RV PRO

September '18

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154 • RV PRO • September 2018 rv-pro.com B U S I N E S S 8. Increased sales per repair order 9. Increased technician productivity 10. Reduced repair cycle times 11. Increased net operating profit 12. A higher return on investment OK, there are a dozen good reasons why every dealer should invest in training all employees to become top performers. As a former dealer myself, I tend to be a big fan of maximizing No. 12, which becomes automatic when you focus on maximizing the other 11 benefits listed above. Yes, the amount of the check is always an important con- sideration, but when the benefits kick in, the amount of your bank deposits will soar month after month and year after year! This dealer we evaluated is a very nice guy. He has a good fixed operations team, but good people without any training do not become top performers! So, what are they lacking? The answer is: Commitment to Processes-Protocols and Account- ability for Performance! That's right, the dealer must get committed to make the necessary changes first if he expects his employees to be willing to change their behavior and start doing the things necessary to become top performers. In our current market, we are on a path toward record setting sales of new and used RVs. This is great news, but we all know this sales pace cannot last forever. Do you remember 2008? My point is: Don't let the good news going on in your sales department have a negative influence on what's going on in your fixed operations. How about we focus on increasing our service absorption to recession-proof our dealerships in preparation for the next downturn in RV sales? How about we train our advisors on how to always put the customer first all day every day? How about we clean up, paint and/or remodel our service and parts departments? How about we employ enough staff to provide our customers with a level of service that exceeds their expectations? Fixed operations accounts for about half of a dealer's net profits, so how about you dealers and general managers devote half of your time and efforts in support of your fixed opera- tions team? Have your salespeople had any form of sales and communication skills training? Have your F&I managers had any form of sales and communication skills training? Have your sales managers had any training in desking deals, appraising trades and managing a sales team? I'm guessing you "spent the money to get them trained!" Wouldn't you agree your fixed operations team deserves to be trained as well? Wi l l a p ro p e r l y t r a i n e d e m p l oye e o u t p e r f o r m a n untrained one? If you own or are managing a dealership like the one I've outlined in this article, with the right steps you can start getting the return on your investment that you deserve! Let's go from good to great this year and work toward achieving 100 percent service absorption! Figure 1 Dealer Stats vs. Optimized Dealer Performance Guide Dealer %/$ Guide %/$ • Service absorption @ 48% 100% • Technician productivity @ 49% 120% • Gross profit per technician @ $8,965 $17,500 • Labor gross profit margin @ 65% 75% • Parts gross profit margin @ 32% 37% • Customer pay hours per repair order @ 3.7 5 • One-item repair orders @ 42% 15% • Service and parts net profit per month @ $12,000 $50,000 • Number of weeks to make an appointment @ Six weeks One week

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