You walk into a well-known, Michelin-star restaurant. One where the waiter has a towel draped over his arm and a bottle of wine in his hand. You’re pointed in the direction of your table with a flippant gesture from the hostess, who then turns their attention to the next guest in line. You’re left alone for a few moments with your dinner partner without an explanation of the menu or even a water glass fill-up from the waiter. Before you’ve even ordered, you’ve already decided you’re never coming back.

Your service drive’s first impression is just as important.

More Than Fine Dining

Actually, your first impression is more critical. You’re basing your customers’ future relationship – including sales, service, parts, and body repairs – on your first impression. Literally thousands of dollars rests on your frontline and support staff’s treatment of your customer base. The difference is that you’re not a fine dining restaurant. You’re more expensive than that. There’s much more riding on an exceptional service visit than just a pleasant, warming introduction.

But that’s where it all starts.

As someone with 10 years of service desk experience, I know my shortcomings. The service drive turns into a factory or assembly line, with one customer after another turning into a drudgery. Often, that’s all it takes to forget that you’re talking to a person – someone who needs and wants to be treated with respect and value. They know how much money it’s going to cost to service or repair their vehicle. To you, it’s become just a number. To them, it’s a matter of family safety and extra hours at work to pay off their vehicle expenses.

So, when they arrive at the car dealership, pull into the service drive, and aren’t acknowledged promptly, it begins to sour the experience.

And when your eye doesn’t meet theirs when you talk to them, it worsens.

Then, when you seem irate or short when they have questions about their visit, they begin to wonder how much you value their business.

And if you’re impatiently eyeing the lineup of customers behind them instead of focusing on their concerns, you’re reinforcing their waning opinion of your service.

Like a First Date

Whether it’s your customer’s first visit to your dealership or their hundredth, they expect the same level of respect and treatment. In fact, their expectations get higher the longer they are in your stable. No matter how long they’ve trusted in your service department, each customer should be treated like it’s a first date.

You know what that means. You meet their eye when you’re having a conversation. You treat their questions with value and answer them fully. You offer the same upsells and value-added services the previous customer received. You compliment their vehicle’s condition and seek out ways to connect with your customer. You treat them like they are the only person in the room. And if you’re interrupted, you ask to be excused for a moment, then apologize for the intrusion.

Oh, How We Fail

I’ll be the first to admit, there are customers that never came back to the dealership because I forgot one absolutely critical thing: each one is a person. Each customer has value and importance, whether it’s a one-line oil change or the home-run, sell-everything client.

And, for every single customer I failed to treat properly with my first impression, six or seven others didn’t consider our dealership because of word-of-mouth. That’s makes the sting even worse.

It’s not just ME they don’t want to come back to see, it’s the dealership as a whole. My personal actions cost the dealership thousands of dollars in unseen revenues in the combined departments.

Just like bad service from ONE server at a fine dining restaurant will probably mean you never go back, one bad visit to your dealership can cause a potentially profitable relationship with a customer to go no further at all.

How to Stay Focused

Another contributor on DrivingSales, Denim Simkins, mentions in his blog post “Three Areas of Focus to Help Your Service Sales Advisors Succeed”, that he gathered his team before the doors open each morning for a powwow. This is the perfect time to remind your team that each customer is as important as the next. It’s the right time to emphasize the importance of first impressions. It’s a great chance to refocus your team on total customer satisfaction and following the steps to excellent customer service.

Whether it’s taking 10 minutes before the doors open like Denim does or another time in the day, find a way to focus your team daily on the importance of first impressions.

Ouch. That’s a hot topic. No one wants to be accused of the sexist stigmas that have been tied to the automotive industries. Men and women are equals in all things, from careers and family matters to politics and beyond. But is the automotive realm lagging behind? More specifically, is your store?

When you ask someone what they think a typical car dealership experience looks like, whether in the sales or the service department, the image evoked is often one of money-hungry, sleazy guys in cheap suits. Ask what the image of a woman’s experience in the dealership looks like, and responses reflect that of vultures swooping in to pick the last bits of flesh from the bones.

Now, we know that imagery isn’t true in MOST places, but have you overcome it in your store yet? I can tell you, from my wife’s point of view, not everyone has.

Not Just Falling Flat, But Frustrating

Recently, she took our vehicle in for its regular maintenance. I know, aside from any surprises, what she should have expected to hear for required services and necessary repairs. There are a couple.

