Automotive Consumer Protection

The automotive industry requires a complete overhaul of the consumer protection act.  I say this because I am currently consulting for a dealer that has committed numerous offences against NYS DMV, NYS tax, NYS consumers, Bank floor plan and the employees that work for this dealership.

I have found that on numerous occasions the current GM and Finance & Insurance Manager have tried to effect the changes necessary to turn the dealership around to the right LEGAL course.  The owner doesn’t seem to care that he is in violation of numerous laws and he remarks, “Who is going to know”!

I have witnessed a conversation between a technician and the owner whereby the technician was told if the car drives straight, brakes good, wipers work, and no vibration at fifty miles per hour, “Why check out the car – get the NYS inspection sticker on the car, if the customer finds something we’ll deal with it later”.  This is not the way to do business nor is the way to retain your good name or reputation.

On another such occasion I had the pleasure of watching the owner instruct a salesman on how to remove a NYS inspection sticker from one car and place it on the windshield of another.  The owner calmly calls this a sticker slap…  This is not only illegal for the dealership, this could potentially cause an unsuspecting consumer to spend some time in jail should he/she be on the wrong end of a police officer having a bad day.

Or, the customer who purchased a used vehicle.  He traded in his three year old Mercedes-Benz still owing money on the original loan.  The customer paid this dealership the 17K in cash to pay off his old vehicle with the bank.  The customer has been receiving letters and calls from his bank for two months asking when the loan will be paid off…  How is that for deception and fraud?

The reasons stated above are enough to warrant a stronger consumer protection act within the automotive industry.  There are many other examples I have witnessed in a short four week span at this dealership, yet too many to list and some far worse than the ones outlined above.

I have studied some exemplary state and provincial consumer protection acts for the automotive industry and have come to the conclusion that OMVIC, “The Ontario Motor Vehicle Industry Council” offer the BEST services, training, council and consumer protection.  To find out more about OMVIC and how this type of program can benefit consumers, dealers and salespeople within the United States, please log onto the following website - OMVIC

I am quite certain that this level of non-compliance and ill regard for professionalism does not exist everywhere, however if it goes on at this location it most certainly happens at other establishments as well. 

We need more accountability within the automotive industry.  Accountability starts at the state enforcement level and filters down through NADA, the dealer associations to the independent dealers and their employees.  We just might be able to instill a positive vision of the automotive industry in our consumers minds, a vision of trust.  We all know that TRUST is the basis to a transaction.

David

Shop Productivity Exemplifies Structure

In today’s tough economic climate shop productivity is more crucial than ever.  Good technicians are in short supply and high demand.  Training takes technicians off the floor and sometimes this is a great thing.  For example sending your technicians to manufacturer training in your down months is beneficial as it leaves them on your floor during peak performance months.  Training your technicians can be a daunting task when trying to achieve productivity targets.  Therefore a team structure can be utilized to promote productivity and enhance technician training on the fly.

The technician or shop floor hierarchy, (shown below) shows the levels of technicians and who they report to, I will explain further.  Let’s suppose you have a medium size shop with fourteen technicians, a QC technician and a shop foreman.  Utilizing the talents of key people within your team and structuring your shop to bring these talents to the forefront is of paramount importance to the future viability of your service team.  How do I do this you ask?

Examine your shop floor individual-by-individual looking at their strengths and weaknesses, current productivity and their skill-sets.  Once you have each individual broken down into categories of strongest to weakest you can begin to assemble on paper a structure for each team.  If you already have a shop foreman you are miles ahead of the game, if not you either better hire one or pick one, preferably someone having both exceptional people skills and a strong background in diagnostic repair.

Great, now you have a shop foreman so you can begin assembling your team components.  You will need two team leaders in this exercise who are both strong in diagnostic, have a good ability to lead others and are A class technicians with current up to date training.

Therefore you now have two team leaders, both report to the shop foreman and both are good individual performers as well as having the diagnostic acumen required to train and help organize another technician in the art of diagnostic and repair.  Now analyze the remaining technicians and quantify who would be best suited under which team leader.  In the example below, I have broken it down by B and C technicians however names can be added instead of by their ranking.

The way this works is simply this:

1. The dispatcher or automatic dispatch assigns a job to either a B or C technician for diagnostic concern.   A good example would be a check engine light.  The shop rules for length of time attributed to the diagnostic examination MUST be set by the service manager, shop foreman and the team leaders; this ensures the appropriate amount of time allocated to the diagnostic check, before bringing the team leader into the equation.  For example, I use a thirty minute rule.

2. The thirty minute rule is simply this: A technician can only spend thirty minutes performing a diagnostic.  At the thirty minute mark the technician MUST access if they are making headway to a definitive conclusion, if not then the technician MUST proceed to inform the team leader of the vehicle, the concern, any and all codes and what tests have been performed. 3. The team leader will then punch off his/her job and determine what the next steps in the diagnostic procedure should be.  If the team leader informs the technician what next test to perform to obtain a diagnostic result, then the technician continues on with diagnosing the vehicle.  Once the next steps are completed by the technician he/ she will again communicate with the team leader.  At this point the team leader may know what the problem is with the vehicle and will convey the repair method and or affected parts for replacement to the diagnosing technician.  If however there is no definitive repair as of this time, the team leader can do one of two things.  Either the technician is given further testing to perform or the job is removed from the technician and he/she is assigned to another vehicle. 

The idea of this method is to promote learning and productivity, keeping your technicians productive increases the amount of flow through your shop and promotes a learning atmosphere, by this you reduce your comeback ratio, thus increasing your fixed first visit numbers.  This maneuver increases your CSI and your retention rates.  When customers receive their vehicles back in their possession and they are fixed right, you have far fewer defections to the competition.

4. If the technician has been assigned to another vehicle the team leader will diagnose the problem vehicle further at the next available opportunity.  Once the diagnostic routine is completed and the team leader knows the repair method or what parts require replacing, the original technician will be brought over to the vehicle and he/she will be shown what tests and steps were taken to form a repair procedure. 

