If I am a fixed operations director and my parts and service team averages 34% in retail parts gross, 62% in labor gross, averages 1.2 HPRO, shop productivity of 80% with a declining repair order count, what are you going to do with me? Answer: Thank you for being back there because I sure as heck don’t want to fool with that stuff!Īre you starting to see my point? Most dealers and general managers will hold their sales team accountable for their performance on a daily, weekly and monthly basis and make any adjustments (moving their comfort zones) on an as-needed basis now! Meanwhile, their parts and service teams remain in their comfort zones to continue to dwell in the land of underachievers.īelief is that most dealers and GMs are outside their comfort zone in the backĮnd of their dealership since their roots are in the front end.If I am your general sales manager and my sales team averages five units per salesperson, $700 gross PRU, $200 F&I gross PRU and lose $600 per wholesale unit, what are you going to do with me? Answer: I wouldn’t have lasted six months, let alone a year!.If I am a service manager and my service team average 1.2 HPRO and my technicians’ productivity is at 80%, what are you going to do with me? Answer: Leave me alone because the other dealers in your 20 Group are about the same.If I am a sales manager and my sales team averages five units per month and my gross per retail unit is at $700, what are you going to do with me? Answer: Train me how to average 10 units per salesperson and gross $1,500 PRU or replace me with someone who can.If I am a service advisor and I sold an average of 1.2 hours per customer pay repair order last year, what are you going to do with me? Answer: I have a job for life!.If I am a salesperson and I sold an average of five units per month last year, what are you going to do with me? Answer: Train me how to sell 10 units or more per month or replace me with someone who can.Some examples to clarify what I’m talking about: You are doing that in the new car, used car and F&I departments, which ofĬourse is where you devote much of your time and energy anyway, but you fail toĭo so in the service and parts departments. Them accountable for their individual performance. The issue is not to get rid of them but to simply move them again and again until you achieve the results you’re looking for and then move them again! This is important because it enables you to focus on the performance of your employees. Comfort Zone Tune-UpĮveryone in your dealership has a comfort zone, just as you do. Iīelieve the culprits here are comfort zones and accountability. So, now that you have studied your financials carefully toĭetermine the conditions that prevented you from attaining your respectiveįinancial goals, let’s determine what the cause might have been. The dealer, the general manager or the fixed operations director when it comes The Condition to properly diagnose the Cause, which thenĮnables him to make the necessary Correction. Have ever written a repair order, you probably recognized this as the “ThreeĬ’s” - Condition, Cause and Correction. The technician needs Once the cause is determined you can then make the corrections necessary to properly bring the condition in line with industry guides. To fix them you have to know what’s causing the out-of-line condition. Your financial statements will show you where the opportunities for improvement (conditions) are but what they won’t show you is how to fix them.
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