Upon arrival, she’s first told she’s shown up on the wrong date (which she hadn’t), starting the visit out with a sour taste. Then, her oil change service is confirmed and it’s recommended that she purchase the detailing package.

And that’s the extent of the upsell. Vehicle history wasn’t consulted for repair recommendations from a previous visit. If it had been, the advisor would have seen there was a tie rod end with play. He also did not detect that our vehicle is overdue for its transmission service, differential fluid change, coolant flush, nor has a wheel alignment been performed in over two years.

And these are all things I already knew about before my wife went in for the appointment.

You might think that’s just a lazy service advisor, and that’s probably partly the issue. But is there a part of me that believes it’s more? That answer is yes.

My issue is this: if there’s an upsell to make, it’s almost always a loss leader to capture even more business in the long run. Had the upsell been a wheel alignment, the advisor would have had an open door to sell suspension work. If the upsell was the coolant flush, the opening would be for the other fluids that were overdue as well.

Instead, the upsell was a superficial service, playing on the ‘feminine’ trait of cleanliness. When she declined the detailing service, no other mention was made of repairs to be done, not even after she paid for the oil change and left.

In fact, it wasn’t until I glanced at the inspection sheet, surprised that the tie rod end wasn’t recommended, that I saw the loose tie rod AND a loose stabilizer link noted on the inspection. The advisor didn’t even TRY to sell the front end work.

Both Ends of the Spectrum

The pendulum can swing both ways, though. This advisor clearly didn’t think my wife was either interested in driving a safe, reliable vehicle or didn’t think she was the decision-maker in the family. The other end of the spectrum is the advisor who tries to hit a home run on each female client, assuming they’ll buy everything due to lack of knowledge. Both ends of the spectrum hurt your department.

How Should it be Done?

In my dealership experience, I’ve worked beside female technicians, service advisors, and managers. Many of them know cars, stats, and repairs way better than I do. I’ve also worked with even more completely inept males who know nothing about cars; with such dismal automotive knowledge that they couldn’t change their own tire.

It’s ridiculous to assume today that women aren’t on able to make their own decisions regarding automotive work. It hurts the industry as a whole when the stigma is reinforced by the actions of a few. I can tell you from my wife’s experience that she wants to know when there are problems with our vehicle. Her trust in the dealership she visited has faded into nonexistence, all from the actions of a single person.

How Can You Tell if Your Store is Alright?

It’s an age-old trick, but it’s one that works: mystery shoppers. Have your friends bring their vehicles in for service, then report to you with their experiences. A good advisor will tailor their service approach to the individual client, male or female, so it’s less about the actual ‘service work’ and more about the ‘customer service’.

If you find that you’ve got a problem, there’s no time to wait. Tackle it right now with training for the staff involved. It might just be old habits that are hard to break, but your store’s health depends on equal service for everyone coming through your doors.

In our industry, every department is involved in sales. And although it’s called the ‘Service’ department, you and I both know there’s emphasis placed on making just a little bit more from every customer. Increased sales are often generated by recommending value-added services and maintenance. And inevitably, you’re going to be told “no” more times than you care for.

How do you deal with rejections, ruefully known as “declined services”? Do your advisors simply go onto the next customer and try again? Do you track declined services and follow up later that visit? At a later date? On the next visit?

Maybe it’s best to start by understanding WHY you’ve been told no from your customer.

Reasons for Declined Services

Seldom are services declined because the customer doesn’t believe their vehicle requires it. More often than not, it’s our failure as service staff to go through the sales process thoroughly. These are some common objections to recommended services:

“I can’t afford it right now”

It’s a legitimate concern for many customers. Let’s face it: the services at our dealerships aren’t exactly cheap. But is it an excuse to avoid the service or truly about the money?

If this complaint comes up, a great tactic is to gently review the costly repairs that can result if the service isn’t performed. You’ll find some customers will change their mind and get the work done. Some, but not all.

“Not this time”

It’s a passive answer that doesn’t tell you much about their objection. It’s a tell-tale sign that the benefits of the service weren’t properly explained, though. What it tells you beneath the surface is that the customer has no objection to the service but no emphasis was placed on its urgency.

It’s tough to come back from this one without looking like a bully. What’s more, there’s less chance of the customer getting it done in the future because of a lackadaisical approach.

“Just the oil change please”

This is when you know a customer has been shell-shocked in the past by an aggressive advisor (hopefully it’s not you). They’ve been taken to the cleaners by someone who swung for the fences, and now they regret it.

