Monthly Archives: March 2024

Use Efficiencies for Higher Profits

Posted on by

The Army Air Corp (AAC) needed bomber planes. They contracted Consolidated Aircraft in San Diego to design and build the ultimate fighting machine. But once America entered WWII, the AAC needed thousands of these planes. The Consolidated B-24 Liberator, an American heavy bomber, holds records as the world’s most-produced bomber, heavy bomber, multi-engine aircraft, and American military aircraft. But it might not have held that record had Edsel Ford not stepped up to help build this bomber.
Consolidated Aircraft knew how to build planes but didn’t know how to build them quickly. It would take one month to build one plane. Edsel Ford and his right-hand man, Charles Sorensen, visited California and immediately saw problems. Ford and Sorensen laid out a plan that would eventually go from one plane built in a month to 650 planes a month.

Henry Ford said he would help build the bombers if they were built in Michigan. It took Ford Motor Company one year to build the 3.5 million square foot Willow Run Bomber plant as designed by Albert Kahn. By the end of 1944, the plant was producing one bomber every 66 minutes.
What does that have to do with your dealership? Think about the differences in approaching the task. A) is how Consolidated did it, B) is how Ford Motor Company improved the process, and C) is how this applies to your business.

PLANS
A) Consolidated Aircraft built every plane from memory. There were no blueprints, and because of that, no two planes were identical.
B) Ford Motor Company sent 240 drafting technicians and engineers to California to draw 5 miles of blueprints for consistency in each plane.
C) Are you like Consolidated or Ford when it comes to training your employees? If you create checklists and training sheets for each employee’s job in your department, pat yourself on the back. What are you missing if you start your training from scratch with each new hire? How consistent is the training from one employee to the next?

Start with a plan to create your “blueprint” to train your employees. Create a list of skills and processes new employees need to learn. Some of the tasks easily crossover from one department to another – such as logging in to the DMS or “punching” a time clock, so there is no need for each department to create the same document. Creating your training blueprints isn’t all on you. Your employees can and should help.
1) Have each person bullet point their duties as they do them. (It may be over a day or week) They don’t have to put the details, just the points. They can do this while completing the task so that it won’t be overwhelming. Create a sheet with 3 or 4 of these boxes. If you need a form, email us for the form at profitblueprints@gmail.com.
TASK: ___________________________________
AVERAGE AMOUNT OF TIME SPENT ON TASK______________________
CAN THIS BE BROKEN DOWN TO SMALLER TASKS? _________________
BIGGEST CHALLENGE FOR THIS TASK (do you have to wait for something?) _________________________________________________________
2) Review their lists and select one task from each person’s list that someone else could do or help with (with the aid of a checklist).
3) Once everyone has submitted their list of tasks, selected one task from each list, set aside 10 minutes during the first week for everyone to flesh out the item you picked for them to detail. Give them guidance on the best approach for each one: Screenshots, quick videos, checklists. (If it takes more than 10 minutes – the task probably needs to be broken down into smaller tasks if possible.) Keep it up throughout the year, until you have training tools for every task and job.
4) Because of potential reluctance, make it fun. You could have a weekly drawing of completed training lists (after you’ve reviewed them), and the winner gets a gift card. The small amount of the “reward” is overshadowed by the benefits the dealership will receive with the documentation of the tasks.

EFFICIENCIES
A) Consolidated Aircraft built every plane from memory with one component at a time, and the parts were crafted individually. They waited until the aircraft was assembled to install the wiring.
B) Ford Motor Company introduced the assembly line and interchangeable parts to speed up the process and improve the quality of the product. They created tools and dies to reduce the time to complete tasks. They wired the plane as it was being assembled; thus, all they needed to do was add fuel once assembled.
C) Are you like Consolidated Aircraft or Ford Motor Company regarding efficiencies? When it comes to your employees, are they cross-trained in other roles? Can someone fill in when an employee is absent, or does the work pile up? Have you invested in the right tools to get the work done efficiently?
With your “blueprints” created from the first point, cross-training and having someone fill in is more manageable. Employees with identical training will positively impact the consistency and quality of their work – from a Technician doing a multipoint inspection to a Salesperson delivering a new vehicle.
Look for gaps in efficiencies, from the speed of your internet to the length of time a Customer is in the finance department to how long it takes to produce the financial statement. Do you have paperwork or parts pre-staged for employees? If you think of your processes as assembly lines, you want to eliminate downtime as someone waits for the “part” to continue their work.

Yes, I agree, this is a lot to ask, but look at the different results between Consolidated Aircraft and Ford Motor Company. Which company do you want to be?


Build Your Customers’ Trust

Posted on by

This is nothing new – Cox Automotive found that in 2023, dealerships accounted for 30% of all service visits in the U.S., down from 35% in 2021. With Customers holding on to their vehicles longer due to negative equity and higher interest rates, this downward trend is disconcerting.
One reason for Customers shunning dealerships is that they erroneously believe dealerships are way more expensive than the alternatives. 51% of those surveyed said they wouldn’t return to a dealership for fear of being overcharged. The Cox Automotive research found “that dealership service costs are mostly on par with non-dealer providers. The average dealership service visit in 2023 costs $258; a visit to a non-dealer service provider costs an average of $249, indicating that the suggestion dealers charge more for service is mostly unfounded.”

