Yes, you can implement Pre-Paid Special Order parts in Service for retail customers. This process isn’t any different than doing it on Retail Counter invoice. It simply requires Service Management on board.

We covered Reason #1 and #2 in prior posts, but Reason #3 is because its hard to get Parts Staff to follow it. Parts guys don’t typically like change, but they are process driven, so you just have to START.

We covered Reason #1 in the last post. Reason #2 dealer’s don’t implement Pre-Paid Special Order in Parts Department is because they don’t know how to control it. Your DMS is set up to control this, but you will have to talk to your DMS trainer on how to implement and operate it.

They are scared of customer push back. If you make it hard for them, then this is true. But the majority of customers expect to prepay Special Order Parts. This roadblock is a mindset, not an issue implemented by the customer.

Every dealer needs to control their Special Orders that are unsold. The best way to do it is to have these parts Pre-Paid by the customer.

There is a dealer-centric and very actionable management book you must read called: Up Your Business, by Dave Anderson.

This book will help you understand how to manage a business and will reaffirm some thoughts you might already have. It’s especially motivating – expect that when you will get 10 pages deep you will need a new highlighter.

You need to know where your department sits versus the industry recommended standard – but you don’t know where to get this information.

Here are 3 places:

- Mike Nichole’s book called, Professional Inventory Management Guide. (available at NADPE)

- At your Group 20 meetings. If your dealership hasn’t enrolled, you’ll have to skip this one.

- From NADA course, or you can get these numbers from the course materials a from someone in your dealership who has completed NADA course. Typically, your DP, GM, or Controller has taken this course.

Its not hard, but it takes a lot of time...and resources – just like an apprentice tech. You can make your own Parts Manager by taking your super star Parts Person and giving him all the training and tools he needs to become successful in the coming few years. Skimp on training, you build yourself a problem, not a solution.

In this short post, you’ll find exactly where to get nearly every resource for a new and promising new Parts Manager. Please, don’t wreck your new guy by not educating him. All the resources you need are printed in our article from Fixed Ops Magazine – Nov 2017.

More details to come…