June 08 FOM - Fixed Ops

The Auto Dealer’s Original Fixed Operations Resource
Vol.5, No.6 June 2008
FIXED OPS
CONFERENCE
INVADES THE OC
Fixed Operations Gets
Its Own Conference
Learning From Our
Presidents
Don't Cut Training!

Features
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Table of Contents
Fixed Ops Conference Debuts This Month
Conference for Fixed Ops Professionals Promotes “Tooling Up for Change”
Lessons From Our Leaders
What Our Presidents Can Teach Us.
Money Well Spent
It’s time to invest in customer retention.
• Angel Stadium Anaheim.
Anaheim, CA. Photo courtesy
of The Lovero Group.
• Huntington Beach sunset.
Huntington Beach, CA. Photo
courtesy of Huntington
Beach Conference & Visitors
Bureau.
Is Now Really the Time to Cut Training
Making the Most of Difficult Times.
Latest Technology Tools Improving Fixed
Ops Efficiency And Traffic
Dealers today have more opportunities than ever to build service business.
Evaluating Marketing Tools (Part 3)
Are you using Traditional or Next Generation tools to manage and retain
customers
Firing On All Eight Cylinders
An Implementation Strategy.
p.
6
Letter from the Publisher
p.
10
Larry’s Ramblings
Fixing Fixed Coverage
p.
48
Service Department
The Great ‘So-Called’ Technician Shortage
p.
51
Parts Department
Selling Parts for a Loss Can Help You Make More Money!
p.
54
Body Shop
What CSI Can Do For Your Body Shop
p.
58
Administration
How to Measure the Value of Training
p.
66
Profile
Staying on Course
p.
8
Industry News and
Events Calendar
p.
62
New Products
p.
62
Advertisers Directory
p.
64
Marketplace
p. 4
June 2008
Fixed Ops Magazine

Letter From The Publisher
I’ll get right to the point.
By now, you should have heard about the Fixed Ops Training and Education
Conference – June 20-22 in Irvine, California. (Check out the booklet in the
middle of this issue.) If you haven’t yet signed up and made plans to attend, here
are the Top Ten Reasons why you should:
Number 10 – It’s the first and only complete fixed operations gathering of its
kind.
Number 9 – It will improve the profitability of your Service Department, Parts
Department and Body Shop.
Number 8 – It will feature an all-star line-up of the top fixed operations speakers
and trainers.
Number 7 – From Friday afternoon through Sunday morning it will deliver tons
of great ideas in just a short amount of time. (Then back to work!)
Number 6 – It’s a great value and additional attendees from your dealership pay
a further reduced rate!
Number 5 – Your competitors will be there!
Number 4 – It’s easy to get to and everything is in one place.
Number 3 – You’ll learn about opportunities, techniques, ideas, trends, tools,
technologies, companies, products and people that will transform your fixed ops
business.
Number 2 – It’s presented by the same folks who bring you the #1 fixed operations
information source – Fixed Ops Magazine.
Number 1 – It’s the only event that will have a broad and immediate impact on
the bottom line of this critical dealership revenue source – fixed operations.
Go to www.FixedOpsConference.com to register. It’s quick and easy. And it will
be the best investment of time that you ever made in your business and your value
to your dealership.
Fixed ops managers, service managers, parts managers, body shop managers,
general managers – I hope to see you all there!
Nick West / Publisher
Phone: (877) 349-3367
E-mail: Nick@FixedOpsMag.com
The Fixed Ops Training
and Education
Conference
June 20-22, 2008, Irvine, Calif.
www.FixedOpsConference.com
To view the Digital Edition of
Fixed Ops Magazine, visit
www.FixedOpsMag.com and
click on the upper tab that
says “Subscriptions.”
Fixed Ops Magazine
17853 Santiago Blvd., Ste. 107-467
Villa Park, CA 92861
877-349-3367
Fax 714-921-0770
info@fixedopsmag.com
www.fixedopsmag.com
Editorial / Advertising
Nick West - Publisher
877-349-3367
Fax 714-276-0255
nick@fixedopsmag.com
Art Direction & Design
SpiderMonkey Media Inc.
www.spidermonkeymedia.com
Circulation
877-FIXEDOPS
circulation@fixedopsmag.com
Fixed Ops Magazine is published monthly by
Prism Automotive, LLC, 17853 Santiago
Blvd., Suite 107-467, Villa Park, CA 92861;
phone 877-349-3367. Subscriptions are free to
qualified subscribers in the U.S. who are active
as fixed operations directors or service managers
of franchised automobile dealerships.
Additional subscriptions are available at:
$60/year/US; $85/year/Canada;
$180/year/other foreign. Single issue price,
$10. Periodicals postage paid at Fort Worth,
TX. POSTMASTER: Send address changes to:
Fixed Ops Magazine, 17853 Santiago Blvd.,
Suite 107-467, Villa Park, CA 92861.
Reproduction or use, without express written
permission of publisher, of editorial or graphic
content in any manner is prohibited. The
statements and opinions expressed herein are
those of individual authors and do not necessarily
represent the views of Fixed Ops
Magazine or Prism Automotive, LLC. The
appearance of advertisers does not constitute
an endorsement of the products or services featured.
All rights reserved.
p. 6
June 2008
Fixed Ops Magazine

Industry News and Events
Hunter Engineering Company Named Exclusive Wheel
Alignment System Supplier for Ford Motor Company
Ford Motor Company has chosen Hunter Engineering
Company as the exclusive supplier of wheel alignment
systems for Ford and Lincoln-Mercury dealerships in the
United States.
Hunter’s engineers have worked with Ford Motor Company
and its dealers for many years to develop world-class products
that improve productivity, profitability, return on investment
and safety. This collaboration will ensure the continued
success of Ford dealership services with early access to
Hunter’s latest technologies and productivity tools aimed at
higher CSI scores and optimal alignment profitability.
Hunter Engineering has maintained a strong partnership
with Ford since joining the Rotunda equipment program in
1964 as the first supplier of alignment and balancing equipment.
The relationship between the two companies has
expanded to now include tire changers, brake lathes and
inspection equipment, which are also approved for the
Rotunda program.
The company has won numerous supplier awards from
Rotunda and been designated as a Rotunda Key Supplier for
the past four years. Hunter equipment is the overwhelming
brand of choice at Ford corporate facilities and assembly
plants throughout North America. The Hunter GSP9700
Road Force Measurement® System is the exclusive balancer
used by Ford Engineering to perform tire and wheel diagnostics.
____________________________________________
Jennifer Link Named Automotive
and Retail Account Manager for
Venture Lighting International
Jennifer Link has been promoted to
automotive and retail account
manager for Venture Lighting
International. Jennifer brings more
than 15 years of sales and marketing
experience, including five years in
the automotive industry and seven years as a supplier to
mass market retail.
In this new position, Link is responsible for coordinating all
marketing and sales activities for Venture’s auto dealership
lighting program, leading its new specialty retail lighting
project through development to product launch and creating
and presenting niche market training sessions for internal
and external sales channels. In addition, Link will be
actively involved in automotive dealer associations such as
the National Automobile Dealers Association and the
American International Automobile Dealers Association.
Link earned a Bachelor of Arts degree from Hillsdale
College in Hillsdale, Mich. She is a member of the Women’s
Automotive Association International, Kappa Kappa
Gamma Alumni Association and P.E.O. Women’s
Philanthropic Organization. She is also a Hillsdale College
Class Ambassador.
June
3–4
Automotive CRM Summit 2008
Ritz-Carlton, Marina del Rey, Calif.; jumunzel@tlsummits.com,
www.tlsummits.com/auto2008/Fixedops.
20–22
The Fixed Ops Training and Education
Conference “Tooling Up For Change”
Marriott Irvine, Irvine, Calif.; www.FixedOpsConference.com,
(800) 727-1466.
August
13–14
The ENG Next Generation Automotive
CRM Conference
The Westin South Coast Plaza, Costa Mesa, Calif.
www.usaautocrm.com
September
22–24
Western Car Wash Association Annual
Convention & Trade Show
Bally’s on the Strip, Las Vegas; www.wcwa.com,
(800) 344-9274.
November
4–7
AAPEX
Sands Expo Center, Las Vegas; www.aapexshow.com, (301)
654-6664.
4–7
SEMA Show
Las Vegas Convention Center; www.sema.org,
(909) 396-0289.
5–8
NACE Expo
Mandalay Bay Convention Center, Las Vegas;
www.naceexpo.com, (888) 529-1641.
January
24-27
NADA Convention & Exposition 2009
New Orleans Convention Center
www.nada.org, 703-821-7188.
To have your organization's event listed
on Fixed Ops Magazine's calendar, please
contact Publisher Nick West at 877-349-3367
or nick@fixedopsmag.com.
p. 8 June 2008 Fixed Ops Magazine