5. In the extreme case where even the team leader cannot diagnose the vehicle or determine a proper course of repair, the vehicle will be turned over to the shop foreman for the diagnosis.  Once the shop foreman has effectively diagnosed the vehicle and determined the correct course of repair, both the original technician and the team leader will be brought to the vehicle and the diagnostic procedures explained to them in a clear and concise fashion.  This is a teaching shop at its best, one that brings the level of expertise up and the amount of comebacks down.  This also promotes teamwork, communication and openness on your shop floor. 6. Because the shop foreman has more available time, he/she are allowed to perform their duties and execute the business at hand.  Shop foremen working in this system are more likely to walk the floor and know exactly what vehicles are inside, for how long and know why the vehicle is at your dealership. 

Only you can assess what you feel your team leader’s time is worth when examining a play        plan for them.  I generally pay them a small percentage in real dollars of what the people in their team produce in hours.  For example team A produces 350 hours in a week and the team leader produced 52 of those hours, then you should pay him/her a predetermined amount for the hours produced minus those of the team leader.  Therefore, in this example the team leader would be paid on the production of 298 hours.   An example of a floating team leader production pay scale would look like this;

For this example – 100% productivity for a team of seven people would equal 280 hours per week.

0Hrs to 250Hrs hours = zero per hour
260Hrs – 280Hrs = $00.50 per hour produced
280Hrs – 340Hrs = $00.70 per hour produced
340Hrs – 380Hrs = $00.75 per hour produced
380Hrs – 425Hrs = $00.90 per hour produced
425Hrs and up = $01.00 per hour produced

Remember to back out the team leader’s hours from the pay out.  Example – Team A produces 375 hours and the team leader produced 74 hours, this means the team leader gets paid from the example above $00.75 per hour produced at 301 hours = $225.75

In the new age of electronics and a shortage of talent in the workforce, you may need to seriously look at your on the job training requirements and your productivity initiatives, somewhere the two shall meet.

David   

Coaching & Mentoring to New Opportunities

As a manager in today’s economic climate, now is the most critical time to coach and mentor your employees.  Coaching and mentoring can be a major challenge for most managers as they need to fit this in between running and planning the day-to-day and future development of the business.  Coaching and mentoring your employees allows you maximize the most from each employee while maintaining a structure of policies and procedures that most business needs adherence to.  Coaching and mentoring will help sustain long term growth, maintain long term employees and provide your customers with that exceptional experience they crave.

To identify opportunities within your business model refer to one of the five basic identifiers;

1      You identify an opportunity for one of your employees.

2      One of your employees acknowledges an opportunity for them self.

3      Sales or service customer or one of your long term vendors asserts to you a new opportunity.

4      You or your management team recognizes an opportunity that may exist to expand upon
     within your current team of employees.

5      A unique (good or bad) situation presents a new opportunity.

Different opportunities may present themselves during daily routine work or when a mishap occurs or some new opportunities present themselves during your bi-annual performance review...

Your job as a leader or manager is to expose opportunities and act upon them. The question is, “Do you have the time to assess your employees and your department and will you even recognize opportunities as they are presented to you”? 

To find an opportunity you must write down what the desired results are that you’re looking for within your department or within the core of your employees.  The next part of the process is to see in your mind’s eye what the outcome of your execution of the opportunity will bring to the business.  Does it bring about positive change or results?  Always start at the beginning of this exercise with the end desired results in mind.  Not knowing what the desired outcome really is will lead you to develop the opportunity in the wrong direction.  This may lead to frustration and confusion within your team and stifle your results even further.

Once you know what the desired end result will be, your job as the manager or leader is convey this to your team in a clear and concise fashion.  There should be absolutely no mistake in anyone’s mind the new direction the business is moving towards.  Your coaching and mentoring during this critical stage is where the transfer of ownership comes into play.  Explain the opportunity to your employees in such a way that they will want to execute the opportunity to make their jobs easier.  Once they understand this fact, they own the process.  This is when your employees become engaged and motivated in the initiation, execution and long term vitality of a new process brought about by opportunity.

If you invigorate your team with the knowledge that they can and will succeed and you explain the benefits to them in a detailed concise discussion you want hear later on the road that resist change.  The only time people in general resist change is when one of three following factors happen:

1. They don't see the need
2. They don't want to do it
3. They believe that change is not possible for them

Therefore there are four things you can do to counteract the three things your employees may do in resisting change.  You need to stay focused, be adamant and keep utilizing the four qualities that exemplify you as their leader or manager.

1. Continue to provide leadership
2. Continue to provide constant quality communication
3. Continue building trust by giving compliments or structure when and where needed
4. Continue getting their commitment while giving yours

To obtain a buy in factor you will need to guide your employees but more importantly you will need to obtain their personal commitment to the opportunity process.  You will also need to transfer and make available resources that may include your time, money, training, specialized equipment and informational handouts.  Having the backing of the GM or the dealer will also enhance the urgency in implementing your new opportunity initiatives.  Make sure you deliver on your promises to this endeavor otherwise you may be setting yourself up for failure from the word go.

Professional psychologists state it takes twenty-eight days of repetitiveness to exact change in a person’s behavior.  It is no different in the business world, training and retraining until the execution is done right, the same way each time will enhance the initiative and help in breaking old habits.  Ensure each member of the team has sufficient training, coaching and mentoring during the execution phase and keep praising them for job well done.  Praise reinforces a positive end result and makes employees more willing to go the extra mile to get it done right.

People inherently do what they have always done, even if it’s the wrong way, this means people don’t do what they know to be right, they just keep doing it the same old way.  The recipe for disaster and the definition of insanity is, “Doing things the same way as you’ve always done them, expecting different results”.  If you don’t reinforce everyday their commitment and your ongoing coaching and mentoring, things will slowly drift back to way things have always been done.  Practice makes perfect and you need to lead by example.

