Fixed operations in dealerships are at a crossroads, and success comes down to one thing: people. In today’s episode of Service Drive, keynote speaker, trainer, author, and President of Pro Talk, Jeff Cowan, discusses the state of fixed operations and strategies for dealership success.
The state of fixed ops
The state of fixed operations is a mixed bag—either extraordinarily good or bad. Cowan finds this troubling because, based on current factors, these should be some of the best years for fixed ops teams.
Customers are holding onto their vehicles longer than ever before, increasing demand for service. They’re also more engaged with their cars and more willing to invest in their care.
"If you want to beat others, forget you're in the business of servicing cars—you're in the business of servicing people."
Cowan believes that the biggest challenge holding fixed ops teams back is a loss of focus on the true nature of the business. Retail automotive—both fixed and variable operations—is fundamentally a people business. Success hinges on building relationships, serving customers with care and consistently exceeding expectations.
To help dealerships achieve this, Cowan is hosting a two-day workshop in Las Vegas on Sept. 17 and Sept. 18 called The Forgotten Rules of Writing Automotive Service, which aims to help dealerships become the No. 1 service center in their area within 90 days.
Mobile service
Many dealers are seeing success by incorporating mobile service into their operations, but Cowan highlights challenges to consider before diving in. Currently, it’s challenging to find qualified technicians. Sending a newer technician into an uncontrolled environment, without amenities like heat or air conditioning, can be risky.
Cowan recommends first focusing on filling open technician positions at the dealership before seeking talent for mobile service. Additionally, look for technicians who have a genuine interest in providing mobile service, rather than just filling a role.
Artificial intelligence in fixed ops
Artificial intelligence is a powerful tool for fixed operations, but Cowan warns that many AI solutions are created by developers who have never worked in automotive service. They build tools based on assumptions rather than real-world experience. Cowan advises learning to use these tools correctly, specifically for service applications.
How to improve your dealership’s fixed ops performance
When customers don’t receive good service, they take their business elsewhere. The quickest way to elevate fixed operations is by giving customers an unforgettable, “wow” experience and providing continuous training to staff.
Recalibrate the focus
If a fixed operations department is struggling, the first step is to recalibrate focus and commit to customers and relationship-building. Every action should prioritize the customer’s wellbeing.
Build and retain talent with effective training
Training is critical—it directly impacts staff performance and dealership profits. Yet most dealerships fail to train effectively. New employees often shadow senior staff, which works for some but leaves many without proper guidance.
The industry is currently experiencing high turnover rates among service advisors. When Cowan first started in the business, the average turnover rate was between 10% and 15%. Today, that figure has risen to approximately 60% to 65%. This high turnover is largely driven by inadequate training. During the recruitment process, many leaders promote attractive salaries, suggesting opportunities for upward mobility and training. However, new hires often discover that it will take a considerable amount of time to attain the promised income. They become discouraged due to the lack of proper training, which leads many of them to leave the job.
Cowan strongly encourages professionals at all levels to continue learning and growing. Invest in courses, seek development opportunities outside the workplace, read, and connect with growth-minded peers. When training stops, performance stagnates or regresses.
The road to fixed ops success
Ultimately, thriving in fixed operations comes down to people, relationships, and consistent effort. Dealerships that prioritize customer care, invest in ongoing staff training, and embrace new tools like mobile service and AI—while using them effectively—will set themselves apart. By focusing on these fundamentals, fixed ops teams can turn challenges into opportunities and create a service experience that keeps customers coming back.
