Pub. 12 2014-2015 Issue 3

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 27 new jersey auto retailer W W W . N J C A R . O R G Here’sanotherexample. AdealershiphasaverygoodF&IDepartment currently averaging over $1000 PRU by doing a great job selling from their F&I Menus . The Dealer decides to implement a Service Department Maintenance Menu to properly train their customers on preventative maintenance and increase service sales. The Dealer hires a professional to design theMenu and install it on the Advisors’ computers. The dealer then has all of their Advisorsprofessionally trained on how tomake a proper Feature/Benefit presentation of the menus just like you did with your F&I producers. A couple of weeks go by and the Dealer sits down with their Service Manager to review the Advisors Performance Report and they find that the HPRO, profit margins and sales per RO have not improved at all. TheDealer asks their ServiceManager how this can be possible and the manager responds with, “The Advisors just don’t have the time to use those menus.” What does a Dealer do? Understand that there are only two reasons why Advisors would not be presenting menus to every service customer. They either don’t know how or don’t want to. If they have been trained, they should know how to , so the only rational answer is they don’t want to . In this example, the Advisors did not “buy in” to the training and the new process of presenting menus. Does a Dealer need their “buy in” to implement this new process? What if a Dealer decides they want to train their Service and Parts Managers to become more effective and productive managers by measuring the performance of their respective employees every single day? The Dealer may elect to use those measurements to compare their performance to the industry benchmarks and, thereby, hold them accountable for their individual performance. A Dealer may feel it’s important that these managers become proficient at reading, understanding, andevaluating their departments’ financial statements to build a plan and focus on achieving 100% service absorption. If their managers respond with “I don’t have time to do all that stuff,” what does a Dealer do? Does a Dealer need their “buy in” to do the job they were hired to do? I don’t have much empathy for people who don’t “buy in” to change when it comes to improving customer satisfaction & retention, increasing profitability, and giving a Dealer the kind of return on their investment that they deserve. CONDITION: There are Dealers who are losing money in their Fixed Operations! CAUSE: Lack of “buy in” by employees to change! CORRECTION:Hold themaccountable tochangeor replace them! You don’t need their vote. Specializing in Franchise Automobile Dealership Brokerage &Valuations Serving New Jersey Dealers Since 1989 Confidentiality Assured D.T. MURPHY & CO. 973 809-9311 • dan@dtmurphy.com • www.dtmurphy.com Dan Murphy If some readers think this analysis is too harsh, please answer the following questions: 1. What does a Dealer do with an F&I Producer who can only average $200 PRU? 2. What does a Dealer do with a Salesperson who can only sell 4 cars a month? 3. What does a Dealer do with a Sales Manager who won’t take a T.O? 4. What does a Dealer do with a Used Car Manager who doesn’t have time for an appraisal? I’m guessing your answers were a little harsh. You see, most Dealers have accountability in place for the Sales Departments. Their processes are not optional based on who “buys in” to them, are they? Why should FixedOperations be any different? You are not running a Democracy. Don Reed is the CEO of DealerPro Training. With 26 years of experience in all aspects of a dealership, from Parts Manager to Dealer Principal, Don and his team of experts have offered training in more than 700 dealerships in the U.S. & Canada. Don can be reached at 888.553.0100 or via email at dreed@dealerprotraining.com.