Are outdated parts costing you?

Here are 7 ways obsolete parts suffocate store profits: 

• Tied up capital
• Space wastage
• Reduced efficiency
• Soured customer relations
• Deteriorating value
• Costly holding expenses
• Missed revenue

So…how do you fix all this? 

Watch our latest webinar and find out. Mike Rich & Mel Smith of RevolutionParts delve into the challenges obsolescence presents in the Parts Department. 

In this webinar, we dive into the success story of J. Bertolet Volkswagen, a family-owned dealership adapting to the digital age. Discover how they built a connected online to in-store experience customized to their ‘hands-off’ selling process.

Learn how their lead-to-sale rate soared to 4X the national average, and how they grew profit over 400 percent.

Efficiency is the cornerstone of a successful service department. With the increasing complexity of modern vehicles, automotive technicians need to maximize their productivity to improve customer experience and increase profitability. Whether you're a service manager looking to enhance your team's performance or a technician aiming to optimize your workflow, implementing strategies to improve efficiency can yield substantial benefits. Let’s explore some effective ways to enhance tech efficiency.  

Invest in Continuous Training and Education

This one goes without saying. In the ever-evolving automotive industry, staying updated on the latest technological advancements is crucial. Providing regular training sessions for your technicians ensures that they are familiar with the latest diagnostic tools, repair techniques, and vehicle systems. In addition, actively encouraging technicians to pursue certifications from reputable organizations like ASE enhances their expertise and confidence in tackling complex repairs. A knowledgeable technician can diagnose and resolve issues more efficiently, leading to reduced turnaround times and satisfied customers.

Demand an Organized Workspace

A cluttered and disorganized workspace can significantly hamper technician efficiency. Establishing a clean, well-organized environment helps technicians locate tools and parts quickly, saving valuable time during repairs. Consider investing in quality tool storage solutions, labeling systems for parts, and designated workstations for specific tasks. An organized workspace minimizes distractions, enhances focus, and promotes a smoother workflow.

Utilize Digital Diagnostic Tools

Gone are the days of trial-and-error troubleshooting. Advanced diagnostic tools and software have revolutionized the automotive repair industry. Equipping and training technicians with these tools streamline the diagnostic process, enabling them to pinpoint issues accurately and efficiently. Integrating technology into the diagnostic process not only saves time but also improves the accuracy of repairs. It will be interesting to see how artificial intelligence evolves here.

Effective Communication and Collaboration

Clear communication and collaboration between technicians, service advisors, and customers are essential for efficient operations. Implement a system that allows technicians to communicate their progress and findings to service advisors seamlessly. Service advisors can then relay this information to customers promptly. Transparent communication ensures that everyone is on the same page, reduces misunderstandings, and prevents unnecessary delays. Additionally, promoting a collaborative environment allows technicians to share insights and problem-solving approaches, leading to faster and more effective repairs.

This is where service leadership can really make an impact. It’s essential that you take the time to build your team.

Implement Standardized Workflows

Developing standardized processes and workflows can significantly improve efficiency. These workflows ensure that technicians follow a consistent process, minimizing the risk of errors and reducing repair times. Standardized workflows are particularly useful for new technicians, as they provide a structured approach to learning and performing tasks.

I was recently building a technician scorecard with a service manager. He mentioned that there were some changes that needed to take place in the shop to make it easier for techs to improve productivity. This is a good activity for a service manager to do. Think of your shop like a freeway. Where are the pinch points? How can you reduce their foot traffic and streamline the shop?

In today's fast-paced automotive repair industry, efficiency is a non-negotiable factor for success. If you want to improve your fixed ops absorption, improve efficiency. These strategies not only lead to quicker repairs and improved customer satisfaction but also contribute to a more productive and harmonious work environment. As technology continues to shape the industry, embracing these efficiency-boosting techniques will undoubtedly keep automotive technicians ahead of the curve.

By leveraging a DMS, you can transform your dealership's efficiency, customer experience, and financial management, ultimately gaining a competitive edge in the market. But it's imperative that you select the right one for your store and your unique needs. 

Discover what you need to know to make the best decision possible.

In our recent conversation, Brent Towne of Cox Automotive talks about the efficiencies that can be realized when AI is built into your dealership software. AI efficiencies have experienced remarkable advancements in recent years, and machine learning algorithms, such as deep learning, have been instrumental in enhancing AI capabilities. This has led to more accurate and faster decision-making processes. With the availability of massive datasets and powerful computing resources, AI systems can now be trained to perform complex tasks that were once thought to be exclusive to human intelligence. As AI continues to mature, it is streamlining operations, optimizing resource allocation, and automating mundane tasks, which results in increased productivity and cost savings for your dealership.

I'm constantly asked by sales associates for one great way to better engage with their customers. I seem to always go back to open-ended questions as the solution. If you can get your customer to open up, it will make every aspect of the transaction better. Most importantly, you will be better prepared to help the customer find their perfect vehicle. So what's the difference between open and closed-ended questions?

The primary difference between open-ended and closed-ended questions lies in the type and depth of responses they elicit. Closed-ended questions are designed to produce specific, typically short, answers such as "yes" or "no," "true" or "false," or a choice among a limited set of pre-determined options. For example, "Do you like this car?" is a closed-ended question because the answer can be a simple "yes" or "no."

On the contrary, open-ended questions are crafted to invite a more extensive, descriptive answer, encouraging conversation and enabling deeper understanding. These questions often start with "why," "how," "what," "describe," or "tell me about..." They create room for the respondent to express their thoughts, feelings, and ideas more fully.

