Auctions prices continue to rise. Quality cars are becoming scarcer. Inventory is harder and harder to stock, but one item remains constant. Vehicles always require service. This fact is growing on more and more dealers across the country. As their Sales are dropping, dealerships that have service bays are stabilizing their business and creating better customer relationships.
An active service department is an incredible way to capture more revenue for your dealership. Vehicles will always need service. Therefore, no matter how great or how uncertain the used car market may be, you will always have your service side to level yourself out or excel to the next level. 72 percent of customers buying vehicles from standalone dealerships with no service departments turn to a third-party mechanic. Imagine keeping that 72 percent coming back for the necessities. Oil changes, tire rotations, brakes, AC, etc.
Not only will that 72 percent help you capture more revenue, but it will also help you generate better relationships with your customers. You can build trust with a great customer experience and trust leads to referrals which leads to more customers. Not to mention, your name stays fresh in that customers mind, so when they are ready to buy a new car, you are likely to be the first stop they make!
Read that last sentence one more time. You just created a new outlet to buy cars! When that customer whose vehicle you have been servicing comes back to buy their next one, you now have a shot at buying their trade in.
As you can already tell, there are many pros to a service department. You may be thinking to yourself, “I don’t know anything about operating a service department. What do I do then?” You can always start small with one or two bays and hire somebody that does know how to run a service department. Now your next question is probably, “What do I do if I can’t afford to pay someone?” Many dealers are negotiating a percentage of the net sales for this managers wage.
There are many ways to go about doing anything in business. These suggestions above are not the only way to generate more revenue and better relationships. They are however getting your brain working on new ideas and that is how a business in any field survives.
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