FEATURES          

ADVANTAGES

BENEFITS

MANAGEMENT SEMINARS

Instruct Personnel on Management concepts:

Service Market

Financial Analysis

Evaluating Competition

Repair Order Analysis

Variable Labor Rates

Overall Effective Labor Rates

Parts Price Averaging

Labor Price Averaging

Total Job Pricing

Service Menus

Service Pricing Guide Options

 

Facility Utilization

Shop Loading

Work Flow Control

Appointment Systems

Repair Order Writing Procedures

Selling From Service History

The Road-To-The-Sale

Traffic Building

Customer Follow-Up

 

Organizational Structuring

Management Operating Procedures

Pay Plans

Expense Control

1)       Key Managers develop a partnership to improve Merchandising and Profitability.

 

2)       Managers and the Dealer Principle commit to the goals established and the process to achieve them.

FINANCIAL  ANALYSIS

Determine current level of profitability.

1)       Train the Service Manager on how to perform a Financial Analysis.

COMPETITIVE SURVEY

Service Manager is trained on how to perform a Competitive Survey.

 

Identify Competitive Work Competition.

 

Develop pricing strategy based upon market research.

1)       Service Manager performs a Competitive Survey Quarterly to keep current with market trends.

 

2)       Replace specials and coupons with every day low prices.

REPAIR ORDER ANALYSIS

Service Manager is trained on how to perform a Repair Order Analysis.

 

The RO Analysis provides several statistics including:

 

The  mix between each category:

Competitive

Maintenance

Repair

 

Customer Effective Labor Rate for each category.

 

Vehicle Year distribution.

 

Maintenance Schedule penetration

 

Number of one-item repair orders.

1)       The Service Manager performs a Repair Order Analysis monthly to monitor the results of using Competitive pricing.

 

2)       Attention can be focused on the category that needs more volume (competitive, maintenance, or repair).

 

3)       Low effective labor rates can be traced to inaccurate quotes and/or excessive discounts.

 

4)       Vehicles should be evenly distributed by model year to maximize Customer Retention

 

5)       Low Maintenance penetration indicates that Customers are not being presented with Menus on a consistence basis.

 

6)       A high number of one item repair orders indicates more order taking than selling by Service Advisors.

VARIABLE LABOR RATES

Separate labor rates are developed for Competitive Maintenance and Repair categories.

 

Lower rates are used for Competitive and Maintenance.

Higher rates are used for Repair work.

1)       Prices are lowered in the areas you must be competitive in.

 

2)       Higher prices are charged for those services that are highly skilled and captive.

 

3)       The correct use of  Variable Labor Rates will increase the Customer Effective Labor Rate.

 


 

FEATURES

ADVANTAGES

BENEFITS

WEIGHTED PARTS PRICING (AVERAGING)

Parts prices are weighted for each category such as:

Oil Filters                          Air Filters

Fuel Filters                         Spark Plugs

Brake Pads                         Brake Shoes

 

A single sales price is established for each category to enable a consistent pricing of Menu Packages.

1)       Parts setups are modified to enable one sales price for each category.  Parts Counter Personnel do not have to over-ride prices during Invoicing.

 

2)       A special RPG report is setup to provide monitoring of weighted cost gross profit margins after manufacturer price changes.  The Service and Parts Managers periodically adjust prices to maintain profitability and meet competition.  Menus are then reprinted.

COMPETITIVE JOB  PRICING

Develop special prices for highly Competitive Items such as:

LOFs (Lube-Oil-Filter)

Wheel Balance

Tire Rotation

Alignment

Brakes

1)       Competitive Survey detail is used to develop a Competitive Pricing Display Board that is posted in the Service Drive.

 

2)       Educate Customers on how your prices compare to the competition.

 

3)       Generate more repeat business as more customers return to your Dealership for all of their vehicle service.

TOTAL JOB PRICING

Job pricing allows service personnel to quote  a complete price that includes:

Labor

Parts

Shop Supplies & Environmental Charges

Tax

1)       Customers receive price quotes that are complete for Competitive and Maintenance work.   ADP’s Service Pricing System (SPS) is needed to perform Total Job Pricing for repair work.

MENU JOB  PRICING

Develop special prices for each Maintenance Package.

 

Menu Key Sheets are used to establish  the Parts and Labor Prices for each Maintenance Schedule package.

1)       Menu Brochures are produced for each Manufacturer Franchise.  The Menu Packages are presented during Vehicle Delivery and RO Write-Up.

 

2)       Inform Customer about needed Maintenance during appointment contacts.

 

3)       Educate Customers on how your Menu prices compare to the competition.

 

4)       Increase your volume of Maintenance work.

 

5)       Generate more repeat business as more customers return to your Dealership for all of their vehicle service.

SERVICE PRICING SYSTEM              

The Service Pricing System is setup or updated (if applicable).

1)       Consistent Quotations generate more Service Sales & Gross Profit.

 

2)       Service Advisors are able to prepare quotes in less time.

 

3)       The Service Pricing System facilitates the successful use of Variable Labor Rates.

DETERMINE SHOP CAPACITY

Calculate your current Shop Capacity in Flat Rate Hours using a one-to-one ratio of Service Stalls to Technicians.

