BG Products Industry News

The primary purpose of a professional service advisor is to sell service, or as Scott Russeau puts it, “inspire your guest to invest!”

Earlier this year, I attended one of Russeau’s energy-packed workshops. (Okay, it wasn’t a workshop as much as it was a workout!) Russeau is passionate about giving dealership customers a positive, consistent, predictable service drive experience—one that focuses on educating customers and inspiring them to invest in themselves by investing in their cars.

Before we unpack the process, let me tell you a little bit about the man. Russeau, a high-performance fixed ops trainer and coach is as comfortable on the service drive as he is in the classroom. His credibility comes from experience: in the trenches as a technician, on the front lines as a service advisor, in leadership as a fixed ops director, and at the top as a general manager. He gets it, because he’s done it!

Here are five takeaways from the workshop that, if implemented, will have an immediate impact on your service sales success and hence, your bottom line:

Inspire Your Guest to Invest

Inspire – Not pressuring, not begging, not arm twisting, but clearly educating, communicating, offering, and asking. A guest who is inspired takes action; they purchase.

Guest – An honored, unique person that invested their time and energy to enter your service center. “Of all the places they could have taken their car, literally thousands of service centers across America, they chose you,” Russeau said.

Just like a guest in your home, folks on the service drive deserve your highest respect and your undivided attention. You’ve got to treat them like family. They are why you came to work; without them, you are out of business.

Invest – Informing your guests about their vehicle needs and selling tech-recommended service is not something you do to your guests, it’s something you do for them. When they invest in brake pads and a brake fluid exchange, they receive increased safety and stopping reliability in return.

Inspiring your guests to invest in their vehicle is done for the benefit of your guests. They get a greater blessing by having a safe, reliable, trouble-free vehicle that gives power, performance, and that is fun to drive. And don’t forget about saving money. Maintenance is always cheaper than repair, and fuel economy is best when a vehicle is well-maintained. What a great return on their investment!

As an automotive professional, you are in business to make money. So here’s the win-win: the more tech-recommended maintenance and repair that you sell, the more money you make—and the more money your guests save.

System Selling

Russeau warned against offering service a la carte when presenting an estimate. Don’t quote a left outer tie rod for $200 and an alignment for $100; rather quote the suspension “system” repair for $300. You wouldn’t do one without the other, so keep it simple and quote it that way.

“You’re not selling parts (the rods) and labor (time),” Russeau said, “You are selling safety, peace of mind, a smoother ride, reliable vehicle control, and driver confidence.”

Package Pricing Technique

This is similar to system selling, but it is a comprehensive price quote that includes the primary concern and related items, immediate safety needs, and recommended maintenance. The process is used when organizing and presenting the results of the multipoint inspection to the customer.

First, the advisor organizes the tech recommendations into three categories: primary and related concerns, immediate needs, and recommended maintenance. Next, he reviews each item with the customer. Lastly, he quotes one price for the entire package.

If the customer says yes, you communicate with the tech and he gets to work. If you get hit with a price objection, then “sell up” (read on).

The Sell-Up Process

The priorities are:

1. Primary and related concerns

2. Immediate safety needs

3. Recommended maintenance

Sell up (from bottom to top) means you might drop recommended maintenance from your price quote, but then you would move related maintenance items up to item #1. For example, if the primary concern was hot air blowing out of the A/C, you would move cabin air filter replacement from the recommended maintenance category up to the primary concern category because it is a related item.

Likewise, if the technician finds a weak, corroded battery, then battery replacement becomes an immediate safety concern. Therefore, you would move battery protection pads and terminal cleaning up from the recommended maintenance category to the immediate safety needs category because it is related to the safety concern.

To clarify, let’s say our original quote included a cabin air filter, a battery service, an alignment, and a transmission fluid exchange in the recommended maintenance category. By selling up, you still get the cabin air filter and the battery service, even though you drop the other maintenance items. The package price drops and yet you still retain two services you would not have had if you hadn’t sold up.

