Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
Mike Gorun

Mike Gorun Managing Partner/CEO

Exclusive Blog Posts

Keeping the In-Person Touch While Selling Cars in the Digital Age

Keeping the In-Person Touch While Selling Cars in the Digital Age

  For better or worse, the internet has become an indispensable appendage in our every day lives. Many of us would rather spend every minute glued …

Akio Toyoda Announces e-Palette Future for Toyota, It’s More than a Concept "Vehicle"

Akio Toyoda Announces e-Palette Future for Toyota, It’s More than a Concept "Vehicle"

On day one of the 2018 CES Show, an enthusiastic crowd of 400+ media gathered at Mandalay Bay to hear Akio Toyoda’s vision of the future.  Akio …

Trust Isn't Limited to Just Offering Pricing & Services Online

Trust Isn't Limited to Just Offering Pricing & Services Online

Trust is imperative as it offers the customer the peace of mind that they have made the right decision regarding the servicing of their vehicle. And while …

Is your SEO company interlinking?

Is your SEO company interlinking?

Adding relevant content just isn't enough.  As I have written many times SEO is so much more.  Interlinking is another part of the SEO&…

3 Biggest Mistakes as a Manager

3 Biggest Mistakes as a Manager

Becoming a Manager at 25 years old, only 3 years after accidentally stumbling into the Automotive Industry, created many challenges that were truly unexpec…

Self-Managed Pre-Paid Maintenance Programs Keep Customers Coming Back

 

Pre-paid Maintenance Plans (PMPs) keep customers returning to your service department and increase upsell opportunities, which is critical to increasing the service bottom line. Today’s self-administered, self-managed PMPs are appealing to customers, particularly those buying mainline domestic and import brands who seek value in everything they buy.

 

Today’s technology-driven plans make it very easy for dealers to customize what is offered in a PMP. Plans that provide the product (value) important to the local market will appeal more to buyers, making their presentation and sale in the F&I office or service lane more profitable and successful for the dealership.

 

It is these plans’ ability to retain a customer’s service business and then create upsell opportunities for additional customer-pay repair order (RO) business that make them like a money tree. These programs can triple the likelihood of the customer continually returning for service – a big growth over the 18 to 20 percent of customers who do traditionally return with a PMP’s incentive.

 

By converting PMP owners’ prepaid maintenance work to additional legitimate service needs, the additional retail parts and labor can produce healthy additional business. Some dealers report an additional $150 to $350 of up-sold retail customer-pay business per RO as a result.

 

Every plan will experience forfeiture. It results when a customer terminates the plan early or for whatever reason does not use the plan. In some PMPs, the third-party administrator holds this dealer-funded reserve. It is from this reserve that the administrator would often take up to 60 percent of the value of the cancelled services as part of its fee structure. Today’s self-managed plans enable the dealer to processes forfeiture through the general accounting ledger and add the reserve to their own bottom line.

 

For more information about the benefits of Pre-Paid Maintenance Programs, visit http://ow.ly/bN7Gj

 Unlock all of the community & features  Join Now