Help Improving Recon Turnaround Time

joe stroffolino
It is a constant struggle. I deal with three different service departments! A week is reality. Longer if parts ordered etc. The collision center ads even more time of course. I am trying to consolidate to one team that does all used vehicle checks etc.
Steve Gerhartz
In some stores we do fair, in others it is a struggle. My opinion is that with the increased use of all things internet and all the tasks we are now asking sales managers to perform to achieve sales they no longer have the time to efficiently and effectively manage and monitor reconditioning. In the future the dealerships that will win this battle with be those which have Service and Parts manage the recon process and cost by treating recon as an expense (ala Carmax), not a profit center. Their profit will come from servicing the additional vehicles the sales dept delivers and turn into future parts and service customers.
Christopher Dagesse
We are usually 3.5 days I created a software that integrates with vAuto or firstlook that gives each department accountability . It tracks lengths in each status so you can find where your issues are. Www. It's in 6 of my own stores. I am a dealer myself. The product is about ready to launch in next few weeks. Of your interested let me know. It can also help with paper advertising as well
Jay Radke
Cameron, this a great question you have thrown out here. From my experience, reconditioning time/turn will always be a hurdle until the economic impact is calculated. Think about like this: Every day it takes the car to become "available for sale" is $$$ amount lost. The smaller the car the less $$$s per day you lose. ie. On Manheim MMR 2013 Ford Escape FWD 2.0L SE were selling at auction at an average of $21,600 with 12,000 miles in the last week of March 2013. Two weeks later the same model dropped significantly to an average of $19400. By doing simple math of $21,600 - $19400= -$2200, you can truly calculate the economics of waiting or delaying reconditioning. A further look at this would show it on a daily drop in value of $105 per day over the 21 days of market time. I would love to get into more detail by adding on lost opportunity costs, man-hours, efficiency and quality issues of reconditioning. The simplest way to show any owner that "lost time to market" is important, is to run the $$$ equation. Getting your cars ready to sale and to the online market is a money maker. Get really good at fast merchandising and reconditioning turn times and your dealership will be better off.
Christopher Dagesse
Jay great point I'm going to add that to my system to be able to show what it is costing to go over in days.
Josh Cole
If you improve your avg. time for service / reconditioning, but your avg. days until sold doesn't improve with it, there is no direct benefit. It has to go hand in hand with your turn rate for you to see a benefit. If you think about it, if you reduce your overall recon time AND overall sales time by 2.5 days, you gain an "added" month of sales (2.5 X 12 mos = 30 days) plus an added month of internal service gross. Put some numbers to that, and you'll see some urgency ;-)

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