1)       Establish the maximum number of Flat Rate Hours that can be produced from your existing facility.

CALCULATE FACILITY UTILIZATION               

Calculate your current Facility Utilization as a percentage of Shop Capacity.

 

Calculate Labor Sales needed to:

Break Even

Achieve 10% Net Profit

Achieve 20% Net Profit

1)       Establish the starting Benchmark for Facility Utilization.

 

2)       Service Manager develops both short and long term goals for Net Profit.


 

FEATURES

ADVANTAGES  

BENEFITS

WORK FLOW CONTROL

Decide how much work each Service Advisor can take-in after Carry-Overs.

 

Determine RO Status at any point during the day.

 

Establish when the shop has reached its capacity.

 

Record Customer contacts, and Quality Control activities.

1)       Service Advisors focus on achieving goals pertaining to Sold Hours.

 

2)       Service Advisors are able to communicate more effectively with customers about promise times and vehicle status.

 

3)       Service Advisors can let Walk-In Customers know whether their vehicle can be worked on today.

APPOINTMENTS & SHOP LOADING

Load Appointments based on preset time intervals per Service Advisor.

 

Load Appointments based on available Hours-To-Sell.

 

Confirm Appointments with Customers2-3 days prior to the scheduled date.

 

Inform Customers of needed Maintenance and Campaign work.

 

Follow-Up on No-Show Customers.

1)       Spread Appointments through out the day to allow Service Advisors to spend more time performing:

RO Write-Up

Status Reports & Upsells

Active Vehicle Delivery

 

2)       Schedule the appropriate volume of Appointments to enable completion of:

Waiters       Walk-Ins     Upsells

Carry-Overs                Internals

 

3)       Presell Customers during the Appointment.

 

4)       Reduce the number of No-Show Customers.

REPAIR ORDER WRITE-UP

Follow a Road-To-The-Sale process:

Friendly Meeting & Greeting

Listen to Customer’s Concerns

Restate Customer’s Concerns

Present Factory Maintenance Schedule

& Multi-Point Inspection

Ask for the OK

 

Repair Orders are written legibly and include all the 6 C’s:

Complaint (Concern)

Cause

Correction

Concise

Correct

Complete

 

Provide Promise Time

 

Explain the Communication Process to the Customer.

1)       Better communication between Service Advisor and Customer enhances customer satisfaction and loyalty.

 

2)       Better communication between Service Advisors and Technicians results in higher Productivity.

 

3)       Better communication between Service Advisor and Booker and/or Warranty Administrator reduces expense.

 

4)       Fewer mistakes due to erroneous information improves the “Fix it right the first time” ratio.

TRAFFIC BUILDING

Examine the use of:

Service Reminders

Mailers

Customer Surveys

Service Clinics

1)       Determine best source for Service Reminders.

 

2)       Establish methods to make Service Reminders more effective.

 

3)       Develop methods to improve use of Service Mailers.

 

4)       Determine whether Customer Surveys should be performed in-house or by an outside vendor.

 

5)       Establish tracking methods for Service Clinics.

 

6)       Develop methods to make Service Clinics more effective.

                                                                                                                                                    


 

FEATURES

ADVANTAGES

BENEFITS

CUSTOMER FOLLOW-UP

Establish Customer Follow-Up forms, log, and tracking system.

 

Capture direct feedback concerning the Customer’s service experience.

 

Contact all service Customers by telephone or mail.

1)       Take appropriate management action for  upset Customers.

 

2)       Gather advice on how to improve your current level or service.

 

3)       Provides a method to improve individual employee performance.

TASK ANALYSIS

Determine the current duties performed by each key employee.        

1)       Re-assign tasks as needed to improve the scheduling and dispatching of service work.

REVIEW PERSONNEL JOB DESCRIPTIONS

Determine if Job Descriptions match the duties being performed.

 

Update Job Descriptions and educate employees on any changes.

1)       Employees gain a clear understanding of their job and the associated duties, and responsibilities.

 

2)       Employees are shown how their job contributes to service department productivity.

PAY PLANS

Current Pay Plans are evaluated.

 

Pay Plans are modified as needed to ensure that they are good for:

The Customer

The Dealership

The Employee

1)       Pay Plans are developed that associate compensation with achievement of specific management goals.

IDENTIFY KEY CONTROLLABLE

EXPENSE CATEGORIES

Key Expenses are measured as a percent of Total Labor Sales to determine if they are at an acceptable level.

1)       Focus attention on those expenses that are under direct control of the Service Manager.

SERVICE ADVISOR TRAINING

Service Advisors are instructed on the theory and methods needed to implement the program.

 

Additional time is spent with them in the Service Drive to reinforce class room training.

1)       Service Advisors become partners in the implementation of the program.   They realize that the program is good for themselves, the Customer, and the Dealership.

 

2)       Service Advisors are able to see the success of the program live in the drive.  The ASC Consultant coaches each Service Advisor on the principles covered in class.

TECHNICIAN TRAINING

A meeting is conducted to educate the Technicians concerning the impact of the program being implemented.

1)       The Technicians become partners in the successful use of the program. They are provided with direct feedback rather than rumors.

TRACKING AND MONITORING

Reports are prepared that provide                statistics for determining performance and calculating compensation.

1)       Employees are able to monitor their progress each day.