Larry’s Ramblings
Fixing Fixed
Coverage
By Larry Edwards
was speaking at a Volvo / Mack Truck
IDealers Convention in Orlando recently
and it amazed me as to how Class 8
Truck Dealers view their service operations
compared to how Automobile
Dealers view their service operations. For
example, did you know that the average
Class 8 truck dealer in the U.S. has fixed coverage
of 108% versus the average automobile
dealer in the U.S. with fixed coverage of
52%
Imagine how much different the dealership
business would be today if dealers paid as
much attention to their fixed coverage percentages
as truck dealers do Here are a few
examples. I know a dealer in Florida that
sells Saab and Suzuki. This dealer is doing
very well selling these products because he
has 86% fixed coverage. All he needs to
break even is about $10,000.00 in variable
gross and the rest falls right to the bottom
line. I know of another dealer in Virginia
who sells Cadillac’s. In fact, one month this
year, they had a record delivery of 29 new
Cadillac’s. This dealer is on track to
produce fixed operations net profit of over
$3 million this year. Not bad for a down
year, is it Another dealer I work with in
Maryland has a little Chrysler, GMC
Dealership (what a combination!) that made
$30,000 net profit on service and parts last
month. In every downturn, you will find
dealers who have excellent fixed coverage.
They are the ones who prosper while the
dealers with poor fixed coverage are the ones
who suffer the most.
How is it that truck dealers have come to
rely on their fixed operations while auto
dealers as a group have lost their reliance on
fixed coverage I think the answer is simple.
Truck dealers have been forced to learn how
to produce 100% plus fixed coverage in
order to survive. Truck dealerships simply do
not sell sufficient volumes to make a profit
from vehicle sales. As a result, truck dealers
have learned to rely on their fixed operations
to cover the overhead. This is one reason why
you see so many truck dealers open 24 hours
a day. If their customers want something, the
dealer who gives the customers
what they want gets the highest
fixed coverage’s. I wonder if
the current auto industry
problems will “force”
auto dealers to have good
fixed coverage in order to survive
like the truck dealers had to do. If that
is the case, then there just may be some sunshine
in all the gloom auto dealers are currently
seeing.
I know a lot of Fixed Managers will read this
and say to themselves, “Is this guy crazy I
am doing everything I can to have good
fixed coverage right now!” Actually, you are
not. You see, the average dealer loses nearly
70% of their customers within the first two
years of ownership. In fact, dealers lose
these customers just when they are getting
ready to spend some serious money maintaining
their vehicles. In case you did not
know, the average dealer’s retention in the
U.S. is 31%.
If you want to improve your fixed coverage,
you must focus on retaining more customers.
Increasing customer paid repair
order counts is the only truly lasting way to
increase fixed coverage.
Continued on p. 12
p. 10 June 2008 Fixed Ops Magazine

Providing your customers with the
types and levels of service they are
looking for and giving them fair value
for services rendered is, in my humble
opinion, the only true way to improve
fixed coverage.
How do you do this Here are a few
suggestions:
• Make sure the phones are answered
promptly (within three rings) by a
human who is happy with their job.
• Have greeters in the service lane to
greet customers promptly upon
arrival. They must make eye contact
within 10 seconds of arrival at your
door and they need to walk the customer
to their advisor.
• Limit the number of repair orders a
writer is allowed to write each day so
that they have plenty of time to
spend with each customer. We recommend
that you limit them to 12
to 15 per day max.
• Employ processes that ensure every
customer receives a complete walk
around inspection, is offered choices
of good, better, best pricing, and that
they are allowed to make “informed”
buying decisions by giving them the
features, advantages and benefits of
doing business with you.
• Keep the customer informed of the
vehicle’s progress. Make at least one
contact during the repair to assure
them everything is going well.
• An active delivery is a must. This is
the last (and most lasting) impression
you will leave with your customer.
Make sure it is positive, pull
their vehicle back into the service
lane, go over everything that was
done, review the technician’s findings,
set their next appointment
and, most important, have the
writers cashier their own tickets.
This minimizes the customer time
and it leaves them with a positive
last impression.
Get a fix on fixed coverage!
Larry Edwards is the Founder
and President of Edwards &
Associates Consulting, Inc.
p. 12 June 2008 Fixed Ops Magazine

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Feature
Fixed Ops Conference
Debuts This Month
Conference for Fixed Ops Professionals Promotes “Tooling Up for Change”
s Dorothy said in The Wizard
A
of Oz, “We’re not in Kansas
anymore”. You could say that
about the fixed ops side of
franchised dealerships.
Today, the business is nothing like what
it was just 10 years ago! Times are
changing and it has become survival of
the fittest for most of us. The vehicles
have become more technologically
advanced, requiring new methods of
repair. They are being built better,
needing less service. Customer expectations
have risen. Competition for those
customers has intensified from tire
shops, quick lubes, independent repair
facilities and accessory stores. To paraphrase
a popular TV commercial, they
want them all and they want them now!
To top it all off, new car sales have
slumped, putting more pressure on the
fixed ops departments to increase
profits to help cover the fixed costs of
the store. More and more attention is
being directed your way to increase the
income side of the equation and
decrease expenses at the same time.
Yet, what tools do you have to combat
this assault
Is there a better
way to learn
We all know the definition of insanity;
doing the same thing over and over
again but expecting different results. To
be able to compete, you must be willing
to adapt. But how How can you learn
about new and innovative ideas to build
your business A very good friend of
mine was recently promoted to Service
Manager at his dealership. He had been
one of the best Service Advisors at the
store and he had worked there for over
20 years. Talk about jumping out of the
pot and into the fire! When asked who
taught him how to be the Service
Manager, he replied “No one. I am just
learning it by the seat of my pants.
Right now I am trying to do what the
guy before me did.” Would you agree
with me that moving from Service
Advisor to Service Manager would be
an enormous culture shock with a completely
new set of problems
Bottom line: the business is changing
and you need to change with it! The
Fixed Ops Training and Education
Conference being held later this month
is designed with one goal in mind; give
you the tools to adapt. That’s why the
theme of this critical conference is
“Tooling Up For Change”! The conference
is being held from Friday afternoon,
June 20th thru Sunday morning,
June 22nd in order to give you the
ability to attend without taking a significant
amount of time away from the
dealership. We know how valuable your
time is and that you are too important
to be away for three days during the
week. Check out some of the topics to
be covered in the 22 different workshops:
• How to sell your excess parts inventory
on eBay Motors
• What is Bluetooth technology and
what role can it play in your business
• Discovering hidden profits in vehicle
accessorization
• Collision shop profits – Where do
they come from
• Structuring pay plans and customer
loyalty
• Tools for getting and maintaining
high CSI scores and retaining customers
• Low service productivity
• How’s your parts productivity
The list of topics covers all three areas
of fixed operations -- Service, Parts and
Body Shop. If you can pick up just one
idea that will improve your profitability,
it will more than pay for the cost to
attend! And where are you going to be
able to talk to and learn from others in
your field for three days You must be
there! Go to the insert in the middle of
this month’s issue to get all of the
details and sign up now. The conference
is just a couple of days away so
there is no time to waste. There is
limited space so if it has sold out, ask to
be put on a waiting list. This will be the
best opportunity for you to improve
your department this year. See you
there!
The Fixed Ops Training
and Education Conference
June 20-22, 2008, Irvine, Calif.
www.FixedOpsConference.com
p. 14 June 2008 Fixed Ops Magazine

Feature
Lessons From
Our Leaders
What Our Presidents Can Teach Us.
By Jeff Cowan
question I'm constantly asked
A
in reference to the processes I
teach is, “How do I get my
staff excited about these
ideas enough to get them to
actually do them”. The underlying and
real question that is being asked is,
“How do I lead”.
Although I have established processes
for Fixed Operations Managers to use
that help them become better leaders, I
thought that, for this article, it might
be more interesting to discuss where I
have found a lot of my guidance in this
area over the years. As many who know
me can tell you, I am an avid reader
and student of U.S. history. As a matter
of fact, I find that I learn more about
how to sell, manage, lead and motivate
from a good history book or biography
then I do most business books.
One of the easiest areas to learn about
leadership is from Presidential history.
At this point, the United States has
lived through 44 Presidents. In that
time, each of the 44 Presidents have left
behind a story or guideline of how to
lead or not. I have read at least two
books on each President and as many
as 20 about some. All told, in my best
estimate I have read over 250,000 pages
of Presidential biographies, not including
articles, compilations or general
books on the topic. What follows is a
very short list of a few Presidents and
what lessons I have learned from them.
Continued on p. 18
p. 16 June 2008 Fixed Ops Magazine

Congress for approval, it was a bold act
of leadership. But Jefferson did it
because he knew that if the United
States didn’t expand and claim the
land, Britain, Spain, France or some
other future world power would. If this
were to happen, he felt that it would
only be a matter of time before that
power came after our land as well. The
lesson: grow or contract. There is no
"maintain the status quo".
“A cane, when swung in the air, can
easily be blocked. So instead, I used the
cane like a spear, hitting the assassin in
the stomach and dropping him to the
ground. Once he was on the ground I
stomped on him”. Lesson: when in a
fight, fight fierce and use every weapon
you have.
GEORGE WASHINGTON
“I hope I shall possess firmness and
virtue enough to maintain what I consider
the most enviable of titles, the
character of an honest man.” As
President, he knew that every eye in the
world was focused on him and how he
acted. He was very aware that everything
he did would set precedence not
only for his generation but for generations
to come. He took this very seriously.
After all, how would he be able
to criticize another for an infraction if
he too was guilty of the same infraction
The lesson: if you want your people to
show up on time and work hard, you
need to show up on time and work
hard. Everything you do sets a precedent.
ANDREW JACKSON
ABRAHAM LINCOLN
Lincoln served one presidential term
and a portion of a second under circumstances
that were the toughest that
any President before or since has served
-- the Civil War. With most of his days
being filled with gloom and bad news,
Lincoln found that humor was his best
ally. In many situations when tensions
rose to beyond bearable, Lincoln would
break the tension and get all to come to
an agreement by adding humor through
anecdotes.
Continued on p. 20
Although there are many examples
throughout Jackson’s life that we could
use to prove that he was a fighter, my
favorite story occurred when he was 67
years old. As the President, he had just
attended a Congressional funeral at the
Capitol Building. Upon exiting into
the rotunda, a man approached the
sickly President with pistol in hand,
aiming at the President's heart at a distance
of 13 feet. The gun didn’t fire
due to the effect of Washington’s high
humidity on the gun powder. Jackson
“
started beating the man with his cane.
During the beating the man pulled a I find that I learn
second pistol placing it inches from the
more about how to
President’s heart with the same result.
The man then started to run away but sell, manage, lead and
was chased by Jackson. He was caught
motivate from a good
and the beating continued. Onlookers
(one of which was Congressman Davey history book or
Crockett) caught up to the fight, pulling
THOMAS JEFFERSON
biography then I do
Jackson away and, in the process, saving
When Jefferson made the Louisiana the assassin's life. Later, when explaining
the incident, Jackson explained that
most business books.
”
Purchase without first going to
p. 18 June 2008 Fixed Ops Magazine

