RV PRO

February '20

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92 • RV PRO • February 2020 rv-pro.com wants and needs (i.e., value, price, likes, benefits), would my CSI, owner retention and retail sales go up, go down or remain the same? Obviously, I don't need to answer those questions for you. A menu process will increase your hours per customer pay RO by another 0.3 which, based on our earlier example of 250 CP RO's, equates to: 250 CP ROs X 0.3 = 75 additional hours @ $115 labor rate = $8,625 in additional labor sales. Assuming a 75 percent profit margin, you'll produce an additional $77,625 per year in labor gross profit and $37,260 in parts gross annually (based on 80 percent parts-to-labor ratio and 45 percent margin). Building Profits, Step by Step Combine these numbers and you gain a total of $114,885 per year (77,625+ $37,260) or $9,573 per month in addi- tional parts and labor gross profit, simply by training your team to use maintenance menus with every customer – on every visit. If we add this to what we have already gained from a thorough inspection pro- cess on every vehicle ($382,944), our new total gross profit improvement stands at $497,829 annually for every 250 CP ROs written per month. In short, inspections + menus = higher customer satisfaction and higher gross profits! Serve 100% of Your Customers, 100% of the Time The only way to achieve these num- bers with your menu process is to make it company policy. Meaning, it is not an option – it is a company requirement that 100 percent of your customers will receive a menu presentation, 100 percent of the time on each and every visit to your dealership. It does not matter how old they are, their "perceived" income level, what part of town they're from, the age of their RV, or who they're friends with. The only criteria that matters is their status as your customer. They will all be treated the same. They will all be given the oppor- tunity to say "Yes" to any and all of the services that you provide. Let me emphasize this: It is not your service advisor's job to make choices for your customers. It is your customer's vehicle, your customer's money ... and thus your customer's decision to make! Wouldn't you agree? In summing up so far, is there any- thing about making an additional $497,829 in gross profit per year, or more, that you don't like? If you're serious about improving customer retention and CSI, and maximizing gross profits in the service drive, then let's move on. No. 3: Sell More Hours Per Customer Pay RO You need to consistently enforce disci- pline and accountability for performance. When we look at performance with regard to customer pay hours per RO, there aren't many people being held accountable to a high standard. To get different results you need to start doing different things or doing things differ- ently if you expect to accelerate your profits and grow your service profits. Real Opportunities, Right Now! I've given examples based on a real- world experience using a base of 250 customer pay repair orders a month. With these parameters, you can add hundreds of thousands of dollars to your bottom line. These numbers are based on our expe- rience with hundreds of dealers nation- wide. (See Figure 1, Two-Point Fixed Ops Profit Improvement Plan, on page 90, for a detailed representation of how dealers can improve their bottom line in fixed operations.) As you can imagine, dealers following these guidelines are smiling ... all the way to the bank! These aren't funny numbers! However, results will vary. That's because few dealers operate in textbook conditions, and there's some real-world overlap. But we have real-world experience with hundreds of dealers who are using these rules to generate hundreds of thou- sands of dollars in additional service gross (866) 847-8330 www.daysdistribution.com Elkhart, IN We offer scalable public, dedicated, on demand warehousing with robust warehouse management systems and RF capabilities to meet all of your storage and 3PL needs. WE CAN HELP YOU! WAREHOUSING, LOGISTICS & TRANSPORT Personal, sophisticated, and multi-dimensional 3PL strategically located in Northern Indiana one hour East of Chicago IL. RV PRO 1/16 page ad The serious, professional trailer tester for RV service centers and dealerships. We ship Designed, assembled and tested in Indiana LLC. Call Isaac or Chris for a FREE information packet 765-344-1017 Rockville, IN 47872 Fast & Easy Trailer Testing Fast & Easy Trailer Testing Optional wireless remote control avail- able NEW PRODUCT Optional wireless remote control available

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