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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A Tale of Two Shows
by: Jim Richter

Every year I make sure I get to two shows; NADA in February and the Amelia Island Concours d’Elelgance in March. These are entirely different in their objectives, and yet they still play to the same audience; car people just like us. What is surprising is that over the last 3 years, during one of the most difficult periods of our industry, one show has been steadily declining in attendance while the other grows every year.

NADA 2011

I’ve been going to NADA since the 80’s and I can’t remember as much doom and gloom as I saw in 2009 and 2010, but that seemed to be a bad memory in 2011. Dealers were shopping for help in all segments of the business, fixing up facilities (not always voluntarily), and generally looking more upbeat than I’ve seen in a few years. Most told me it was due to improved vehicle sales with the resulting cash flow increase, and the domestic dealers attributed much of that to product; imagine that! Finally, after sitting on the sidelines watching their sales customers drift off to import competitors and service customers to the aftermarket over the last few years they are ready to fight back. Better late than never I guess.

Traffic at the Fixed Ops booths was brisk this year with Customer Retention being the most common topic discussed. Sure, there was lots of interest in “systems” to help keep customers coming back, but we also had serious discussions about training service sales people in interpersonal and soft sales skills. Some are finally realizing that it takes more than selling wallet flushes to make a service department profitable, and that owners want to know more about their particular product, not just a generic approach. They want to do what is right for their vehicle first, and then price comes into the equation. This is where choice becomes the deciding factor rather than presenting an all or nothing option.

Amelia Island Concours d’Elegance 2011

For those who have never attended this event or ones like it at Pebble Beach, Hilton Head, Meadowbrook, etc. you need to go to one to really appreciate how involved people can get in a product. Vehicles are grouped into age and brand brackets, and then displayed for both judges and the general public. This year the featured marques were Duesenberg, Allard, and Kurtis race and passenger cars. Fortunes are invested in these vehicles, some of which are restored to a level they could never have achieved when new. However, many are used much like they were when they were new, driven regularly and appreciated; some are even raced. This year’s Honorary Chairman was Bobby Rahal; a multi-franchise dealer, successful race driver/owner and winner of many CART races and the Indy 500, as well as an entrepreneur with his own racing series which began in 2010.

What is interesting is that many more of these owners are themselves dealers, yet they don’t see themselves as such in this venue. Here it’s all about the products. They’ll spend hours discussing how they find parts, research and complete repairs, and what it takes to campaign them competitively, be that on a race track or a Concours d’Elegance event such as this one. I’m constantly amazed that these dealers on one hand fail to recognize their own customers’ needs when they do see it for themselves.

Customer, Product, Respect

I’m not about to say that every customer is a product fan because we all know that there are some to whom their vehicles are appliances; a means to get to work or school or the store. But the majority of our customers buy a specific vehicle because it either fits their needs or satisfies their ego, or both. Selling service to these owners requires some investment in facilities and people. Facilities create the selling and repair environment, but well trained people get the job done, and the common denominator is being able to relate the legitimate needs of the product in such a way that the customer almost always decides favorably. This involves both the technicians who inspect the vehicles and make recommendations for maintenance and repairs, and the sales and administrative staff who interact directly with customers. Not everyone is a ‘car nut’ who will do without food or water in deference to their car, but most will do what is necessary because they enjoy operating their vehicle, are proud of it and the investment it represents, and see it as an extension of themselves. The old adage of “treat others as you would like to be treated yourself” definitely plays here.

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.

We had a customer come in complaining of an ignition would not turn at times. We got the car in the shop and had to replace the ignition cylinder.  The customer picked up the car the next day.  Shortly after picking the car up from us she called back stating that she could not get in her car and she was stuck at the shopping center.  We asked her if she was using the key or the remote she promptly told us neither worked.  Needless to say she was not very happy with us and demanded that we come out to her.

So we did just that.  We get there and tried her key and hit unlock on the remote, it did not work so my guy had brought the lock out kit and opened the door.  Once in the car he tried the key it didn’t work.  So he stepped out of the vehicle and hit the horn button on the remote just to see if maybe some of the buttons were bad.  At that moment he heard off in the distance a horn chirp.  He steps back and does it again, sure enough the customers Malibu was about 10 spaces down the way.   Needless to say my guy hurriedly locks the Malibu he had opened and they made their way down to the customers Malibu.

She apologized and said, "I know all your guys are going to get a good laugh on me."

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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