SERVICE
ME: Service drive selling
Customer
Paid Labor is the Cornerstone of Profitability
A dealership
that sells 100 vehicles a month, typically has 5 times that number
of customers come through the service department every month. Most
customers that come to the service department really don't want to
be there. They typically come in for 1 of 3 reasons:
- Warranty repair
work
- Routine maintenance
- Major repair
work, outside of warranty
Ensuring that
each one of these customers is presented with the manufacturer's suggested
maintenance, as well as additional maintenance that should be performed
due to local conditions, is the cornerstone of increasing customer
paid labor, and profitability, in a service department. An advanced
level of this concept is to present Extended Service Contracts and
Pre-paid Maintenance in the Service Drive.
Customer
Benefits
- Improves the
value and reliability of their vehicle
- Reduces 'surprise'
repair bills
- Improves the
relationship with the dealership
Dealership
Benefits
- Improve service
department profit, both initially and over the long term
- Increase customer
loyalty over the long term
- Increase customer
satisfaction
What's
been Done
Most programs
designed to sell these services in the service drive, often produce
poor, and inconsistent results. The typical program consists of:
- Sticking up
'ask me about' posters in the service drive
- Paying the
service advisor a 'spiff' to sell the products
- Holding a
meeting or two, 'to keep it in front of them'
When 'nobody asks',
and service advisors are 'way too busy' to make an elaborate presentation,
the program staggers along.
The Challenge
The major constraints
have been:
- Service drive
is often a very busy sales environment
- Service advisor
reluctance to present to an already unhappy customer
- Service advisor
doesn't know exactly what to say, or when, to make the presentation
- Service advisor
that doesn't want to be rejected by a customer saying 'no'
- Customers
that don't naturally know why they need these products
- Service advisors
unclear on exactly what options should be presented to a particular
customer
- Poorly executed
pay plans and profit allocation
The Solution
The solution
is to create a program specifically for the service drive, that addresses
the unique challenges of that sales environment.
Continue for details
on the Service Drive Sequence Routine Maintenance
Sales.
Continue for details
on the Service Drive Sequence for Extended
Service
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