By Bob Atwood
Service profitability strategy is right at your fingertips, if your dealership staff is prepped for this simple strategy.
Are your service advisors on the lookout for wear and tear on the vehicles pulling into the service drive? All it takes is a few seconds to check the tread. You’ll be surprised by how many people need new tires, and how that need can trigger benefits for your service and parts departments.
In our experience, 15 percent of service customers need new tires. Be the first to tell them—because 75 percent of customers purchase tires from the first person who recommends them.
One of our students came up with a system that I thought was ingenious. He took a worn-out tire and painted it red. Then he found a half-worn tire, which he painted yellow. He placed the red tire and the yellow tire right in the service drive, along with a brand new tire painted green. When the service advisors see a worn-out tire, they take the red tire, put it next to the customer’s tire and show the customer that he needs tires.
Dealers need to sell cars to every customer. Customers appreciate being alerted when they need tires—after all, there are potential safety issues.
And 78 percent of customers have their cars serviced where they buy tires. See how the benefits build?
Then you want to provide the customer with free rotation, because that ties the customer back to the dealership. Many a time, a service advisor will tell a customer his tires need to be rotated, and the customer says he’ll get that done at the tire store, ” because they do it for free.” At that very instant, the service advisor should tell the customer, “I’ll do it for free,” because I don’t want that customer going anywhere else.
Instructor Bob Atwood teaches Fixed Operations 2 (Service) in week 3 of 6 in the NADA Academy program. Reach him at email@example.com or visit NADA Academy to download the schedule and applications for all programs.