By Ed Kovalchick, CEO, Net Profit, Inc.
By now, you likely have implemented some semblance of an aggressive plan to combat the COVID-19 challenge for employees and customers. None of us, no matter how long our careers, have faced this type of unique circumstance. Business-wise, the generation of substantial gross profit in service and parts departments has likely never been more important for bill-paying, and in some cases, just keeping the doors open. To that end, I have gathered a list of actions taken by numerous service and parts outlets for you to review, thinking that one or so might be a winner for you.
As of this writing, auto service was considered to be “essential” so remaining open to the public during the crisis period is allowed. However, conducting business is nowhere near the same for most, so here some thoughts to consider.
1) Service Reception – SR is preformed outside only, which is a norm for some unfortunate dealer service personnel already. Customers are directed to a specific area and instructed to remain with the vehicle – using traffic cones helps tremendously in some circumstances. Drive-in doors remain closed or blocked off in some manner, and man-door signs clearly explain that only employees are allowed in the building. Waiters are not allowed or discouraged, and if necessary, outside seating is provided set in a pattern at least six-foot apart (weird-huh). In some cases, no waiters are allowed period.
2) Repair Order Generation – RO (or tablet) generation upgrades significantly as the need for an absolute definition of all concerns rely on documentation only, since examination on the vehicle is difficult and even potentially unsafe. This is a vital step since many owners do not understand the many new and unique safety additions and sometimes difficult to find adjustments. Analytical questioning and related documentation aren’t an option here, which will likely create a need for the service manager to conduct some intensive training and performance monitoring for the rookies and lazy pros.
At around $3 a minute in parts and labor sales, sending techs chasing their tails with NPF (no problem found) concerns is a financial killer for everyone, not to mention the customer is now pissed off along with the tech.
3) RO Signatures – I have seen two ways to handle customer signatures on the RO document – one is to provide a pen and then give it to the customer. Second is to forget the signature and just document the OK as if it was an over-the-phone conversation. Of course, the assistant service manager (writer) is always wearing gloves while maintaining the appropriate distance from the patron (another necessary, but peculiar deal).
4) Pickup & Delivery – This valuable service is offered in a designated radius for some, usually for a nominal fee if not no charge, provided the labor rate covers the cost. Obviously, this creates a significant expense and is difficult to swallow for the basic service (oil change, rotate, inspection), which is already a loser. Some dealers only provide this service for repairs and fleet service. To that end, labor rates are being adjusted accordingly, and locating additional needs for presentation becomes even more important. In any case, “professional” service personnel owe that effort as a safety and dependability responsibility always. Blowing through the basic service and missing details is more than ever unacceptable.
5) Vehicle Drop-Off – Some are encouraging “touchless drop-off” by encouraging customers to drop their vehicles in a designated area (directional signage), put the key in the 24-hour drop-box and leave. Payment is made over the phone and vehicle pickup is handled outside with a simple gloved key handoff.
6) Vehicle Sanitizing – This procedure is usually being done is two stages – immediately upon receiving the vehicle and secondly when the job is completed. The goal is to protect the critically needed dealer employees as well as the vehicle occupants. AutoNation is vending a product to sanitize a vehicle with a sprayer – check out this website for more info. Hanging a tag on the mirror explaining this “caring” process is impactful and powerful marketing right now.
Also, Permatex distributes Spray Nine heavy-duty cleaner/disinfectant which is EPA certified as effective against viruses when used on non-porous surfaces. (I found it at some of the local auto parts houses.)
7) Sanitizing Service – Some shops are offering a complete sanitizing service wipe-down for clients which includes heating the vehicle in the body shop paint booth to 165 degrees after an interior spray and wipe down – doors open. The National Institute of Health has an interesting article on the topic of heat and virus kill – I have seen up to a $250 charge for this potentially vital process. This service might be utilized for the used vehicle fleet too.
8) Curbside Parts Delivery – Picking up parts outside of the store after a simple retail or low volume wholesale client phone call or online order can be convenient. Even delivering parts to these buyers is being done to keep the cash flowing. Many bigger aftermarket parts stores are practicing this arrangement, by delivering to the customer’s vehicle in the lot after a quick phone call to the store to let them know they have arrived.
9) Posting Virus-related Information – Many service operations are posting virus combating information on signage, printed on handouts, and entered on the home page of websites. This is more important in areas where the virus permeates the area to ease customer trepidation about a service visit. Here is an example:
As the novel coronavirus continues to have an increased impact on our community. We felt it was important to connect with you directly to share more about the steps we are taking to help keep our guests and team members safe and healthy.
- We encourage our staff to wash with our antibacterial soap and water and to sanitize hands frequently.
- Hand sanitizer and boxes of tissues are available thought the dealership.
- We have anti-bacterial wipes around and frequently wipe down the interiors of vehicles in the showroom and demos before/after test drives.
- Treat customer cars that come in for service the same way – disinfect them before and after technicians diagnose and repair them.
- We are practicing the “No offense, it just makes sense” non-handshake policy.
- We discourage employees from using other employees’ phones, desks, offices, or other work tools and equipment.
- Minimize the situation where people are crowded together, like meetings. Use email, phones, and text messages to communicate with each other. When meetings are necessary, avoid close contact by keeping a separation of at least six feet where possible and assure that meeting rooms are well-ventilated.
- We encourage sick employees to stay home and if desired work from home as well.
- The staff will be wearing gloves at all times when in a customer’s vehicle.
- All new and used vehicles in stock are sanitized before road testing.
All of these practices are informed by guidance from the CDC, WHO, and State Department of Health. Based on the direction we have received from these organizations, our own preparedness, and the current state of our dealership operations.
10) Expectations – Employees are clearly educated in writing about the expected standards for the protection of both the company and the group. Example:
- If you feel sick, stay home. Do not come to work.
- If someone in your household has tested positive, stay home until all the results are in.
- Stay at least six feet from others at all times – practice social distancing at work and in public areas.
- Wash your hands thoroughly regularly for at least 20 seconds each time.
- Avoid touching your face at all times without a tissue.
- Cough or sneeze into a tissue or your sleeve, inside of your elbow.
- Disinfect all surfaces in your workplace as much as possible.
I found that aggressive dealers are featuring their coronavirus-fighting efforts on their home page, as well as social media efforts, to calm their customer base about continuing to do business. Somehow that makes excellent sense in the current environment.
ARTICLE BY Ed Kovalchick
Ed Kovalchick founded Net Profit Inc. to train and consult with the automotive and trucking industries. Since then, he has developed and presented service, parts, and body shop operations workshops worldwide. He has trained field and regional management, as well as dealer personnel for Briggs & Stratton, Honda, Acura, Isuzu, Nissan, General Motors, Cummins, Toyota, Ford, Kia, Hyundai, BMW, Porsche, Mitsubishi, and Chrysler.