You can generate more profit without spending money \u2013 just resolve to eliminate wasted time at your Dealership or in your Department. I think you\u2019ll be amazed at how much WASTE you can find just by looking. In most Service Departments, the average gross profit per Technician billed hour runs over $100, so it doesn’t take long for the savings to add up.\u00a0 A Sales Person\u2019s time can run between $95, to well over $150 an hour, depending on his or her abilities. It doesn\u2019t always take a Time and Motion Expert to see what can be improved. Read below and think about some of the common areas of waste (besides being seduced to surf the Internet) at your Dealership:<\/p>\n
WAITING: Employees waiting for Customer approvals or authorization, equipment to be repaired, parts to arrive, the finance manager to be available, etc. Waiting probably accounts for the biggest waste of time. If you increased the number of Customers making Service appointments would that help your sales? YES – You generate more income when you have the opportunity to prepare for the Service Customer\u2019s visit. Would better Repair Order descriptions help? Yes – If the Technician can fix the vehicle without having to go back to the Service Advisor to get the answer to \u201chow can we duplicate your concern?\u201d<\/p>\n
CORRECTIONS: Fixing a repair twice, re-ordering a needed part, re-contracting a finance Customer, etc. Taking the time to get it right the first time will save you time. Think of the saying, \u201cIf you don\u2019t have the time to do it right, when will you have time to fix it?\u201d Do we have the right Techs working on vehicles? Do we have properly trained Salespeople? When you spend your money on Advertising, and your Customers receive average treatment from their Salesperson, it is time AND money wasted.<\/p>\n
MOTIONS: People, paperwork or equipment moving more than required. This waste is probably the easiest to fix. Start by streamlining processes, then updating or adding new equipment. Could barcoding parts and vehicles save you time and money when counting inventories? Are Technicians wasting time looking for a Customer\u2019s vehicle on the lot? Do Salespeople roam the lot in hopes of finding the right car or truck to sell to their Customers? Fix these problems with efficient processes.<\/p>\n
OVER PROCESSING: Are there process steps in place to overcome a poor design not required to take care of a Customer? Think of a title clerk hand addressing envelops for vehicle registrations that could easily be put into window envelopes.<\/p>\n
UNDER-UTILIZATION: Underutilizing the potential of your people is also considered a waste. When you have a Tech (generating over $100 an hour), does it make sense to waste any of his or her time? Pre-pulling parts or running parts to Technicians would make better use of the Techs\u2019 time. Should the Salespeople be gathering insurance information instead of the Finance Manager? Is the Sales Manager handling all of the Dealer Trades, when he or she could be coaching Salespeople or working with a Customer?<\/p>\n
By eliminating or reducing waste, the result will improve the overall efficiency of your Dealership\u2014thus providing time to generating more income. Involve your Employees to see how to eliminate wasted time in every Department.<\/p>\n
My Profit Blueprints Analysis provides Dealership Managers with a monthly report that saves them time by highlighting underperforming areas with color and provides Managers with Dealership-Proven Action Plans to help them with a plan for an area of concern. Couple that with a monthly conference call and you are on your way to a fabulous year!<\/p>\n","protected":false},"excerpt":{"rendered":"
You can generate more profit without spending money \u2013 just resolve to eliminate wasted time at your Dealership or in your Department. I think you\u2019ll be amazed at how much WASTE you can find just by looking. In most Service Departments, the average gross profit per Technician billed hour runs over $100, so it doesn’t […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,11,6,1],"tags":[],"class_list":["post-73","post","type-post","status-publish","format-standard","hentry","category-dealership-best-practices","category-dealership-sales-department","category-dealership-service-department","category-general"],"_links":{"self":[{"href":"https:\/\/www.profits4dealers.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/73"}],"collection":[{"href":"https:\/\/www.profits4dealers.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.profits4dealers.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.profits4dealers.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.profits4dealers.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=73"}],"version-history":[{"count":3,"href":"https:\/\/www.profits4dealers.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/73\/revisions"}],"predecessor-version":[{"id":76,"href":"https:\/\/www.profits4dealers.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/73\/revisions\/76"}],"wp:attachment":[{"href":"https:\/\/www.profits4dealers.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=73"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.profits4dealers.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=73"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.profits4dealers.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=73"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}