Human nature is funny. When things aren’t going well, people like to complain and blame someone for their inefficiencies.
Want to know the number one complaint I hear from sales managers when I’m in dealerships?
You already know the answer.
The service department.
Sometimes they say it quietly. Sometimes they say it loudly. Usually they say it and then apologize for saying it.
Early in my career my attitude was simple:
“Stop complaining. Go to work. Control what you can control because it’s not going to change.”
Well, I’m here to tell you something.
It does need to change.
And it needs to change sooner rather than later.
Historically, dealers charged full retail from service to the used car department for the same reason they implemented packs. Sales managers worked from cost up, and that system worked very well for a long time.
But times change.
Whether people want to admit it or not, over the years the used car department has become an easy mark for the service department. And here’s a fact people don’t talk about enough: the hours per RO on a used car ticket versus a customer pay ticket is more than double.
But it’s not just the cost.
It’s the time.
It’s the speed.
Or more accurately… the lack of speed.
Almost everyone in our business today understands how crucial speed is to success. The lack of speed and efficiency in your service department is killing your ability to do volume and make the money you’re capable of making.
Creating speed and becoming more efficient should be your number one priority as you move into the selling season.
I like relating our business to sports. Pick any sport. Today’s athletes are bigger, faster, and better conditioned than ever before. The game didn’t slow down — it sped up. And the teams that couldn’t keep up disappeared.
With shrinking margins, the car business is no different.
You have to get bigger — sell more cars.
And you have to get faster — turn cars quicker and operate more efficiently.
Everyone today talks about making the customer experience easier, better, and faster. That’s great. But even if you improve the selling process, you will never reach your full potential until you fix the time and cost it takes to get a used car to the front line.
I’ve said it before and I’ll say it again.
The best thing about being a dealer or owner/operator is this:
You have the power.
You have the power to fix whatever you want to fix.
That’s all I’m gonna say.
— Tommy Gibbs