Jason Unrau

Company: Automotive Copywriter

Jason Unrau

Automotive Copywriter

Dec 12, 2016

Why Must it Always Be a Fight?

Your dealership is one big happy family and everyone gets along famously. Unless you’re a dysfunctional family with screaming, hair-pulling, and slamming doors whenever you have to deal with each other. Yeah, that’s more like dealership life.

I’ve spent 15 years working in several different dealerships, mostly in the service department. I can say without a shadow of a doubt that each one has the exact same interdepartmental relationship – rocky and tense. I have yet to experience a service department that doesn’t hold grudges against the sales team. The parts guys think everyone else in the dealership is stupid. The rest of the building questions why the parts department can’t stock common parts. It’s the same everywhere.

In my experience, the problem starts when each person feels they are worth more than the next. That extends to whole departments, and it becomes a situation of in-fighting that can seriously dampen profits and production. It becomes a toxic environment, all because the family can’t play nice.

Can’t We All Just Get Along?

I love that phrase. It’s so commonly mistaken to think that we’ve all got to be buddies. That’s not the spirit of the phrase and it’s simply never going to happen. It takes a different person to sell cars than it does to work the service desk. An analytical mind is necessary for the parts department, and seldom do the personalities have much common ground.

But we can get along. At the heart of the phrase, you can sense that there’s a battle going on. There are hurt feelings and grudges held. But the idea is to look past the emotion and achieve a common goal. In the dealership, that’s serving the customer well and increasing sales.

How Do Fixed Ops Factor In?

I constantly found myself looking down on certain salespeople, and eventually I painted them all with the same brush. What happens at that point is you now have disdain for every salesperson, even if you share a common goal. The sales team is no longer Steve, Matt, Jordan, and Andrew. They’ve lost their individuality in your mind. In that way, it’s you that needs to change.

If you’re in fixed operations, your role is unwaveringly based on customer service. The best customer service happens when you work well as a team. To be absolutely clear, you don’t have to be friends with everyone in the dealership, but you do have to work with them.

Integrate Fixed Operations for Everyone’s Benefit

Seek out ways that you can work closely with your dealerships other departments. It may be as simple as teaming up with one salesperson and one parts person that you get along with already. You can achieve great things if you work together, whether it’s the parts person helping sell accessories on a new car purchase or a service advisor walking a new car buyer through the dealership for a tour.

Fixed operations provide a foundation for the dealership; a steady and solid support system. Without fixed operations your store couldn’t build and it would struggle to exist at all. Fixed operations is an absolutely critical part of the dealership puzzle, but without the other departments, it’s just another repair shop on the corner.

Jason Unrau

Automotive Copywriter

Freelance Contributor

4599

1 Comment

David Ruggles

Auto Industry

Dec 12, 2016  

Start here:  Decades ago the geniuses decided dealerships should charge retail for udes vehicle reconditioning.  The theory was that sales people sold from cost anyway, so just increase the cost by penciling gross to a department where only 15% of gross was paid rather than 25% front ends gross was paid, and sales gross wouldn't change and internal gross would increase.  This is a screw job to the front end and a gift to the back end.  It left the used car department having to wholesale "retailable" cars because they couldn't afford to recon them.  An independent down the street would buy it, recon it reasonably, and the original dealer looses a sale.  Appraisers had to try to stand down from trades to leave room for the needlessly expensive recon.  Deals are lost.  These are called opportunity costs in the world of economics.  They are hard to measure.  What you should have gotten but didn't is lost money. 

 

CarMax?  They don't charge themselves markup on recon. 

 

Ask Dale Pollak about it.  He'll tell you.  The Internet rendered this practice null and void long ago.  Yet, most dealers stubbornly stick with it.

 

No one is recommending dealers do recon at cost.  They old tried and true formula was two third or retail for labor and cost plus 15% for parts.  Sublet is not marked up.  AND used vehicle departments shouldn't be forced to pay outrageous internal fees when they can get the same work done much more easily on the outside WITH quicker turnaround. 

 

The vehicles that sell the quickest generally can't be traded for.  They have to be "made" through reconditioning.  Retail recon dealers give those deals up out of ignorance.  Instead of a $1K MAACO paint job they force the used car department into a $2500. internal paint job.  Zero percent of nothing is nothing.  The lost opportunity costs.  Do the math.

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