The lesson: grow
or contract. There
is no "maintain
“the status quo”.
”
While being brow beaten one day by his
constituents regarding appointments to
several highly regarded posts, one of
Lincoln’s most persistent callers entered
the room with the news that the chief of
customs had just died and wanted to
know if he could possibly take his place
“It’s fine with me if the undertaker
doesn’t mind,” said Lincoln. From that
point, Lincoln was largely left alone to
choose who he wanted. The lesson: it is
easier to sell an idea or solve a problem
through humor than it is through an
argument.
TEDDY ROOSEVELT
The lesson learned from this President is
to love what you do and do it with great
enthusiasm. Nobody loved being
President more than Teddy did. Once
he put his mind to a task or getting
something through Congress, he rarely
failed. He would present his ideas with
such a level of passion and enthusiasm,
that it was nearly impossible to tell him
no. “The gift of the gods to T.R. was joy;
joy in life. He took joy in everything he
did; hunting, camping, ranching, politics,
reforming the police or civil service
or organizing and commanding the
Rough Riders.” And then his admirer
William Allen White added, “Roosevelt
bit me and I went mad.”
HARRY TRUMAN
I believe David McCullough, in his
Pulitzer Prize winning biography of
President Truman, said it best when he
said, “As much as any President since
Lincoln, he brought to the highest office
the language and values of the common
American people. He held to the guidelines:
work hard, do your best, speak the
truth, assume no airs, trust in God, have
no fear….qualities that made him a
figure of world stature, both a great and
good man and a great American
President.” He largely accomplished this
by “telling it” the way it was. He did not
mince words. “If you can’t stand the
heat, get out of the kitchen.” and “The
buck stops here!” were just a couple of
statements he used and lived by, earning
him the nickname, “Give-‘Em-Hell-
Harry!”. Lesson: tell it the way it is.
Recently, when asked if I had learned
anything from more recent Presidents, I
replied that I had. Ronald Reagan
taught me that having pride in what you
do and instilling it in those around you
is priceless. From Bill Clinton, I learned
that your entire legacy can be lost when
you imply that those around you are not
intelligent. He may not have known how
the word “is” was being used, but we did.
If you truly wish to become a great
leader, I have found that studying those
that already have done it in other fields
is the way best to learn. And it can offer
great relaxation and entertainment as
well.
Jeff Cowan is President of Jeff Cowan’s PRO
TALK®, Inc., specializing in training service
advisors through workshops, inhouse
on-the-drive training, DVD
training sets and an interactive
online accountability system.
p. 20 June 2008 Fixed Ops Magazine

Feature
Money Well Spent
It’s time to invest in customer retention.
By Randy Johnson
K, I’m a fixed operations
Oguy—you know that. And if
you’ve ever read any of my
articles, you also know that I
can be a bit controversial. So,
in an effort to keep up my reputation
for being a tough guy that “calls ’em like
he sees ’em”, here ya go.
In the past 10 years or so, I have seen
some dealers spend millions of dollars
on nice new facilities. I see state-of-theart
architecture, multi-level parking,
marble floors, restrooms that you’d find
in a Ritz Carlton and showrooms that
just blow me away. I have seen largescreen
TVs, computers with Internet
access for customers to use and interactive
kiosks to engage vehicle shoppers
with facts about the vehicles they sell.
And they didn’t stop there. They even
spent millions on the fixed operation
part of the business with hospital-clean
service departments, nice professional
service write-up areas, quick service bays
and all of the high-tech diagnostic
equipment you can imagine. I am an
old guy of 50 and, without a doubt, I
have to say that some dealerships have
come a long way.
What’s not there
So, here is the controversial part: I just
don’t understand how these obviously
smart, savvy businesspeople can invest
so much, go in debt so far and plan so
hard for success and not get the big
picture. What I’m talking about is the
lack of customer retention from sales to
service. It has always been a problem
and, for the most part, dealers have
buried their heads in the sand in the
hopes it will just “get better.”
Well, it won’t; it’s getting worse. In fact,
most manufacturers report that less
than 30 percent of new car buyers ever
visit the dealership for service. Why
Because there’s no reason to. Cars don’t
break like they used too, warranty work
is down, maintenance intervals are
stretched and customers have more
choices now than ever before when it
comes to getting their cars serviced.
With that said, my question is, why
don’t more dealers get it I understand
that a good customer retention program
is long-term and not as sexy as a huge
tent sale, balloons on the cars or some
wild, creative, “win a new car” FedExlooking
mailer campaign. But, my gosh,
look at the true cost and you will see
that the return on investment for
keeping customers is hundreds of times
more than the return you get by constantly
spending as much as $400 or
more per car sold to attract new customers.
The fact is, today a lot of dealers are
struggling. The high-rent factor, slower
car sales, and lack of service business are
taking their toll on a lot of previously
successful dealers. Do the math on the
amount of service business you would
have if you just got the new- and usedcar
buyers from the past three years to
visit your store for service at least twice
a year. What is your dollar average parts
and labor per repair order What is your
gross profit percentage How much of
that falls right to the bottom line It’s
time to stop burying your head in the
sand. Think long term for once; spend
some money on a good customer retention
program and be patient. It will pay
off in a huge way if you do it right.
Randy Johnson is founder and president of Car
People Marketing Inc., a provider of customerretention
solutions including rewards, reminders,
direct mail, e-marketing, newsletters,
phone follow-up, gift cards
and service advisor sales training.
p. 22 June 2008 Fixed Ops Magazine

to learn about
“the program” visit:
www.zakproducts.com
Always Improving Performance TM

Feature
Is Now Really the
Time to Cut Training
Making the Most of Difficult Times.
By Sally Whitesell
Many of you are struggling with
the task of cutting expenses.
It only makes sense that,
whenever store profits fall,
budget cuts begin. The challenge
is knowing where to make the cuts.
Should money be pulled from advertising,
personnel, your facility, amenities for
employees and/or clients, outside vendors
or employee training I could make a list
of the pros and cons for each category,
most of which you have already thought
about in your search to make an informed
decision. After working with advisors for
sixteen years and consistently monitoring
the month-end reports from stores that
are dedicated to training verses those who
don’t make it a priority, I would like to
give you a few points to consider.
It is no secret that car sales are down in
most markets right now because of the
condition of the economy. Dealers traditionally
received their greatest profits
from the front end. It isn’t surprising that
they are starting to feel panicked and are
looking for ways to make cuts. They
understand that their sales team needs to
be stronger than ever in order to make the
most of each opportunity. This leads to
more intense sales training sessions in an
atmosphere where only the best survive.
Entire Picture
We must look at the entire picture to
understand what a recession means to the
automotive industry in order to make
informed decisions.
p. 24 June 2008 Fixed Ops Magazine

In past economic slowdowns when consumers
stopped buying new vehicles,
they spent more money repairing and
maintaining the ones they already
owned. They were also more willing to
spend money on accessories because it
gave them the gratification of getting
something new at a time when they
couldn’t afford to actually trade up.
Manufacturers are aware of this history,
which is why we are seeing so many
incredible deals being aggressively advertised.
This brings up the next issue
regarding new car sales. Most Americans
are running low on available credit
which can make it hard to get approvals,
even if they are willing to take on more
debt.
“
The goal is to deliver
a consistent process
every time your
clients come in
for service.
”
Difficult Times
How do we make the most of these difficult
times Considering past trends, I’m
not surprised to hear from many of you
that your service departments are starting
to get busy again. As opportunities
are decreasing in the front end, they are
increasing in the back end. Are you and
your staff ready for this switch in business
Have your people been trained to
sell service and parts Are accessories displayed
and prices available
Your service advisors are now in the position
of becoming the most important
sales team in the dealership. In many
cases, the service department is already
pulling the store. You are missing huge
opportunities if you are not considering
your advisor’s communication and presentation
skills to be a vital part of your
dealership’s success. You cannot afford to
settle for an average performer in this position
any more than you would settle for an
average new car sales representative.
Tools and Commitment
You must give them the tools and
commitment needed to reach new
levels of service! Advisors see more
clients face-to-face in a day than any
other sales representative. They are
one of the most important client
relations representatives in your dealership.
Have you given them everything
they need to be professional
and successful My experience has
made me a firm believer that the
most effective training must consist
of the following:
• Process oriented classroom
training that is easy to follow
and implement
• Benefit-based presentations
skills with the
focus on personalizing
and closing
• O n - t h e - d r i v e
coaching, critiquing
and
role-playing
by someone
who knows
and can deliver
the process
• Personal as well as
professional goal setting
• Continuous monitoring and encouragement
• New material to stimulate growth and
prevent boredom or burnout
Many consultants have never been given
complete instruction in the write-upthrough-delivery
process with guidelines
and selling word tracks. This leads each
of them to form their own process,
which means you end up with many different
routines and multiple messages
for your clients to decipher. It often
creates the perception of chaos, causes
miscommunication, lost sales and lost
retention. The goal is to deliver a consistent
process every time your clients come
in for service. They should know what to
expect from the moment they enter the
drive until the car is complete and professionally
delivered. This will eliminate
stress and confusion
for both parties
involved.
The next thing to
consider is how much
a strong process and
presentation will
increase your client paid
sales. As much as we want
our clients to experience
exceptional service, we still
need to generate enough
revenue to justify the training
expense. Take a moment to
review what a 4/10ths increase in
hours-per-RO means to a store that
generates 60 ROs per day.
If your effective labor rate is
$80.00 1/10th would be
$8.00 X 60 repair orders =
$480.00 per day
X 22 work days
in a month =
$ 10 , 5 6 0 . 0 0
additional CP
dollars per
month
X 4 for our 4/10ths
increase = $42,240.00 per month
X 12 months = $ 506,880.00 additional
CP Dollars per Year!
It is hard to ignore the potential for this
type of increase. You will see even more
improvements with continuous training.
Not only will it affect your bottom line,
but you will also increase client satisfaction
scores and retention. Hopefully,
seeing the numbers will help you to eliminate
one option from your list of budget
cutting categories. Can you really afford
to stop training Maybe you should cut
out the donuts instead!
Sally Whitesell is president of Sally
Whitesell’s Service Solutions. She
has been a training professional for
over sixteen years with experience
as a consultant and service
manager in an import store.
June 2008
Fixed Ops Magazine p. 25