Related, Immediate, Maintenance (RIM)

The RIM process has been around for decades, but Russeau’s twist on the process brings a fresh approach to RIM…with amazing results. I’ll fully explain RIM in detail in a future article. For now, I want to leave you with a simple yet effective word track Russeau has crafted to “inspire your service guest to invest.”

“Related to your original concern(s) for your vehicle, your technician has found that your vehicle needs…”

“From the multi-point inspection we discussed earlier, we found a few items that require your immediate attention.”

“Last but certainly not least, your technician has asked me to talk to you about the following maintenance needs…”

“So to take care of everything related to the original concern, all the items that require immediate attention and your maintenance needs, your total investment is $____. May we please take care of that for you today?”

“You don’t build a business, you build people—then your people will build your business!” –Zig Ziglar

Wow! That’s powerful, isn’t it? Zig Ziglar was my hero for over 40 years. Even after his passing, his words still inspire me.

Business men and women always say people are their most valuable resource; yet all too often they don’t provide the resources and training necessary to grow their people.

To clarify, I’m talking about consistent, intentional, planned training. Practice, drill, and rehearse. Follow-up and accountability. It is so easy to get caught up in the daily grind of taking care of business that training gets pushed to the back burner.

When training does occur, it is often used as punishment. I’ve actually heard service managers tell their advisors, “Whoever doesn’t hit their numbers this month will have to go to training!” Oh brother! Don’t be the moron that says that.

Service departments can never stop training. The “knowledge retention” curve declines quickly, meaning people only remember 10% of what they learn. Therefore, constant reinforcement is necessary to turn knowledge into action, and to turn action into revenue.

Training is never ‘one and done.’ No one is ever completely trained—rather, it is an ongoing career-long process.

Some managers say building their people is a waste of time—they’ll just quit and move on. I have heard it said that it is far better to train your people and have them leave than it is to not train your people and have them stay!

Max Zanan wrote a wonderful little book called “Perfect Dealership” (perfectdealership.com). It is a quick read that’s packed with nuggets of practical advice on running a dealership.

Zanan wraps up the book with the Ten Commandments of Success. Three of them focus on personnel development:

• „Remember, automotive retail is a career, not a temporary gig.

I believe techs get it, and they’ve made a huge investment in their tools to further their careers. I think the biggest challenge dealers have with techs is keeping them at your dealership. Working conditions, work load (read that as not enough work to do), production-based pay plans, and continuing training are all potential deal breakers. Lube techs and service advisors often view their jobs as less of a long-term career path. These folks are way too transient and often bounce from dealership to dealership. I am truly amazed at the turnover of advisors. If a guy is an order-taker at the Toyota store, then he’ll be an order-taker if he gets hired at the Ford dealership across town.

• „ Focus on employee development that provides a path for career growth.

Remember what Zig says: build your people and they will build your business. Don’t get cynical because of a handful of jerks that don’t want to grow and get better. Most of your people are good people that want to do better; they aspire to more—more money, more responsibility, more productivity, more respect.

• „Attract a better workforce by having better pay plans, schedules, and training.

I get the part about pay plans and training, but schedules? I’m motivated by money and I thrive on a production-based pay plan, but not everyone does. There is a growing segment of the workforce that values time off and flexible schedules. They aren’t lazy, they don’t want something for nothing, they just want it on their schedule. A three-day weekend and two Saturdays off per month might be a game-changer for these folks. As a manager, don’t have an attitude that says, “hey, I’m in charge and my people will work when I tell them to work.” At least look into what motivates your people and see if you can accommodate them. Maybe you could tie sales production to flex-time off. Going back to pay plans, I’ve seen dozens of advisors that believe the only way to get a raise is to move to a different dealership. Tragically, all too often, they’re right. Just when they start making good money, the pay plan changes and out the door they go.

Action Points:

„ You must be intentional with your training. Schedule a service sales meeting with all fixed ops personnel once a month. Make it a big deal where you feed everyone, celebrate victories, and reward production.

„ Train your service advisors on how to sell. I’d suggest 15-30 minutes per week. Consistently reinforce the message. Spend half the time reviewing last week’s training and the remainder on new material.

