How Do Auto Service Departments Make Money Profit

10 Tips to Increase Service Department Profitability

In last calendar week's fusionZONE blog post, we covered several ways to increase service profitability. This week, we're diving deeper with even more tips to raise your dealership's stock-still operations revenue.

If the challenges of 2020 and what'south followed accept taught us all anything, it'south that nothing is certain. The auto industry faces unprecedented changes, including a shift to electrified and autonomous vehicles, likewise every bit the digital-showtime age.
But few in the industry were expecting such challenges every bit supply shortages.

For many dealerships, fixed operations like their service department have get even more vital than e'er. Near service centers produce roughly 50% of a dealership'southward gross turn a profit, and with contempo shortages in new and used cars for auction, fixed ops have undoubtedly saved the day for some.

So, how can you ensure that you're maximizing your service middle's profitability in 2021 and across? Hither are 10 tips for doing just that!

Increase upselling and lines per RO. It's great to heave your total ROs or Repair Orders, merely are you besides trying to maximize the services per RO? Whether through upselling or creating bundles that customers can't afford to decline, there are many ways to improve in this area.
Motivate your Service Advisors. Are y'all incentivizing your client-facing service staff to upsell or increase lines per RO? Consider weekly or monthly gift cards or bonuses to the Service Counselor that knocks it out of the park!
Brand your services visible online to local motorists. Depending on your marketplace, you may be missing out on potential service heart customers outside of your city or firsthand expanse. By implementing constructive SEO and targeting primal serving cities around your dealership, you could attract drivers who are looking for a new service department for everything from routine maintenance to loftier-ticket repair work.
Let access to all of your services via your website. Are yous promoting all of your top services online? Whether your auto service center is known for certain procedures or you're looking to bring in more than business concern for sure services like multi-betoken inspections or tire installation, you should brand information technology clear what you offering through your website.
Inform customers about your services through text and video content. You can educate drivers about your services and why information technology's important to keep up on routine maintenance through online video and text content on your website. A customer may already know that it's time for an oil change, but y'all could potentially upsell online by providing more details about other complementary maintenance you lot offer.
Reach out to customers regularly. Utilize your customer email listing, social media channels and text or SMS-based marketing to keep your customers in the loop of current promotions. Sometimes a uncomplicated reminder and a deal or coupon are all that it takes to go someone to make that overdue service appointment.
Don't forget almost free marketing options. Take you updated your Google My Business concern and social media profiles and pages lately? At that place are enough of free means to keep your dealership's service section height-of-mind for customers when it'southward almost fourth dimension for a tune-up.
Invest more of your marketing upkeep on stock-still operations. Information technology'southward true that completely free marketing volition only have you then far. If your dealership'south marketing upkeep is heavily focused on new and used machine sales, consider only shifting some of your marketing spend to the department that generates the near revenue. Or, yous could increase your total upkeep to suit a greater focus on service centre marketing.
Promote customer loyalty through rewards. Since acquiring a new client is v times more expensive than retaining an existing one, you'd improve take a program to keep your sales and service section customers around when information technology's time for machine repair or maintenance. A VIP loyalty program with rewards toward parts and service could aid keep your current customers from always looking elsewhere for oil changes or inspections.
Encourage new and returning customers to convert. Lastly, your website'south service-related pages should exist designed to encourage service appointment scheduling. Make it easy for customers to book a service visit, find your current offers and coupons and contact your service team with questions.

For more tips on how to increase the profitability of your service department and other fixed operations, turn to the team at fusionZONE. Reach out if y'all'd like assistance with enhancing your SEO, website or digital marketing initiatives.