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
