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» Scare Tactics Hurt Business
In their quest to achieve 2.0 to 2.5 hours per repair order,
many dealerships hunt for the “magic pill.”
Many believe it's in fluid sales because vendors and distributors
promise increased sales and additional gross profit. They convince
the service and parts management staff that fluids and flushes
are the way to achieve profitability and the return to 2.5
hours per repair order.
But what does it do to the long-term retention of the client?
Service sales should be made based on the client's needs, not
a made-up set of recommendations to increase hours per repair
order. When a spiff is involved, some service advisors focus
on the spiff, not the well being of the client's vehicle.
I've seen advisors “high five” each other when
they sell the “royal flush” service consisting
of the entire list of flushes or fluid replacements.
It's not entirely the service advisors' fault. In many cases,
it's the service manager who pushes them to sell.
A service manager once proudly told me their top-gun service
advisor made an additional $10,000 in spiff money paid to the
advisor directly from the vendor.
Many dealerships have a policy preventing employees from receiving
premiums or gifts directly from vendors. When you knowingly
allow your advisors, technicians, service and parts managers
to accept these spiffs from vendors, how can you enforce this
policy?
Can the sales manager now accept a spiff from selling used
cars at a discounted price to the wholesaler?
Instead of allowing the vender to spiff employees directly,
consider asking the vendor to lower the wholesale price of
the product, letting the dealership increase the gross-profit
margins. Most companies will do it. You now control the spiff
and most likely the behavior of advisors.
Auto makers have gone as far as advising dealers that many
fluids and flush services are not needed and could damage vehicles.
Many owner's manuals offer similar advice. What does it do
to our credibility when we recommend services the manufacturers
don't support?
Review with your service manager the services your department
offers. In my opinion, there is value in the complete fluid
replacement for the transmission, evaporator cleaning and (possibly)
fuel injection cleaning.
Some service managers, who claim to know more about vehicles
than the engineers who designed them, say these flush services
are valuable and needed.
Well, if we are going to sell them, then we need to develop
ethical ways to present them.
Pressuring the client does not work in the long run. Scare
tactics should never be a component of the sales process. Such
behavior risks driving clients from your stores.
What causes your sales to go up today can cause your traffic
to drop tomorrow!
Our service business continues to evolve. We have witnessed
a transformation from a “quality-focused” business
(high hours per repair order) to a “quantity-focused” business
(lower hours per repair order) with a higher level of client
retention as part of the business plan.
We now need two customers to give us what one did three years
ago. Our business requires that we focus our efforts on keeping
them.
Making money is a requirement of your service department. That
means we should never allow opportunities to pass when the
client indeed needs a service or repair.
We must present our services to the client in a manner that
earns their consideration. If they do not buy now, use a system
to follow-up with them and ask them to reconsider the work
at a later date.
Position the dealership as the first consideration in auto
maintenance and repair in the client's mind when a need arises.
Make your service department a friendly and ethical place to
do business, with no pressure placed on the client. The methods
you use today will determine if you are given another opportunity
to serve the client tomorrow.
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