How To Increase Service Department Revenues
By 10% to 20%
Increasing Service Department revenues is easier that you may think.
This simple technique has created new customer revenue and improved customer satisfaction by using the resources you currently have in your Service shop.
You will not be required to invest any capital and you will be able to increase service department revenue by 10% to 20% while you reduce Service warranty cost (redo).
The process is simple and easy to institute. Here is how it is done.
1. Create the “opportunity”.
When any customer machine is brought to your service shop ask that a trained technician complete a simple Pre-Post Machine Inspection Check List (you will learn more about this shortly).
This form is to be completed before the repairs are performed and submitted to the Service Manager for review.
In many cases there will be additional repairs needed to bring the machine to proper operating condition.
Note: Did you know that most equipment operators aren’t able to tell there is a machine performance problem until the machine is 20% out of operating specification! That means that the machine could be 20% less productive before an operator can sense a difference.
The time needed to do this inspection will vary from machine to machine. Generally, a half hour to full hour is all that is required.
Common sense will tell us this is not necessary for small jobs.
This recommended practice is primarily for work orders that will take more than two days of labor or involve a complicated technical problem.
2. What is the next step?
The Service Manager must contact the customer to advise that we have inspected their machine and have found additional repairs that should be considered while in our shop.
A cost estimate should be given to the customer for the additional repairs and allow them to make a choice.
In a majority of cases the customer will chose to proceed with the repair. Your customers are aware that they will save time and money by proceeding with the repair while the machine is in the shop.
Naturally the customer is always concerned about how long his machine will be in the shop.
If we operate with a structured inspection for machines coming in to the service area, we'd be better able to estimate price and time to perform the repair.
Who knows, you might be able to designate to the assigned technician how long the repair should take.
This has been an excellent way to increase service department revenues while improving customer satisfaction.
3. The final step: Post Repair Inspection
Before the machine leaves the shop perform a "post-repair" inspection.
Use the same inspection checklist and be absolutely certain you have performed all repairs and the machine is up to the required specification for optimum performance.
Your customer will be very happy with you and your Service department will reduce their “redo” rate.
These time-proven methods can be implemented at any dealership and will set your service department far apart from your competition.
You can receive your own Free copy of the Equipment Inspection Form that the top-tier dealers are using to increase their Service department revenues.
Simply complete the form below and you will receive your copy.
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