Handle this customer with care. Some handholding and a personal touch, along with gentle, fact-based selling techniques can bring them back into the fold over time.

“…” – no objection, your advisor never tried!

If your work orders are riddled with long lists of declined services, you may have an advisor who isn’t sold out. Maybe they don’t see the benefit of the services they are selling, or maybe they don’t see the benefit in their wallet and don’t feel like trying. This hurts the most, because it’s money lost that you’ve never asked for.

Dealing with Declined Services

You have an arsenal of tools at your disposal – use them! With a little effort, you can shorten the list of declined services after the initial contact.

Ask a second time.

You might be surprised how effective it is to just reiterate the importance of the declined service. Explain the benefits again briefly, then ask the customer if they’re sure they want to wait. They might just go for it.

Recommend again when the car is in the shop.

When the technician is working on the car in the shop, it’s a great time to ask for the sale again. Whether the tech recommends the service in their inspection or not, you can try the upsell once again at this point.

Schedule it for the next visit.

You have a few options here. At writeup at the service desk, you can schedule the service with your customer immediately. You can ‘soft-sell’ the service simply by assuming they want to book it for their next visit.

If that’s not successful, cash-out is another great time to schedule it. Whether it’s you or a cashier, you should always book the customer’s next visit anyway. Why not tack the declined service onto the list, then go over what they should expect to have completed the next time they visit.

Follow up with your BDC.

Your last line of defense to capture lost sales is your BDC. Their role is to follow up with your clientele, and they’ve got a few tricks of their own to get it booked for the next visit. You’ll need to make sure there’s a way for the BDC to know the declined services you want them to sell. Hash this out intentionally.

Look for trends in declined services among your staff. You might find there’s an advisor who needs encouragement or training to improve their sales.

There’s a shortage of technicians most dealerships are experiencing, and the drought has no end in sight. Unwittingly, well-trained technicians now have the upper hand in the employer/employee relationship. And with these expert technicians becoming such a hot commodity, what are you doing to get fully staffed in the shop and stay that way?

If you’ve been in the fixed operations game long enough, you’ve seen technicians come and go. Some of them are good, some of them not so good, and others were absolutely rock stars in your service department. And while you’re probably not too heartbroken to see the mediocre techs take a bay in someone else’s shop, it leaves a hole in yours. The worst kind of pain is always in seeing a high-producing, expert technician move on.

How do you keep your technicians around?

Being a mechanic or technician isn’t a glamorous profession. It requires hard work that taxes your body. You’ll get cuts and bruises, broken fingers and at least one major head injury. It’s not an old man’s profession and rarely do techs retire on the bench.

But other objections cause techs to move on more often than the physical demands. Poor working conditions, lackadaisical management, insufficient recognition, and a pay ceiling are more commonly the issues.

Keeping the good techs you have means keeping them satisfied, especially when they know they are in high demand elsewhere. And trust me, they know there’s a demand. More specifically, there are three questions you must answer. Coincidentally, they are the same three questions you’ll need to answer to get any great technician onboarded at your dealership.

What makes your dealership different?

If you’re the same as everyone else, why would they move on from their current position? You need to be different, and a GOOD different.

Do you have an above-average influx of work? Can you guarantee a certain number of flat-rate hours without batting an eye? Or can you ensure their work environment is better than anywhere else?

You may catch one of the good techs that doesn’t know they’re better than most without answering these questions. However, you’ll need to be able to honestly answer the questions about why your dealership is different – why it’s better to work for you.

Why should they work for you?

On that note, why SHOULD they work for you? You can tell them what makes you different from the others, but the reason to work for you isn’t about information. It’s about heart.

Anyone can work in an assembly line atmosphere with earmuffs on and the outside world blocked out. But a service department is about interaction if it’s done right – interaction with other staff members and interaction with the customers. That’s why it’s a SERVICE industry.

Why should a potential new hire work for you? Each one likely has several irons in the fire, and you’re competing with other quality shops to snag this awesome tech.

Show them the team atmosphere. Show them the co-operation and the attitude difference in your store. Show them all the positivity your store possesses.

And that means you need to be the department that can capture those technicians. You need to embody those qualities before you can demonstrate it to your applicants. That’s a whole other story, though, and developing an atmosphere where people want to work is much bigger than this article.

Are you giving them ways to progress?

Like previously mentioned, the role of technician isn’t an old man’s game. You need to be constantly developing people to occupy every role throughout your department. Unfortunately, that means you can’t sit back, dust off your hands, and say, There. All done.