Feature
Latest Technology
Tools Improving
Fixed Ops Efficiency
And Traffic
Dealers today have more opportunities than ever to build service business.
By John Miller
merging and existing (but as yet
Enot fully exploited) technologies
offer auto dealership service
departments exciting opportunities
for improving operational
efficiencies, parts sales, customer-pay,
warranty revenue and customer relationships.
If your dealership service department is
not yet leveraging one or more of these
technologies, the time to do so is now.
Economic realities mean dealership
service departments must be more efficient
and clever than ever in how they
operate and how they market their business.
Warranty-pay revenue is down,
vehicles need fewer repairs and less
maintenance than ever before – and the
competition from independent service
centers and body shops continues
relentlessly.
As with any technology for the dealership,
its application to your business
must be evaluated for its return on
investment and how it will integrate
with your business processes. The addition
of any technology should, after an
initial set up and learning curve,
provide seamless operational efficiencies.
Before you buy, learn what you can
about these products, talk to other
dealers already using them and then be
sure the vendors of these technologies
have a track record of success, not only
with the product’s viability, but as to the
results received in like dealerships.
This article explores some of these new
and as-yet underutilized technologies.
Vehicle tracking
Radio frequency identification or RFID
consists of wireless readers and
transponders that provide for tracking
and accountability of hard assets, such
as vehicle keys and lot inventory. RFID
has uses for the service department as
well. It helps service staff easily locate
vehicles on the lot awaiting service or
undergoing prep for customer delivery.
For dealerships with large lots or lots at
multiple locations, this tool can save
considerable time and frustration for
service staff – not to mention putting
the car in the bay quicker for more
volume throughput.
Staff communications
Wireless Voice over Internet Protocol,
or VoIP, eliminates traditional phone
system technologies and related costs.
Essentially, it is telephone via the
Internet. Service advisors, technicians
and other service personnel who are
connected to the VoIP network via wireless
phones can make and take dealership
business calls directly. This permits
the use of business communications
without having to leave a workstation.
Its use also eliminates the need for
audible pages and intercom calls,
making the dealership a quieter place
for staff and waiting customers.
Check-In Efficiency
Mobile notebook or laptop computers
loaded with vehicle check-in menus and
vehicle inspection schematics help
service advisors conduct a more thorough
check-in process.
p. 26 June 2008 Fixed Ops Magazine

“
If your dealership
service department
is not yet leveraging
one or more of these
technologies, the
time to do so is now.
”
These tools enable the service advisor to
get out from behind a desk and write-up
the repair order right at the vehicle’s and
customer’s side. This has proven to aid in
better identification of customer repair
and service needs. Plus, because these
tools promote a thorough walk-around
inspection, it enhances opportunities to
identify additional customer-pay business.
Use of this technology also helps protect
the dealership from claims of damage
while the vehicle is in the dealership’s
possession. For instance, use of these
tools helps advisors note – and obtain
customer signatures to – existing blemishes
and dings on the customer’s vehicle at
the point of write up.
Technician Efficiency
Service technicians can burn a lot of
costly time looking up parts numbers,
checking repair manual schematics or
wiring diagrams, sourcing Technical
Service Bulletins and calling to manufacturers’
technical support organizations
about unusual or especially challenging
repairs.
Two technologies are especially useful
here. Mobile connectivity tools give technicians
access to all these needs at their fingertips,
by connecting them directly to
OEM data and other service information.
It can also speed problem diagnosis and
resolution. This technology also can help
technicians make more thorough inspections
of vehicles on the rack to identify
safety needs not identified as part of the
vehicle write up and help service departments
generate more customer-pay
revenue. Heads-up display devices place
schematics and repair data right in the
technician’s field of view on special displays
worn on the head. By eliminating the
need to leave the work to consult manuals
and other information, such tools speed
repairs by saving technicians time.
Traffic builders
Marketing to drive new and repeat business
into the service department can be
costly. Fortunately, new technologies are
reducing these costs while returning better
results. For instance, digital printing
makes possible highly customized, shortrun
print mailers at affordable prices.
Likewise, one-to-one e-mails are also highly
customizable and eliminate printing costs.
The response rate generated from one-toone
e-mails can be up to six times the
return of conventional print direct mail.
As the cost of print mailers continues to
decrease, and as e-mail mailers are already
inexpensive, the risk increases that these
marketing efforts may be used inappropriately
to drive customer traffic. The key to
success for either medium is how it is used;
effective email and direct mail must deliver
value to each recipient.
In general, this means these technologies
should not be used to “spam” or “litter”
customers with generic sales materials.
Customers see value in direct mail and
email that reminds them about service
appointments or vehicle service needs
based on mileage and other factors. They
may also be used effectively to notify them
about specials or (in the case of promoting
products of specific interest to specific
owners) to reach a customer about a sale
on spoilers or high-performance tires for
their particular vehicle.
Continued on p. 28
June 2008
Fixed Ops Magazine p. 27

Done improperly, both print and e-
mail do one thing well: they turn off
customers who won’t say a word but
will then take their business elsewhere.
Likewise, voice messaging, when used
correctly has great marketing and relationship-building
potential for a dealership
but it can easily irriate customers
when used improperly.
Recipients of broadcasts announcing
the latest sales event, for instance,
quickly realize such communication is
nothing more than an uninvited and
unwanted sales pitch from their dealer.
One of the newest communications
technologies, text messaging, can help
your dealership reach customers wherever
they are. For instance, by using
text message codes in print ads or e-
mail communications – or sent from
the dealership CRM tool – customers
can text appointment scheduling right
to the service department, can specialorder
parts or may engage in other
business. Such online scheduling frees
customers from having to be at their
computer to initiate such action. How
often do your customers think about
vehicle service needs when driving or
when otherwise away from a computer
Keep in mind, however, that receipt
of your messages might just cost the
cell phone owner. Just be careful how
you use text messaging.
Finally, if your dealership is not using
some type of customer relationship
management (CRM) tool, it is not
maximizing your relationship with
your customers.
Regardless of the tools you use to
connect with your service customers,
their first and best use is to build customer
relationships. Be sure your marketing
efforts put forth value to your
customers and they’ll bring their business
to your doors.
John “Max” Miller is founder of
@utoRevenue, Inc., a provider of
comprehensive multi-channel
communications that combines
e-mail, direct mail, voice messaging,
online appointment scheduling
and e-newsletters.
p. 28 June 2008 Fixed Ops Magazine

Hal Scott's
Automotive School of Management
Fixed Operations Management training options that challenge the way you do business!
Record Profits Today!
Blueprinting Body Shop Capacity:
Improving shop efficiency and productivity for improved profits.
Profit Paradigm:
How to rethink making money in fixed operations.
Improving Profitability Through Fixed
Coverage:
How to have the fixed operations carry more of the financial
responsibility of the store.
Remaining Profitable in Spite of Extend
Maintenance:
How to replace the lost maintenance with new profits.
Unifying Pay Plans:
How to get the entire Fixed Operations team on the same
page.
Next workshops in June and July 2008
• Learn advanced skills available only at Automotive School of Management.
• Leave the workshop with a detailed written plan of action specific to your store.
• Learn from the finest instructors in the industry.
• We guarantee your satisfaction.
Next Date: June 10-12, 2008
Location: Oakridge Conference Center in Chaska,
MN (Minneapolis suburb) just 30 minutes from the
airport. Oakridge is a world class facility that adds to
the learning experience.
Hal Scott – President and Managing Partner
hal@automotiveschoolofmanagement.com
www.automotiveschoolofmanagement.com
(800) 858-7618
See us at the FixedOps Magazine Conference and attend our 3 workshops!
June 20 - 22, 2008 Irvine, CA

Announces...
Tooling Up For Change
A Training and Education Conference dedicated to
all the Fixed Ops Departments at your dealership!
Sponsored by:
June 20-22, 2008
Orange County, California
Irvine Marriott Conference Center
service parts body shop
Sign up online at: www.FixedOpsConference.com

“Tooling Up For Change”
“
It's the only automotive event of its kind in the nation - and it is designed
specifically for you, the Fixed Ops Professional. The Fixed Ops Training
and Education Conference delivers with speakers, workshops and
exhibitors presenting ways to make your Service Department, Parts
Department and Body Shop more efficient, effective, productive and
profitable. You can't afford to miss the Fixed Ops Training and Education
Conference. It's the one event that puts the fixed ops automotive world
at your disposal... all in one place. This conference was built around you
to minimize your downtime at the dealership. Starting Friday afternoon
and ending Sunday morning allows you to be back Monday morning with
plenty of fresh, innovative ideas that will help you make more money!
”
Don DiCostanzo
Fixed Ops Conference Chairman
P.S.
For
the latest information and
complete bios of all speakers who
will be presenting in June, be sure to
visit www.FixedOpsConference.com
Partial Sponsor and Exhibitor List
Sign up online at: www.FixedOpsConference.com

