BDC: Variable & Fixed

Ron Henson
Does your BDC handle Fixed Ops as well as Variable? Do you measure ROI for both? Is your pay plan conducive to production in both departments?
Kevin Liles
We currently only have our Bdc handle sales. We will be setup Jan 1 to handle service as well. Fixed opts has huge opportunity for our Bdc dept in following up, setting apts and helping our retention. We currently measure ROI for variable and we must be at 500% ROI.
Ricky Wood
Kevin - 500% ROI?? Wow that is great. Does that include all salaries, benefits, vendor costs, lead provider pricing??? Front and Back gross??
Kevin Liles
500% is on the total amount of $ spent in generating leads. Example, GM 3rd party, autotrader, your website cost, road loans etc.... If you spend $10k in those areas you would need to generate 50k in gross from the Bdc. Say cost you 2k a month. You would have to generate $10k from that ad source or it isn't worth keeping. We track every lead, ad source and have a report monthly with leads for that ad source, sales and gross profit. We run about 15-18% closing ratio on total lead count. Last month we where a little over 600% return total however a few of our ad sources didn't perform as well. We track everything...
Robert DiPalma
I think every dealership should have a Service BDC. One reason is that most Service Writers are in a no-win situation, here's an example: John the Service Writer is with a customer and his phone rings ... what does he do? If he answers the phone, it can be construed as rude by the customer who's in front of him. If he doesn't answer the phone, the customer thinks to themselves "This is why nobody answers the phone when I call to check the status of my vehicle." Of course, the next reason, is since service sell time, if time isn't utilized it cannot ever be made up and productivity is lost.

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