Reconditioning Pain Points

Chris Gutierrez

Hey guys,

We are reviewing the reconditioning process of dealerships to discover trends & trouble points within the process. What are your dealerships major pain points within the recon process? 

Always a pleasure!

Chris Gutierrez

Danny K

Was with a franchised dealership for almost 20 years and the reconditioning process was the hardest to mange!  For one the Sales and Service Department act as 2 different businesses.(even though we are suppose to be a team)  It was truly frustrating.  The sales department inventory was the last thing on the service departments mind if they were overloaded with walk in customers even though the sales department is paying $110.00 per labor hour and full retail for parts.  Again it was super frustrating!  Our average Reconditioning per vehicle was close to $1500!  It definitely hurt us! Not so much the money but the time it would take to get things reconditioned so we could get them online and on the lot for sale. 

Maddy Low

I think the time is the huge pain point here, like Danny said! 

Chris Slaydon

Danny,

 

One of the largest issues we have seen is because the incentive plans for both the Service and Used Departments are completely opposed. The Used team wants vehicles out as cheaply and as quickly as they can be, while the service department wants to load up tickets as much as possible. No one is on the same page.

The most successful dealerships actually have an internal service advisor that is paid on Used Vehicle Gross. He also receives kickers for Speed To Market and Average Recon costs. This way, both the used term and service team are walking to the same drummer. 

People work their pay plans...maybe its time to look at total used vehicle profitability and adjust your people's pay plan to get the results your looking for.

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