Agenda
Friday, June 20, 2008
11:00 am - 8:00 pm Registration Open,
Conference Center Lobby
2:00 pm - 3:15 pm Workshops - Session 1
3:30 pm - 4:45 pm Workshops - Session 2
5:00 pm - 7:30 pm Welcome Reception –
Exhibit Hall
Cocktails and Appetizers
Saturday, June 21, 2008
7:30 am - 8:45 am Continental Breakfast -
Exhibit Hall
8:45 am - 9:15 am Opening Remarks
Keynote Address - Larry Edwards
Sponsored by Halo Special
Edition Vehicles
9:30 am - 10:45 am Workshops - Session 3
11:00 am - 12:15 pm Workshops - Session 4
12:00 pm - 2:00 pm Exhibit Hall Open
Why Should I Attend
By attending the Fixed Ops Training
and Education Conference you will
receive:
• 22 Educational Workshops given by
22 different industry experts on
service, body shop and parts.
• Get the information you need to
better manage for increased sales
and improved profits.
• Hear about the latest available tools
to optimize the internet for service,
parts and body shop.
Who Should Attend
• Dealer Principals
• General Managers
• Fixed Operations Directors
• Service Managers
• Parts Managers
• Body Shop Managers
12:30 pm - 1:30 pm Buffet Lunch – Exhibit Hall
Sponsored by DealerTrack
2:15 pm - 3:30 pm Workshops - Session 5
3:45 pm - 5:00 pm Workshops - Session 6
6:30 pm - 9:30 pm Saturday Night Racing
Competition at K1 Speed!
Dinner at K1 Speed
Sponsored by Cragar Classic Wheels
Sunday June 22, 2008
7:00 am – 8:00 am Continental Breakfast
8:00 am - 9:15 am Workshops - Session 7
9:30 am - 10:45 am Workshops - Session 8
11:00 am - 12 Noon "Whiteboard" Round Table
Discussions
"Thanks for giving us this great
opportunity to gain fresh perspectives
from industry experts!"
Denise Fladeboe
Dealer Principal, Fladeboe Automotive Group

AN INDUSTRY-LEADING LINE-UP
Larry Edwards
President
Edwards & Associates
Consulting, Inc.
"Tooling Up For Change!"
Dealership Managers are the captains of their ships. All the staff in your department are constantly looking to you for
direction. It is your job to set the course of the ship, determine when it will arrive and change course if necessary. Larry
will help all dealership managers understand how to steer your ship, which direction to steer it and most importantly,
provide you the tools you will need as captain.
Hervé Blanquart
Consultant
Your Ticket to Making Big Profits in Oil Changes, Synthetic Fluids
One of the biggest opportunities in making additional profits is right under our nose – synthetic fluids. In a typical franchised
dealership, 50% of all customer pay repair orders have a money-losing oil change on them. Learn how to turn those
opportunities in profits with synthetics.
Brian Brasch
Chairman
Get Nitrogen Institute
Larry Brown
Trainer
Performance Development
Center JM&A Group
Doug Courtney
National Sales Manager
Global Finishing Solutions
Nitrogen In Your Service Department
What is the opportunity to make money with nitrogen in tires Who is doing it and how Will the OEMs be putting Nitrogen
in cars at the factory Are you considering an investment in a nitrogen system but you’re not sure how it will benefit your
customers Or have you recently begun providing nitrogen to your customers Learn about Nitrogen Basics, How
Nitrogen Systems Work, Optimal Purity Levels and How to Make Money.
Structuring Pay Plans and Customer Loyalty
Most Service Department pay plans focus exclusively on the number of hours and dollars per RO, as well as the effective
labor rate. Service Advisors are encouraged to make as much money as possible on each customer, with little emphasis
placed on turning that customer into a long-term client. This seminar will emphasize the importance of creating long-term
service customers, and creating pay plans designed to help achieve that goal.
Spray Booth Technology and Waterborne Paint
Learn all about the latest developments in advanced spray booth technology relative to energy savings, waterborne paint
processing and legal compliance. Gain critical knowledge from someone with decades of experience with paint booth
manufacturers.
Jeff Cowan
President
Jeff Cowan's PRO TALK®, Inc
Dora Fang
Senior Manager
eBay Motors
Tools for Getting and Maintaining High CSI Scores and Retaining Customers
How many dealerships have battery testers, tires, brakes, accessories and other products sitting idle on the shelf How
many dealerships struggle with customer satisfaction scores and customer satisfaction How many dealers have
inconsistency with traffic throughout the year Learn how to substantially increase Customer Satisfaction Scores, Customer
Retention, Overall Productivity and Customer Paid Labor and Parts Sales.
How to Sell Your Excess Inventory on eBay Motors
Many dealers are using technology to sell new parts, obsolete parts, and over-stocked inventory all over the world! How
are they doing it Find out from the No. 1 automotive site on the Web* how to go back to your store and create a whole
new profit center within fixed ops.
Greg Field
Senior Consultant
Edwards & Associates
Consulting, Inc.
Kaare Gjerding
Senior Consultant
Hal Scott Consulting
Collision Shop Profits - Where They Come From
This workshop will reveal the tools, methods and procedures necessary to have a successful, profitable collision repair
shop as part of a franchised car dealership. If you are challenged by constant changes and pressure to improve profits,
this session will provide you the tools you need to succeed.
Front Loading the Body Shop
Increase your capacity without increasing your staff. Learn how to double your stall efficiency, deliver accurate promise
time, reduce rental days, decrease supplements and gain favor with insurance companies.
Lee Harkins
President
ATcon
Max H. Hirsch
President
Maximum Equipment &
Technical Service
Ethical Service Sales Management
This workshop is designed to provide a frontal attack on the industry trend toward the hard-sell approach of service
selling. The obsession on increasing hours per customer repair order is working but at the expense of reduced customer
repair order traffic and skyrocketing rates of defection. Learn how to focus on continued growth, improving net profits
and how to sell more in your service department.
Essential Do's and Don'ts of Facility Planning
This is a workshop for you if you are charged with future facility planning including site and building analysis,
selection, planning, shop flow concepts, smart selection of equipment and vendors / equipment purchase
agreements.

OF CONFERENCE PRESENTERS!
Jeff Knittel
Trainer - Performance
Development Center
JM&A Group
Using Production Groups to Improve Body Shop Profitability
Many dealerships today struggle to maintain a profitable Body Shop. This workshop will demonstrate how utilizing
Production Groups can increase vehicle turn-around time, improve individual productivity and efficiency, and lead to
greater customer retention and CSI scores. Participants will learn how to create effective Production Groups in their Body
Shops, thereby resulting in a more profitable department.
Ellen McKoy
Executive Director SEWA (SEMA)
Tom Carre
Fixed Operations Specialist
DealerPro Training Solutions
Sean Meckley
Marketing Program Manager
Bluetooth Special Interest
Group Presented by Motorola
Jeff Painter
Director of Operations
ADP, Inc.
Discovering the Hidden Profit in Vehicle Accessorization
Find out how accessorizing can generate faster sales for great profit. Learn how to use accessories to increase sales,
stimulate impulse purchases and create high-margin profit centers. Uncover the benefits of ProPledge—a potent
marketing tool that attracts new customers, boosts add-on sales and ensures customer satisfaction across the board.
What is Bluetooth technology
Why should your customers want it in their vehicles Learn how Bluetooth products add value for your
customers and for your dealership. California and Washington are two of the latest states to introduce laws
that affect every driver who wants to make a call while on the road. Learn about the many options Bluetooth
technology offers to let drivers stay connected and legal while keeping their hands on the wheel.
Proactively Marketing Your Parts Inventory
Learn specific steps to that you can use to increase parts sales and profits by proactively marketing your inventory. This
workshop will help you figure out a total strategy using both traditional and new technology tools for both retail and
wholesale sales.
Dave Piecuch
President - Parts Division
Automotive Consultants
Group, Inc.
Charlie Polston
Profitability and Customer
Retention Consultant
BG Products, Inc.
Rich Reinicke
Vice President
Automotive Warranty
Network, Inc.
Hal Scott
President
Hal Scott Consulting
Jarrad Scott
Senior Consultant
Hal Scott Consulting
Low Service Productivity... How's Your Parts Productivity
If you want to know how much your parts fill rates and stock order performance can impact service productivity, this is
the workshop for you. You will learn how to have the right parts at the right time. Participants will actually calculate how
much gross profit is being lost in their dealerships.
The Shortest Distance to Your Sales Floor is Through Your Service Door!
Today’s dealerships actually have two sales floors: the new and used car sales floor and the service sales floor! Our
industry places a high priority on customer satisfaction and customer retention; but these two indexes are worthless if
they don’t increase gross profits. This workshop will explore proven methods that bridge the gap between fixed ops and
variable ops.
Proper Claims Processing and Keeping Your Warranty Dollars
It is of critical importance to provide proper warranty training because of the changing climate from the manufacturer. In
this workshop, you will learn how to monitor your manufacturer’s warranty trend report by learning what items to watch
for, what they look like on the repair order and what specific items the manufacturer is looking for and why.
The Profit Paradigm - Rethinking How You Make Money
With the changing business environment, does it makes sense to challenge ourselves to reinvent our business structure
During this workshop, we will discuss the income streams that create long term value and uncover new income generators.
We will also demonstrate how to focus resources around the true profit points and help you evaluate how your business
stacks up against this new model.
Identify and Train the Next Generation Service Consultants
Finding and qualifying service consultants is drastically different today and you can get the tools in this workshop to excel
with top talent. Learn what to look for, how to train and retain and what you need to do to motivate the performance you
desire.
Chris Stevens
Sr. Manager
Reynolds Consulting Group
David Stringer
President
Insignia
Reducing the Tension in Customer Retention
This seminar will address ways to not only maintain but to also increase customer retention over time through
proper and consistent relational contact and follow up. In addition, we will also address customers’ perceptions
of your service department and explore methods to decrease the service department defection rate through
a discussion of industry trends and possible responses to those trends.
Your Accessory Business in 5 Years
What will the accessory business look like in 2013 Why will it be critical to a dealership’s success What do you need
to do now to prepare and be ready