Like any professional role, technicians need goals to strive towards. It could be ASE Master Technician status. It could be certification through your own manufacturer’s training programs. It could be making the jump from the bench to the service desk, or to shop foreman, or assistant manager.

As their service manager or fixed ops director, you should be able to have open conversations with each technician about where they want to be professionally in their future. Do they want extra responsibility or more knowledge-based learning? Do they feel they are better suited for another role in your service department? Should they be specializing for you?

When onboarding new tech hires, these are important points to note as well. Tell them what you’ll do to help them develop.

If you’re asking these hard questions of yourself and your technicians, you’re on the right track. It might take a few years (yes, years) to fully staff your tech vacancies with quality people, but answering these questions will help the tech-pocalypse pass a little quicker in your store.

There’s no need to rehash the vehicle complexities that are worked into every new model. Whether by regulation such as emissions standards or for convenience, like adaptive cruise control, an everyday backyard mechanic can no longer perform vehicle maintenance and repair. You’d probably expect that dealership service departments should be getting busier as a result.

Maybe the service department would be busier…if there were technicians to do the work.

Where are they all going?

Everywhere you turn, dealerships have opening for certified technicians. Ford, GM, Chrysler, Kia, Hyundai, Toyota – no matter your brand, there simply aren’t enough specialists to fill the vacancies. The problem has several facets:

• Expert technicians are retiring. We can all understand the physical demands of automotive repairs. It’s not an old man’s game. And when these people with decades of experience can’t handle the work anymore, they leave a gaping hole in the department that is impossible to fill overnight.
• Technicians are changing industries. We know that technicians in today’s marketplace are usually compensated well, but other more lucrative careers await these people. They’ve demonstrated aptitude, and high-paying industries like railroad and aerospace poach the best we have for better pay.
• There aren’t enough technicians being trained. It’s not a knock on the trades schools. Most automotive training programs have full enrollment and most have a waiting list as well. It’s simply that the rate of retirements versus the new hires is at a deficit.

How do you deal with a shortage of mechanics?

It’s not an easy answer. In fact, if just one of your senior technicians quits or retires, it could take two or more hires to fill the void they leave behind. For a technician to learn the nuances of a new brand and get up to speed physically as they complete the service and repairs will probably take a few years.

That means that you have to be prepared for fluctuations in staffing before they happen. If you’re in the hole right now, it’s going to be a battle to get up to snuff. However, there are a few steps you can take to prepare for the future of your service department.

Treat your technicians right

Now, don’t go coddling them, but show them that you truly care and appreciate the work they do. Go out of your way to demonstrate your gratitude – buy a technician lunch, treat them to a hockey game as a group, or head out for a paintball session together. When there’s a discrepancy, deal with it head-on to show your leadership skills and your fairness.

An August article on Forbes.com says that only 30 to 40% of employees are fully engaged in their job. People who aren’t engaged are much more likely to move onto another company or industry. As a manager, your goal is to increase that statistic as close to 100% for your staff team.

If your technicians feel like they’re being treated fairly and are engaged in their job, they won’t be as likely to leave.

Train the ones with aptitude

You see something in that new guy you just hired. He has an inquisitive mind and is always watching over a technician’s shoulder to see how things work. If they are reliable, get them working hands-on with your service team. This is the kind of person you want to develop from the ground up.

Send them to manufacturer-provided training courses. Pay their way through apprenticeship schooling (as long as they pass, of course). Invest time and money into a person like this and the end result will be an appreciative staff member, a well-trained technician, and a fiercely loyal ally who will stay with you longer than most. It’s the perfect recipe for a career technician for your store.

Hire technicians when you can

It always seems you get the resumes of qualified technicians when there isn’t enough work to support additional staff. But, if the applicant is the right fit for your store and has all the requisite training, don’t pass up the opportunity. If you don’t hire them, someone else will. And then, when the workflow increases, you’ll be left in a lurch while your competitors have the necessary staff.

Poach from the independents

According to the Canadian statistics, only 23 percent of trained technicians work in dealerships. 50 percent work in independent and franchise repair shops. American stats are likely very similar. If you’re looking for a great source of trained staff, you may want to consider approaching a few well-known techs from nearby businesses. If you have a reputation of treating your staff well, you may be able to sway quality people into working for you.

Have you found a way to deal with your tech shortage? Share with us!

You expect the occasional disgruntled customer or miscommunication when you work in ANY service industry. It’s a fact of life when you work with the public. But it seems that your best customer is the one that’s always the loudest one when they aren’t satisfied, and it’s not someone coming through your service drive.

