A lot goes on behind the scenes, and after the sale as well. No other department in the dealership, be it parts, wholegoods or rental, will have more impact — positive or negative — on a customer. Here's a breakdown of the various departments that comprise a car dealership, who works there, and what they do to ensure the success of the company. Establishing and maintaining a service department, often referred to as the dealership's fixed operations, is crucial to a successful operation. Accounting for all available labor hours versus the flat-rate hours turned will provide you with a technician efficiency report. The difference between the total hours and the flat-rate hours generated is called unapplied time. Your day-to-day tasks could range from liaising with customers and technicians, to sourcing parts or estimating collision damage in a range of workplaces as diverse as car dealerships, heavy duty truck repair facilities, and custom and specialty shops. Service managers are charged with maximizing the output and the ROI for both products. Sales and cost of sales could be recorded as customer repair, service contract repair, internal repair, sublet repair and wholesale repair. Close out what items you have completed, and open a new repair order if you are waiting on parts. This level is also referred to as administrative automotive company level since all the professionals at this level are dedicated to perform administrative level job duties for automotive company. “The Automotive Service Association (ASA) advances professionalism and excellence in the automotive repair industry through education, representation and member services. If you decide that you want to own a car dealership, it helps to understand the structure of the various departments that will typically make up your operations. If your employees are fully aware of the procedure, then they don’t need to worry about what to do next. 5 Digital Strategies to Drive New Business into Your Dealership Service Center. As teens, we count down the days until we can get our license and then hope mom and dad will loan us their cars—or, even better, gift us with one of our own. Wantalease.com reports the latest update on new lease offerings entering the month of December. General automotive repair – 85.60% 2. Most dealerships have several employees, known as finance managers, who help customers arrange an auto loan. These are senior professional with years of vital experience and immense & through knowledge of the field. Simple right?” “Besides the Sales Department feed them a steady flow of work.” The auto repair industry is considered fragment with over 50 of the largest companies only accounting for 10% of the industry. Your service and parts department should be setup in your ledger similar to your used-vehicle department, with sales first, then cost of sales and finally gross profit. When I talk to most dealers who have their own departments, I find they are not tracking parts inventory very well. For example, if your hourly pay is $15, then divide $15 by 30 percent to arrive at a $50 per hour labor rate. It can be used to depict the structure of an organization as a whole, or broken down by department or unit. Automotive Service Management will give you ideas to improve your operational processes, customer satisfaction challenges and increase your service departments profitability by providing information in these areas of your operations: Scheduling Service Write-up Appointments; It is critical to look at what happens with your sales team once a lead is submitted. 1. What should you sublet out? For example, if your parts cost is $15, then divide $15 by 60 percent (100 percent less the 40 percent gross-profit you want to make) to arrive at a $25 retail parts price. The result will be what is called 'interface' This department consists of the technicians who perform repairs, the service advisors who assist customers and sell maintenance packages, and porters who prep just-sold vehicles for delivery. Gross-profit percentages are very important if you want to show a profit in the service and parts departments. Between having a high level of commuting traffic, and an equally high level of tourism traffic on local highways, there is a constant significant demand for auto repair services and auto parts. There's plenty of paperwork involved in selling a car, most of which is handled by the accounting or billing department. Being a member gives you quick access to all the information you need to … • by David Keller, CPA, CFE. Meet the consumers where they are and you’ll see the sales roll in. I work for a Tier-1 manufacturing company which supplies to major car manufacturers in India. If so, you will average 55 percent combined gross-profit on labor and parts sales. This timecard will track the total time the technician is on site. Rick has been successful in building custom retention strategies for thousands of auto dealers to better than double CP/RO counts in the first 12 months of ownership, drive back 34+% of lost opportunity customers and help auto dealers Sell The Next Vehicle™. They may also be referred to as a service tech, auto mechanic, auto technician, automobile technician, or service technician. When it comes to implementing a Complimentary Maintenance Program, everyone can agree on a maintenance-included strategy that doubles the repair order count.However, issues arise with the service department because their existing legacy pay plans are heavily weighted on customer pay per repair order averages.. Those who own and operate their own lots would do well to acquaint themselves with the operations of each. The company surveyed approximately 3,550 customers that visited any service center in the past 12 months and 404 franchise dealership employees involved in service operations. When it comes to your customer service department, structure is actually one of the most important factors to consider. Online auto retailing is here, it’s vital, and it’s valuable — This expansion has to include evolution in the online F&I presentation to ensure the full scope of revenue opportunity is being captured. As a general rule, those of us who work regularly within the service department training and consulting arena use “12.0% of department gross … At some stores, porters also wash cars once repairs are completed. Accessories are normally priced somewhat lower, with a gross-profit of approximately 30 percent. 7 Steps to Opening Your Own Car Dealership Franchise, How to Keep an Installer from Damaging Your Wheels, How to Answer 5 "Trick" Dealership Questions, The Spot Delivery (or Yo-Yo Financing) Scam, Used Cars: Spot a Dealer-Scammer Posing as a Private Seller, Mojo Motors Promotes a Good Way To Buy Used Cars, 10 Best and Worst Cities to Buy a Cheap Used Car. Even though the technician may not be busy all the available hours, any differences should be documented on the repair order timecards so you know what they were doing when they had unapplied time. This would include towing, tires and glass. 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