Digital Dealer - July 2019 - 43

SA LE S & VA R IAB LE OP S : Fi x e d O p s

By Charlie Polston
Automotive Customer Retention
& Profitability Consultant,
BG Products, Inc.

An Open Letter to
Service Directors:
Selling Your Way
to Success
Dear Service Director:
It's summertime, and I
know you are busy. In fact, if
you're the typical dealership
manager, your day begins
before 7 a.m. and won't end
for another 12+ hours. This
time of year, it's head-down,
nose-to-the-grindstone, get it
done, bang it out, hard work.
That's why I'm writing - in
the hopes that you'll take a
moment to read and
understand the big picture
of the state of the automotive industry.
A few weeks ago, Automotive News ran a frontpage article quoting NADA
that said dealer operations
are losing money. Now
there's a headline that got
my attention. Let that sink
in... losing money. Wow. I
want to give you some key
takeaways from the 2018
NADA Data report cited in
the article, but first let me
bottom-line the most important item: A vibrant fixed
ops department is vital to
dealership profitability (and
possibly survival).
That means that you, my
friend, are the most important person in your store.
Now is your moment to

shine, to put on your business head and make 2019
your best year ever.
More on an action plan
later in the article; for now,
here is a snapshot of the
automotive industry:
 Last year operating
profit for the average dealership was actually a loss (a
negative number)

 Net profit was positive,
but almost all the money
came from OEM incentives
 Fewer new vehicles will
be sold in 2019 than 2018
 Profit margins are
shrinking
 Floorplan expenses are
going up
 Almost all other expenses are going up, too

To recap, it's getting harder
than ever to make a buck
selling cars, and there appears to be no relief in sight.
Please note, these are all
struggles in the front end of
the dealership - in variable
operations. So, where's the
money going to come from?
Fixed operations!
Honestly, for you as a service director, this isn't really
breaking news. In fact, it's
just more affirmation of what
you've known all along: Fixed
Ops is the backbone of the
dealership! You have always
been the main profit center of
the dealership. You know it;
it just takes a little economic
downturn for everyone else in
the dealership and the industry to realize it, too.
So now that the dealer,
general manager, and compContinued on pg. 44