This customer uses the back door. The staff entrance. This person is a familiar face and one you begin to rue after a while. It’s the used car manager.

When Steve, the used car manager, steps into the service department, it’s never with a smile and a soft-spoken word. When Steve has to make his way back to the service department, it’s because something hasn’t gone his way. Nine times out of ten, it’s because there’s a vehicle that’s not yet reconditioned, detailed, certified, or otherwise unready for the used car lot. So Steve’s not a happy guy.

What Goes Wrong?

Neither service managers, service advisors, nor used car managers are known to be subtle – especially when it comes to interdepartmental discrepancies. One thinks the other is lazy, another thinks someone has lost control, and someone else is thought to be completely unreasonable. You can figure out who’s who.  And so the problem always becomes a bigger issue than it has to, all due to ego.

Let’s play this out quickly: the UCD manager demands to have a vehicle completed right this minute. After all, it’s been 24 hours and it hasn’t hit the shop yet. The service advisor rebuts that there are customers with appointments that haven’t gone through yet. The service manager placates both parties somehow, making promises they can’t necessarily satisfy on both ends. And in the end, you have three frustrated staff and potentially dissatisfied customers (if their vehicle was bumped in queue). Nobody wins.

The argument that no service person wants to hear is this: “The used car department is your biggest and best customer”. Ugh. Unfortunately, it really is true, and somehow you have to keep your biggest customer satisfied. It’s much larger than just getting the work completed. It’s getting additional vehicles ready for sale and retailed so you have consistent work coming through the service department.

So How Do You Deal with the UCD?

There’s a balance to strike. Understanding is important. Flexibility is crucial. And cool heads have to prevail.

As a management team, the service and sales managers should have a pretty open relationship to discuss the ebbs and flows of their departments. Sales managers know when used cars have been purchased at auction, and when they’ll likely arrive. Service managers are aware of their workflow trends, and how many spare hours there are in each day.

Working together, an organic schedule can be written out. Make target timelines specifying how long each vehicle will ideally take through each step of reconditioning. 5 days for safety certification, 2 days for detailing, 3 days for dent removal and paint, and so on (purely sample numbers).

UCD managers have to realize that it takes time. Unless extenuating circumstances arise, no questions need to be asked until the vehicle is overdue. Service advisors need to understand that the sales department is, in fact, the biggest customer. That work is just as important as your customer appointments as it’s literally your “next generation” of customers that will be buying them.

The most important role is in the hands of the service manager. Controlling the workflow in the shop is a precision role left to a dispatcher, but done so at the behest of the service manager. When there’s an influx of used cars coming, the service department bookings may need to be reduced to allow the extra flow from UCD. It might not be a popular decision but it’s critical to maintaining a balance.

When a store has grown into a medium- to large-volume dealer, communication with Steve, the UCD manager, is probably best left to a single point person. In that way, Steve has only one person to inquire of for vehicle statuses, special requests, and the like. You free up your service advisors to deal primarily with the customers off the street, providing a high level of service on that end. You keep your UCD department satisfied with a point of contact that will be up to speed on all the ins and outs of each vehicle.

But because of the type of personality that is predisposed to the auto industry, someone will blow their top eventually, even with a structured plan in place. Give each other a little grace for these times. Another phrase everyone loves – “you are all on the same team.”

Like most of you that read this blog, I’ve spend years and years in the automotive industry. I’ve become immune to the sales techniques and upsells, just like most of you have. When I get my vehicle serviced or repaired, I am able to objectively make decisions about each item’s urgency.

But when it comes to our customers, we don’t usually think they’re on the same level as us. We think they should blindly trust what we tell them, because we are the experts after all. We’re surprised when they’re skeptical of the repairs we try to sell them. They decline repairs that are obviously safety related.

It’s our fault.

You see, we don’t give our customers enough credit. They’re intelligent about their cars and you can only expect their blind trust once you’ve built a relationship. To do so, you need to speak with them on your level as an expert and reach out in a way that is most convenient to them, your paying client. It’s a surefire way of delighting your customers.

Would you approve repairs without knowing the full story?

If your car is in for its $50 oil change and you’re approached about a $500 oil leak the technician just noticed, would you blindly approve the work? Probably not. You’d want to see it, wouldn’t you? Your customers are the same way. They aren’t inclined to place their trust in your dealership’s service department, especially not until you’ve given them a reason to do so.

