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Nt's slides

  1. 1. BARTER KIA Fixed Operations Non-template text © 2010 Tolhurst Communications
  2. 2. What does he have that can help you?
  3. 3. Flex…
  4. 4. Flex + Ability =
  5. 5. Flexibility!
  6. 6. Flexibility For Your Sales Department = More Sales! How can you get it? Cover their fixed overhead!
  7. 7. Sales Flexibility Depends on Absorption % by Fixed Ops. Absorption % target = 90+% Barter Motors Absorption % = ?? 58.5% Where can you improve?
  8. 8. <ul><li>Service </li></ul><ul><li>Parts </li></ul><ul><li>CSI </li></ul>
  9. 9. <ul><ul><li>Effective Labor Rate </li></ul></ul><ul><li>SERVICE: </li></ul><ul><li>Inspection Form Use </li></ul>• Gross Profit % • Hours & $ per RO • Additional Work Recommended • Declined Repairs Tracking & Follow Up • Dispatching • Quality Control • Customer Retention
  10. 10. <ul><li>SERVICE: </li></ul><ul><ul><li>Receivables </li></ul></ul>• Work in Process • Profit – YTD • Appointment Process • Work Mix: • Warranty vs. Customer Pay • Maintenance vs. Repairs • Highly Competitive work vs. Non-Competitive
  11. 11. <ul><li>PARTS: </li></ul>• Gross Profit % <ul><ul><li>Tires </li></ul></ul>• Days Supply • Turns • Obsolescence • Receivables • Customer Retention • Receivables • Work in Process • Profit - YTD
  12. 12. <ul><li>CSI : </li></ul>• Fixed right the first time • Completed on time • Phone coverage • Appointment process • Consultant performance • Pick up process • Customer Retention
  13. 13. Service – Take a closer look at: <ul><ul><li>Inspection Forms - not being used & opportunities are missed </li></ul></ul><ul><ul><li>Effective Labor Rate – 10% below target </li></ul></ul><ul><ul><li>Gross Profit % - OK at 75+ % </li></ul></ul><ul><ul><li>Hours & $ per RO – 1.5/RO & $95 – both low </li></ul></ul><ul><ul><li>Additional Work Recommended – not being done </li></ul></ul><ul><ul><ul><li>Declined Repairs Tracking & Follow Up – process in place? </li></ul></ul></ul><ul><ul><li>Dispatching – based on tech skill levels? </li></ul></ul><ul><ul><li>Quality Control – who validates the work? </li></ul></ul><ul><ul><li>Customer Retention – create the habit of coming to you for all their service needs </li></ul></ul>
  14. 14. <ul><ul><li>Svc & Pts Receivables – 27% of Svc & Pts sales MTD </li></ul></ul><ul><ul><li>Work in Process – (6,647) MTD - Open ROs? </li></ul></ul><ul><ul><li>Profit YTD – loss, but with more sales than LYTD </li></ul></ul><ul><ul><li>Appointment Process – flaws in process </li></ul></ul><ul><ul><li>Work Mix: </li></ul></ul><ul><ul><ul><li>Warranty vs. Customer Pay – 25% vs. 52% YTD </li></ul></ul></ul><ul><ul><ul><li>Maintenance vs. Repairs </li></ul></ul></ul><ul><ul><ul><li>Highly Competitive work vs. Non-Competitive </li></ul></ul></ul>Service – Take a closer look at:
  15. 15. Parts – Take a closer look at: <ul><ul><li>Tires – Are you in the tire business? Why Not? </li></ul></ul><ul><ul><li>Gross Profit % - CP = 29.7%, abt. 10% low </li></ul></ul><ul><ul><li>Days Supply – 2.6 mths. – over NADA target of 1.5 – 2.0 </li></ul></ul><ul><ul><li>Turns? - NADA target = 6-8/year </li></ul></ul><ul><ul><li>Obsolescence? Should be less than 10% </li></ul></ul><ul><ul><li>Svc & Pts Receivables – 27% of Svc & Pts sales </li></ul></ul><ul><ul><li>Customer Retention - create the habit of coming to you for all their parts needs </li></ul></ul><ul><ul><li>Work in Process – ($6,647) MTD – Open ROs? </li></ul></ul><ul><ul><li>Profit YTD – loss </li></ul></ul><ul><ul><li>Sales YTD – less than prior year </li></ul></ul><ul><ul><li>Pre-Picking for appointments </li></ul></ul>
  16. 16. CSI – Take a closer look at: <ul><ul><li>Fixed right the first time – essential for satisfaction </li></ul></ul><ul><ul><li>Completed on time – promises need to be met </li></ul></ul><ul><ul><li>Phone coverage – answered within three rings? </li></ul></ul><ul><ul><li>Appointment process – customer convenience counts! </li></ul></ul><ul><ul><li>Consultant performance – courteous, knowledgeable, efficient </li></ul></ul><ul><ul><li>Pick up process – preparation is key for ease & speed </li></ul></ul><ul><ul><li>Customer Retention – keep them coming back to you! </li></ul></ul>
  17. 17. CSI – Take a closer look at: Is the customer always right? Yes? No? Consider this philosophy from a successful dealer: “ The customer may not always be right. But, they are always in control of where they choose to spend their money. And, I want them to spend it at my store!”
  18. 18. ACTIONS For Improvement WHO CHECKS: BY WHEN: WHO: TASK:
  19. 19. Implement Your Action Plan! Improve Service, Parts, & CSI! Raise Absorption % & Help Your Sales Dept!

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