Automotive Copywriter
Where Will the Service Department Take Your Store in 2019?
December is in full swing, hopefully off to a strong start. In the blink of an eye, it’s going to be New Year’s, and a blank slate will be in front of you for 2019. A fresh start can be exactly what you need if 2018 wasn’t very kind to you in the service department. Or, it can be daunting if you’re expected to do more than you did in the past twelve months.
Yet, looking at the news, it appears that the automotive sales could take another blow. GM plant closures, slumping passenger car sales, and disappearing sales incentives could put a damper on car sales in the United States. It appears that, once again, there’s a reason it’s called fixed ops: you’ll be relied upon to carry your dealership through 2019.
What can your service department do differently or better in the new year? When you flip pages on the calendar, so to speak, how can you start 2019 strong to buoy your store and see stronger results than this year? Here are three ideas.
Expand Your Target Market
There’s a radius around your dealership where your customers come from primarily. Depending on your location, that could be five miles, ten miles, or even 20 miles or more. All your marketing is targeted at these people, but what about those who are just outside that radius?
Set up digital marketing campaigns that stretch your target market by just a little. Perhaps it’s an extra mile or two in all directions, maybe it’s a bit more. If your in-store strategy is working well already, all you need to do is add a few more customers to grow your service department’s earnings.
Analyze your Pricing Strategy
Compare your service department’s menu item pricing with other dealerships and independents nearby. You’re looking for two things: menu items that are over-priced and those that are under-priced. For over-priced items, the objective is obviously to lower them enough to be competitive, attracting more customers for that service. For items that you’re charging less than average, it’s time to bump up the pricing. Remember, you don’t have to be the lowest price on the block. You just need to service the customer’s vehicle better than the rest.
Emphasize Exploratory Services
There are certain service items that could and should be used better by many service departments. There are often undiscovered issues on a customer’s vehicle simply because their service visit did not explore that far. For that reason, encourage your team to emphasize services that look deeper into a customer’s vehicle than just basic maintenance. It’s multi-point inspections, wheel alignments, and even the service drive walkaround that do the trick.
I hate to use the word upselling – it sounds derogatory, like you’re selling something that’s not necessary. What you’re doing is helping the customer keep their vehicle in top shape by tackling issues before they become a problem. These are necessary services and repairs that the customer simply needs to be aware of. And once they are, it’s an opportunity to capture the business from them today or in the near future.
The new year is rolling around very soon, and these strategies are nothing new and groundbreaking. They’re just solid, everyday tools you can use to optimize your dealership’s service department performance. And if there are dips in car sales like the analysts predict, it’s going to be more important than ever to employ these tools.
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1 Comment
Stan Sulkowski
EasyPay Finance
Excellent article and information!
Another less thought of solution to increase revenue with service departments is to offer financing.
Typical auto repair shops enjoy 8-15k + added monthly revenue by providing a simple payment option.
One program that has over 5,000 shops is Easy pay Finance.
No setup fees or monthly minimums. Use Promo Code 4999 when you sign up.
https://Easypayfinance.com