Build that trust with your customers by providing proof of the required repairs and maintenance. Take photos or video of the problem areas, then send them off to your customer. When they can visualize the issue on their car, it’s undeniable. It’s trustworthy. And that’s when the wallet will open more freely.

Your DMS system may have something like this already built into it. Or maybe it doesn’t. If it doesn’t, find a way to make it happen. AutoVitals Inc. has a solution known as SmartFlow that is revolutionizing the service department from front to back, and it includes a slick way for technicians to take pictures and video of any issues, including a walkaround inspection. I can’t see how it WON’T improve your ability to close on sales.

Contact customers on their terms

Did you know that your customers aren’t inclined to answer a phone call? You knew that, yet you still expect them to answer when you call them throughout the day. 98 percent of text messages are opened within the first minute of receiving them, and most people respond to those messages right away. Businesspeople and those how can’t answer their cell phones at work can usually respond to a text message, making it a more reliable method of contact than the telephone.

Email is on a slight decline in popularity, although it’s still more effective than waiting for someone to call you back from a voicemail message. The additional benefit to both text message and email messages it the ability to send attachments. Have a photo or video you want your customer to see? Include it in your message! Have a quick repair quote they can authorize by text? It could save you several valuable minutes over a lengthy phone call, trying to explain what needs repair and why.

However, if you can’t implement text messaging or email communication as effective methods of customer contact, the phone is better than nothing! Be consistent, contacting customers regularly throughout the day so there’s no worry about how their vehicle is doing.

As a rule of thumb, be the one to reach out to your customer before they can contact you. If they have contacted you first, you can bet that they’ve already been stewing about the lack of contact for a while. It’s the kind of customer that is more likely to give you a bad survey response or decline repairs on the basis of principle.

When you’re timely in your communication and are able to back up your upsells and repair estimates with photo or video proof, rest assured, your customers will be exponentially more satisfied. There will be less complaints to management, higher conversion rates on estimates, and the bottom line is guaranteed to increase. 

A tight line to walk in the service department is your pay structure for service advisors and support staff. No matter who you are, someone is going to tell you how you compensate your employees is wrong. But, coming from someone with a dozen years as a service advisor, you’re doing it right. At least, mostly right.

See, the debate is founded in two competing factors, of which your service advisors will always struggle to find a balance. There’s the aspect of selling the absolute most you can to every customer that walks through the door. Then, there’s the position of providing the number-one exceptional service experience for every client.

And so it goes: high-selling service advisors love a commission-based pay structure. It rewards them for doing what they do best. And the advisors who love to care for customers’ needs are drawn to the salary argument.

The tendency is…

When your advisors’ pay plan is steeped in commission primarily, customer service can suffer. Sales pressure can turn customers off, possibly never to return. You may notice CSI scores are difficult to achieve or maintain simply because that’s not where your advisors earn their bread and butter.

When I first began as a service advisor, my fixed operations manager told me he expected a customer complaint every week or two about sales pressure, otherwise, I wasn’t trying hard enough. It’s true.

And when your advisors are structured to earn a set salary, your goal is probably to earn top marks in your CSI surveys. That’s quite doable, although when you remove the incentive to sell maintenance and repairs, undoubtedly your gross profit will suffer.

Where do you strike that balance?

What you’re doing works. Whether your advisors are mainly commission-based or salaried, you’re doing it right. And if there’s a good blend of both, that’s wonderful too. Speaking from the position of an advisor, you want to be properly compensated for your role each day. That’s all. You might respond better to one structure over the other, but it comes down to getting paid.

If I can make a suggestion, it would be to stick hard and fast to one pay plan. Commit to it for a determinate amount of time. Tweak it if necessary along the way, if both parties can agree to terms. But get it on paper. Then, set ground rules. Again, hard and fast. Clear expectations are required and must be enforced. If the pay plan says there’s a penalty for falling short on a goal such as individual or store CSI scores, stick to it. Your advisors need to know that you’re serious about not just their pay plan, but how your department is going to operate.

Potential pay structures

Typically, a service advisor’s role is a sales position. That usually lends itself well to a commission-based structure, I’m sure you’d agree. Here are a few typical ways to blend pay structures for advisors. No particular plan is better than another, just different. One may not work for your store, while another is overwhelmingly successful. We won’t talk numbers – that’s too big of a topic right now. Just structure.

