seem “pushy” or “sell them something they didn’t need.”

And he didn’t like the word No.

What changed for Chad is referred to as a paradigm shift. His view of “what it means to be a Service Advisor” became radically different when he realized that his customers were having repairs done someplace else even though he had made the recommendations.

And other customers were coming in with the maintenances on their vehicle up to date because it was being completed by other shops…his competition! He realized he was getting all of the “leftovers” and the “warranty work.”

This is commonly referred to as “someone is eating your lunch.” It means  someone else gets to enjoy the fruits of your work without having to do anything for it.

He asked himself “Why are my customers leaving my Service Department  without having the work their vehicle needs completed right here at my Dealership?”

And then it hit him…it was because he NEVER ASKED! And more importantly, he realized he was afraid to ask!

He made up his mind that his customers were going to be serviced at his Dealership! He started believing that the recommendations he was making were helpful to the customer in maintaining their vehicle and actually saved them money!

And he became a fan of the word No.

He started presenting recommended services…and repair recommendations …and started reminding his customers that “just change my oil” was not really maintaining the vehicle and in the beginning he heard a No a lot. In fact, if you ask him, he will tell you that he almost gave up!

But he had decided that in order to be successful as an Advisor he needed to learn how to sell. And so, he heard even more No’s.

And in his mind he decided that every No was a good thing because that led the next YES!

And because he stuck with it…more and more No’s came his way… and still Chad kept going… and going… until finally one day…he started getting YES.

And soon the amount of YES’es doubled the N0′s.

Can you guess what happened to Chad’s HPRO?

Yep…it doubled… in fact…he became the number one Service Advisor in his store. Can you guess what happened to his income?

Yep…it nearly doubled as well.

Chad is still happily employed at that same Dealership…can you guess how his CSI is? Yep…it’s better too!

All of us like to deal with a Trained Professional…someone who can guide us and help us make the right decision based on our needs and wants. Know what else is true?

We will gladly pay for it…and in some cases pay even more. It’s because we all like to be taken care of.

Want to be succesful as a Service Advisor?

Be like Chad.

Get more No’s!

Coaching For Professionals

Several years ago, our local golf course completed an extensive re-model and re-design.  At the dedication, Ray Floyd was the celebrity guest of honor.  At the time, Ray had been enjoying renewed success in his golfing career.  The local newspaper covered the event which included an interview.  The answer to one of the questions intrigued me, and formed the basis for this article.   The question was, “Ray, what do you contribute your recent successes to?”  Ray responded, “I hired a new swing coach and started seeing a golf psychologist.   You see, I needed to make certain I was maximizing every aspect of my game, both mental and physical!  I needed all I could get from my swing and had to make sure my head was in the right place.  These two changes helped me to improve my game and start scoring again.”

From Ray’s comments we can conclude that regardless of experience, abilities or past successes, EVERYONE can benefit from coaching, even your business.  Coaching can improve current performance and help move dealerships to their Next Level.  A third party, a coach, will see things others do not see, or things that are seen but overlooked, or worse yet, tolerated.  A coach can help efficiently maximize an organizations effort.

Many of the dealerships we visit lack structure and processesStructure is like the golf swing, you need to START correctly in order to finish up where you want. Processes relate to the mental aspect.  If a dealership has procedures that are followed as designed, the thought process becomes easier, EVERYONE does the same thing, EVERY TIME.  The only time one needs to improvise is when the situation is not clearly defined by a process.  When that happens, get help immediately.

Let’s look at each of these elements individually.  Proper structure needs to include economic balance in every aspect of your business.  Are you selling the right products, are you stocking the right merchandise?  Are your grosses in line with others in your area, region or the nation?  Are you spending more than you should to generate the sales and grosses you are currently generating?  Do you have guidelines for your new and used inventories?  Are you paying your people TOO much, or TOO little?  Are your pay plans fair to your employees as well as the dealership?   Are your goals in writing?  Did your management staff have the opportunity to give their input when establishing those goals?  How often are the goals reviewed?  The more frequent your review of your goals, the more you tend to move toward those goals.

Processes reflect the mental aspects of your business.  Everyone needs to be doing the same thing, every time.  When a customer walks on your lot, they need to be greeted in a professional and courteous manner, every time.  After the customer has been greeted, they need to be escorted to a place where the salesperson can conduct a thorough, fact finding interview, every time.  When a customer walks up to your service or parts department, they need to be handled the same way, every time.  When a salesperson sits your customer down to negotiate the deal on their new purchase, they need to follow the same process, every time.  Simplify the mental parts with processes and improve the score.  No one can be exempt,  everyone needs to follow the processes, every time.

Processes require ongoing training and discipline.  Speaking of training, who does your training, your managers, your top producers?  If they are not training, who is?  Here is a scary thought, if your sales managers or your top producers are not doing the training that means your BOTTOM producers must be handling it.  When you hire new people, what are they learning and who are they learning it from?

A Coach can help an organization with these and other opportunities.  When was the last time your dealership had a check up?  Is your business on solid ground?  How are your processes?  Are regular, ongoing training sessions being held?  Are ALL employees required to attend?  Is your dealership selling what sells, and stocking what is selling.  Are your managers involved at all levels, including forecasting?  Are your forecast and goals written?  Are the forecasts achievable?    How frequently are your forecasts reviewed?  Do you have a coach, and if not, why? 

Dugan Anderson  operates Profit Solutions, a Division of RVMax. Dugan is a former dealer and for the past 8 years has been working with RVMax and dealerships across the country, dealing with all aspects of Financial Analysis, Expense control, marketing, training and consulting.

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 fiction novel? Or a fairy tale?

