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
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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 CONTROLLABLEEXPENSE 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. |