Friends,
We’re all feeling the stress and anxiety of the moment. We’re worried about the health of our family, friends and employees, and concerned about what this means for our industry and our businesses.
One thing is certain – change is hard.
Really hard.
And we’re in for a lot of change in the coming weeks and months.
However, times of change illuminate new opportunities, and the simple act of embracing change prepares you to take advantage of those opportunities.
Right now, dealerships all across the nation are shutting down their sales operations, and relying on service to sustain them. We will get through this, and sales will come back, but the earth has moved under our feet, and our industry has changed… maybe for forever.
Keep in mind, a recent NADA study confirmed that in each dealership’s primary market area, there are 18 non-dealer companies that are your biggest competition (such as Oil Can Henry’s and Take 5).
It was fixed ops that kept dealerships viable during the 2008 economic crisis. With the current global health crisis, service departments are more important than ever to dealership profitability. They are, and will continue to be, the backbone of your business.
It is now time to change your thinking and start preparing your staff to think Service First! as their new mantra.
When we get to the other side of this, economic anxiety will continue for quite a while.
This anxiety will suppress sales, but that will open up an opportunity for dealerships: showing customers how to extend the life of their vehicle and maximize trade-in value will be the message they want to hear.
So, start preparing now.
Your management team and staff must look at service as not only a place where warranty work and oil changes are done, but as a way to find new customers, build sustainable relationships, and truly serve your customer’s needs. You can no longer be content to just accept the business you have, you MUST grow your service department if you want success.
Putting service first will be how you can embrace change, and position yourself and your dealership for success.
Next week, I’ll share some ideas of small things you can do to improve the service experience for your customers.
For now, bless you and your families, and please stay in touch.
Russell B. Hill