• The advisor is paid a base salary, just a meager amount as a foundation. Add to that a flat fee per RO, increasing incrementally based on their average hours per work order (this can be lucrative for a great service advisor). Tack on a bonus for achieving certain CSI scores on a 3-month rolling average. It’s probably most commonly seen in domestic stores.
• A modest salary is paid, essentially the largest component of their pay. A smaller segment of the pay plan is based on their sales, while a larger potential bonus comes from CSI scores. This seems to be a favorite among the import dealers for some reason.
• Advisors are paid straight salary, nothing else. It’s a great idea on paper but can become lackluster when the advisor settles into a groove, realizing they’re getting paid the same whether they sell or not, or take care of their customers or not.

Advisors are a hot commodity right now, and they know it. The position is difficult to fill with experienced staff, so you’ll find advisors tend to push their boundaries. I love the idea of a straight salary position combined with a zero-tolerance stance on breaking rank for this reason. Pay your service advisors really well (it’s a hard job, truth be told), then be sure to correct or discipline them when they fall short of the standards set out.

As an added bonus, toss in a cash spiff from time to time. I found that was a great way to spice up the job and spark sales.

Do you follow one of these pay plans, or something similar? What works for you and your store? Share your successes and shortcomings. 

Can you increase sales in the service department without chasing away your customers?

The goal of the service department at any dealership is the same as every other department: generate an income for the owner. Moreover, there’s an expectation that the profits will increase year-over-year. The responsibility for that growth falls squarely on the shoulders of the service manager and their team, namely service advisors and technicians. But is sales growth possible without chasing away faithful customers?

Labor Rate increases versus inflation rate

According to the Bureau of Labor Statistics, the US inflation rate has slowed from three percent on 2011 to just one percent in 2016. That indicates nearly stagnant financial growth for the vast majority of Americans.

In 2011, the average dealership labor rate was in the vicinity of $104 per hour. That number also varies significantly based on geographical location in the United States, but is an average across the nation. In 2016, the average labor rate charged by car dealerships nationwide has increased to $129 per hour.

What that indicates is the labor rate for auto repairs is nearing a ceiling. While economic growth has slowed to a crawl, dealership labor increases have forged ahead at nearly five percent per year. Additional labor rate increases have the potential to push customers to alternate vehicle service and repair choices that charge lower rates.

How, then, can an automotive dealership increase their sales without increasing their hourly labor rate? What challenges does it pose to customers and to service employees?

Ways to increase sales dollars

A critical component to increasing sales through the service department is to maintain the focus on added value to the customer. Should the concentration shift away from the client, it may be quickly noticed that efforts go unrewarded, and may even be detrimental to business.

Here are a few methods to increasing sales in the service department without bumping up the labor rate:

• Monitor the service process closely. From the vehicle walkaround in the service drive to checking in with a service advisor, right through to the technician’s inspection and repairs and subsequent estimate, the processes that are set out for employees to follow should be adhered to. Regularly follow a work order through the whole process to ensure every person is performing their role fully. Otherwise, sales dollars are being left on the table.
• Offer mobile services. A growing industry trend is mobile vehicle servicing or vehicle pickup and delivery. Lincoln has claimed that every 2017 model year vehicle will be offered vehicle pickup and delivery for maintenance and repairs during the warranty period. While Lincoln is providing this service free of charge, customers don’t expect convenience to be free. Offer mobile services or vehicle pickup and delivery for a premium charge.
• Provide services that save customers time. Consider items where customers are required to make an additional appointment elsewhere. Services such as glass repair can be performed at the dealership with little training and almost no cost for materials. These services can be performed by a junior technician at a low labor cost, meaning even at a competitive price the gross profit is still quite acceptable. Dent repairs or upholstery repairs can be subleted and marked up and, though marginal, the profit will improve sales figures.
• Emphasize accessory sales. Parts and service departments both profit well on accessory sales and installation. A prominent accessory display at the service desk can trigger an impulse purchase from customers who see it. Accessories show pride in vehicle ownership and are perceived as good value by those who purchase them.
• Offer full-service vehicle detailing. Again, the labor costs of detailing staff are on the low end, meaning competitive pricing can be offered to customers without sacrificing gross profit. Provide upholstery cleaning, exterior scratch removal, and complete vehicle polishing for high-ticket detail services that customers will be happy to pay for.

Among each of these services, it is imperative that pricing is competitive. That doesn’t mean offering the lowest price but it does mean being in the same ballpark. If the services offered are exceptional – truly better than the competition offers – it’s quite possible to charge a premium and still be good value.

