How consistent processes can increase revenue in the service department – Don Reed

Dealers are beginning to see increased profits and revenues in their service and parts division. Today on CBT News, host Jim Fitzpatrick is joined by fixed-ops expert Don Reed, CEO of DealerPro Training. Reed provides service department training to dealers across the country, and he’s the host of the CBT show, Service Drive with Don Reed. 

Reed begins the conversation by talking about the current state of service operations for dealers across the country. Most dealers are having strong results in fixed-ops over the course of the last 60 days. Reed attributes this to government stimulus money and more people commuting to work and social gatherings. 

However, not all dealers are experiencing good fortune in the service department. Many dealers laid off many members of their fixed-ops teams, leaving numerous gaps as business has picked up. Reed says the lack of staff is forcing service advisors to delay appointments by several days or weeks. Fixed-ops recruiting is a must for dealers right now to ensure the department has the resources it needs to service customers in 48 hours or less. 

Dealers must show their teams that they care about their well-being and success. When dealers make intentional time to ask employees about their needs, it creates trust and a positive working relationship. Reed says that general managers and dealers can make a substantial impact on the service department by simply stepping in to watch daily operations for a short period of time. Associates take notice of the presence of upper management. It makes them feel supported and acknowledged as a critical part of the dealership.

Reed concludes the conversation by discussing the common problems in fixed-ops. According to Reed, the number one problem he currently faces is service advisor processes. Advisors must be on the same page to have consistent processes. The primary goal of the service department is to ensure the customer leaves the dealership driving a safe and reliable vehicle. To accomplish this goal, everyone in the department should be familiar with consistent processes and procedures.

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