Empower your employees to get the desired results while they are learning new skill sets.  Make sure you are always giving the right form of feedback, even in the midst of some mistakes, counter them by stating things like, “I know sometimes change is hard, but keep up the effort and you will get results”.  Follow up each day and verify what it is you’ve coached into them.  Inspect what you expect!  Making sure you deal with non performance issues or nay Sayers quickly and efficiently to get on with the project, this will bring about change more rapidly. 

As I stated earlier to learn a new task or to change behavior takes twenty-eight days, therefore you will need to provide praise and recognition for this length of time along with coaching and mentoring techniques.  Make sure to always provide positive feedback and recognize people’s strengths and talents.  Providing employees positive feedback will ultimately reward you with positive results.

David

You catch more flies with honey

As a leader…do you know what motivates every individual in your organization?? Do you know why each individual comes to work each day…and earns a living working with you?  This question was posed on Linkedin and refers more to the sales department, however I feel this also applies to the servicing side of the business as well.  The first three comments that were offered on Linkedin are below.

·         There isn't a lot of recognition in the car business. Because most owners don't run car dealerships like a business, we pretty much live month to month. If you are in the car business (sales) you have to be motivated by money and again, I am speaking from a sales perspective only.

·         I suppose it helps to try and understand each staff member to find out what drives them. I am also in the car business and find that money is generally the biggest motivating factor. However, there are also people that appreciate a pat on the back and constant recognition.

·         I bet the answer for most people is NO! We assume that everyone is motivated by money. IN my experience money is a HUGE motivator, however when this is the sole reason for arriving at work, then a "grass is always greener" attitude tends to arrive with it. I look for a mix of ambition, common sense, and intelligence for my clients. This means that perhaps the months of smashed targets don't come as regularly, but what does come is sustained growth with a less "lumpy" looking sales chart.... but most importantly the staff stick around longer, ultimately making more money.

So I guess the answer lies with management as to what motivates our employees in the workplace.  One of the biggest mistakes managers can make is getting bogged down with performing their everyday tasks instead of leading employees.  Most managers in the automotive industry prepare their daily spread sheets on productivity, sales, gross profit, efficiencies, budgets or they are busy planning next month’s marketing strategies.

The biggest problem in management is finding the time to interact with your team, meaning YOUR PEOPLE!  Leading people means getting into the trenches and lead them by example.  Teach your porters how to perform their job in the service drive, pitch in and show them WHAT IT IS that defines an EXCEPTIONAL experience to the customer.  The most important item is to reward them with a compliment when the job is done EXCELLENT. 

Money is a motivator however a nice pat on the back and the words, “GOOD JOB” go a long long way!  Spend some quality time interacting with your employees and discuss topics other then work to get a feel of what makes them tick, what are their interests outside of work.  You might be surprised to find out that there are other things which motivate certain individuals.  The things you find out about your employees can be used as motivational insight for yourself when interacting with them throughout the work day.

For example; John, one of your technicians may be his son’s football coach.  Having a conversation with John about his son’s team and how they are doing shows an interest in John that goes beyond the workplace and this instills trust and a cohesive bond.  When you out of the blue ask John how his son’s team did in Friday night’s game, John will most undoubtedly give his feedback.  The end result in this exercise is that John will feel much more motivated by you as a manager because you offered your time and your interest.

Your spread sheets and your paperwork will always be there nagging at you but if you don’t pay attention to your employees, they might not be there long.  You cannot afford to lose the good employees you have because ultimately the numbers on those spread sheets will get thinner over time. 

A great leader is aware of how their management style motivates their team.  A great leader will;

·         be honest

·         be transparent

·         be respectful

·         Show confidence

·         communicate passion

·         communicate with clarity

·         have the highest integrity

·         execute business decisions

·         empower employees

·         be genuine

·         be supportive

·         be humble

·         be appreciative

The most important characteristics of being a great motivator, manager or leader is to show compassion and caring towards your employees by taking a personal interest in them as human beings.  The old saying is so true “You catch more flies with honey than vinegar”.

Be a great leader – TAKE THE TIME TO KNOW WHO WORKS FOR YOU AND WHAT REALLY INTERESTS THEM BEYOND THE WORKPLACE!

David

Your Kidding, You're a Micromanager?

Micromanagement is the direct management of a project, person or business to an excessive degree.  The word micro management can be summed up as too close for comfort.  Avoid this method as much as possible!

 Micromanagement can lead to stifling the creativity of your employees which will ultimately lead to diminished profits.  Nothing saps the energy from employees faster than a manager who is standing over them and scrutinizing every move they make.  Micromanagement may lead to disengaged employees.  A disengaged employee is one who puts in the time required at work but not much else.  Micromanagement is sometimes the result of not having a plan or firm policies and procedures or they lack the fundamental knowledge of how the business is supposed to be run or what the different functions or roles each employee plays in the makeup of the business.  Most micromanagers have a tendency in not realizing that they end up doing more harm than good for employee morale.  More often than not, they dread being wrong!  

Typically a micromanager's sense of empowering people was in essence surgically altered or turned off at birth and cannot be reacquired with conventional management training, they have no sense of what empowerment implies at all.  Understandably a micromanager consistently labels productivity or efficiency by using constant control over individuals, therefore approximately 60% to 70% of the structure to reach targets is counterproductive and makes work more complicated for the employees.  The word empowerment is the direct opposite of micromanagement.  Therefore it has always been my analysis that if the word empowerment is a positive word, conversely micromanagement is a negative hindrance that MUST be stymied in the workplace.  Employees want to be inspired and led by their managers, micromanagers absolutely need to understand and learn that they cannot force people to be like them, unfortunately the end result when working with a micromanager is decreased productivity, performance and diminished moral throughout the work environment.

Most employees will not approach a micromanager and confront them for their style of management for if they ever did the micromanager will surely be offended by the mere suggestion that people under them suffer greatly from their dictatorial style of management.  As well most employees see the micromanager as having personal insecurities and an excessive ego, having absolute control over others at all times.  While a real manager helps people understand what they can become in the future, a micromanager often times helps people to perceive themselves as they are.  With a micromanager there is no room for growth.  In short a real manager, someone who is a real leader will help sway opinions transforming the employee to become better than they are, conversely the micromanager will always be the person twisting your arm.  The bottom line is that micromanagers don't develop and challenge their employees and therefore they don't keep smart, ambitious, talented people.

