Have you heard the saying, “What gets measured gets managed”? Peter Drucker, best known as the man who invented modern business management, is credited for coining that phrase. Mr. Drucker felt, if you cannot measure something, and know the results, you cannot possibly improve it. With that being said, I am continually surprised by the number of Service Managers I speak with who do not know what the actual inventory of their service department is,… Do You Track Your Service Department’s Inventory?Read More Do You Track Your Service Department’s Inventory?
There’s a consensus in the industry that there’s a serious shortage of automotive technicians able to work on today’s advanced cars and trucks. Now, some analysts and experts say that simply recruiting more technicians will not help. Dealerships today are losing technicians too fast for recruitment to make up the emerging gap. The numbers are staggering. Two of the major domestic brands estimate there will be a need for 15,000 plus new technicians for their… Is Flat Rate Compensation Ruining Our Service Business?Read More Is Flat Rate Compensation Ruining Our Service Business?
This is Part 2 in a two-part article. View Part 1 >> Phase Out Parameters – Every part eventually reaches a sales level where it no longer makes economic sense to keep it in stock. Some people would like you to have certain parts “just in case” there’s a need for it, and with the debatable exception of some maintenance and campaign items this does not make sense. There are 2 primary criteria used to… How to say “Yes we have it” almost every time – Part 2Read More How to say “Yes we have it” almost every time – Part 2
This is Part 1 in a two-part article. One of the most frustrating situations for any parts manager is to not have common parts that technicians need for a job that is in the shop. Not only do we miss out on the highest potential gross profit sale, but Service also stands to lose the labor they have invested in diagnosis, and we’re looking at another Special Order with all of its problems. Why does… How to say “Yes we have it” almost every time – Part 1Read More How to say “Yes we have it” almost every time – Part 1
This is Part 3 in a three-part article. View Part 1 | View Part 2 A means to emphasize the importance of insuring the quick turnaround of special-order parts would be to incorporate various incentives or penalties within the pay plans of service advisors and fixed operation managers. The considerations can take many different forms. Service advisor compensation additions for positive performance can include but are not limited to the following considerations. Motivational spiffs can… Developing Your Best Special-Order Parts Process – Part 3Read More Developing Your Best Special-Order Parts Process – Part 3
This is Part 2 in a three-part article. View Part 1 | View Part 3 Another of the more traditional methods to handle the special-order parts process is to have the customer contacted by an employee in the parts department. The initial ordering process is very similar to the service advisor contact technique. After the order is placed the service advisor contacts the customer to notify them that a part is being placed on order.… Developing Your Best Special-Order Parts Process – Part 2Read More Developing Your Best Special-Order Parts Process – Part 2