Important Reminders
Registration Information:
Register now for the best industry event to learn about
all of the new trends in Service, Parts and Body Shop.
Make sure to register early as we anticipate this event
will sell out! This is the one conference you don't want
to miss.
Prior to June 20 $695
At the conference $795
Conference Registration Fee covers conference
admittance and conference meals; Friday - Welcome
Reception, Saturday - Breakfast, Lunch & between
session Breaks, Sunday - Breakfast.
Conference registration fee does not include hotel
accommodations, parking, travel, ground
transportation or any other participation costs not
specifically listed as included in the conference fee.
Your registration is not confirmed until paid in full.
___________________________________________
Register Now before
It Is Sold Out!
"Count us in! What a great forum to
hear about breakthrough insights from
industry experts."
Scott Whitehead
Director of Fixed Operations, Toyota of Escondido
Refund/Cancellation Policy:
• Prior to May 30, 2008 a $ 300 administrative fee will
be deducted from your refund.
• June 1 through the conference there are no refunds
for cancellations or no-shows.
• Any prepaid registration can be transferred one
time to another employee of your organization with
no administrative fee until June 6, 2008 at 5 pm
PDT. After that time, including on site at the
conference, there is $100 service fee for incompany
transfer of a registration to another
employee of the same organization. Transfers are
not permitted to a registrant who is outside of your
organization.
• Refunds are paid to the entity originally paying the
registration fee and by the same method by which
the original payment was made.
___________________________________________
Travel Accommodations:
Marriott Irvine
18000 Von Karman Avenue
Irvine, California 92612
Phone: 1-949-553-0100
www.marriotthotels.com
Complimentary airport shuttle from John Wayne Airport!
Special rates for attendees:
US $149 room rate per night for a single/double
standard guest room. To make your reservation simply
click here. Be sure to enter Group code FOCFOCA on the
registration form! Or you can call 1-800-228-9290 and
please mention that you are attending the Fixed Ops
Training and Education Conference to receive your
preferred room rate. Deadline for room reservations is
June 15, 2008.
Sign up online at: www.FixedOpsConference.com

Tooling Up For Change
A Training and Education Conference dedicated to all the
Fixed Ops Departments at your dealership!
June 20 - 22, 2008 Orange County, CA
REGISTRATION FORM
One form per person. If additional copies are needed, please reproduce this form.
Attendee Information
Name ____________________________________________
Name on badge ____________________________________
Title ______________________________________________
Company __________________________________________
Address __________________________________________
City ______________________________________________
State/Zip __________________________________________
Phone ____________________________________________
Fax ______________________________________________
E-mail ____________________________________________
Registration Fees:
Prior to June 20 - $695
At the conference - $795
Grand Total Enclosed:
–––––––––––––––––––––
Payment:
AmEx MasterCard Visa
Check Enclosed - Payable to Prism Automotive
Bill Me
Card No. ______________________________________
Expiration ____________________________________
Name on Card__________________________________
Refund/Cancellation Policy:
• Prior to May 30, 2008 a $ 300 administrative fee will be deducted from your
refund.
• June 1 through the conference there are no refunds for cancellations or noshows.
• Any prepaid registration can be transferred one time to another employee of
your organization with no administrative fee until June 6, 2008 at 5 pm PDT.
After that time, including on site at the conference, there is $100 service fee
for in-company transfer of a registration to another employee of the same
organization. Transfers are not permitted to a registrant who is outside of your
organization.
• Refunds are paid to the entity originally paying the registration fee and by the
same method by which the original payment was made.
Travel Accommodations:
Marriott Irvine
18000 Von Karman Avenue
Irvine, California 92612
Phone: 1-949-553-0100
www.marriotthotels.com
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Feature
Evaluating Marketing Tools Part 3
Are you using Traditional or Next Generation tools to manage and retain
customers
By Curtis DeGroote
n Part 2, we took a look at gath-
customer data and evaluat-
Iering
ing feedback on staff, programs
and processing. Now in Part 3,
let’s touch on how to centrally
manage all the communications, data
and feedback with a single tool while
using multiple vendors or consolidating
into one relationship covering multiple
segments of your marketing.
“
Traditional vs.
Next Generation
Let’s dive into traditional versus next
generation marketing tools again. In
this case, we will look at the marketing
management platform. What in the
world is a marketing management platform
The easy answer is that it is a
single location where you can manage So how can I do it
the following services: Sales Retention
& Renewal Programs, Service
Retention & Reactivation Programs,
On-Demand Marketing Campaigns,
Customer Feedback, Customer
Updates, Do-Not-Contact
Compliance, Live and Recorded Call
Monitoring, Campaign Results
Management, Business Intelligence
Reports and Central Data
Management.
This technology tool should be something
you are using in your shop every
day. If you’re not, you have a great
opportunity to improve your performance
for the rest of 2008.
The question is posed again: are you
using traditional or next generation
technology How do you know
Powerful, impactful marketing in
today’s environment is not only
crucial, but understanding how
impactful your marketing has been or
has not been is even more critical.
Your competitors are likely participating
in some type of marketing management,
learning from it and making
better choices going forward. It is also
possible that they are not and this may
allow you may stay a step ahead of
them.
The unique advantage
that these dealerships
enjoy is that all locations
and all services run on a
single central platform.
How can you leverage today’s technology
to manage your marketing and reach
more of the right people How can you
measure the marketing, the customer
feedback, compliance and your customer
data You have to begin by centralizing
the data / vendor relationships,
the marketing output and
finally, the inbound responses / customer
feedback. You shouldn’t have to
go to 4-5 places to get answers or
benchmarks of your marketing programs.
In fact, you don’t have to.
That’s exactly what I am talking about.
Here is a guide to various segments
that you likely encounter today.
Although I have broken out these segments,
they should be seen as being
“under one roof”, so to speak. If you
are managing these segments separately
today, there is a better way. Take a
”
moment to check off which of these
you are using and if you are using separate
vendors for each segment, then
compare to managing them all from
one location.
Self Test - Check the Segments you
have integrated today
Traditional or Next
Generation Technology
| Key Segments
Sales Retention & Renewal Programs
Do-Not-Contact Compliance
Service Retention &
Reactivation Programs
Live and Recorded Call Monitoring
On-Demand Marketing Campaigns
Campaign Results Management
Customer Feedback
Business Intelligence Reports
Customer Updates
Central Data Management
So why do successful dealers use a
central marketing management platform
Over the years, as more channels
of communications have come out
(email, text, automated phone) there
appeared a host of technology companies
that were good at that one thing.
Now those same companies have
merged with traditional media such as
direct mail because they realize that
one medium doesn’t reach all of the
dealers customers. With this same
movement, dealers began to try to consolidate
their marketing from multiple
vendors to a single source solution.
What does it mean to you
Continued on p. 40
June 2008
Fixed Ops Magazine p. 39

Well, it saves time and money and makes your brand look
better because your marketing becomes consistent, your
reporting is consistent, your data is consistently managed
and you have only one location to go to manage all your
programming.
As seen here, the existing marketing & data management
platform allows for complete management of your marketing,
data and reporting in a single location.
Here centralized customer feedback management of all of
your customers also exists in this one place.
In this example you can see that centralized marketing
management for all your programs exists in this one location
on this platform.
This screen shows how centralized customer contact management
for updates and do-not-contact for all your customers
is brought together in one place.
All of these examples illustrate a central environment
where the use of next generation technology is employed
today in cutting edge stores. The unique advantage that
these dealerships enjoy is that all locations and all services
run on a single central platform which they use to
manage their leads, feedback, response, data and logicdriven
programming.
This competitive advantage allows them to eliminate
wasteful duplication by consolidating the multi-vendor
services, thus avoiding confusion and maintaining legal
compliance. This saves time and money and provides the
consistent, one-to-one marketing management edge that
most dealerships are gravitating toward. This is part of the
next generation technology: the Central Marketing
Management Platform.
Watch for more review of marketing tools to
come in Part 4 of this series.
In this exhibit centralized data management of all your
customers exists in one location.
Curtis DeGroote is director of research and product
development for DMEautomotive.
p. 40 June 2008 Fixed Ops Magazine

Feature
Firing On All Eight
Cylinders
An Implementation Strategy.
By Pete DelVecchio
our dealer blasts into your
Yoffice with the latest set of
financials. “I need more from
your department. Car sales
are down and expenses are
up. I need a rough plan on my desk by
tomorrow.” There is no vote, discussion
or debate.
Questions fire away in your head.
What needs to be done first Do I
have time Should I focus on increasing
production or revenue first Your
chest tightens. You need a new plan.
If your advisors would rather suck the
exhaust from a ’72 Cadillac than sell
additional services, focus on improving
capacity / production first. If your
techs are leaving early and you think
that fixing the squeaks on an M1A1
Abrams tank at warranty time guides
seems inviting, you should target
revenue first.
You are going to get out of any plan
exactly (and in proportion) what you
put into it. What is needed, then, is an
implementation plan for you to know
where you stand, maximizing the
opportunities available. The plan
needs milestones to help motivate you
along the way while keeping the dealer
informed and providing confidence to
key team members that things will get
better.
The following plan provides basic steps
to gauge how close you are getting to
“firing on all eight cylinders.” The
firing order should be changed
depending upon your circumstances.
Within each cylinder, or focus area, are
listed recommended action items.
Proceeding along the focus areas
should give you that sense of accomplishment
which should motivate you
to proceed to the next cylinder. You
can prioritize the cylinders based on
your particular needs or circumstances.
The following is a recommended order
of importance for a dealership that
needs to generate revenue as it’s first
priority:
Continued on p. 44
p. 42 June 2008 Fixed Ops Magazine

1) Rate
2) Personnel
3) In-the-drive activities
4) Scheduling
5) Retention
6) Production
7) Conquest
8) Tweaking
If a dealership needs to increase capacity
/ production first, consider this
order:
1) Personnel
2) Scheduling
3) Production
4) Rate
5) In-the-drive activities
6) Retention
7) Conquest
8) Tweaking
Here’s what you could look for in each
area.
“Rate”
• Set door rate to be competitive and
comparable.
• Set grid rate for repair rates.
• Set internal rate to customer pay
rate.
• Create competitive service menus
that mirror the manufacturer’s recommendations.
• Establish competitive pricing on
brakes, tires, wipers and batteries.
There is no point in trying to merchandise
a service that is not priced correctly.
It is also important to let everyone
in the dealership know that the dealership
is becoming price competitive. In
many cases, the perception of many
employees is that the dealership is overpriced.
“In-the-drive activities”
• Stock tires and establish quick
quotes for advisors. Consider both
premium and value brands. You
MUST stock them. Your employees
will NOT sell them unless they are
in stock.
• Purchase a battery tester with
printer for each advisor.
• Establish labor ops and enter into
DMS system for tire and brake wear
measurements. Enter readings into
system if your system allows it.
• Institute a multi-point inspection in
the service drive for 100% of the
customers.
• Institute sales training for service
advisors.
Before we go out and spend the
dealer’s money on advertising to
obtain more customers, mine more of
what is already coming in. Start building
a database for direct mailing future
dealership specials for brakes and tires.
“Scheduling”
• Create an appointment system.
• Assign a service advisor to new and
used car customers that did not have
introduction at delivery.
• Set next service appointments with
customers when taking receipt of a
vehicle that’s in for service.
Continued on p. 46
“
Studies have shown
that customers who
attend a new owner
clinic spend 40% more
in service than those
who do not.
”
p. 44 June 2008 Fixed Ops Magazine