Micromanagers are in essence corporate psychopaths who create a toxic blend of management styles that stifle the creative output of the employees they oversee.  Micromanagers usually have not much good to say to anyone about performance or output, usually the only communication offered is of a negative connotation.  Psychopathic micromanagers normally cannot distinguish or empathize with human dignities or the basic rights of individuals.  More often than not the psychopathic micromanager is narcissistic in nature and has no value for others or their potential in the workplace.  This translates into the fact that the entire show centers on them, they thrive on the glory.  Thankfully corporate America is structured around the team principal and micromanagers are quickly becoming a dying breed. 

Micromanagers generally have no substance and not much style.  Micromanagers only have sharp claws and come equipped with quick elbows.

 You will not have to micromanage your employees once you have your plan committed to paper and everyone within your service department has read the plan, have been shown what the policies and procedures consist of, and you are fundamentally teaching them the procedures.  . 

A few more management styles to be aware of and avoid are the empty suit management style, the paranoid manager syndrome, the fearless leader and the narcissistic manager.  The following examples are brief overviews to explain each style.

The empty suit manager is the person who lacks the knowledge, experience and skill set to hold the position.  Somehow the empty suit manager managed to climb the corporate ladder by way of who they know and not what they know.  This type of manager will always steal a subordinates thunder and take credit for others hard work.

The paranoid manager is one who is constantly suspicious of others and their motives.  They believe that others are hostile and threaten their position without any supporting evidence.  Paranoid managers are very quick to judge and slow to forget or forgive.  The paranoid manager is a person who in general is argumentative with peers and subordinates alike.  A paranoid manager will rarely ask for help or opinions from others.

The fearless leader management style is typically one who takes credit for other peoples successes and takes no responsibility for their own failures.  Generally the fearless leader doesn’t have a clue what’s going on or what it is individuals or the business are trying to accomplish.

The narcissistic manager is one who thrives on a sense of self importance and expects to be recognized as a superior individual.  Their need for admiration and their lack of empathy or understanding of basic human courtesies highlights their own need to be placed on a pedestal, all the  while having a disconnect with those around them.  This type of individual somewhat lives in a fantasy world where they are preoccupied with their own sense of self importance.

The mark of a great manager is to follow these simple yet often overlooked rules:

• Clearly outline and explain what it is you are trying to achieve, show your employees the benefits of the goal.  This will set the level of expectations
• Illustrate a complete picture of the goal and get everyone involved with the changes, this will allow the employees to measure and quantify the efforts to the results.
• Let all employees know that moving forward positive change will be the rule, not the exception.
• Inform your employees that complacency is not tolerated and everyone must embrace the changes to move the company forward.
• Enforce open door policies and let everyone know that your door is always open.
• Over communicate your goals, policies and productive procedures with enthusiasm and credibility, make your words infectious to your employees and soon they will be living your goals as well.
• Demonstrate to your employees that they are in good hands and you care about their wellbeing.
• Give your employees the highest level of honesty and respect.
• Always make time to listen to your employees.
• Never take credit for the ideas of your employees.

The great manager will follow these simple rules to provide excellent customer service:

• Demonstrate to all customers that they are in good hands.
• Always give your customers the highest level of respect and honesty.
• Make all customers feel valued and special.
• Make all customers aware that they have chosen the best by giving them your best at all times.
• Always listen intently to the concerns of your customers.
• Always restate your customers concerns to ensure you understand the concern completely.
• Always smile, make it infectious.
• If you promise to do something.  DO IT!
• If you say you will call.  CALL!
• Have fun, be courteous, stay on top of new initiatives and always be astute in the manner in which you speak.  Avoid blaming others for things and circumstances beyond their control, you are best equipped to focus on the items within your control!

Retention Strategy

For those of you that depend upon your retention rates to be higher, it may cost you a bit to gain a lot. I have said this so many times during my career, “It takes money to make money”! The average dealership loses 50% of its servicing clientele after year one of selling the vehicle. Roughly 30% of car buyers purchase the vehicle and never come back to your dealership at all. That is really bad odds when your business is set up to make money on the front and back end.
We set up three months ago within our dealership a retention strategy that seems to be working rather well. When the customer purchases their new or pre owned vehicle the sales department automatically gives the client a coupon for the first maintenance, complimentary of the sales department. We are getting over 95% of these customers back now.

To ensure the service department retains these customers for a longer duration then most dealerships historically, we also as a complimentary gift from the service department offer each client a coupon post card which states the next three services are free. As well there is a 10% off coupon for accessory parts purchases and installation.

If you give your customers a reason to stay with you, they will. What did it cost you over the life of four oil services, $180.00? That is a very small price to pay to retain your customers and give them a WOW experience. If you can maintain the WOW experience offering, you’ve probably won them over for life. When you look at retention in this light, who in their right mind wouldn’t spend the initial $180.00? Well I am sure that there are some that might still want to save their way to a profit or HOPE they can continue down the same path they have always traveled.

Times are a changing and to succeed in these times you need to change your thinking. Change your thinking and change your life and your business for tomorrow!

David

Customer Deception

We all have them, customers that habitually blame your employees and your dealership for anything and everything. This particular class of people take away what you can offer your really great customers who may actually deserve something extra because you and your employees have been beaten down. All of you know exactly what I am I writing about! So in short I will give you examples from friend’s dealerships as well as my own and then pose my questions to you.

First, the woman who called in two weeks after her last routine service and stated the technician stole the batteries from her remote key fobs. Apparently the gas cap was also stolen from her car and she states that when the tires were changed in October of last year the technician took her tire valve caps and installed rusty caps from another customer’s vehicle onto her car.

