There's an old training myth that states that a salesperson needs more experience at selling new and used cars than a service advisor needs in selling service. I have always found that to be a bit humorous. On the other hand, the sales process in the Service Department is nothing to ignore or turn your head from.
Follow along in this familiar example:
I was interested in purchasing a new vehicle; I was comfortable with a monthly payment amount. I knew exactly how much I could afford on my down payment, I had also decided on a particular brand, color, and option package. I felt that the salesperson was giving me a relatively good trade in value on my car. I was in agreement to make the purchase. After sitting in the Finance Office for 45 minutes or so, the Manager explained all about rust proofing and an extended warranty. It appeared to be a good deal, however, with the options... my payments went up an additional $64.00 per month.
After spending a while on the sales process, we completed all transactions; I transferred my personal belongings to my new vehicle and proceeded to drive my fancy new ride home. Like most new car owners, as I drove down the highway I thought to myself, "everybody has to know that this vehicle is brand new. It's clean, shiny, and it drives fantastic. It has the fresh scent of leather that only a new car can."
Moving forward, several months passed and I became concerned about an indicator light on my dash board. I attempted to make a dreaded appointment with the Service Department while hoping that my busy schedule would accommodate their time slot.
I arrived at the Service Department and was greeted, (play on words), by an advisor. The first thing I heard was, "Do you have an appointment today?" All I could do was smile and say, "Yes I do." Then the Advisor asked, "What seems to be the problem that has brought you here today?"
At this point I didn't realize that I was a burden to him, or that I was taking up his valuable time with My Problems. I explained about the light on my dash and requested to have the vehicle serviced while I was there. The Advisor took a deep breath and exhaled loudly. His next comment was, "I have to enter you into our system." I could have sworn that I was already in their system; after all I bought the car there.
Do you understand some of my concerns? I understand Fixed Operations inside and out, but I am still their customer.
I was then provided with an estimate for the Service Department to look into the dash light concern. I got picked up by my wife and we headed for my office with a promise of a call that would explain exactly what my problem was. I was told that I would receive a technician's diagnosis before 10:00 am.
At 1:15 in the afternoon... still no call. I called the Service Department and was told that my service advisor was at lunch. I would have to wait for him to return to find out what my problem was.
At 3:45 pm, I called the dealership and spoke with the advisor. He explained why the light was coming on and that the repair would cost me $425.00. I asked him why the cost was so extreme. He stated, "That's what I am told to charge for the sensors needed to fix your vehicle". Out of utter frustration, I authorized the repair. I was then informed that my vehicle would not be ready until the next day.
When I arrived to pick up my vehicle, I discovered that the bill had increased to $511.81. I politely requested an explanation and was told; "Oh yeah...YOU forgot to add the tax and shop supplies". I forgot?? By this time, all I wanted was my keys so that I could get the heck out of there.
I witnessed several discrepancies regarding the performance of this Service Department. I made it a point not to get angry over the behavior of a poorly trained advisor. Let's face it, advisors perform like this advisor did because management allows it to happen... every day the doors are open.
The Sales process is not an easy one, but it should result in a tangible product that I can feel comfortable with. The sales department was selling me quality based on my expectations of a particular product that I had an interest in.
The Service process is not so easy either. The advisor in this example was not the most knowledgeable in any way, shape or form, and the cost of the repair far exceeded the value. After all, the only service that I received involved a technician turning off an irritating dash light. I was never shown the value of the product or informed of the importance of having it replaced by that particular franchise. As a customer, all I have to go on is the advisor's word.
When I was purchasing my new vehicle, I understood the product because I had done research and I knew exactly what I wanted and what I could afford. I realized beforehand the full value of my purchase. Also, my salesperson was polite and very knowledgeable.
The service process is one thing; "Trust & Credibility" is a whole different show. It requires an environment where the customer feels confident in making a purchase based on someone's word. If you purchase brakes, you really can't see them. Sensors can't be seen either. This includes most internal mechanical components.
Most used car managers have the same reservations when relying on the word of their service department. Prior to placing a used vehicle on the lot after a UCI, used managers are truly basing their decisions on word of mouth. Most customers have great difficulty making a rational decision as a result of a lack of value or credibility from the service team. Not all service departments operate this way. I have witnessed advisors that possess exceptional service and selling skills all across the country.
On average, the typical service advisor is trained in house by other advisors/managers. They also handle more customers in a day than most salespeople do in a week. An advisor is typically paid between 5-10% of the gross per unit, while a salesperson receives between 20-25%. An average service advisor generates between $40,000-$60,000 per month gross in parts and labor.
Question: How many vehicles would your sales team need to generate to average $40 -$60K per month in gross?
So, I propose that you ask yourself the following questions:
- Who creates the largest amount of gross per month?
- Who typically has a bigger impact on your CSI?
- Who do you feel should be the better salesperson?
Then, ask yourself:
- Who usually receives the most training in dealerships?
- Who usually receives the most training in area of communications skills?
It is typically the salesperson. We understand all too well the importance of having a well seasoned and professionally trained sales department. However, a service advisor is continually selling your dealership. They are in front of your customers everyday, and let's face it, if your service team is not performing on all cylinders, your customers go bye-bye.
Customers will purchase most of the services that are presented to them, but are they making the purchase out of fear, or as a result of the unknown?
Are your customers being given information in a manner and language that they can understand, or is the team too wrapped-up in trying to sound analytical?
Our customers want to trust the people that they are doing business with. They come into your dealership hoping to meet someone who will make them believe that when they spend their hard earned money, it's going to be a worthy investment. I have had hundreds of conversations with Dealers and General Managers that often speak of this concern.
If dealers have a process in place to prevent customer experiences like the one in this story, then your chances for creating unhappy customers are minimal. However for the stores that are still dealing with underperforming, uncaring, UN-ethical employees, then maybe it's time to make a change for the better... turn more of your customers into repeat buyers.
I have learned over time that typically it is not a people problem, but a process problem. If you are looking to fill your service bays and your showroom floor, your level of success will be determined by how well your staff is trained and how well they perform.
When you're ready for your sales team to be trained and motivated- and operate on all cylinders- and have the highest Gross's on every single new and used unit in stock, call Jim Ziegler. He is the consummate motivational auto sales trainer.
When you're ready to have your Fixed Department's Gross Profit margins in line with reality, contact me. We eliminate under-performing employees and offer real world solutions.
"If change brings grief rather than growth it's because the transition was wrong."
Think about natural growth through reasonable means, rather than wrong transition & no promise of future business.
Jim Bernardi is President/CEO of AutoPro Training Solutions, a National Fixed Operations Training Solutions Company. Jim has over 30 years of experience in the automotive industry and has held such positions as Dealer, General Manager, Administrator, Director of Operations, District Operations Manager, Parts and Service Director and Service Advisor. He is also the Publisher/CEO of Automotive Dealers Network, a Global Automotive e-Newsletter that addresses every aspect of Variable & Fixed Operations. Jim has been asked through the years by dealers nationally to help them put his ideas to work in order to improve their bottom line. He has had dramatic success delivering uncompromising results & value to dealers nationwide.
E-mail Jim at:
jbernardi@autoprotraining.com
And Visit:
www.autoprotraining.com
Also:
www.automotivedealersnetwork.com
To reach him direct: 812-325-5651
