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Featured Partner
Service Menu Article
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Customer Paid Labor is the Cornerstone of Profitability
A dealership that sells 100 vehicles a month, typically has 5
times that number of customers come through the service department every month.
Most customers that come to the service department really don't want to be
there. They typically come in for 1 of 3 reasons:
 | Warranty repair work |
| Routine maintenance |
| Major repair work, outside of warranty |
Ensuring that each one of these customers is presented with
the manufacturer's suggested maintenance, as well as additional maintenance that
should be performed due to local conditions, is the cornerstone of increasing
customer paid labor, and profitability, in a service department.
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Customer Benefits
| Improves the value and reliability of
their vehicle |
| Reduces 'surprise' repair bills |
| Improves the relationship with the dealership |
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Dealership Benefits
| Improve service department profit, short and long term |
| Increase customer loyalty over the long term |
| Increase customer satisfaction |
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What's been Done
Most programs designed to sell these services in the service
drive, often produce poor, and inconsistent results. The typical program consists of:
| Generic pre-printed menus for major intervals |
| Sticking up 'ask me about' posters in the service drive |
| Paying the service advisor a 'spiff' to sell the products |
| Holding a meeting or two, 'to keep it in front of them' |
Sadly, too often, 'nobody asks', and service advisors are 'way too busy' to
make an elaborate presentation.
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The Challenge
The major constraints have been:
| Service advisors unclear on exactly what options should be
presented to a particular customer |
| Service advisor doesn't know exactly what to say, or when |
| Customers don't naturally know why they need these
products |
| Credibility of dealership service recommendations |
| Service drive is often a very busy sales environment |
| Service advisor doesn't want a
customer to say 'no' |
| Service advisor reluctance to present to an unhappy
customer |
| Poorly executed pay plans and profit allocation |
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The Solution
There are 2 primary methods to increase Customer Paid Labor:
| Ensure that maintenance is presented every time to every
customer...at every mileage interval |
| Maximize the technician sale from appropriate inspections |
A big part of the solution is to create a program specifically for the
service drive, that addresses the unique challenges of that sales environment.
Continue for details on the
Service Drive Sequence Routine Maintenance Sales. |