The vehicle in question is a 2008 in which the fuel filler cap was replaced under warranty 16 months prior, due to a broken strap. The valve stem caps are aluminum and therefore start looking bad after a winter of snow and salt. After examining the vehicle history there is no record of this customer purchasing remote batteries either through parts or service yet she insists she wants new batteries mailed to her home for FREE or she will never come back. After reviewing the vehicle history, she has a habit of this type of behavior. Further, she claims she can read people’s minds and knows that the dealership is full of thieves.

How about the customer who claims he is owed a new sirious satellite radio for free, well a $1600 value or cost to someone. This gentleman owns a 2003 model year vehicle and after speaking with him and examining the vehicle history it is evident he purchased an upgraded radio in 2007. All parts as you know come with a one year unlimited mileage warranty for most manufacturers. A work order from 2010 shows that the radio was replaced again due to a malfunction of the display, however the work order shows only the installation and there is no $1600 part billed to the RO. Therefore the customer brought his own used satellite radio to the dealership for installation. This customer was expecting a free $1600 satellite radio unit and fought tooth and nail to get one for free.

The customer who brought his 2009 black sedan in for routine servicing and then upon pickup blamed the dealership for the application of swirl marks to the vehicle, the finger nail scratch marks around the door handles and the bent rims. After careful examination of the vehicle check in sheet, it was evident that the swirls were marked down along with the chips on the rims where the rims were bent. As well this customer has a history of this type of blatant negative behavior and therefore the vehicle was never driven off the lot. Therefore the rims were bent prior to visiting the dealership.

Further, this customer was given a loaner vehicle and proceeded to bring the loaner back with damage all over the vehicle, a total of $1400 damage on a vehicle that he was the first person to use. That’s right, the vehicle had .9 miles on it before it was loaned to him yet he claims he received the vehicle with the damage on it. He is disputing the credit card charge for the damages.

The vehicle that showed up for service covered in slush and snow along the front bumper approximately half an inch thick was pulled into the service drive. While being written up with the service advisor the snow and slush dripped off the vehicle allowing a full unobstructed view of the bumper at the front of the vehicle. Before the vehicle was even moved from the spot the customer had parked in, the customer turned to the advisor and stated what did you do to my vehicle that scratch was not on my vehicle when I brought it in; you are going to fix and paint my bumper for free!

Or how about the woman who owns a 2004 vehicle and drove into the parking lot with two blown front tires. She proceeded to enter the service area screaming that six months ago she purchased new tires and a wheel alignment and she lost control of her vehicle due to the fact that the alignment was out and she crashed her car into a curb and blew the front tires off the rims. This woman was cursing up a storm with no mind that children were sitting within ten feet of her. She wanted FREE tires and she wanted the cosmetic damage repaired on her vehicle at the expense of the dealership. It didn’t matter to her that she actually lost control of her vehicle on ice and crashed, someone else must take responsibility for her lack of judgment and carelessness.

A sales customer who purchased a BMW last fall for her 16 year old son came back to the dealership with the son wanting a refund because the son feels that the salesperson should have pushed him to purchase the all wheel drive (X-Drive) version because he couldn’t drive his vehicle during snowy days. Apparently the young man became so verbally violent towards the salesperson and his mother that he was asked to wait outside the showroom in the parking lot. During his exit walk through the showroom he spit all over the showroom demonstrator vehicles in front of employees and other customers while spewing obscenities about the product, the people and the dealership.

Are you starting to see similarities between these customers and some of your customers who frequent your dealership, or is this strictly a New York state of mind mentality?

My questions have some insight mixed in between them, so here goes.

1. Why do we, as a collective, meaning dealerships in general keep advocating and condoning this type of behavior? We keep believing that pacifying this type of lying, cheating deceitful customer will win the day! We keep telling ourselves that we can win them over and then we own them forever! Right? - - WRONG! Once you give in when you know clearly that the customer is lying, they’ve got you, and they will continue to push the envelope each and every time they visit your service department or your sales showroom.

2. Why do we pacify yelling screamers that swear at your employees and degrade them? I will tell you why. Because it is easier to give in then it is to weed the garden of toxic plants where you are trying to grow fruit. Have you not noticed that customers who pull this type of behavior actually stifle your employee’s motivational level? Have you not noticed that they infect other customers who may be present to hear their dissertation on HOW BAD YOU ARE?

3. When was the last time you actually witnessed this type of behavior from people in a doctor’s office, dentist’s office, the hospital, the lawyer’s office or in most other professional settings? If you have it is probably far and few between. This article was sparked after speaking with a colleague who is consistently dealing with this at his dealership. Why do we collectively try to pacify these people by giving in?

4. In life when you are married to the wrong person and their behavior becomes more then you can handle you DIVORCE that person! Why is it so hard for people to DIVORCE a customer who is obviously hurting the business and taking advantage of you, your employees, your generosity and your good character?

5. Did you know that it takes twice as much energy to deal with a negative situation then a positive situation? So why do you waste so much time and energy on dealing in negative when you could have an abundance of energy to offer positively to the people who really do deserve your attention?

6. Are you starting to get my point? Negative people SUCK the energy right out of you, whereas offering positive energy to those that genuinely need and deserve it builds more positive energy within due to the awesome feeling that giving really offers to the person that does the giving.

7. Why do we continually allow and condone this type of behavior? Is it because we are afraid of losing a customer? Is it because we are afraid this customer will tell his/her friends and family? Let me ask you another question. If their friends and family are anything like they are, why do you care? Get rid of these people before you become mired down in the sticky smelly muck or negativity this behavior breeds. There is a saying, “If it looks like shit and smells like shit, it must be shit”! Rid yourself of the shit!

Next time you are dealing with one of these ungrateful, deceitful cheating customers ask yourself if this customer is really worth the time and trouble to save. Check the history and examine if this is an ongoing ritual of giving away freebies and of getting nothing in return. If this is a one way street you may be eligible for divorce court.

Shame on you if you give in and shame on them for being the lying cheating people they have become. It is sad to know that we as an industry are exposed everyday to underhanded, sneaky conniving cheats that will try all sorts of things to get free repairs or painting on their vehicles that they themselves take no responsibility for. It is a good thing these people generally only make up only approximately .5% of your clientele.

