It’s been over 20 years since I managed a large Chevy store, but some things never change. Many dealers still have issues with the recon process and getting pre-owned inventory out to the front line in a timely manner.

The crux of this problem starts with pay plans and the fact that used car departments typically get a discounted rate for repairs. Service managers and service advisors are paid off gross, so if I’m a service manager and I have a customer in front of me that needs a brake job, shocks and tires and I’m looking at a RO estimate of $1,000, and $500 of that is gross, of course I’m going to prioritize that over a recon RO with $100 gross.

When I was a GM here’s how I solved this problem. I made a new rule: All used car repairs were paid the exact same rate as customer pay, otherwise known as door rate. Now, initially your used car manager isn’t going to like this. He or she might even go ballistic, and insist that it’s impossible to make any gross because now the cars are too expensive.

But here’s what I always found to be true. The gross you’re going to get is the gross you’re going to get, whether you’re working from a cost-up basis or a price-down basis. If the vehicle is too expensive after paying door rate for repairs, then you’ve appraised it wrong.

Let’s say a 2017 Cadillac XT5 comes in for trade. With the help of software tools such as vAuto, you can get pretty accurate appraisal and pricing parameters, as well as local market intelligence that gives you a good idea of how quickly this vehicle is likely to sell.

This data makes it easy to estimate what your gross margins will be after you’ve paid door rate for service. If the gross is too low, then you can’t offer as much for the trade.

If you’re having trouble finding vehicles, try what CarMax is doing. Offer free appraisals and offer to purchase any used vehicle, with no obligation to purchase. This saves you money in auction fees and transportation fees, which are getting to be ridiculous.

A bonus to this rule is that your service department makes more money, because you’re not giving away gross to the used car department. Service managers will prioritize recons the same as customer pay, and advisors and techs won’t be reluctant to work on them, because they’ll be getting paid better rates.

Of course, there’s a second part of the equation, which is how fast your pre-owned vehicles get to the front line. We all know there’s been a billion studies that show the faster you get a car to the front line, the more gross you’ll make.

Dispatch and workflow systems can help with this process, but the problem with these methods is that it requires manual entry by the parties involved. If the service manager delays entering the data into the system, you have no idea how long it’s taking. A repair order might take three days to close but the work was done on day one, and someone just forgot to close the RO.

While technology is a wonderful thing, sometimes an analog process can’t be beat. Here’s what I recommend. Every time a used vehicle is brought to the service department, immediately open an RO. Then take a crayon pencil and write the date and the RO number on the windshield. If all your recons are parked in the same area, it’s very easy for the GM to visually identify how long the cars have been sitting there.

I used to go out and check almost daily. If a car had been sitting there for more than a couple days, I would ask what the holdup was. Does it have an estimate? Are they waiting on parts?

The nice thing about charging door rate for your pre-owned repairs is that if you’re short on resources it’s a lot easier to justify hiring new techs, adding new service bays, extending hours or hiring an outside detailing company to help out, based on your volume. If you’re discounting all your recon repairs, it’s a lot harder to justify spending that money.

Try this and see if it works. The end result should be higher gross in service and the same gross in pre-owned sales, because the gross you’re going to get is the gross you’re going to get. If you try my super-sophisticated crayon recon method, you might even see a lift in pre-owned gross due to vehicles turning faster. Sounds like a win-win to me.

Did you know that texting has been around for 25 years? However, it didn’t become really popular until the early 2000s. According to the Cellular Telecommunications Industry Association (CTIA), more than 1.9 trillion text messages are sent in the United States every year.

If your dealership isn’t texting your customers, your messages may not be getting to them at all. Around 98 percent of text messages are opened, compared to just 20 percent of emails.

Texting is used in dealerships for two purposes: personal communications and marketing. If you have a texting platform, it’s important to know the best practices for each method before you begin using it.

Most people already know that marketing texts have to be in compliance with the Telephone Consumer Protection Act (TCPA) and Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) regulations, which require businesses to get prior written consent from customers before texting them. Specifically, the TCPA prohibits text messages sent to a mobile phone from an auto-dialer.

Calls and texts that are manually dialed are exempt from this rule, which means your employees are allowed to send personal communication texts to your customers.

But just because you can legally send a text, does that mean you should? 

Texting is highly personal. Most people text with friends, family, co-workers and acquaintances. Have you ever received a text from a stranger who introduces his or her self, and wants to connect? It may be considered intrusive.

However, if a customer reaches out to you first, or is physically at your dealership, that’s a different story.

