Benchmarking Construction Equipment Dealers Parts and Service Departments
Recently I was asked by a construction equipment dealer, “How do I improve the Parts and Service departments in my dealership?”
I tried to help answer the question with a question of my own.
I asked “How does the dealership “stack-up” to the competition today?”
The response I received was surprising.
“We really don’t know exactly how we stack-up; we have never formally evaluated what our competition is doing, we just listen to what our customers tell us”.
So I asked the next question, “How do you develop the strategy or the plans to make the Parts and Service departments better each year"?
The response was surprising again.
“We haven't really developed a strategy, we just keep our heads down and keep working hard every day!”
While I admire hard work it isn’t enough in today’s market place.
If we don’t work smarter based on facts (not opinions or word-of-mouth) we will do the same things over and over and get the same results.
So what questions should Parts and Service departments be asking in order to put together a “smart” strategy?
IMPORTANT TIP: What questions do your customers want answers to.
1. What are your working hours?
2. How many service vehicles do you have? How are they equipped?
3. What are your billing rates to your customers? Do you offer “flat-rate” pricing?
4. How are you delivering Parts to customers? What are your freight charges?
5. Does your dealership offer maintenance programs? Do you offer Repair contracts?
6. Do you offer Extended Warranties? On what types of equipment?
7. Do you offer Undercarriage repair or rebuilding programs?
8. Do you offer Air Conditioning services?
9. How do you staff your Parts and Service departments?
10. What training programs does your dealership participate in?
11. What training programs do you offer your customers?
12. Do you actively participate in Trade Associations or use technical schools to elevate your Parts and Service personnel?
13. What advertising do you use to promote the Parts and Service department in your dealership?
The answers to these questions will form the basis for good planning and strategy. But just as important, you will become fully aware of what you competition is doing.
Here is something I believe you may have an interest in.
I have developed a benchmarking exercise that many of the best-in-class dealers are using to evaluate their Parts and Service departments.
You can get your own copy of Benchmarking Your Construction Equipment Parts and Service Departments absolutely free by completing the form below.
I will send it back to you right away.
Please note: I will never transfer, sell or trade your email address information. It is safe with me.
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