The good news is 99.5% of your customer base is made up of really great people who will frequent your business because you offer awesome sales and service experiences. Concentrate on giving these people the attention and your positive energy, weed the garden of negativity and you will grow your business and have a much happier work environment for your employees and your appreciative customers!

David

Dealership Fixed Operations

Have you bothered to look at your own website or that of your competition lately? We all do a great job promoting new and used car sales on our web pages, yet we place the service tab somewhere on the home page. Since the service department sells the second, third and forth vehicles wouldn’t it be prudent to have something regarding your fixed operations on the home page to peak your customer’s curiosity?

When I studied various dealership websites around North America, I was stunned by the miniscule amount of dealerships that have an introduction to service staff. What a great way to promote your business and raise morale, have your staff represented on your website? Posting a few videos of your shop foreman or team leader explaining your repair processes or an advisor performing a vehicle walk around are powerful tools to attract new customers and a great way to coach your existing ones.

Why are we as an industry constantly posting coupons? Coupons are a great offering however why are we not utilizing our sales department to offer discounts? What if we develop, advertise and display signage that states, “We offer the best price and service - everyday”?  Nothing!  If dealerships posted that they have the best price and services and backed it up with additional 10% off servicing if the customer takes a test drive in one of your new vehicles, you are sure to sell more vehicles.

Customers who test drive a new vehicle will be so impressed with it, they will tell their family, friends and coworkers. This is marketing at its best. Advertise this feature right on your home page. Place your online appointment scheduler tab right on your home page - don’t make your customers jump through hoops to book the next appointment. Your customers want ease of serviceability from the use of the on-line scheduler through the service experience itself.  Stop being old and out of date and start being BOLD, REFRESHING and GREAT!

The more you inform your customers that you have the best price and service, the more they believe it because they read it wherever they go within your establishment or when they visit you on your web page. Place posters in the service write up area, in the lounge, the coffee bar area and heck even post it in the showroom. The more you tell them the more it becomes reality.  "Geez they MUST be the best priced, I read it everywhere I go".

Search through your database and find out the mileages that most vehicles are coming in for multiple services and package those services. For example if your customer base that keeps their vehicles four or five years and have high mileage vehicles that require brake, transmission, power steering and coolant flushes - package these services and bundle them together. Your technicians and the dealership will still make money and probably more of it due to the fact that there is overlapping labor. The tools are already out, equipment is out and therefore the task becomes easier. Sell more, make more and be seen as offering a deal…  Bundle your services - large internet and cable companies spent millions to find out ways to make more money - learn from others -BUNDLE!

Tires! I personally love tires. Tires give you the ability to examine the vehicle in detail, sell brakes, front end repairs and perform alignments. Now I know what you are all saying in your heads right now, “Tires have the lowest gross profit margins in the service department”! You are right, they do! Yet tires enable you to offer a commodity that is always in demand and allows you the opportunity to inspect and up-sell additional work. Therefore my question is this, “Why do dealers try and make a profit on the tire sales”?  Why not sell tires for just above cost and use them as your loss leader to entice YOUR customers into YOUR dealership. Advertise TIRES right on your home page! WHY NOT?

Express lube anyone? Dealerships that have express lube lanes have much higher retention rates then dealerships that have not incorporated this strategic offering in their lineup. Express lube also enables you to capture a segment that is most likely going to your competition, and this competition is not even your same brand competition. Your customers are frequenting the Jiffy Lubes, Midas’s and Goodyear stores because they have done the research and found that a large segment of their business is generated from performing rapid lube or express lube along with discount tire installations.

It doesn’t matter what your dealership decides to place in its advertising and marketing lineup, some of this MUST be on your dealership homepage to showcase your offerings and your uniqueness to your customers. Why be the same old dealership when new and exciting can win the day.

We are a business sector that prides itself on selling new, bold, fresh and unique products, such as the model lineups of our vehicles. We advertise that OUR vehicles have such and such benefits and features yet we don’t place a high priority on listing WHAT IT IS THAT WE DO up front and center on our dealership home page. To be unique and different entails doing more than the same old things we have always done. Isn’t doing the same old things over-and-over again expecting different results, the definition of insanity?

David

Life is Fragile

When I turned on my television set and watched the horrific events unfold in Japan, my first thought was, “What is this movie” then reality set in that this was a real event unfolding live for the entire world to witness. It was strange to still see other non trivial, but deadly events unfold around the globe, such as Gadhafi killing his countrymen and I had a thought. When we really look into the human mind and the behavior we display as a collective species around the globe, the view from the outside really isn’t that awe inspiring at times.

I would like to state that I would personally like to see more charity from everyday people, possibly the events of this last week will awaken in people the kindness and the pleasantries that exist in everyone. Our society over the last forty years has become much to self centered and closed minded. We live in a me-me era and it is not getting better anytime soon.

I remember as a teenager in school being told that technology was going to make our lives better, easier and more relaxed, because we would have more time to do and experience things that were meaningful. To a certain extent the people who stated this, to all of us thirty some years ago were partially right. Technology has made our work easier however technology has also increased the speed that all we move. We are able to produce more, which gives us the ability to want and have more, but the wants and haves are all things.

These are inanimate objects that we fill our lives with and we are diluted to believe that we think these items will give us happiness. The things that mean the most are people and the experiences that each one provides the other. Learning lessons from others trials and tribulations is really what this life is all about, “personal development, growth and a commitment to help in a time of need”.

Technology has also enabled us to become much more complacent and alone within our own zone. We just don’t interact with people as much as our parents or grandparents did on a personal level. That face-to-face connection has receded and continues to fade away for the most part induced by the power of technology. We are all connected via Facebook, twitter and all of the other social networks yet we lack the ability to have a personal coherent conversation built upon self respect and respect for others because we have zoned out.

I have witnessed people having an argument at a shopping mall over the most ridiculous things. These people have no sense of proper interaction whatsoever. They become hostile and expose everyone around them to their violent language and perverse body and hand gestures. This is not what society was predicted to become! Yet unfortunately, here we are.

