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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Phone Skills - Selling to the Visit
by: Charlie Waters

A couple of years ago I was visiting in a store where an Advisor was expressing his concern over customer's perception that we are "over-priced". He said to me: "We've done so much to combat that perception. I've personally called our competition and price shopped, so I know we are in-line. Yet, I constantly hear customers say that we charge too much."

I asked this advisor to role-play a scenario with me. I pretended to be a customer, on the phone, asking for a price to overhaul my transmission because my neighbor had told me that my slipping transmission needed it. My service advisor friend responded by offering several options ranging from $2200 to $3600. After all, isn't that the way that we let our other advisors train them? Monkey see, monkey do!

Next, we got out the Yellow Pages and called a well known independent transmission competitor. When I asked the competitor the same question about my slipping transmission, he responded as follows: "Many times a slipping transmission doesn't need to be overhauled. It may just need an adjustment or service. For $99.95 we offer a service that includes adjustments, new fluid and a 15 point diagnostic operation. When would you like to bring your vehicle in?"

Now, how in the world did our customers ever get the perception that we are overpriced?

Service Advisor training should not be a hand-me-down-sport. Unfortunately, the only training that many dealership advisors are getting is OJT (on-the-job-training) by well-seasoned veterans. While there are certainly some great skills to be learned from these folks, times have changed! Consumers have choices!

Many years ago, the dealerships owned the market. Because our customers didn't like the way we were treating them, they supported the development of an entirely new industry, the mass-merchandisers. The new competition studied the consumers and found out what they wanted and what they wanted to hear. Meanwhile, most dealerships just kept on with OJT.

The great news is, even though dealership service departments created this reputation for being overpriced, uncaring and inconvenient, consumers still believe that the best place to get their vehicle fixed-right-the-first-time is the dealership. We still have a chance!

In today's unbelievably competitive environment, customer retention must be a passion! We must learn and practice techniques that invite and encourage current and potential customers to visit us for whatever their needs are. We should never lose a telephone shopper to our competition.

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.

Several years ago, a good friend of mine was the Service Manager at a 6 or 7 technician store. On Saturdays, all of the employees would contribute to a Lottery pool to play the Florida State Lottery. The manager would go buy the tickets.

One particular Sunday, the media had announced that someone from this town had won the several million dollar lottery. As a practical joke the manager decided to buy tickets for the following week with the previous week’s winning numbers. He blocked out the date, made copies and placed on everyone’s toolboxes.

One of the technicians came in within minutes and quit instantly. The manager played along until he got his toolbox loaded before he let the cat out of the bag. Unfortunately, the technician had called his wife with the winning information. She not only quit her job on the spot, but she told her employer what she thought of him. Not good!

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.

Our surveys are short and always completely anonymous, so we'd love to see your responses.

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Click here to see the results from the previous survey.

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