Special Order Parts
In an effort to minimize the chance of getting stuck
with un-sold special order parts in inventory, and missing the sale, the
following simple procedures can be implemented:
1. Don’t permit a special order parts order without your
parts manager’s approval.
2. Parts managers don’t approve a special
order parts request without a confirmed appointment for the
customer’s return for installation (assuming the follow-up call to
the customer a day prior to the appointment should be placed by their
service advisor (or call center) once the part(s) are confirmed in
stock.
3. Should the call fail to work and the appointment be missed,
the parts department, or service advisor, should continue to follow, by
email (preferred over postcards). It is imperative that email addresses
be collected at the time of the appointment, not only for follow-up for
this appointment but for future marketing.
4. Should all efforts fail, either return the parts (with
minimal expense) or choose to put in regular stock within two weeks or
whatever time period your manufacturer allows for returns. The
likeliness that a customer that doesn’t return in two weeks will
somehow reappear after then is slim to none.
Following these 4 simple steps will guarantee you higher
installation rates, parts and labor sales, and significantly less
obsolescence.
Used Vehicle "Need" Board
In an effort to capitalize from your "captive" service
customers, take every opportunity to communicate with those customers
regarding your sales departments’ activities. This would include
promoting, in your waiting area, your new vehicle sales specials and
manufacturer rebate and interest programs, as well as your used vehicle
specials.
In addition, try promoting your aggressive "trade
allowance" practices by promoting your "vehicle needs" in the waiting
room. This would be updated by your used vehicle manager with vehicles
you would like to "trade for" that are similar to the vehicles expected
from your appointment log. You are sure to catch the eye of some of your
service customers that happen to own these "in demand" vehicles.
Punctuate your "need" board with a spiff to the service
advisor when their customer trades in their vehicle and becomes a sales
customer.
"Mystery" Sales Recognition Trip
Recognizing outstanding performance is a proven way to
keep your employees motivated. Whether it is trophies, prizes, trips, or
money, employees strive to be recognized and tend to remember those
rewards for a long time to come.
As a twist to the usual, try assembling a small group of
"winners", determined by their department managers through sales, CSI
and other criteria, and hosting them on a mystery trip.
This accomplishes several worthwhile goals. First, it
mingles front line employees from different operations in the
dealership. You may bring your top new vehicle salesman, used vehicle
salesman, f&I contractor, service advisor, technician, and parts
counterman together for equal recognition.
Second, you the owner or operator get to spend some
quality, off-business time with these valued employees, and they get to
spend time with you.
Third, because it is a mystery trip, the winners look
forward to winning a second time and third time, because each trip will
be new to them.
You may elect to include a fancy dinner, game tickets,
show or concert, or whatever works for you.
Free Advertising
Why not take advantage of something free when it comes
along. One dealer realized that often the best prospects are your own
customers and took advantage of captive audiences in the waiting rooms
and service drive with inexpensive, up-to-date, multi-media
presentations.
By utilizing attractive, large flat screen monitors and
an old p.c. with power point software, you can create your own slide
show, or even short movie clips. Show off your current promotions,
service menu specials, safety tips, employee recognition, etc.
It’s inexpensive to do (the cost of a flat screen or two, and a
recycled p.c.), professional looking, and effective.
Demo Drives in Service
We all know that your service drive produces multiple
times the number of customers a day than your showroom. We also know
that customers who test drive a car have a considerably higher closing
ratio than those who don’t.
Once you devise a method to bring the test drive process
to your service drive, you’ve just created a significant increase
in the probability of selling cars in volume.
Try displaying a small variety of "test drive" new
vehicles in or near your service drive. Get your service consultants
involved, financially, in offering the opportunity for their customers
to try out the brand new models while they wait or before they leave.
Get a salesperson assigned to the service drive to facilitate the
process, ride with the customers, etc. Consider a contest to incentivize
the service advisors based on number of test drives.
Your mission is simple….get as many prospects
behind the wheel of your new vehicle inventory as possible for a test
drive and the opportunity to sell them. What better prospect than your
own service customer.
Scrapping for Dollars
Your mechanical and body shops produce a tremendous
amount of scrap metal over the course of weeks and months. Where is it
all going? Who is managing these commodity dollars? How well do you
market these goods?
Scrap metal is just another product that you have for
sale, much like wholesale vehicles. The better you market it the more
cash you will produce. Find the best buyers in your market. "Clean" the
scrap before selling it (much like detailing a wholesale car). Remove
bolts, harnesses, etc. Remember that both seller and buyer stand to
profit a great deal by these transactions.
Free Advertising 2
Why pay postage every time you want to send a message
out to your customers or prospects. Sure, emails are free, but do your
email campaigns have zip or the ability to encourage response from your
target list?
Why not take advantage of a free site called
"Evite.com". Here you can construct a nice message, broadcast to your
list, and easily track responses.
Of course, it’s always better to use your own,
personalized graphics and software, but if you don’t have the time
or skill, try this simple tool.
Increase Wholesale Grosses
You continue to get trades that are simply not retail
pieces and want to get them off the lot as quickly as possible. They can
be towed in, worn out, banged up, whatever. Whether you have your own
auction, take them to auction, or entertain wholesalers at your
dealership, make sure you maximize bids by spending as little as 1-2
hours of clean up time and almost no materials cost:
Quick wash the engine with a power washer, soap and
water
Wash the vehicle exterior
Clean out the interior and wipe/clean everything
Clean out the trunk area
Apply a simple exterior paint polish "wipe on-wipe
off"
Clean the wheels and tires
Clean the glass inside and out
You are guaranteed to see bids increase multiple times
higher than the $25 or so you invested in the cleanup.
Moving Old Accessories
Take a look at your parts department’s aged
inventories and you’ll probably find a good percentage consist of
unsold accessories. The sales department had a good plan to move a bunch
of bedliners but somehow it never quite happened. Those old DVD players
sounded like a good idea at the time.
Rather than bundle up all those inventory dollars and
try and unload them at cut rate prices, below cost, why not sell them at
full retail or at least at a good markup. Look at your used vehicle
inventory and try and match up those accessories with the vehicles that
they fit. Go ahead and dress those vehicles up a little. You’ll
not only clear out that dead parts inventory but you’ll have nicer
used vehicles, pass that cost on to the retail customer and more than
likely increase vehicle grosses as well.
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