Jim Hudson Lexus’ Secret to Fixed Ops Success
- Gross profit increased $60,000 per month.
- Better processes allowed more profit opportunities.
Jim Hudson Lexus in Augusta, Georgia, was experiencing process issues many service departments face. Technicians were wasting time waiting on other personnel, the service department was limited in how many vehicles they could take due to a slow RO process, and upsells weren’t always being presented and captured.
Management decided to make a change. As a result, their effective labor rate increased, gross profit increased $60,000 per month, and they grew consistently year over year.
The backbone of it all? A digital, seamless service process. It allows the dealership to:
- Enforce a consistent process.
With a forced-march process in place, employees know exactly what steps they need to work through on every vehicle and customers know what to expect when they visit the store. Each vehicle receives a multipoint inspection and every recommendation is presented to the customer.
- Keep technicians in their bays.
Technicians no longer have to walk and wait to complete different steps of the repair order. They are electronically alerted when parts are pulled or when advisors receive approval from the customer. Technicians can now focus on turning wrenches.
- View detailed reporting.
Jim Hudson Lexus’ previous reporting was severely lacking information. There was little management could do to ensure steps were being taken during the service process and it was hard to monitor the drive. Now they can view the live activities and metrics of every individual to better train and enforce their desired process.
Fixed operations can run like a well-oiled machine with the right process in place. It should be consistent, forced, paperless, and efficient. In the end, your employees will have a more stable work environment and your customers will have their expectations met every time they visit your dealership.
This is the second part in our two-part series over lessons from the Coronavirus pandemic. Check out the first article over fixed operations marketing strategy…
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