We recently spent a whole morning with a seasoned service manager trying to convince him that what was really lacking in the service department was a simple-to-follow process for running the business and making the staff accountable. This should have been an easy sell considering that his business was in a decline, most of the key performance indicators were below industry standards and the bottom line had almost disappeared. But the push-back was huge, to the point of almost being amusing.
These were some of the reasons given why implementing such an effective process could not possibly work in this particular store:
"We have the wrong franchise, with the wrong product line, located in the wrong area, challenged by changing demographics, operating in an outdated building and running with staff that either refuse to change the way we do business or are not smart enough to change."
Not much negative there!
How can they do it on $7.50 per hour?
In an effort to lighten things up, we went out for lunch to one of those chain restaurants - Jack something-or-other. On arriving, we were greeted with a smile and asked, "Would you like to eat in the restaurant or the bar." To be honest, after the morning, I really wanted the bar and a stiff drink, but we chose the restaurant and requested a booth.
The first question was: "Have you eaten with us before?" The answer was: "Yes!" Next question was: "Then you must know about our fast lunch menu?" Answer: "Yes!" And finally: "Great, Mary will be looking after you today, enjoy your lunch."
Mary turned up with a smile and wrote her name upside down on the paper table cloth, introduced herself and did a quick run-down of the day’s specials. Then came the assumptive sale. "What can I get you guys to drink today?" Back came the drinks and the food order taken, with the question: "Would you like gravy on your fries?" A 90-cent up sell!
Mary asked for the drinks, asked for the gravy, asked for the dessert, came with the bill and we received a smile and a, "come back and see us again," as we were leaving. This restaurant operates with a fixed process implemented with a young staff making $7.50 per hour, so don’t tell us we can’t implement a process with our own staff making a good salary if we really wanted to!
We can already hear more excuses!
We are in a different business! Don’t compare us to a restaurant with trained staff, a smile and a process to follow!
We recently visited a rapid lubrication shop. The first difficult question was: "What would you like to drink? Coffee, tea or a cold water?" This was followed by: "What newspaper would you like to read?" Then the questions became more difficult with three choices of oil changes and the biggest decision of all - did we want an aftermarket oil filter or an OEM oil filter? Yeah, I know; it is a different business than ours!
We just can’t offer that kind of service can we? How is it they can do it? Is it because they are so much smarter than us? Please don’t shoot the messenger - this article is just trying to get you thinking. Why, in a highly competitive, lucrative market are we not leading the industry instead of following it?
Some managers are waking up
One service manager told us recently that, just maybe, we have had it too easy for too long and did not really have to compete for the customers’ loyalty. We sold the vehicles, ran with a ten-percent retention and assumed the business should be ours. Can anyone remember the days when we were so booked up, we only serviced the vehicles we sold and refused to work on visiting owner vehicles?
The technology and market have been changing slowly over the last several decades, but we have not felt the need to alter the way we do business. As a wise man once said, "More bottom lines have been destroyed through stubbornness than a changing market."
Recessions used to hit our industry around every seven years and last for a short time, but we are now faced with a market shift that is not going away any time soon. So what’s your plan for staying in the game?
We are not into reinventing the wheel - just implementing good common-sense business practices that work. If your store has a climbing customer base, strong sales per work order, few one-item work orders, great CSI and a superb bottom line, then this article could be superfluous to your current requirements but we suggest maybe you should file it for future use. "The times they are a changing!"
Implementing process for profit
A good process for running the business does not have to be that complicated. In fact, the easier and simpler the process the better your staff will adapt to change. We have found that individual performance is directly linked to daily accountability and has a substantial impact on the numbers.
We generally start working with the service manager or fixed operation manager and finish with the shuttle bus driver, which is a much more important job than you may think. If you are not sure how to start working on a new process e-mail me or James Jr. at This e-mail address is being protected from spambots. You need JavaScript enabled to view it and we will send you a copy of our service advisor process format which you can customize to your own requirements.
Jim Bell, of Oakville, Ontario, has been in the auto business for more than 35 years and brings a wealth of industry experience. He is a writer, consultant, and motivational speaker. For in-store consulting and training you can reach him at GAC, by phone at 416-520-3038 or by e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
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