February '20

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88 • RV PRO • February 2020 rv-pro.com RV I N S I G H T Performing thorough multipoint inspections on every RV that comes into your service shop has a positive impact on CSI, owner loyalty and net profits. By Don Reed Don Reed is the CEO of DealerPRO Training based in Gahanna, Ohio. For more information, visit www.dealerprotraining.com or call 888-553-0100. Fixed Ops: Your Money Machine Resolve to make fixed operations more profitable in 2020. By following three straightforward steps, savvy dealers can increase the service drive gross profits by $125,000 or more in just three months. A new year has begun. No matter what your sales are – whether they are breaking records or disappearing entirely – there is one operation in your dealership that consistently brings in customers and cash – your service and parts departments (also known as fixed operations). For many dealers, fixed operations now account for 50 percent of the total dealership's gross profit. So, it just makes sense that if you concentrate on maximizing results in your fixed operations, you will maximize your dealership's success – no matter what. We do not know what the future will bring, but I can show you how you can dramatically increase your profits right now by following these three simple steps: Inspect, Recommend, and Sell. These ideas work – and I have more than 45 years' experience (26 as a dealer and 19-plus) as a fixed ops coach) to prove it! All the increases in performance I'll be pre- senting are based on your dealership meeting the guidelines of a 45 percent profit margin on parts and 75 percent profit margin on labor. My examples are based on 250 customer pay repair orders per month, so plug in your own numbers to determine the impact these steps will have on your bottom line. Opportunities in fixed operations profit improvement exist in every dealership. Keep in mind, depending upon your mix of motor- ized versus towables, there is some flexibility in these numbers. No. 1: Inspect to Connect Let's get started. Look at your used RV sales operations. Do you have a policy that all used RVs be inspected for needed maintenance and/or mechanical repairs before the unit is offered for sale? Most of you, I'm guessing, would answer "Yes." Why perform thorough inspections on used RVs? Quite simply, because it's the only way to ensure your customer is buying a safe and

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