The Art of Good- Better Best Selling in Todays Service & Parts - PowerPoint PPT Presentation

The Art of Good- Better Best Selling in Today’s Service & Parts Departments

Who is My Service Departments Competition?

Do Your Customers come to Your Dealership for the Parts, or for the Technical Expertise of Your Technicians?

When was the last time you bought the least amount your money could buy?

What would happen to New Vehicle Sales if all we offered were loaded up vehicles and never discounted off MSRP?

What would happen if we bumped every new vehicle price by 5% to10% over MSRP? Don’t we do this every day in our Service Drive?

Is it better to give your customers a choice of products, warranties and prices and ask them which one fits their needs best? Or just give them one offering, and look for a Yes or No?

Does Your Service/Parts Department have a Competitive Pricing Strategy for all Economic Categories of Consumers?

Let’s take a Look at the Life Cycle of a Vehicle What is important to the Customer in their buying Decision ! • New Vehicle - • 4 Year Old Vehicle • 8Year Old Vehicle • 10 Year Old Vehicle

Let’s take a Look at the Life Cycle of a Vehicle What is important to the Customer in their buying Decision ! • New Vehicle – Color – Payment – Design – Technology – Warranty • 4 -Year Old Vehicle • 8 -Year Old Vehicle • 10 -Year Old Vehicle

Let’s take a Look at the Life Cycle of a Vehicle What is important to the Customer in their buying Decision ! • New Vehicle – Color – Payment – Design – Technology – Warranty - MPG • 4 -Year Old Vehicle – Color (what I will not buy) – Payment – Cash Down – Warranty – MPG – Design - Technology • 8 -Year Old Vehicle • 10 -Year Old Vehicle

Let’s take a look at the Life Cycle of a Vehicle What is important to the Customer in their buying Decision ! • New Vehicle – Color – Payment – Design – Technology – Warranty - MPG • 4 -Year Old Vehicle – Color (what I will not buy) – Payment – Cash Down – Warranty – MPG – Design - Technology • 8 -Year Old Vehicle – Cash Price – Condition - Safety • 10 -Year Old Vehicle

Let’s take a Look at the Life Cycle of a Vehicle What is important to the Customer in their buying Decision ! • New Vehicle – Color – Payment – Design – Technology – Warranty - MPG • 4 -Year Old Vehicle – Color (what I will not buy) – Payment – Cash Down – Warranty – MPG – Design - Technology • 8 -Year Old Vehicle – Cash Price – Condition - Safety • 10 -Year Old Vehicle – Starts – Stops - Cold

• New Vehicle – Now – What is • 4 -Year Old Vehicle Important to • 8 -Year Old Vehicle same • 10 -Year Old Vehicle Customers when they Where is Your Retail Pricing come on the Service Drive? directed?

Traditional Service Department Thinking To Raise Sales Velocity – Reduce the Price, Reduce Margins! To Raise Profitability – Increase the Price, Reduce Velocity! Let’s do Both with Good -Better-Best Offerings.

Important Advantages to Good – Better – Best Selling Strategy • Utilize the Psychology of Choice • No Fear Pricing – allows for higher margins • Education of the Customers Choices • No Fear Selling – removes assumption that • 40-40-20 Marketing Rule customer cannot afford • Less Discounting • Higher Overall Margins • Customers feel more Comfortable and • Options for all Economic Categories of Secure when they have choices. No one Customers • Needs based Selling Strategy likes take it or leave. • Grows Repair Order Value by adding • Enhanced Warranties to Drive Customer Retention. additional items.

• The 40/40/20 rule says that 40 percent of the success of your campaign will depend on your list 40-40-20 selection, 40 percent on your offer, Marketing Rule and only 20 percent of your success will be attributed to your creative execution.

Offers that Make Sense to ALL Economic Categories of Customers Make It Your Culture Keys to Training – Training – Training throughout your entire Fixed Operations. Everyone needs to be on board. Success Marketing Materials – Menu’s – Measure – Measure – Measure Sales Penetrations

Good Better Best Selling • Drives Higher Repair Order Value • Drives Higher Margins • Makes it Easier for Advisors • Drives Higher Customer Satisfaction Give it a Try – It Works!