They’ve always been your biggest customer and always will be. In the franchised dealership world, new and used car sales are indirectly the biggest piece of the pie for your service department and parts department income numbers. But there’s a reason the sales department is known as variable operations, not fixed ops like you.

The sales world operates in the ebb and flow model. Some weeks, months, and even years are stronger than others hence the term “variable”. There are influences that cause trends including economic upticks and downturns, new model releases that draw pomp and circumstance, and news releases like widespread recalls.

The trend in sales numbers has been on an upward swing for years. Since the economy’s tables were overturned in 2008, where the American automotive world suffered one of the largest setbacks in history, sales numbers have been steadily increasing.

That bubble might soon burst though.

The automotive sales numbers in 2015 set a record. Light vehicle sales were up 5.7 percent over the 2014 sales numbers which were also the strongest ever. Originally, 2016 was expected to once again blow the doors off and increase sales, and car dealerships set their forecasts on those expectations.

Now those forecasts are being revised. 2016 is shaping up to fall short of the impressive sales numbers posted in 2015, not exceed them like originally thought. Both LMC Automotive and Bloomberg have revised their expectations recently.

The sales environment, unlike the fixed ops departments, is volatile because of outside influences. During a customer’s procurement phase, their purchasing decision is heavily influenced by what’s going on in the world, not just on what is going on in their life. Economic fluctuations are obviously a factor as are political changes on the home front and on the world stage. Brexit as well as the American politics have dominated the news and cause insecurity, meaning customers are warier of making big purchases like vehicles.

Top that off with two other items: recalls and manufacturing fluctuations. Major industry players like Takata have issued recalls that affect several carmakers. Volkswagen’s Dieselgate debacle has crushed the TDi sales numbers worldwide, not just in the US. And just this week, General Motors expected to halt production at several plants because one of their parts suppliers was going bankrupt.

You might wonder why this matters to you. You may not think it’s important to you at all, or maybe plays a very small role in your department.

The thing is, you COUNT ON the sales department for a big slice of your income. Every vehicle the sales department sells injects money into your service and parts departments. When those sales numbers dwindle, your gross profit dwindles. You already know this, but you still count on the sales department for a reliable source for your department’s income.

I know you have to plan out your coming year for financial forecasts. Every dealer does it – you need something to input into the doc. Realistically, that number shouldn’t be hard and fast. If it is, you’ll pat yourself on the back when you exceed those numbers, and because of something you didn’t really have control of. Or you’ll beat yourself up over missing the target even though there’s nothing more you could’ve done.  

Then what should you do?

The income your service and parts departments receive from the sales department – the pre-delivery inspections, the used vehicle safety inspections and certifications, the tire sales, and the accessory sales and installations – that can all get cut to a mere fraction of your current numbers at the tip of a scale. One major disaster, one political party folly, or an international incident can make that income stream dry up overnight.

If the sales department isn’t selling, there will be less inventory turnover resulting in fewer new cars to prep and fewer trade-ins and auction cars to certify. What won’t change are the number of people who already have vehicles.

Focus on your current OUTSIDE customers.

Yes, the sales department is your single largest customer, but the rest of your customers make up somewhere near 80 percent of your total income. When you count on your sales department to keep you afloat, you’re hanging your hat on numbers that can change as quickly as the wind direction. The rest of your client base will still need somewhere to service and repair their vehicles whether or not they are buying a new one.

Your outside customers are the reason you are a fixed operations department. There is always going to be a customer base to which you can provide service, advertise, and provide total satisfaction. Here are a few tips on how to focus on the customers you can count on, the outside clientele.

Make scheduling customer work your priority.

Your sales department understands that they aren’t your only customer, just your largest. Your outside customers, though, don’t care if the sales department needs a vehicle safety inspection completed or a new model prepped to go in the showroom. They want their vehicle done in a timely fashion. Schedule your shop capacity focusing on fulfilling your customers’ needs first, then fit your sales department’s needs in as it’s possible. The exception should be sold vehicles to be delivered to a customer – treat these like an outside customer’s vehicle.

Keep an open dialog with the sales department.

Set up a point of contact or liaison with the sales department to determine the priority vehicles. Knowing who needs what and when they need it can help you facilitate everyone’s needs in a timely manner, most importantly your outside customers.

Treat each customer to the highest level of service.

Make sure all of your customers are receiving full and complete care. These happy customers will be repeat customers that will continuously fill your service department. They will also be the repeat SALES customers, meaning several more years of repeat visits. The key is to provide exceptional customer service every visit. Just one bad experience can be enough to send your customer on a search for a new servicing dealer.

Maintain a social media presence.

Your parts and service departments should be highly visible. Attracting new customers is expensive, then turning skeptical first-time customers into repeat customers can be the hardest of all. Social media makes potential new customers feel like they already know you, and reinforces your value and relationship with current customers. It’s free or nearly-free advertising and is completely focused at strengthening your department.

Variable operations managers, general managers, and dealer principals, I can’t emphasize enough how important your business is to your fixed operations departments. It’s crucial. In an ever-changing automotive landscape, fixed operations needs to maintain a focus on keeping their departments full and busy, even when the variable side slows down.

Have you found a way to strike a balance between the varying workflow from your sales department and your service customer base? What works for you?