Fixed Ops Journal - August 2017 - 22
FIXED OPS JOURNAL
Strategy #5: Take advantage of 'role power'
Dealers and automakers
need to evolve a true partnership that lets both
groups best use their re-
signed that dealers can afford. Such solutions
should fit individual retailers' situations and
should not be overly restrictive and inflexible.
n The service adviser, who spends the most
time with vehicle customers, is afflicted by an
outdated, commission-based pay plan. Automakers know it doesn't work.
Instead, automakers and dealers need to
achieve a common understanding of the role
of the service adviser and develop realistic,
cost-effective approaches to recruiting and
keeping advisers and technicians.
n Each automaker needs to choose a single
non-dealership management system provider
for its fixed operations technology. We need
clear and coherent visions for future technologies.
Retailers cannot provide this sort of vision because they are too busy selling vehicles and service. Solution providers do not have the correct
perspectives and experience. The automakers
spective powers.
Automakers' thousands of retailer customers have average annual sales of about $60
million. That's a lot of money and power.
Here's how car companies can take advantage
of it.
n Design a simple pickup and delivery capability for all service customers, mass-market
and luxury, and work with a provider to perform the service.
Vehicle owners will pay for this. It would be
easy to offer service-based luxury amenities,
coupons or frequent-buyer programs. Just do
it.
n Develop a blueprint for post-mobility fixed
operations by segregating dealerships' work
clusters. Express service centers should be de-
must step up.
What is the proper role of dealers? They have
the ultimate power to make these strategies
work. They need to be active with their dealer
councils and become more closely involved
with major factory strategies.
Dealers and automakers need to discuss,
disagree, debate and achieve consensus on
solutions. If you think the status quo is still
compelling, consider the costs of doing nothing.
Dealers strive for 100 percent fixed absorption rates, but it is not hard to envision a future
in which service volumes for mass-market
franchises are gutted by increased fleet market penetration. Luxury franchises will hold
on to their service volumes longer, but they
will leak customer retention as well.
We are looking at a future of closer to 25 percent service absorption - if we're lucky. Doing nothing will be catastrophic.
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Table of Contents for the Digital Edition of Fixed Ops Journal - August 2017
Fixed Ops Journal - August 2017
Contents
Need a lift
Tire track
Mobility devices
Times to recall
Slick trick
Fatal fire
Players club
Online parts
Lean inventory
Loyalty test
Patent pending
Open minded
Editor’s Letter
Service Counter
Legal Lane
Richard Truett
Feedback
Five Minutes With
Letters
Fixed in Time
Fixed Ops Journal - August 2017 - Intro
Fixed Ops Journal - August 2017 - Fixed Ops Journal - August 2017
Fixed Ops Journal - August 2017 - Cover2
Fixed Ops Journal - August 2017 - Contents
Fixed Ops Journal - August 2017 - Editor’s Letter
Fixed Ops Journal - August 2017 - 5
Fixed Ops Journal - August 2017 - Service Counter
Fixed Ops Journal - August 2017 - 7
Fixed Ops Journal - August 2017 - Legal Lane
Fixed Ops Journal - August 2017 - 9
Fixed Ops Journal - August 2017 - 10
Fixed Ops Journal - August 2017 - Need a lift
Fixed Ops Journal - August 2017 - Tire track
Fixed Ops Journal - August 2017 - 13
Fixed Ops Journal - August 2017 - 14
Fixed Ops Journal - August 2017 - 15
Fixed Ops Journal - August 2017 - 16
Fixed Ops Journal - August 2017 - 17
Fixed Ops Journal - August 2017 - Mobility devices
Fixed Ops Journal - August 2017 - 19
Fixed Ops Journal - August 2017 - 20
Fixed Ops Journal - August 2017 - 21
Fixed Ops Journal - August 2017 - 22
Fixed Ops Journal - August 2017 - 23
Fixed Ops Journal - August 2017 - Times to recall
Fixed Ops Journal - August 2017 - 25
Fixed Ops Journal - August 2017 - 26
Fixed Ops Journal - August 2017 - 27
Fixed Ops Journal - August 2017 - Slick trick
Fixed Ops Journal - August 2017 - 29
Fixed Ops Journal - August 2017 - Fatal fire
Fixed Ops Journal - August 2017 - Richard Truett
Fixed Ops Journal - August 2017 - Players club
Fixed Ops Journal - August 2017 - 33
Fixed Ops Journal - August 2017 - Online parts
Fixed Ops Journal - August 2017 - 35
Fixed Ops Journal - August 2017 - Lean inventory
Fixed Ops Journal - August 2017 - 37
Fixed Ops Journal - August 2017 - Loyalty test
Fixed Ops Journal - August 2017 - 39
Fixed Ops Journal - August 2017 - Patent pending
Fixed Ops Journal - August 2017 - 41
Fixed Ops Journal - August 2017 - Feedback
Fixed Ops Journal - August 2017 - Open minded
Fixed Ops Journal - August 2017 - Five Minutes With
Fixed Ops Journal - August 2017 - Letters
Fixed Ops Journal - August 2017 - Fixed in Time
Fixed Ops Journal - August 2017 - Cover3
Fixed Ops Journal - August 2017 - Cover4
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