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Visit the Fixed Ops Website (www.FixedOpsMag.com) and
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The emphasis is to create more orders,
allow time for a thorough inspection
and lock in the customer for the next
appointment. Most dealerships have a
new / used car delivery process that
entails a service walk and introduction.
“Retention”
• Create a firm schedule for new
owner clinics.
• Install a direct mail system that
incorporates brake and tire measurements
from your multi-point inspection
process.
• Collect e-mail addresses from all
service customers.
• Order and install POP materials in
the drive and in the customer
waiting areas.
• Dump excessive flushes.
New Owner Clinics are proven to
retain customers since they start off a
trusting relationship with the consumer.
Studies have shown that customers
who attend a new owner clinic
spend 40% more in service than those
who do not. Now that there is a database
of brake and tire measurements
from vehicles in the DMS, we should
start to direct mail them with service
reminders. It’s also time to let all customers
know that the dealership is
competitive. If you do a thorough RO
analysis, you will notice that many customers
defect after you have flushed
their wallets clean. Knock it off.
“Personnel”
• Determine the correct number of
advisors and create a competitive
and motivating pay plan.
• Determine the correct number and
skill level of technicians and create a
competitive and motivating pay
plan.
• Establish and implement production
objectives for technicians.
Notice that for techs, we are also
talking about skill level. Many shops
have enough “A” techs. Think “cost of
sale”.
“Conquest”
• Create a promotional budget plan
by month.
• Obtain R.L. Polk Garage Predictor
list and develop a plan of attack.
• Contact fleet management companies
and get on approved vendor
list.
Cylinder Six is where we start to look
at ways of growing our base instead of
just mining the existing one deeper.
“
You can prioritize the
cylinders based on
your particular needs
or circumstances.
”
Why doesn’t a service department
have a promotional budget If you are
waiting until business is slow, it’s too
late to advertise.
“Production”
• Develop advanced production
systems with groups and teams.
• Extend service hours.
• Full day Saturdays
• Full day Sundays
The facility is there 24 hours a day,
seven days a week. Can you get more
use out of it Every additional hour
produces revenue as fixed expenses
remain the same. How are your service
department’s hours of operation
versus the competition
“Tweaking”
• Start at Cylinder 1, review and
tweak as necessary. Monthly, a new
cylinder should be taken in order,
reviewed and tweaked to maintain
top efficiency. This is the same as a
parts manager who takes a perpetual
inventory. If the service manager
can review and tweak one cylinder a
month, how much better could your
“engine” run
At this point, you’re wondering why I
haven’t mentioned expense control. It
does not need a separate focus.
Expenses should be looked at all the
time, in every aspect of your fixed operations.
The point of my eight cylinder
approach is not to take it literally. Call
them modules or whatever you please.
Steal ideas and put your own spin on
them. In full disclosure, I’ve stolen
them and put my own spin to make a
stair-step approach. Best of luck to
you!
Pete DelVecchio is the Service
Development Zone Manager for
the Northeast Region for
General Motors Corp.
p. 46 June 2008 Fixed Ops Magazine

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Service Department
The Great ‘So-Called’
Technician Shortage
By Tyler Robbins
Virtually every single place I
travel around North America,
the topic inevitably comes up.
In fact, it doesn’t matter if I
am delivering a seminar to
Service Managers, Service Advisors,
training at a dealership, or simply
walking the floor of a convention – I
am asked about the Technician shortage.
Dealers, Fixed Operations Directors,
Service Managers and advisors always
ask if I know of any technicians that are
looking to make a move. As if there were
some “magical land” where exceptionally
well trained technicians are sitting
around twiddling their thumbs just
waiting for a job. This group just sitting
around has obviously been sitting under
a rock as they have not been made aware
of the fact that most dealerships and
service facilities in North America are
on the hunt. Come on!!
But let’s take a different look at the “socalled
shortage”. Now, I won’t deny
that there are fewer “new” technicians
coming into the industry voluntarily;
the statistics alone prove that. So if that
is the sole criteria, then definitely there
is a shortage.
However, think about years ago. Think
about when you started in the industry.
Where did you start
Although I’ve never been a technician,
I started in the industry washing cars at
a rental car company. I worked hard
and moved up but I am not so disenchanted
to believe that is how everyone
starts and moves up. Years ago, it was
certainly a lot more common. Think of
most owners, managers and experienced
individuals in the entire retail
automotive industry; most started at
the bottom and worked their way up.
So what’s my point For those of us
who started at the bottom, someone
higher up the ranks than us recognized
that we had “something”. Whether that
“something” was initiative, talent, a
good attitude, a genuine interest in
learning and growing – whatever it was
– they recognized it and did something
about it.
p. 48 June 2008 Fixed Ops Magazine

They “groomed” us. I still, 21 years later,
vividly remember the day that my “carwash”
position evolved into a career. At
that time, we simply worked hard and
then one day, our boss or Manager came
to us and said, “I’d like you to take on
some additional responsibilities”. A
development responsibility on the part
of that supervisor began again with
another “hopeful”. I like to think that
the time and effort put into developing
and growing me paid off, not just for me,
but for the car rental company, then the
dealership, and so on.
The big difference then, was that developing
and growing “hopefuls” was just
part of the role of the Managers and
Dealers. When I became a young Service
Manager myself, I remember distinctly
sitting with the Fixed Operations
Director and the Dealer on a regular
basis as we discussed the abilities and
future expectation of all of the personnel,
prioritized where future personnel
needs would be and outlined and began
execution of the plan to develop those
personnel so that all future needs would
be met and exceeded!
This plan always included potential technicians
too. Sure, we went to the vocational
schools, community colleges, high
schools, etc and recruited new technicians
from there, but for the most part,
we looked inward. Like myself, and thousands
of others before and after me, the
wash bay is where many younger “carguy-wanna-be’s”
find their way into the
industry. What a great source to find
potential future technicians, as well as
salesmen, parts people, etc. The advantage
of recruiting from your own operation,
of course, is that you have the
opportunity to learn whether or not that
individual has the aptitude as well as the
attitude that you want in a new “technician”.
Continued on p. 50
“
If maintenance represents
60% percent of a
shop’s workload, then
logically, shouldn’t 60%
of the shop’s workforce
be maintenance techs
”
June 2008
Fixed Ops Magazine p. 49

One of the other advantages is that they
recognize and have an appreciation for
the time, money and effort you are
investing in them and a genuine loyalty
factor grows within that individual.
But, back to the so-called shortage: the
shortage today, more than anything
else, is not in the lack of available
potential technicians but in the lack of
skill, initiative and foresight in today’s
managers, dealers, etc.
Now, I will admit, there is a declining
level of “A” level technicians out in the
workforce today. But realistically, is that
what most dealerships need
The reality is that no one wants to, or
doesn’t have the skill or willingness to,
develop a technician from scratch.
Today, managers want to “skip” the
development years (also lower cost
years) and find “A” level or master technicians
ready to produce 60+ hours per
week on day one.
Think about it: Vehicles are being built
better and better, so the amount of
“repairs” has been reduced considerably
over the last number of years.
Does that decrease or increase the need
of “repairing-skilled” technicians
Exactly, it decreases it.
Even though maintenance work intervals
are getting farther apart and the
manufacturer required maintenance is
becoming less and less, they still represents
a larger percentage of a shop’s
work today than ever before.
Maintenance work certainly doesn’t
require “A” level technicians, does it If
maintenance represents 60% percent of
a shop’s workload, then logically,
shouldn’t 60% of the shops’ workforce
be maintenance-techs
These maintenance technicians are
those “entry-level” technicians we are
really talking about, aren’t they These
entry-level technicians are the ones
YOU need to grow from scratch.
Do you have the talent and skill to recognize
and develop them
Tyler Robbins is president of
Automotive Training International
(ATi), a company that provides
service and accessory training
throughout North America.
p. 50 June 2008 Fixed Ops Magazine

Parts Department
Selling Parts for a
Loss Can Help You
Make More Money!
By Jeff Painter
urn! Turn! Turn! (To
TEverything, There is a Season)
is a folk song written by Pete
Seeger and first recorded in
1962. Turn! Turn! Turn!
should be the theme song of each and
every parts manager.
Industry experts estimate that there is
perhaps two billion dollars of idle parts
inventory sitting on shelves in dealerships
across the country. That’s
Billion, with a capital B. Two billion
dollars in inventory that isn’t turning.
If you are like thousands of
other dealers, you have
some idle inventory that
is not turning and thus is failing to
produce profitable sales for you and is
actually costing you money the longer
it gathers dust on your shelves.
Insurance, taxes, physical inventory
costs—even the cost of the money
invested in those parts—all add up to
hard costs that the dealer incurs for
this non-productive inventory. Just
about everyone understands these
costs but we sometimes lose sight of
less visible costs: decreased technician
productivity from lower off-the-shelf
fill rate, lost sales, higher parts acquisitions
costs and lost manufacturer stock
order incentives. And the biggest cost
of all: unrealized sales / gross profit
opportunities.
OK - so you have some idle parts and
you know it is costing you money; what
can you do to address the problem
Continued on p. 52
June 2008
Fixed Ops Magazine p. 51