For example, when a customer arrives in your service lane, have your service advisor ask them if it’s okay to text them when their car is ready. If the customer says yes, then it’s OK to send a personal message via text, but it’s not OK to send a marketing message via text. If you recall, to market via text requires written consent.

Logically, the very next question should be “Would you be interested in receiving special offers and coupons via text?” If the customer says yes, then you’re allowed to send them a welcome text that’s CAN-SPAM compliant. If the customer chooses to opt-in at that point, you’re allowed to market to them via text.

Building a texting opt-in list adds a powerful weapon to your marketing arsenal, especially for service. More than 80 percent of adults send text messages on a regular basis, so it’s a great way to convey important information and stay top of mind.

However, building your text list takes time because it’s a largely organic process. Also, you want to be really careful with your list so you don’t start driving your customers to opt-out.

When it comes to SMS marketing, there are three best practices that every dealership should follow:

Send relevant messages

Imagine that you just had an oil change done at your local dealership. A week later, you receive a text message with a coupon for 10 percent off an oil change. That message isn’t relevant to you at all! You’d be annoyed, wouldn’t you?

Similarly, if you just purchased a vehicle from a dealership a year ago and you receive a message for a Labor Day blowout sale, you may be tempted to opt out.

Segmenting your database and sending relevant, targeted messages is important to do with every marketing channel; however, I think it’s most important with texting, because it’s such a personal and instant connection.

Limit marketing messages to two or three a month

Many SMS marketing companies may tell you it’s okay to send a text message every week, but I’m not so sure. I think when it comes to text messaging, less is more. Besides, if your messages are relevant, you shouldn’t need to send out too many of them.

Marketing doesn’t always have to mean selling

Marketing is about relationship building. No relationship can survive when one partner is only interested in what the other can do for them. When it comes to customer loyalty, you have to give in order to get.

It’s OK to send out coupons and offers, but be sure to also send campaigns that give information and ask for nothing. Examples may include:

• Thank you for your business (after the customer leaves)
• A link to your customer newsletter (mobile-friendly of course)
• Service reminders
• Appointment reminders
• Recall notices
• Polls
• Net Promoter Score (NPS) survey
• Information about community events you’re sponsoring

Most of these campaigns can be automated based on a certain trigger in your DMS. For example, appointment reminders can be sent out three days before an appointment.

Over time, you’ll see which text campaigns get the most clicks and responses, so you can fine tune your marketing. Is your dealership using SMS marketing to connect with customers? If so, what are the campaigns that you have found to be most effective?

Every year at NADA I am amazed at the number of new and exciting technologies being introduced. Some are completely new, like virtual reality showrooms; others are upgrades to existing applications that dealers use on a daily basis, such as a CRM or DMS.

It's easy to get excited about a technology that promises to increase revenue, streamline processes or improve the customer experience. But before signing on the dotted line, dealers know they've got to get buy in from the managers and employees who will be using the technology.

As any dealer knows, this can be a problem.

The biggest obstacle that dealers face when introducing a new technology is employees' fear of change. Have you ever run the idea for a new service application, CRM or DMS by your managers and employees, only to face resistance? They dig in their heels and say things like, "We've done it this way for 25 years. Why change now?"

They fear the change will be disruptive to business, or they fear it will take too much time to learn. So the employees insist they won't use the new technology, and all too often, the dealer caves to their resistance.

The problem with this is that today's dealerships must keep up with technology in order to compete. Independent service shops are being built from the ground up with technology incorporated into every step of every process. Much of this technology is designed to improve the customer experience; from mobile tablets to diagnostic tools and texting communications platforms.

In sales, industry disruptors are promising customers a fast and pleasant online buying experience, bringing them to the point where customers can pick up their new vehicle at the dealership or even have it delivered. Other dealerships are experimenting with a no-haggle experience provided by 'product experts' instead of salespeople, with promising results.

Are you confident your dealership is delivering a better, faster, more pleasant customer experience than it did five years ago?

Has your dealership embraced technology as a way to improve the customer experience?

Are you at the end of the rope with one of your current vendors?

As a dealer, if you feel strongly that a new technology will help keep your dealership competitive, it's important that you don't cave to employees' fear of change.

This doesn't mean you have to force your decisions onto your employees against their will. As you may know, I'm all about creating a great workplace for employees. It's difficult to keep employees happy when they feel like they are being forced into something.

So the key is to get their buy-in. Make them want the technology, or at least be open to trying it. Here are a few tips on how to accomplish this.