A recent study shows that text messaging has increased exponentially over the last two years and it has almost overtaken the spoken word. Have you taken the time to watch people interact with one another at a shopping mall, train station, restaurant or an airport? People who don’t really know one another really want to keep to themselves. Most times they couldn’t care less about you, your issues or your small talk. They want to be left alone. In a sense, this is a sad state of affairs we have gotten ourselves into. Don’t get me wrong, I love my I phone and all the other technological gadgets that we own, yet they are creating the ability for all of us to be impersonal with each other.

We saw what happened in Japan and yet the uprising and the killing still exists in the Middle East and elsewhere around the globe. It is great to see that countries around the world are stepping up to the plate and helping the Japanese people in one of the worst recorded disasters in history. If only we all had that same sense of charity within our own communities, places of work and our own countries.

If only people could really see how fragile life is, not just for someone else, but for us all. Maybe that would be the day that everyone would cry out in one voice that we need change, positive change and fast. Collectively, as a world we have been doing the same thing over and over again and we always expect different results, isn’t that the definition of insanity?

People need to start showing more respect to one another, use proper etiquette and exude pleasantries towards one another. I liken our society to a sports team in disrepair. You cannot win games if there is constant infighting. Teams that share together, pray together, eat together and speak about positive things together, yes these are the teams that succeed and win the day. This is what we as a society needs to be doing now to get back on the right track. Again this starts at home and needs to flow through the workplace and into our communities to make a verifiable difference.

Technology has given us some great advances such as the ability to have early warning monitors to warn people of impending disaster as well as the ability to know that something as devastating as this is happening instantaneously somewhere on the earth. Just think, five-hundred years ago nobody would be at the aid of Japan if this disaster would have occurred, they would be on their own. Nobody would know and therefore nobody would care!

We could all benefit as a private citizen, a community, a workplace, a state or a country if people could be charitable, giving, kind, receptive and pleasant to everyone they come into contact with, do unto others what you would want done unto you. Use technology for all of its benefits but don’t be caught up in the stigma that is starting to permeate our society of being along, ultimately that could spell disaster for each and every one of us!

David

Great News – Need Reviews

Currently the economy seems to be picking up, albeit slowly. The automotive sector sold more cars the first few months of 2011 then the same period the last two years. Hiring is up which means more eligible consumers are entering the vehicle purchasing market. Used vehicle sales are driving the market forward with fuel economy vehicles paving the way to future record automotive sales. With fuel prices rising due to the continued unrest in the Middle-East, I think it is fair to say that fuel efficient vehicles are going to drive the market over the next two to three years; at least until consumer fears are alleviated.

With all this good news you are probably asking yourself when the bad news comes, with more good news, I don’t have any bad news to share. To continue taking advantage of the markets upswing, you should spend some time examining your processes and procedures and perform a review of what is and isn’t working for you, at your particular store.

Your service and parts department generate the largest revenues in the facility, so work on establishing procedures that will enhance your customers experience and raise it to a higher level of excellence. First time customers from a new or pre-owned purchase will choose to stay servicing with you more readily, if you offer them an experience that exceeds their expectations. Review your current CSI reviews and find out what your customers truly say about your level of servicing. Pick each CSI question apart and find the cause of concern with each one. The most important item on your list is FIX IT!

Get ready for the next wave of vehicle purchasing and servicing and ride to a larger profit margin by reviewing and fixing your department while you have time now to make the changes. Don’t wait until you become too busy to make the changes, you will never catch up. Unfortunately a lot of dealerships will wait until their competition has exceeded them on every level before changing. There is a saying that sums up my thoughts, “Change NOW - before you HAVE TOO”!


David

Consistency

How many Service Managers, Directors and General Managers are focused on the monthly financial statement and not really focused on the day to day numbers of the service advisors and their technicians. I know many who look to the financials to tell them where they have just come from over the last month.
The way to truly run your fixed operations is to know every day where you are going, your projections and the daily numbers for each employee, this enables you to tweak and pull more out of your department.

If you are a manager who is in constant pursuit of additional gross profit opportunities within your fixed operations, you need to focus on consistency. Focusing on the maintenance of your customers vehicles through the use of proper inspections and making the repair recommendations to 100% of your customers, will add bottom line gross to your business. All of your advisors or service consultants need to present the estimate and recommendations exactly the same way. The service-walk-around and write up procedures need to be the same for each and every advisor. Consistency is something your customers expect and crave.

McDonalds pioneered the up-sell and they are consistent no matter where you go, “Would you like fries with that, or would you like to supersize your drink”. You can visit a McDonalds in Madison Wisconsin, NY City or Chicago and you will hear the same things and McDonald’s food also tastes the same no matter what location you frequent. This is selling consistency at its best! People become accustomed to the same procedures, product and experience and look forward to the same experience no matter who serves them at the counter.

How many of your fixed operations customers have read their owner’s manual and know what services they need at particular time or mileage intervals, I bet not many. How many of your service advisors are recommending the maintenance items to your customers, again I bet not many. Coolant flushes, brake fluid flushes, transmission flushes, air filters, cabin filters, tire rotations, wheel alignments, transfer case oil changes, differential oil changes and you can probably add a few more items from your own facility packages.

The opportunities are endless and only need to be positioned and presented to your customers with clear concise language to each customer, every time. The key is to be consistent with each customer that frequents the facility. Most dealerships notify their customers when their state inspection is coming due, why not notify your customers that their yearly alignment or 30,000 miles service is coming due. Be proactive, not reactive and again be consistent.

Some tips on helping you become more consistent and gain more gross profit are things like having the service advisor perform;

• A pre-write vehicle history check and inspect for previous declined service recommendations
• Conduct a proper walk-a-round of the vehicle with the customer, touching and pointing out issues
• Present a good, better best menu and offer the maintenance service packages
• The advisor needs to maintain eye contact and ask probing questions of the customer concerning the issues with the vehicle
• The advisor MUST make at least one recommendation to the customer based upon the customers description of the vehicle concerns
• All advisors must meet and greet, perform the walk around, and position recommendations the same way

Consistency sold millions of burgers therefore consistency can help you sell more hours. When it comes right down to it that’s what we are really selling isn’t it?