You can dispel the idea that your Service Department is more expensive when you post your prices in comparison to the competition’s. A “We Shopped the Competition, So You Don’t Have To,” with prices posted on a large sign or TV screen in the Service Lane and Customer Lounge, can alleviate some Customers’ fears about paying too much. For maximum impact post it on your website and social media. Pick a few standard services and shop your competition – Pep Boys, Jiffy Lube, and tire stores – not other dealerships. You can get some prices from their websites; for other services, call for prices. Understand what is covered so you can compare similar services. Even an oil change can have various prices. Add Free Video Inspection to your comparison board.

You don’t have to be the cheapest, but you need to be close. Posting your prices helps in the latest buzzword – transparency and with transparency comes more trust. The Salespeople can also use the signs when they take the Customers on a tour of the dealership; they can point out how competitive your Service Department is. The signage will build a “halo effect” (positive feelings in one area, influencing feelings in other areas) for other services and perhaps even vehicle sales. We need to build trust from the first Customer interaction.

“No longer is it good enough for companies to have the best product or the best service. To grow and succeed, companies must have the trust of their Customers.” Natalie Oldfield from Forbes.
Continue to build trust with a maintenance menu to show the “Why” we recommend this for each maintenance service and the necessary intervals. If you try to sell system flushes at 15,000 or 30,000 miles, you will lose the Customers’ trust. If you can’t say yes to the question, “Would I sell this to my mother at this mileage?” then don’t recommend it to your Customers.
The best trust builder is video inspections. If you aren’t using videos to show your Customers what you found during the Multipoint Inspection, you are missing a pivotal opportunity to build trust and sell needed work. Several of my previous newsletters delve into this topic. Still, one underutilized opportunity is to edit an MPI video and use it in your social media marketing and on your website. The ability to “wow” Customers with videos won’t last long as non-dealer service centers get in on this latest trend.
Based on my recent service experience, I’m surprised that the Cox survey found (only) “48% of vehicle owners were frustrated with at least one aspect of their recent service experience at a dealership.” Three key frustrations include:
Service taking longer than expected,
Struggle to schedule an appointment,
Dealers pushing additional services.
If you have any of the above issues, start to resolve them today. Select one and determine the reason, then craft a resolution. Below are some ideas to reduce the Customers’ frustrations
(1 & 2) Hire additional technicians, train technicians, don’t interrupt techs in the middle of a job to work on something else, introduce efficiencies from the advisors to techs to the parts counter, preview appointments two days before the appointment, invest in the right tools, and much more.
Use Video Multipoint Inspections and have printed ‘features & benefits’ for your maintenance recommendations. Don’t let the sales reps from MOC or BG influence your Service Advisors with spiffs for selling flushes and chemicals.
Whether it’s vehicle sales, service, body shop, or the parts department: to build trust, put everything in writing so there is no miscommunication and actively listen to your Customers. Every interaction with your Customers is an opportunity to build trust and, thus, more loyal Customers.

Reducing Lot Damage is No Accident

Posted on by

Despite advancements in vehicle technology, like backup cameras and driver assistance systems, including forward collision warning systems (FCS), accidents happen. But do they need to? On the roads, 94% of accidents result from human error. On the dealership lot, it is probably closer to 100%. I’m perplexed when I hear an expense came from lot damage, not because technology should have prevented it but because there are many ways to avoid accidents, where the repair cost ends up in the policy or vehicle expense account, and in the case of a Customer’s vehicle—your reputation. Lot damage is preventable if you make it a priority.
1) Angled parking: Angled parking results in turns that are gentler than perpendicular parking and require less steering, so angled parking is easier and requires less time to park a vehicle. Time saver and money saver! Angled parking requires less space on the lot because of one-way driving; it doesn’t need enough room for two vehicles to pass. Observe how easy it is the next time you are in a parking lot with angled parking versus maneuvering an F150 into a perpendicular spot designed for a Pinto. If you restripe your parking lot, don’t forget one-way arrows, designated pedestrian crossings, and include parking space numbers to easily locate Service vehicles.
2) Safety Accessories: Speed humps slow traffic down. The advantage of speed humps over speed bumps is there is less of a jolt for the vehicle traveling over them. Speed humps measure from 2”—4” at their peak. Since your folks shouldn’t drive over 5 miles an hour, the chance for damage is zero. Purchase humps that can be moved and reinstalled for paving. Install blind spot mirrors at every corner to prevent someone from saying they didn’t see the other vehicle. And don’t forget signage.
3) Add bollards to prevent the risk of damage to buildings or equipment from vehicles. Padded covers or flexible posts for your Service and Body Shop can minimize minor dents and scratches. (I use swim noodles on the edges of shelves so I don’t have to make another trip to the Body Shop when I park in my garage.)
4) Written Policies: All this protection won’t help if your folks are driving distracted. If employees are texting or talking on the phone while driving on your lot or under the “influence,” you are bound to have accidents. Have a written dealership policy, reviewed by a lawyer that spells out your driving policies and holds the guilty party responsible for the repairs.
5) For your Employees who drive your vehicles on the roads—parts delivery vans, shuttle drivers, pick up/deliver drivers, and salespeople; enroll them in Fleet Defensive Driving Courses. Online training could protect your employees and vehicles better than the hope that the employees remember what they learned in a driving course (10 – 30 years ago) — if they even had formal training. You may also save money on insurance, and in the case of an accident, your commitment to training shows that you take safe driving seriously, perhaps reducing your liability.


Safety is everyone’s responsibility, but management must be committed to keeping everyone safe and reducing the chances of accidents.