„ If you’re hung up on exactly what to do, then subscribe to a blog, podcast, or video series from Dave Anderson. Show one clip at each weekly training session. Give your team access to Dave’s library of free resources (learntolead.com)

„ You might also want to check out all the service advisor sales training resources provided by Jeff Cowan (automotiveservicetraining.com). Jeff has an amazing ability to simplify word tracks that advisors can use to close the sale.

„ Lastly, I work with a team of over 700 fixed ops trainers spread out across North America. Let me know if you’d like to connect with one of them for live in-dealership training.

If you build your people in 2019, if you invest in their development and growth, then they will build your fixed ops department into a vibrant revenue stream for your dealership.

Happy sales to you and Happy New Year!

‘Tis the season to be of good cheer, and fixed ops departments have much to celebrate. The future for dealership parts and service departments is very bright. In fact, there has never been a better time in history to be in fixed ops than right now—and I’ll prove it to you.

Vehicles in Operation Increasing

There are more vehicles on the road today in the U.S. (over 273.7 million) than ever before in history. Compare that to 202 million vehicles in 2001; that’s growth of 71 million vehicles. Every year we manufacture more cars than we scrap, so the vehicle population continues to rise with no end in sight.

Service Centers Declining 

Today there are 225,000 service centers in the U.S. compared with 245,000 in 2001. That’s 20,000 fewer places to have cars and trucks serviced, repaired, and maintained. Sadly, about 4,000 of those shuttered service centers were dealerships. (From 21,900 in 2001 to 17,800 today.) So let’s put these two statistics together: 71 million more cars and 20,000 fewer places to have them serviced. Wow, what an opportunity. The “supply” of service centers is dropping and the “demand” of cars on the road is increasing; therefore, your service department has greater value today than it has ever had.

More Money Spent

Last year U.S. consumers spent $252 billion on customer-pay maintenance and repair. That’s up from $199 billion in 2006—a $53 billion increase in 12 years. We are in a growth industry. Okay, let this sink in; $53 million more is being spent at 20,000 fewer service centers. Wow. Did I mention the future is bright?

Dealership Getting Bigger Share

Of the $252 billion spent on vehicle maintenance, only $37.4 million was spent at dealerships. The sobering news is that number represents only 15% of the total. (100% of all cars were purchased at dealerships, yet only 15% of service dollars were spent at dealerships.) The good news is that dealers gained market share (from 14% to 15%) in the past year, which represented several billion dollars in growth.

As a sidebar, the $37.4 billion dealers collected from customer-pay maintenance and repair represented $20 billion in labor and $17.4 billion in parts. That means the parts-to-labor ratio was .87:1, which is a very, very good number and shows dealerships are starting to grasp the importance of performing preventive maintenance service.

Unperformed Maintenance Dropping 

Speaking of preventive maintenance, here is the most promising statistic from last year: unperformed maintenance dropped from $73 billion to $55 billion; that’s the lowest it’s been in over a decade. Obviously, the less unperformed maintenance, the less service money that was left on the table. The only way to recapture unperformed maintenance dollars is to perform more preventive maintenance services—and the only way to do that is by asking the customer to purchase needed, tech-recommended maintenance.

Seeing unperformed maintenance services on the decline indicates that service managers and advisors are starting to get it and it is paying off.

Time out. I’ve given you five indicators of great growth opportunities in the automotive industry. So, how is your service department doing? Are you experiencing the prosperity and growth in your shop? Is your personal income going up? Are you crazy busy all the time?

Or are your techs running out of work at 3:00 p.m.? Is your shop efficiency under 100%? Are your hours per CPRO under 2.0 hours? Are you saying, “what prosperity?”

If so, help is on the way. In 2019 I’ll be writing a series of articles centered around creating a sales culture in the service department. You can’t save your way to prosperity, you must sell your way to prosperity. The only way to grab your share of the $252 billion preventive maintenance pie is to ask for it. In 2019, I’ll show you how.

Statistics Sources:
AASA Status Report, NADA DATA, Lang Marketing Annual Report, and Auto Care Association Fact Book