FEATURES |
ADVANTAGES |
BENEFITS |
ASSESSMENT |
Determine starting Benchmarks for: Sales, Gross Profit, Expenses Flat Rate Hours Competitive, Maintenance, Repair Work Measure
Customer Retention Evaluate
current Customer Handling Processes: Appointments Customer Reception Repair Order Write-Up Dispatch Work Flow Control Active Vehicle Delivery Special Order Parts Customer Follow-Up Staffing
Analysis ADP System Utilization |
1)
Document
areas that need improvement. 2)
Determine
Profit Improvement Potential 3)
Determine
Process Improvement Potential 4)
Provide
Personnel evaluation consistent with Customer 5)
Focus
concepts. 6)
Develop
Action Plan and proposal for
improvement. |
MANAGEMENT SEMINAR |
Instruct Personnel on Management concepts: Customer Retention Financial Analysis Market Driven Pricing Variable Labor Rates Parts Matrixing Service Pricing Setup (if applicable) Factory Maintenance Schedules Multi-Point Inspections Key Operating Processes ADP System Setup Tracking
& Monitoring Performance |
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 and identify
Profit Potential. |
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. |
CALCULATE BENCHMARKS |
Dealership specific guidelines are provided. |
1)
Comparison
of current Financial Analysis to Benchmarks is the starting point in
developing a forecast. |
BUDGET FORECASTS |
A Forecast is developed to produce an improvement
in profitability. |
1)
Service
Manager is able to focus on attaining specific Sales, Gross Profit, and
Expense Goals. |
CUSTOM MIS REPORTS |
The custom Management Information System (MIS) Reports provide all measurements and calculations. Forecasts can be entered and compared to actual
figures. |
1)
Financial
Analysis can easily be performed on a daily basis. |
CONDUCT MARKET SURVEY |
Service Manager is trained on how to perform a Competitive Survey. Identify Competition for Competitive Work. 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. |
COMPETITIVE PRICES |
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. |
FEATURES
|
ADVANTAGES |
BENEFITS |
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. |
PARTS MATRIXING
|
The
ADP Price Break Escalate feature is
setup or modified to generate additional parts gross profit per cost
range. |
1)
Additional
profit is generated from existing Customer Pay Repair Orders. |
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 consistent quotes in less time. 3)
The
Service Pricing System facilitates the successful use of Variable Labor
Rates. |
FACTORY MAINTENANCE SCHEDULES
|
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 Presentation 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. |
MULTI-POINT INSPECTIONS
|
Customers are offered a Multi-Point Inspection for Vehicles over a determined mileage limit Multi-Point
Inspections are performed free or for a nominal charge to identify and advise
Customers of needed repairs. |
1) Service Advisors are able to sell additional work for needed repairs. 2)
Service
Advisors inform Customers when no service is needed to gain their trust and
loyalty. 3)
Customers
must authorize the Inspection. We
have their permission to Inspect and Inform them on the condition of
the vehicle. |
KEY OPERATING PROCESSES
|
Review Best Practices for Operating Procedures. Develop
& implement Action Plans for improving
Operating Processes: Appointments Customer Reception Repair Order Write-Up Dispatch Work Flow Control Active Delivery Special Order Parts Customer Follow-Up Service
Reminders |
1) Service Personnel focus on changing how they interact with Customers during key Operating Processes to generate more Customer Loyalty. 2)
Service
Personnel become more Customer Focused and concentrate on Customer Retention. 3)
Service
Personnel become more Productive and Efficient. |
|
FEATURES |
ADVANTAGES |
BENEFITS |
|
TRACKING & MONITORING |
Establish Benchmarks and Goals. Review
Daily Service Advisor Tracking. Perform
Quarterly Competitive Survey. Perform
Monthly Repair Order Analysis. Perform
Monthly Financial Analysis. The
Service Advisor Tracking Board keeps personnel focus on improving: Number of Vehicles Written Total Number of Flat Rate Hours Customer Pay Hours per RO Customer Effective Labor Rate Number of Menu Packages The
Management Information System (MIS) Reports are used to monitor several
categories: Fixed Coverage Work Mix ( Labor Sales Ratio) Cost of Labor ($ and % of Sales) Personnel Costs
($ and % of Sales) Total Expenses
($ and % of Sales) Key Expenses
($ and % of Sales) Net
Profit ($ and % of Sales) |
1) Service
Advisors are given specific goals that are posted on the Tracking Board. 2)
Results
are posted daily on the board to enable Service Advisors and the Service
Manager to examine their performance. 3)
Service
Manager is able to see how Service Advisors rank compared to each other. 4)
Survey
competition and modify prices as needed. 5)
Monitor
service work mix to determine which areas to focus on: Competitive Maintenance Repair 6)
Monitor
Sales, Gross Profit, Expenses, and Net Profit. 7)
Service
Manager is trained to take appropriate action when a category is outside the
guideline range. |
|
UPDATE ADP SYSTEM SETUPS |
The Service Manager is instructed on how to modify the ADP system . Service Managers can update system parameters in
future months as needed. |
1)
Service
Manager learns how to keep the ADP system updated as business conditions
change. |
|
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 classroom 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. |
|
CONTINUOUS IMPROVEMENT |
The ASC Consultant performs three follow-up visits (2 days each) to reinforce the goals of the Program. Additional areas are worked on such as facility utilization, production techniques, expense control, and problem solving. |
1) The effectiveness of the Program is increased by persistent consulting. 2)
Service
Personnel receive additional training that helps build good habits. |
|