OFFER 100% OF TECHRECOMMENDED SERVICES TO 100% OF
YOUR CUSTOMERS 100% OF THE TIME."
D I G I TA L D E A L E R . C O M

J U LY 2 0 1 9

43

http://www.DIGITALDEALER.COM

Digital Dealer - July 2019

Table of Contents for the Digital Edition of Digital Dealer - July 2019

Digital Dealer - July 2019
A Message from the Show Director
Are You a Critic or a Coach?
Implementing an Effective Spend Management Function
Leading with Purpose – Part II
Technical Knowledge Is Essential, Get Some, & Then Close the Purchase!
Is the Sky Falling for the Buy/Sell Market? We Don’t Think So.
How to Ensure a Well-Rounded, Healthy Dealership
Interview with DCH Paramus Honda
Social Selling Tip: 5 Steps to Making Powerful Video Testimonials
Dealerships Tapping into the Power of VIN-Specific Marketing
Future of Luxury Market in the Automotive Industry
A Dealership on the Road to 10,000 Online Reviews: What I’ve Learned…
Creative is King!
4 Sad Ways a Dealer's Digital Marketing Money Gets Wasted
An Open Letter to Service Directors: Selling Your Way to Success
How Digital Retail Solutions Can Enhance Your Expertise
The Real Cost Per Lead, Wasted Spend, & How to Boost ROI with CRM
Digital Dealer - July 2019 - Digital Dealer - July 2019
Digital Dealer - July 2019 - Cover2
Digital Dealer - July 2019 - 1
Digital Dealer - July 2019 - A Message from the Show Director
Digital Dealer - July 2019 - 3
Digital Dealer - July 2019 - Are You a Critic or a Coach?
Digital Dealer - July 2019 - 5
Digital Dealer - July 2019 - Implementing an Effective Spend Management Function
Digital Dealer - July 2019 - 7
Digital Dealer - July 2019 - 8
Digital Dealer - July 2019 - Leading with Purpose – Part II
Digital Dealer - July 2019 - 10
Digital Dealer - July 2019 - 11
Digital Dealer - July 2019 - Technical Knowledge Is Essential, Get Some, & Then Close the Purchase!
Digital Dealer - July 2019 - 13
Digital Dealer - July 2019 - Is the Sky Falling for the Buy/Sell Market? We Don’t Think So.
Digital Dealer - July 2019 - 15
Digital Dealer - July 2019 - 16
Digital Dealer - July 2019 - 17
Digital Dealer - July 2019 - How to Ensure a Well-Rounded, Healthy Dealership
Digital Dealer - July 2019 - 19
Digital Dealer - July 2019 - 20
Digital Dealer - July 2019 - 21
Digital Dealer - July 2019 - Interview with DCH Paramus Honda
Digital Dealer - July 2019 - 23
Digital Dealer - July 2019 - 24
Digital Dealer - July 2019 - 25
Digital Dealer - July 2019 - 26
Digital Dealer - July 2019 - 27
Digital Dealer - July 2019 - 28
Digital Dealer - July 2019 - 29
Digital Dealer - July 2019 - 30
Digital Dealer - July 2019 - 31
Digital Dealer - July 2019 - Social Selling Tip: 5 Steps to Making Powerful Video Testimonials
Digital Dealer - July 2019 - 33
Digital Dealer - July 2019 - 34
Digital Dealer - July 2019 - 35
Digital Dealer - July 2019 - Dealerships Tapping into the Power of VIN-Specific Marketing
Digital Dealer - July 2019 - 37
Digital Dealer - July 2019 - A Dealership on the Road to 10,000 Online Reviews: What I’ve Learned…
Digital Dealer - July 2019 - 39
Digital Dealer - July 2019 - Creative is King!
Digital Dealer - July 2019 - 4 Sad Ways a Dealer's Digital Marketing Money Gets Wasted
Digital Dealer - July 2019 - 42
Digital Dealer - July 2019 - An Open Letter to Service Directors: Selling Your Way to Success
Digital Dealer - July 2019 - 44
Digital Dealer - July 2019 - How Digital Retail Solutions Can Enhance Your Expertise
Digital Dealer - July 2019 - 46
Digital Dealer - July 2019 - The Real Cost Per Lead, Wasted Spend, & How to Boost ROI with CRM
Digital Dealer - July 2019 - 48
Digital Dealer - July 2019 - Cover3
Digital Dealer - July 2019 - Cover4
https://www.nxtbook.com/nxtbooks/digitaldealer/202004
https://www.nxtbook.com/nxtbooks/digitaldealer/202003
https://www.nxtbook.com/nxtbooks/digitaldealer/202002
https://www.nxtbook.com/nxtbooks/digitaldealer/202001
https://www.nxtbook.com/nxtbooks/digitaldealer/201912
https://www.nxtbook.com/nxtbooks/digitaldealer/201911
https://www.nxtbook.com/nxtbooks/digitaldealer/201910
https://www.nxtbook.com/nxtbooks/digitaldealer/201909
https://www.nxtbook.com/nxtbooks/digitaldealer/201908
https://www.nxtbook.com/nxtbooks/digitaldealer/201907
https://www.nxtbook.com/nxtbooks/digitaldealer/201906
https://www.nxtbook.com/nxtbooks/digitaldealer/201905
https://www.nxtbook.com/nxtbooks/digitaldealer/dd26showdirectory_042019
https://www.nxtbook.com/nxtbooks/digitaldealer/201904
https://www.nxtbook.com/nxtbooks/digitaldealer/201903
https://www.nxtbook.com/nxtbooks/digitaldealer/201902
https://www.nxtbook.com/nxtbooks/digitaldealer/201901
https://www.nxtbook.com/nxtbooks/digitaldealer/201812
https://www.nxtbook.com/nxtbooks/digitaldealer/201811
https://www.nxtbook.com/nxtbooks/digitaldealer/201810
https://www.nxtbook.com/nxtbooks/digitaldealer/201809
https://www.nxtbook.com/nxtbooks/digitaldealer/201808
https://www.nxtbook.com/nxtbooks/digitaldealer/201807
https://www.nxtbook.com/nxtbooks/digitaldealer/201806
https://www.nxtbook.com/nxtbooks/digitaldealer/201805
https://www.nxtbook.com/nxtbooks/digitaldealer/201804
https://www.nxtbook.com/nxtbooks/digitaldealer/201803
https://www.nxtbook.com/nxtbooks/digitaldealer/201802
https://www.nxtbook.com/nxtbooks/digitaldealer/201801
https://www.nxtbook.com/nxtbooks/digitaldealer/201712
https://www.nxtbook.com/nxtbooks/digitaldealer/201711
https://www.nxtbook.com/nxtbooks/digitaldealer/201710
https://www.nxtbook.com/nxtbooks/digitaldealer/201709
https://www.nxtbook.com/nxtbooks/digitaldealer/201708
https://www.nxtbookmedia.com