David

What Is Customer Service

Have you ever taken the time to look up in the dictionary the definition of the word client? A client is one that is under the protection of another: DEPENDENT, a person who engages the professional advice or service of another. The client therefore is dependent upon you for accessing parts and service, and you are dependent upon the clients to sustain your business and prosper. (A client is YOUR customer) This is a mutual business relationship that benefits both parties so long as the client feels they have been fairly treated, and not overcharged.

The word service has an interesting meaning as well. Service is the occupation or function of serving in active service b: employment as a servant, entered his service, 2a: the work performed by one that serves, good service b: glad to be of service c: contribution to the welfare of others d: disposal for use – I’m entirely at your service, e: useful labor that does not produce a tangible commodity.

The definition of the word customer is: one that purchases a commodity or service. In the word customer is another word. CUSTOM – a usage or practice common to many, or to a particular place or class b: long established practice considered as unwritten law c: repeated practice d: conventions that regulate social life.

What is interesting is the relevance each word has when we make a statement such as “We give good customer service!” To sum up this phrase would be to say, “Good customer service equals a long established practice or unwritten law, to be at the service of those who seek you out for a commodity, product, service or advice, and to provide a custom tailored experience based upon the product or commodity offered”.

Every single person at your dealership that has contact with a customer is perceived by the customer as the overall perception of the dealership, and the customer service that you provide. The mantra of good customer service starts with the GM and dealer principal, and filters down to the porters, drivers and lot attendants. Everyone needs to be on the same page, “All the world is a stage – even at your dealership”!

Perception is reality!

“If you’re not offering exceptional service – someone else is, and it’s hurting you!”


David

Insanity

Have you ever sat and watched a fly buzz around banging into the window wanting to get out of the house? The fly will keep hitting that window until the day he dies. It only wants to get outside into the big bright wide open world and explore, yet it continuously does the same thing over-and-over again. The fly’s results never change because it doesn’t have the capacity to see the bigger picture. The fly will continue to hit the window not knowing that if it just fly’s down to the bottom of the glass, the window is open, so the fly keeps on hitting the glass expecting a different result, this is the definition of insanity.

Do your employees act like the fly at the window? Is your business performing the same tasks day-in and day-out expecting different results? Do your employees have the capacity to see the bigger picture or are they stuck in complacency not really seeing the big bright wide open world that awaits them individually or collectively? Every business has the capacity to grow beyond its current physical size, yet the physical size of your business is dependent upon your customer base.

Therefore to grow your business you must grow the mindset and aspirations of the people that represent you. Once your employees can see the bigger picture and see benefits that directly impact them in positive ways will you begin to move forward and find success as a business entity? This starts with a plan that is customer centric, forward thinking and creative.

One of the first places to start is the five foot rule. The five foot rule basically means that any employee who comes into visual contact with a customer asks them, “Have you been looked after”, or “Is there something I can help you with”. This is powerful and your customers will notice it right away. Customers do not want to feel ignored, forgotten or feel like just another number. Your customers are your bread and butter and that of your employees, yet your employees for the most part feel that customers are your responsibility, not theirs.

The general sense of most employees is that it is the job of the business to attract new business, keep existing business and promote the business. This mindset to me is the fly at the window not able to see the bigger picture. To me the employees ARE the business and if your employees want a big bright future they must be conditioned to treat customers as if they were their own individual customers.

Wage increases, new technology, new equipment, bonuses and perks only come when a business succeeds yet employees grumble day-in and day-out about not having this or that. Have you as the manager or owner informed your employees that each one of them has a direct responsibility to ensure the business success? Have you told them that their personal and monetary success is directly linked to the businesses financial health and its ability to retain and attract new customers?

Critical customer service skills that all of your employees need to be successful are;

1. A passion for taking care of customers
2. Integrity and commitment
3. A willingness to be flexible to THEIR customers needs
4. A work ethic based on dedication to the company and its ongoing mission
5. Self motivation and goal oriented in every endeavor
6. An eagerness to continuously grow and learn new aspects of the business
7. Persuasive sales skills
8. Excellent communication skills
9. A willingness to go the extra mile to help the business succeed
10. A mindset that exudes THIS IS MY BUSINESS and I MAKE A DIFFERENCE


Have you taken the time to show your employees that;

- The business is the most valuable thing we own collectively
- Personal honesty and integrity are the foundations for our mutual success
- Customer service is our way of life
- Our business is a fun friendly place where teamwork rules
- We work hard… and we reward hard work
- Great things happen when we listen… to customers and to each other
- We strengthen communities, one neighborhood at a time
- We make a difference in people’s lives
- Our doors are open for all to enter
- Good things happen when we all succeed


The following list is an example of setting out a plan to achieve your business goals.

- Building leadership builds businesses opportunities
- Focusing on departmental financial discipline
- Business growth – driven by process and policies
- Talented people focusing on productivity and customer service
- A team that shares common goals and values
- A team vested in customer service equals retention and growth
- Ongoing training for every aspect of customer contact
- Cloning what is working effectively throughout the business

A customer wants to trust the business they are dealing with. If the trust is not established, or if it is lost you will not have commitment from your customers to stay loyal to your dealership. Your customers will become transient and visit your business infrequently. The first order of trust is training! If your customers see your employees as consultants working for them, the customer will be retained into a long term relationship. Once trust is established the customer will become your biggest advocate.

To sum it all up; don’t run your business like the fly at the window. See the bigger picture and escape from the confines of being a mediocre business by instilling the mindset that bigger better things come with the reality that customers belong to the business and the business is your employees. Therefore the customers belong to each individual of the business, collectively forming the business. The success of the business is directly linked to the ownership that every single employee commands within their daily work ethics and habits.

Refuse to work in a world of insanity, try new things to motivate and invigorate both your employees and your customers. You will soon find yourself within the big bright future of endless positive possibilities instead of banging your head against the glass trying to get to the other side.

David