Dealership Profitibility

Strategies for Outclassing Independent Repairers

Independent repairers can be formidable competitors for your customers who are easy targets for perceived cheaper parts and labour charges. Once a dealership has created a loyal customer base through their service department, they increase their potential sales opportunities for new vehicles. Customer’s Preconceived Beliefs About Dealerships It is crucial that service departments identify ways …

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Tyre Sales – An Inconvenience ?

Wheel Alignment & Tyre Sales – Increasing Dealership Revenue and Customer Satisfaction  What is the value of Wheel Alignment & Tyre sales to your dealership? Most dealers would answer this in terms of revenue and margin from the sale. Some might say additional work found when replacing the tyres (Disc/Brake Pads, shock absorber, etc.), whilst …

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Service Department Financial Indicators

There are numerous indicators available to management that contribute to an in-depth analysis of the financial health of the workshop. Each provides a detail that enables maximisation of workshop profit. Listed alphabetically below are typical examples of financial indicators in commonly use: Actual Turn-over as a % of Potential Turn-over Average Hours per Job Card …

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Understanding Service Department KPI’s – Productivity

PRODUCTIVITY Productivity represents a combination of the workshops Efficiency and Utilisation Productivity = (Hours Sold / Hours Available) X 100 Benchmark: 103% – 110% Hours Sold is a function of the work available to the Service Department that is dependent on the bookings taken by the Service Department and the Costing of the Repair Order …

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Understanding Service Department KPI’s – Utilisation

UTILISATION Utilisation is a function of the technician hours actually spent working compared against the time the technician is available to work. Utilisation % = (Hours Worked / Hours Attended) X 100 Benchmark: 85% – 90% Hours Worked is a function of the amount of work available to the Service Department. The Hours Worked value …

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Dealership Revenue Optimisation

In the midst of Covid-19 lockdown and the reversal of the economy many dealerships are fearful for their future. Having being so focused on sales they are oblivious to the fact that their Aftersales division is the mainstay of the dealership. See my previous blogs for perspective:   Holding less stock and retrenching staff will …

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The Paradox of Aftersales

When asked what area of the dealership was the most important for the overall success of their business, many Dealer Principals respond with New and Used vehicle sales. However, that’s the wrong answer and is symptomatic of the industry where dealerships invest their time, energy, training and marketing in their New Vehicle Department, ignoring the …

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