Service departments in dealerships have, fairly or unfairly, been stereotyped as trying to sell additional services to customers that the customer may feel are unnecessary.
Technology has been developed that can help to ally these fears and provide customers with proof that the service advisor’s recommendations are valid.
Several of our clients have a system that will measure tire wear and alignment as soon as the customer pulls into your service drive thru. As the customer’s vehicle enters the drive thru, it passes over the device which uses laser sensors to instantly assess the tire wear and alignment. The results are immediately available to the service advisor either via a monitor located in the drive thru area or as a customized report, typically before the customer has even left their vehicle. In each case a camera has taken a photo of the vehicle so that the customer can see that the report relates to their vehicle. The service advisor can now present this to the customer as evidence of any additional service that needs to be performed. The report provides credibility to the service advisor’s recommendation. Some systems also use the camera feature to record the condition of the vehicle’s exterior before it is handled by dealership personnel and can be used should the customer claim that damage was caused while the vehicle was in the dealerships’ possession.
While tires and alignments are usually low margin items, they provide the opportunity for the service department to get the vehicle on a lift and remove the wheels. This opens up the prospect that the vehicle may require such services as brakes, rotors, etc. All in all, the service department has the ability to increase parts and service revenues from its existing clientele.
The systems can be installed flush mounted (in the floor) or surface mounted (drive over). The cost usually includes delivery, installation and training. The investment in such a system is hardly insignificant, but the resulting increase in sales and margin dollars should provide a worthwhile return. Additionally, there are immediate tax benefits as the entire cost can be taken as a tax deduction in the year it is installed.
Dealerships looking to capture every service opportunity and generate greater sales from their service department should explore whether or not such a system is right for them.
If you have any questions regarding this article, please contact Paul McGovern at PMcGovern@DowneyCoCPA.com or at 800-849-6022.
