Lee Harkins' Thoughts

In our business, Customer Retention must be our ultimate goal! Your competition has been successful in stripping away at your business. These independent service providers are fighting for every customer they get! Your fight must include focusing on making your operation “different” than before! Remember, they disqualified your operation because of the way you were. Not changing anything and then thinking they will return is a poor strategy.

M5™ can help you and your dealership develop tactical methods to advance your business. Call us for suggestions! It would be our pleasure to help.

Thank you,


Lee Harkins
President and CEO
M5™ Management Services, Inc.
leeharkins@m5ms.com

Please be sure to share your reply to the survey questions listed below. After supplying your response, notice how your operation compares to the others.

Also note, the questions will change from time to time, so be sure to check back!

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Let Your Fingers Do the Walking
by: Jack Fitzpatrick

As General/Service Managers etc. we have very busy days. Days that are filled mostly with daunting tasks that keep us busy all day, and let’s face it many times into the night. We cannot even drive home without thinking about what transpired over the day, and already start to think about what’s going to be waiting for us in the morning.

Now how much of this can we control? Who knows. Can we make it better? That’s the question! Naturally we know that this is the car business, and in fixed operations we fix peoples problems. That’s what we do! We service customers, and maintain and repair vehicles that need attention.

We all swear up and down that today is the day I am going to take action and develop a plan to make life in my service department easier from now on.

Then Mr. and Mrs. Jones walk in at 9:30am, and bombard you with a list of impossible demands, and want them all done by 9:45am, and away we go. WELCOME TO THE CAR BUSINESS!

At that point, unfortunately, our new found enthusiasm to reinvent the way we're going to do business is out the window, and before you know it you are in the middle of that white knuckled drive home, and the circle of life in the Service department continues.

How can we work smarter, and not harder!

Now for the Service advisors that may be reading this it’s a great exercise for you as well, but I would just review with management what you are going to embark upon, and hopefully they will have no problem with the process. Especially if we can retain more customers, and generate more net profit!

When is the last time you have conducted a Competitive Market Survey in your area? If the answer is “what the heck is that”? You need to call me tomorrow!

This is such a powerful tool in creating a perspective for not only for how other local independent shops in the area are pricing themselves, but how they conduct themselves on the phone as well. You will be amazed at how well trained some of them are. Of course we want to make note of pricing, and make sure we are in the game, but if you were to call some of the independent shops you will be shocked at how they are trained to ask questions, and show genuine concern for you, and your car. This is a great example of how hard they work to gain the business.

We need to work harder and harder every day to remain the customers VENDOR OF CHOICE.

Today’s Independent Service Providers (ISP’s), other than heavy diagnostic and repair work, can do virtually everything from a maintenance perspective that any vehicle might need, all while keeping the process competitive and convenient! Are you competitive and convenient? I suggest you find out sooner than later.

This exercise will open your eyes to areas of opportunity in your dealership that you might not have ever realized before. Phone skills, ala carte pricing, menu pricing (do you even have a menu?), hours of operation, amenities, and the list goes on and on! Like the expression says, “let your fingers do the walking”, and at the end of the exercise you’ll be amazed at the results. Remember we are talking ISP’s not the other new car dealerships. Call the Jim’s garage, ABC Auto repair, PEP boys, Firestone etc.

Now more than ever we need to work hard to not only retain the customers we have today, but with the recent economic decline and lack of car sales in the last couple of years, we are going to have to think and work “outside the box” in order to keep the service bays in our shops full. As a general rule of thumb, this is something we should be doing several times a year.

If you’d like more information on how to conduct a Competitive Market Survey, please feel free to contact any of us at M5 Management Services, Inc.

Skid Marks

Skid Marks is an ongoing article series that shares the lighter side of working in a service department. All the stories are true. Brand names and real names have been removed.

I was recently conducting Service Advisor training and we were working on the importance of performing the walkaround with the customer, not after they have left. One old timer was giving me a hard time stating that “his customers” didn’t want to participate, especially since it was cold outside, and if he found something they would always believe him.

Shortly after the morning rush was over a woman brought her minivan in for a service and a rattle in the rear. Our old timer wrote her up for an LOF and rattle (no details for the tech,) and put her into the shuttle, assuring her that warranty would take care of the rattle since the vehicle was still covered. The van went into the shop and soon afterward the tech appeared with the handlebars and fork of a child’s bicycle in his hand. “Here’s your rattle” he stated, and “there’s about $500 damage including the fuel tank.” Needless to say the ensuing phone call was not easy, but she did admit that the bike had been missing for a few weeks and had been reported stolen to the police.

The old timer and his manager had a conversation about this later in the day after the customer came back to pick up her van with a $500+ bill they were not prepared for, and he agreed that from now on he would inspect vehicles with his customer in tow to avoid another situation like this.

If you have a funny story that you'd like to share with your peers in the industry please send them to newsletter@m5ms.com and we will include them in a future Skid Marks article. Please remember that we will remove ALL brand names and real names.

Survey Questions - Updated 02/09/11
by: Tim Harkins

Occasionally we will change the questions on our survey. When we do, we will share with you the overall results of the previous survey to see how your answers differed from your peers in the industry.

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