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Mike Gorun

Mike Gorun Managing Partner/CEO

Exclusive Blog Posts

The Recruiter: Episode 4- People Use Google to Find Jobs

The Recruiter: Episode 4- People Use Google to Find Jobs

How to title your help wanted ad so it gets found on the internet. Please use Google in their job search. Use what people call themselves on their resu…

* The Recruiter* Episode 3 Law of Diminishing Return

* The Recruiter* Episode 3 Law of Diminishing Return

When do you hire and how many? what are you basing your decision on? Don't decide by how many desks you have or that's what you normally run with. …

Lenders must lend or drivers won't drive

Lenders must lend or drivers won't drive

In my opinion, sub prime customers are being considered more risky by the lenders that once targeted them. Even traditional co-signers are proving not to b…

4 Reasons to Improve CRM Utilization in 2017

4 Reasons to Improve CRM Utilization in 2017

Yes, dealers are creating a tremendous amount of data. The problem is, most of it is junk. Data is like this 1958 Tops Baseball Card complete set. You have…

Your Car Repair Shop Should Appeal To Parents Whether It is At a Dealership or Privately Owned

Your Car Repair Shop Should Appeal To Parents Whether It is At a Dealership or Privately Owned

Running an auto repair means that you have to take care of all kinds of details including scheduling, discipline, and customer service. Giving a customer t…

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

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