1) Discuss your decision. Hold a meeting with the department manager or managers that will be using the new technology. If they are resistant to the idea, ask them why. Don't accept an answer like, "We've always done it this way." Ask for specific reasons why they think the current technology, or current process, is better.

2) List pros and cons. Have a list of pros and cons for the new technology, as well as the current/existing technology or process that will be replaced. Go through the lists with the manager and ask them their opinion and input on each point.

3) Present your business case. Be open about the cost, potential revenue increase, ROI and any concerns that you may have. If they are still resistant, ask them to present their business case. Can the status quo deliver better results, and if so, how?

4) Give employees a say. You may not be giving them a vote, but they can certainly have a say in how, when and where the new technology should be implemented. The more you involve your managers and/or employees, the more they feel like they have some control over the situation.

5) Start small. If the technology can be introduced in a small way, or rolled out slowly, such as mobile tablets in the service department, offer a compromise. Suggest trying it with one service writer; preferably someone who likes the idea.

6) Form cross-functional teams. If the technology is a major system such as a CRM or DMS, the earlier you can involve your employees, the better. Form a cross-functional team to help in the selection process. They may resist at first, but as the process moves forward and you demonstrate that their input and feedback is important in the decision-making process, they will warm up to the idea.

7) Offer training. Be sure that everyone knows they will get the necessary training in order to come up to speed on the new system quickly. Deliver on that promise.

8) Demand accountability. Let your team know that you are demanding accountability for using the new technology. Then ask the manager and/or employees to define how they will be accountable, and what the consequences will be if they are not.

Thanks to technology, ten years from now the way we sell cars may look nothing like how we do it today. Dealers who embrace the coming changes early on stand to benefit the most, because they will be giving customers what they want.

Change is hard, sometimes scary but always necessary. But the more you can involve your managers and employees in the process, the more likely they will be to adhere to the decisions made. Instead of figuring out all the reasons why the new technology won't work, they may actually take ownership of the process, get excited or at least be less resistant to the impending change.

Albany, N.Y. – October 10th, 2016 – Auto/Mate Dealership Systems announced today that its dealership management system (DMS) is fully integrated with Singlethread, an industry-leading service department text-message platform. Auto/Mate's auto dealer customers now have the option to implement Singlethread's messaging tool to communicate with service customers and have all records saved in each contact in the DMS.

"Many customers prefer to communicate via text so when a dealership makes that effort it has a tremendous impact on customer satisfaction," said Mike Esposito, President and CEO of Auto/Mate. "Additionally Singlethread speeds up the process for approving estimated repairs and even has a system to measure customer satisfaction."

"Integrating with Auto/Mate's Fixed Ops Suite was quick and inexpensive, which we really appreciate as keeping integration costs low allows us to keep our costs low for dealers," said Patrick Southward, Co-Founder of Singlethread.

According to the J.D. Power 2016 U.S. Customer Service Index (CSI) Study, 37% of Gen X, 38% of Gen Y and 22% of Baby Boomers prefer to receive service updates via text message or email. Yet only 2% of all dealership customers currently receive service updates via text message or email.

Singlethread helps dealers communicate the way their customers prefer, eliminating phone calls and voice mail tag that lead to frustrated customers. Singlethread's multi-media messaging platform allows service advisors to text MPIs, photos and videos to customers, increasing transparency and boosting RO approval rates. Singlethread is fully compliant with text messaging regulations and enables secure mobile payments.

Auto/Mate's Fixed Ops Suite is a full-featured solution that offers the following benefits to auto dealership service departments:

• One-screen access allows all service merchandising functions to be accessed within one screen via user-friendly pull-down menus and buttons
• Automated dispatch and electronic RO capabilities enable hands-free, customized and flexible dispatching
• Graphics-rich calendar allows service managers to view color-coded appointments on a daily, weekly or monthly basis "at-a-glance"
• Instant merge feature that merges duplicate customer information with a single click of a button
• "OEM Button" to access manufacturers’ online information at any time within Auto/Mate's DMS

Auto/Mate offers low-cost, seamless integration for third-party vendors with its Open/Mate program. Auto/Mate is an advocate of open standards integration as a way to increase competition, lower prices and improve the quality of products offered by all vendors.

Auto/Mate's DMS is an industry-leading solution designed for single and group franchise dealerships, proven to increase efficiencies and boost dealer profits. For more information visit www.automate.com or call 877-340-2677.