For instance, if a sales team member is facing objections to a sale, asking open-ended questions can help uncover the root of the client's hesitation and guide the conversation towards resolution. More importantly, it helps the customer see that you care what's best for them and not just about getting the sale. Here are some examples:

1. "Can you tell me more about what you're looking for in a vehicle?" This invites the customer to share their specific needs and preferences, which the salesperson can then address.
2. "What factors are most important to you when choosing a car?" Understanding the customer's priorities can help the salesperson emphasize relevant features of the vehicle.
3. "How do you feel about the financing options we've discussed?" This can bring out concerns about affordability or value, which the salesperson can then help alleviate.
4. "Could you describe your ideal car-buying experience?" This may reveal issues with the sales process itself, enabling improvements in service.
5. "Why do you think this might not be the right car for you?" A direct approach can sometimes be best, giving the customer an open invitation to express their concerns.

Sales associates significantly boost their customer engagement by utilizing open-ended questions. These questions encourage customers to offer in-depth insights, helping salespeople cater more effectively to the customers' specific needs and preferences. Open-ended questions promote rich conversations, resolve objections, and underscore the salesperson's genuine interest in the customer's well-being. In essence, open-ended questioning is a powerful tool that fosters a more successful, customer-centric sales environment and aids in matching the customer with their perfect vehicle.

If you would like more help, feel free to reach out to me anytime.

There is never a reason not to advertise to your sales and service customer database. It’s more cost-effective with greater results than typical programmatic inventory ads. Discover how dealers used micro-customer audiences with relevant messaging, increasing customer retention by 20%. Andrew Street, Dealer OMG’s CEO & CoFounder and previous Facebook employee will share strategies to unlock your DMS, CDP, and CRM to increase customer retention and create long-term loyal customers.

Strategies include using paid social to create a brand-loyal experience, resulting in a steady stream of untapped sales and service customers. Those loyal customers, in turn, can also become a dealership’s referral base, increasing vehicle acquisition and more. Also, find out how dealerships can reactivate customers who defected the sales and service department - and get them re-engaged.

Loyal customers are more willing to pay a vehicle's premium price with a trusted dealership brand name over a competitor. They also refer additional business, and those customers can include your dealership in their life cycle purchase decisions.

Custom brand advertising allows car dealers to use ads tailored to their brand, messaging, and geo-target audience, which can help them establish a stronger and more memorable identity in the market.

In today's competitive landscape, dealerships are recognizing the significant role employee engagement plays in driving overall profitability. Let’s explore the direct and indirect impacts of employee engagement on financial performance and highlight the strategies you can adopt to enhance engagement

According to Gallup’s State of the American Workplace study, highly engaged business units resulted in 21% greater profitability. Why is employee engagement so important?

First, employee engagement fosters a sense of commitment and motivation, leading to increased productivity and performance. Employees are” invested” in their careers and the success of the dealership. They are more likely to put in extra effort, going above and beyond their job requirements. They are driven by a sense of purpose, aligning their goals with those of the organization. Studies have consistently shown that engaged employees outperform their disengaged counterparts in key performance metrics, resulting in improved operational efficiency and effectiveness.

Next, a highly engaged workforce is more likely to stay loyal to a dealership, reducing turnover rates and associated costs. Engaged employees are emotionally invested in the success of the organization, which translates into higher levels of job satisfaction and commitment. They are less prone to seek alternative employment opportunities. Moreover, lower turnover ensures that valuable knowledge and expertise are retained within the dealership, facilitating efficiency and having a positive impact on profitability.

In addition, employee engagement also influences customer satisfaction and customer loyalty. Engaged employees who feel valued and supported are more likely to deliver a better overall customer service experience. They exhibit higher levels of empathy, problem-solving abilities, and dedication, which translates into enhanced customer interactions. Satisfied customers are more likely to become loyal, leading to increased repeat sales and service business and referrals. This, in turn, generates higher revenues and contributes to overall profitability.

Engaged employees are more likely to contribute and participate process improvement. They feel empowered to voice their opinions, share insights, and collaborate with their peers. Such an environment fosters creativity, problem-solving, and a culture of innovation. They are more “agile”, and can better adapt to change. They embrace new technologies and processes, leading to operational efficiencies and competitive advantages.

Engaged employees also tend to have lower absenteeism rates and are more punctual. They often exhibit higher safety consciousness, reducing workplace accidents and associated expenses.

Employee engagement is a critical factor that significantly influences a dealership’s profitability. From increased productivity and performance to reduced turnover costs and improved customer satisfaction, the impact of engagement extends across various dimensions. By prioritizing employee engagement and implementing strategies to foster a positive work environment, organizations can unlock the full potential of their workforce and drive sustainable profitability.

In this webinar, "Why Marketplaces Matter", we discuss the impact re-commerce marketplaces are having on dealerships and how the next generation of car buyers aren’t who you think they are.

Here are just a few of the many points:

-A deep dive into key insights from OfferUp’s annual car buyer survey. We talk about unique data-driven perspectives about car buyers and learn what matters most when shopping for a vehicle.

-The diverse profiles of marketplace users and debunk common misconceptions about their purchasing power.

-The power of horizontal marketing to increase the visibility of your used car inventory to both active and passive buyers.

This presentation delves into the topic of financial stress and its impact on business revenue and growth. Financial stress can have a profound effect on employees' well-being, and this, in turn, can impact their productivity and performance at work. We explore the various ways in which financial stress can impact businesses, including increased absenteeism, higher healthcare costs, and decreased productivity - which together cost American businesses billions of dollars in loss every year.

To mitigate the negative effects of financial stress on businesses, we examine various strategies that employers can adopt including financial wellness benefit offerings such as educational programs, counseling services, and professional support.

The presentation also emphasizes the importance of understanding the root causes of financial stress, such as personal financial difficulties, high levels of debt, and financial illiteracy. By recognizing these causes, employers can better address the issue of financial stress and create a more productive and healthy workplace for their employees.