Get the whole team on board

Successful increases in sales are a team effort. It requires a concerted push from vehicle write-up through to the completion. For that, every team member involved needs to buy into the process.

Regardless of the method of increasing sales dollars, the process is the same.

• Make the objective clear. Determine a specific target to achieve through the chosen method. If the goal is to increase sales $10,000 per month, ensure that every involved team member knows the goal. The targets should be realistic and measurable and should be well-researched and metered before implementing the process.
• Make the benefits clear to staff members. Requesting more productivity from any particular role with a reasonable expectation of success hinges on answering one question – “What’s in it for me?” Knowing how the team will benefit and how each individual will benefit from the increased sales is a great way to motivate the team towards the new common goal. Be prepared with this information as the process is rolled out to prevent opposition.
• Track the sales increase. As with developing any habit, it takes 21 days of repetition and consistency to cement a new sales process into daily routines. Follow up daily with each team member involved in the chosen method, reviewing their performance toward the goal and encouraging them on.

Set a timeline to review the implementation and assess if the goals have been achieved, exceeded, or missed. It may be necessary to revise the sales target or select a different process to implement, but do so only after a concerted effort.

Once again, the emphasis must be placed on the benefit to the customer in order to achieve increased sales without hurting the customer base. If clients don’t perceive value, few will buy into the process without straining the future service relationship. 

We all love to think we are irreplaceable; that the function we perform can’t be done any better than us. But let’s not kid ourselves. When you’re gone, there’s going to be someone who takes your place. They’re going to sit at your desk, in your chair, and maybe even drink their coffee from the same mug.

And how your replacement performs is completely within your control.

At one time, I had a mentor tell me that if things could not go on just as well if he died or moved on, he failed. At first it sounds self-deprecating, like you’re not important to the process. That’s not how it’s meant, though – actually, quite the opposite.

Chain of Command

He modeled his leadership after the armed forces, and no, not like a drill sergeant. When you’re in the army, you’re responsible for making sure the person that ranks directly below you is trained to fill your shoes. In that way, if you were killed on the battlefield or promoted, your replacement could slip in and take over your role with a moment’s notice.

When you feel like your role is pivotal, like you’re the officer in charge of a whole platoon, that’s when this ‘chain-of-command’ approach is even more crucial. What happens when you leave and you don’t have a clear replacement?

In the army, chaos would reign. Structure is the rule. How would your replacement be decided? Would it be left to the privates to hash out? Or would a high-ranking captain need to assign the duties without knowing who is best for the job?

The same goes for your department. There should be clear structure of the ranks; of who reports to whom. And everyone should train a person below them in rank.

 Dealership Boot Camp

If you’ve put staff around you that want to excel, who want to become all they can be in the dealership, you have your replacement already. Now you need to groom them for your job. Let’s make this clear: this is not just teaching skills. This is equipping your staff to truly become your equal.

It’s a process that’s ongoing, and goes hand-in-hand with professional development. Where professional development is a general concept that trains critical thinking skills and positive habits, training your replacement is much more focused.

Be Intentional

The first step to training your replacement is identifying your protégé. You see the person who asks the right questions and has a keen awareness for how your job is done. If you had to, you could narrow it down to one, maybe two, people. Discuss your intentions with your protégé so they know precisely what the end result is supposed to be. If they aren’t sold on training for the role, encourage them to think about it but don’t force it. You may have to pick your second choice.

Set aside time

Schedule regular times for training. Develop one skill at a time. Assign leadership-building resources as homework. Get them involved as silent attendees to management meetings. And when you meet for your training sessions, make sure they know your expectations for the next time around.

Perform test runs

When you’re away on vacation or away sick, it’s a great time for your staff member to get some real-world experience however short it is. On your return, debrief with them about their experiences and any challenges.

Dealer-Wide Concept

When your replacement is filling your shoes, you’re now leaving a gap where they once stood in the line. This training method truly works at its best when your whole department and dealership buys in. Your replacement should be training their own replacement. And the one under them should be learning new skill, and so on.

It’s no secret that promoting from within the ranks is the smoothest way to transition for any kind of job, whether it’s the Army, a fast-food restaurant, or the service department at a Chevy dealership. The time to restore full productivity is much less and there are fewer speed bumps along the way.

If you haven’t thought about stepping into a promotion, you may need to set your sights higher. The process goes for you as well. Learn the job above you, for the same reasons. And when the times comes for you to move up or move out, it’s your duty to make sure the department and dealership can run just as smoothly without you.