Maybe…especially if you are trying to save your way into Profitability.

It can be done…no doubt…that first month or two after you have made the cuts in Personnel, and wages (a favorite of all the employees by the way), and supplies, and vendors (they love that thing you do…you know..”Hey dude, I’m not paying $75.00 a car anymore for ding repair, it’s $50.00 now.”), and weekend meals for the Sales Dept…..you know what I’m talking about…and at the end of the second month…Wala…Profit. Right there on the statement. Just like you thought.

Then….the unthinkable happens…even less Traffic…. which you guessed it…. leads to less Sales and that of course takes us to less Profit because there is less Revenue and less of….well…EVERYTHING!

Now what do you cut? More importantly, how can you remain Profitable?

Maybe the question is not “Are my Expenses too High?”….maybe it’s “Are my Profits too Low?”

If this is you, then you need to start looking at Profit Generation and not Expense Cuts. Let me elaborate.

There is an area in your Dealership that has been known to generate Profit….consistently…if it’s being done correctly….it’s called the Fixed Operations or Service and Parts Department. I know….you can’t believe it either….it’s been there all along. Just waiting to be capitalized on.

Let’s present some facts. Now, I’m not picking on anyone, just discussing. Don’t get offended…I’m just the messenger and the alarm sounder.

The average hardworking Salesperson in the average Dealer selling an average New Vehicle will generate an average of $1450.00 in Gross PUS. If the New Vehicle has a $30000.00 sale price, that equates to .048333 or almost .05% average Gross Profit PUS.

Lets look at the Service Numbers. The average hardworking Advisor writing an average of 12 ROs a day will generate an average of $2754.00 in Sales with an average overall Gross of $1636.00 or 59% Gross Profit, per day.

Compared that to the average hardworking Salesperson overall average monthly Sales of 11 Units generating a total average monthly Gross of $15950.00, the average Advisor, well, has the bigger potential!

The average Advisor will generate $32,720.00 in average Gross Profit for the month!

Ok, what’s your point?

Since Saving our way to Profitability is a short term fix (and one sure to demoralize and in some cases, scare the employees), why not invest and allocate available resources into the Fixed Operations? One thing is for sure, the Sales to Gross ratio is a lot better, and the potential for getting even more is a lot greater.

So, which seems the better course of action?

Saving your way to Profitability or Generating More Profit?

Find out what the Profit Potential really is in your Dealership. Send an email to lbuchholz@dealerprotraining.com and get scheduled for a Profit Potential Analysis.

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.

Actually, anything is 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 “How do we get to 2.5 HPRO” into bite sized pieces.

The pursuit of HPRO requires well trained personnel. This means everyone. 

 Who gets Training and what kind of Training?

Any person that has customer contact (read everyone in the Dealership).

Sales Training would also be on the ‘Must Do”  list along with Phone Sales Training, Proper Greeting Training, (believe it or not) Courtesy Training, a forgotten bit of Training called ” Our Policies and Procedures” Training and maybe some “Goal Setting and Planning” Training, to name a few areas for consideration.

First, if I were to survey all of you and ask if Phone Training would be an important part of the training curriculum at your dealership, I suspect most of you would say “Yes.”  And based on that answer you would think that a business that relies so heavily on the phone would have Phone Sales or Phone Skills Training on a regular basis.

Wrong.

All you have to do is call your Dealership. In just a minute or two  you can determine if Phone Skills are up to standards where you are.

Call your parts department and ask about a special order part. Call the service department and ask to speak to the owner. See how long you are on hold. Call the receptionist and ask to speak to the detailers. Call and ask for a shuttle driver to come a pick you up. Call and try to schedule an appointment for service.

Was it easy? Was it professional? Did the person on the other end of the line make you feel like doing business with the Dealership?

The point is, it’s not only the day to day calls it’s also the unusual, the “you called parts and you really want sales” call that tells the tale. And if you do not have your normal phone traffic handled properly, what do you think your Customer is experiencing when they call into the Dealership? 

Second, conduct regular Sales Training.

Who needs Sales Training? Sales Training is for anyone who could have contact with the customer. Does this sound familiar?

Everyone in the dealership is a Salesperson. The greeter who sells friendliness, the parts counter person who sells a part, the service advisor who sells the labor….everyone is a Salesperson and yet why is it only the people in the Sales Department get sales training? 

Lastly, maintaining 2.5 HPRO is a direct result of what you measure. You can conduct phone skills and sales skills training, and if you never spend a second listening or critiquing to those whom you have just trained, you have wasted your time.

What we measure determines what we focus on. And we measure progress not only by tracking results, we also continually ask questions about what we are tracking.

 If we consistently ask our advisors “You wrote 12 CP ROs yesterday and only booked 8 hours. Can you tell me what happened?” after awhile, they will be prepared to answer that question before you even ask it, which means they are focusing on…you guessed it…Labor Hours per RO.

Try it. Start asking your advisors about something specific for a week and see what happens.  Pick HPRO or “How many appointments for tomorrow did you make?” or “How many multi-point inspections had recommendations today?” or “I noticed Technician Bill had 3 good inspections. How did the sales for those inspections go?”

Asking good questions is part of measuring for results.

Keep this in mind. Maintaining 2.5 HPRO is a lot more difficult than attaining 2.5 HPRO. Once you get there, you will need to monitor Training needs and Measure for Results on a consistent basis.

 Just take it one bite at a time and before you know it, you will have 100% Service Absorption.

If you want to find out how you stack up, send an email to lbuchholz@dealerprotraining.com and schedule a Profit Potential Analysis.  You don’t know what you are missing until you inspect what you are expecting.

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.