About Singlethread

Singlethread is the pioneer in next-generation customer engagement. Founded by industry veterans, Singlethread was built in-dealership, not by an isolated software development team. Its foundation is built on delivering both what the customer and the dealership need to create a great service experience. With proven successes in customer satisfaction improvement, Singlethread is helping dealerships nationwide service more vehicles, sell more services per RO, and retain customers. For more information, visit www.singlethread.com

About Auto/Mate

Auto/Mate Dealership Systems is a leading provider of dealership management system (DMS) software to retail automotive dealerships, typically saving dealers thousands of dollars per month from their current provider. Our Automotive Management Productivity Suite (AMPS) is a user-friendly, feature-rich DMS in use by more than 1,200 auto dealers nationwide. Auto/Mate has received DrivingSales Dealer Satisfaction Awards in 2012, 2013, 2014 and 2015.

Auto/Mate’s employees have more than 940 years of combined experience working in franchised auto dealerships, the foundation of its “Designed By Car People For Car PeopleTM” slogan. Auto/Mate is committed to winning its customers’ business each and every month with no long-term contracts and free software upgrades. For more information follow us on Twitter @AutoMateDMS and subscribe to our blog at www.automate.com/blog.

Are employees in your dealership using mobile tablets in service, sales and/or F&I departments? Despite much interest and even hype surrounding usage of mobile tablets in the dealership, the reality is that fewer than 50% of dealerships currently use or plan to use them in the near future.

Why the disparity between usage and interest? Primary reasons why dealers haven't yet adopted mobile tablets include:

Cost. The hardware and software costs associated with implementing mobile tablets is not prohibitive, but the costs associated with expanding the network infrastructure (such as WiFi) so tablets can be used effectively may be a factor.

Change. Mobile tablet usage requires a change in some processes, and as we know, many people are resistant to change.

ROI is undefined. Historically dealers don't adopt new technologies until the return on investment is clear.

Despite the slow rates of mobile tablet adoption, dealers do recognize the potential benefits, including:

• Improves dealership efficiency/workflow/consistency in process
• Speeds up processes
• Makes dealership personnel jobs easier
• Increases transparency
• Increases customer satisfaction
• Reduces paperwork
• Increases revenue

Mobile Tablets in Service

In terms of revenue potential and increased customer satisfaction, the service department stands to benefit the most from mobile tablet adoption. With full DMS integration, mobile tablets can be used for the following processes:

• Greet the customer in the service lane
• Retrieve or create an appointment using the customer's name, phone number or other criteria.
• Instantly scan the VIN
• View entire vehicle history, warranty and/or factory recall information
• Convert appointment information into a electronic Repair Order (RO) with one click of a button
• Perform a multi-point inspection
• Call up an archived multi-point inspection from customer's last visit
• View recalls and recommended maintenances
• Send multi-point inspection form attached to an electronic RO to technicians, who can call it up on the electronic workbench to instantly follow up on items
• Parts inquiries
• Present findings to the customer on the tablet for customer approval, or e-mail the form to the customer for sign-off

Mobile Tablets in Sales

In the sales department, mobile tablets shine as a tool that can present visual information such as inventory videos, dealership videos, online reviews and other information that may be used in the decision-making process.

With full DMS integration, mobile tablets can be used for the following sales processes:

• Search for dealership inventory
• Search for competitors' inventory pricing
• Scan VINs
• Demonstrate features for customers/virtual test drives
• View and offer online specials and incentives
• Share dealership videos and online reviews
• Scan the customers' driver's license and update information immediately within CRM and/or DMS
• Perform video walk around for customers off the lot

Mobile Tablets in F&I

During the turn over from sales to F&I, customers often have to wait until the F&I manager is available. Handing customers a mobile tablet with a display of the F&I menu during this wait time will increase their engagement and help to shorten the sales process.

A mobile tablet presentation of F&I products is perceived by customers as imposing less pressure upon them to make a purchasing decision, compared with when they are sitting in front of the F&I manager. This makes the customer feel more empowered, which in turn builds trust and ultimately increases product sales.

With full DMS integration, mobile tablets can be used for the following F&I processes:

• Educate customers on the products that interest them
• Allow customers to drag and drop their own product selections into customized packages
• Menu presentations
• Present pricing and payment options
• Sign and e-delivery of documents

Clearly, mobile tablets can be used for a variety of dealership processes, and I believe it's just a matter of time before they become ubiquitous. The benefits are clear, even if the ROI is still difficult to define. For a free ebook with practical tips on how to adopt and use mobile tablets in your dealership, click on this link .

Where does your dealership stand on the usage of mobile tablets? If you have adopted them, what has your experience been? If you have not adopted them, what's the biggest reason for holding back?