Well one place not to look for much
help is your manufacturer—over the past
few years just about every OEM has cut
back on their factory return program.
You can work to sell some things if you
find the right audience—after all, it’s
true that certain types of parts for
certain types of vehicles can demand
higher-than-retail prices on services
such as eBay. And just as you may advertise
new and used cars through newspaper,
radio, television and the Internet, it
is wise to advertise your parts inventory
on multiple parts marketing services.
(What we used to call “locators” when I
was a parts manager).
But these methods move only a limited
number of parts. What you need is a
more aggressive plan for turning these
parts. Why Statistics indicate that once
a part has gone 9 months without a
sale, there is only a 15% chance that it
will ever sell—and that percentage continues
to decline the longer a part sits
idle. So you need to move the idle
inventory NOW.
The fastest way to
move idle parts is
through a program
that automatically
matches your idle
inventory to the
buying needs of
other dealers. True,
generally you will
only get around 50
cents on the dollar
for the parts you sell
and that may seem
like a heavy price to
pay to rid yourself of
the idle inventory.
But is it really
Let’s step out of the
automotive marketplace
for a moment
and think in different
terms. Do you
have a 401K plan I
do, and I regularly
review my investments, evaluating
whether they are maximizing my earnings.
If investment “A” is starting to drag
down my portfolio, I don’t necessarily
wait for it to rebound and start making
the same profits as my other investments.
Instead, I consider the short and
long term outlook for investment “A”; if
I see no realistic improvement in sight,
I move my investment to another
source. It’s possible I will lose money on
investment “A”, but I know if I am not
making a desirable profit there then I
am better off taking short term loss in
“A” and reinvesting those dollars in
investment “B” to start making higher
profits.
Think of your inventory as a 401K portfolio—if
a portion of your “portfolio” is
not returning a fair investment and you
can’t reasonably expect an improvement—remember,
no parts sales in 9
months results in only a 15% chance of
ever selling—it’s time to shift those
dollars to a smarter investment (read:
faster moving parts), even if you have to
sell the
parts
at a
loss
to move
them out.
A Idle parts inventory sold $25,000
B
Cash received and reinvested in faster
moving parts
Can taking a loss and
reinvesting those dollars
in faster moving parts
really pay off Absolutely!
Let’s look at one example in which a
dealer sells $25,000 of idle parts. They
receive 50 cents on the dollar for the
parts, so they get a check for $12,500
from the buyer and they write-off
$12,500 of inventory value. In the
short term, a bitter pill to swallow.
However, the key is to reinvest that
$12,500 in faster moving parts to generate
on-going profit. Using some conservative
figures, let’s see what happens
when those dollars are reinvested in
parts that are turning on a regular
basis:
$12,500
C Write-off of half value of idle inventory -$12,500
D Parts department average gross profit 30%
E
Gross profit from selling $12,500 dealer
cost of parts one time for 30% gross profit.
$5,358
F Inventory turns per year 5
Selling parts at 50
cents on the dollar
30% of $17,860
selling price
G Annual gross profit from reinvested dollars $26,790 E times F
H Less the inventory value written-off -$12,500 C
I Annual gross profit after write-off $14,290 G minus I
p. 52 June 2008 Fixed Ops Magazine

inventory so you can Turn! Turn!
Turn! your dealer’s parts investment
into more sales and profits.
Jeff Painter has 19 years experience in dealership
fixed operations and is currently Director
of Operations for ADP PartsVoice.
“
The fastest way to move
idle parts is through a
program that automatically
matches your idle
inventory to the buying
needs of other dealers.
And remember, the $14,000+ in annual
gross profit in this example does not
reflect additional factory stock order discounts
you will receive for turning that
$12,500 five times per year. Nor does it
account for increased technician productivity
and higher customer satisfaction
that should be realized from better off-theshelf
availability.
So you might ask yourself, if selling idle
inventory is really profitable in the long
run, why don’t more dealers do it Good
question.
Sometimes people get hung-up on the
“selling at 50 cents on the dollar” part
and never appreciate the additional gross
profit that will be realized from those reinvested
dollars. Remember the 401K
analogy. If you want another one directly
from the automotive marketplace, think
about how dealers write-down the value of
used cars in order to get them sold once
they start aging. Dealers don’t agree to the
write-down to get $500 less on that one
deal, instead it is done to get the cash to
reinvest in used cars that can sell faster.
Now is the time to get rid of your idle
”
June 2008
Fixed Ops Magazine p. 53

Body Shop
What CSI Can Do For
Your Body Shop
By Dusty Dunkle
If you are reading this article, you
either operate or oversee one or
more collision centers. Your
dealership’s family name may
even be in lights on top of your
facility. It’s no secret you are paying
good money to get that name in front
of as many people as possible.
As a collision repair manager, if you
are consistent with industry averages,
you have approximately 30 years of
experience in the collision industry.
You definitely know your business. But
do you know how your customers view
your business and what they think of
you I’m not talking about casual customer
feedback that occasionally
comes in to you and your employees.
I’m referring to what is really on the
minds of ALL your customers. Are you
sure they’re loyal customers who truly
trust and respect you
If you have all the answers, are you sure
all your customers are completely satisfied
If you have raving fans in your
market, there is no need for you to
read on. But if you know there is room
for improvement -- and you are ready to
take on the challenge of striving for
perfection -- then this article is for you.
A proper third-party CSI follow-up
program will provide the customer
information you need to implement
the right processes and fine-tune
employee performance. It will also give
you a suite of marketing materials.
Without a follow-up program in place,
you will be unaware of most customer
complaints. If you don’t know about
them, you have no chance to resolve
them. You may find it’s impossible to
retain customers who had a poor experience
at your facility. Furthermore,
referrals will drop and you may not be
able to keep positive word-of-mouth
“buzz” in your market.
p. 54 June 2008 Fixed Ops Magazine

“
As a collision repair
manager, if you are
consistent with industry
averages, you have
approximately 30 years
of experience in the
collision industry.
”
The vast majority of upset customers
won’t complain to you. Most of them
will simply avoid a confrontation, go
away mad and take their business with
them. According to Technical Assistance
Research Programs of Washington,
D.C., for every customer who complains
to you, another 26 won't.
When a customer has a complaint, you
must be certain to have a tool in place to
uncover the problem, and you must have
a process ready to resolve it. If both of
these requirements are met, you can
begin to view customer dissatisfaction as
an opportunity rather than a problem.
As you ponder these statistics, consider
the value and impact of just one customer
over the course of their lifetime.
CSI follow-up results are a tool that
allows you to resolve customer concerns
and make sure referrals stay high.
You are probably spending more than
$15,000 on advertising each year.
Continued on p. 56
See us at the FixedOps Magazine Conference! June 20 - 22, 2008
Furthermore, each of these 26 unhappy
customers will tell an average of 14 to 17
other people about his or her negative
experience. According to an article from
the Harvard Business Review, if you just
listen to an upset customer’s problem
without taking any action at all to resolve
it, that customer will tell only 7 people of
their dissatisfaction. If you listen and
attempt to solve the problem, even if
your effort is unsuccessful, they will tell
no one that they are dissatisfied. Finally,
if you listen and then actually solve the
problem, that customer will tell 5 people
how effective you are. This compares
favorably with customers who didn’t
have a problem in the first place. They
will tell only 3 people, on the average,
how happy they are with their good
service experience!
June 2008
Fixed Ops Magazine p. 55

Depending on the source, industry
statistics show that it costs 4 to
10 times more to draw in a new
customer through marketing than
to retain an existing customer.
New customers are wonderful, but
no business owner wants a revolving
door of non-loyal customers.
At least 91 percent of your
unhappy customers will never use
your services again. But if you
make a focused effort to remedy
your customers' complaints, 82
percent of them will stay with you.
If you take rapid action to solve
their issues, this percentage is even
higher. An immediate e-mail from
a CSI company, alerting you that
there is an upset customer, can
help you solve problems instantly.
The result Increased customer
retention.
Make sure your CSI company provides
several types of statistical
summary reporting, so you can
track various CSI categories over
time. The reports you receive
should also break down CSI by
estimator, body technician, and
paint technician, which will allow
you to set up pay plans based on
CSI scores. This not only creates
more accountability; it also provides
employees with fresh motivation
to do their job the way you
want it done. Some CSI companies
will also provide reports by
insurer, cycle time, and customer
source. Finding out why someone
chose your facility is valuable
research information that will
allow you to analyze your referrals
and the success of certain methods
of advertising.
CSI reporting should allow you to
benchmark your shop against a
national database. This information
may influence how aggressive
your approach is in making
changes.
p. 56 June 2008 Fixed Ops Magazine

Next, weaknesses can easily be identified
and trended, which allows you to make
adjustments and measure improvement.
CSI results also provide a tremendous
marketing tool. If your CSI history is
good, and the CSI information is the
final detail that wins you a DRP or
makes you number one with several local
insurance agents and auto dealerships,
what is that worth to you Having this
information for use in general advertising,
networks, and roundtable groups is
also a great benefit. Having a history of
several years of high CSI as reported by a
third party is priceless, because of its
ability to generate income for you
through the years to come.
You may be worried that a telephone call
might upset your customers. We make
more than 500,000 outbound telephone
calls each month. In the past 12 months,
0.7 percent of all customers contacted
asked to be placed on our Do Not Call
list or asked never to be called again. (A
reputable CSI company will never dial
this phone number again). At the same
time, 10 percent of the customers we
called made an added comment that
they appreciated our call. These people
were impressed that the collision repair
center cared, listened and allowed them
to express themselves.
Finally, your CSI program may have the
real-time web-based reports, e-mails and
all the bells and whistles. But never overlook
the importance of the quality of the
people making the calls. They represent
your business and they must be qualified
and trained to do it in the best possible
manner. They must be professional,
courteous, warm and kind, and they
must treat every customer with the
utmost respect.
Regardless of how you choose to follow
up with your customers, make sure to
keep this important component as a consistent
part of your business plan. It is
the essential tool that creates the loyal
customers we all strive for.
Dusty Dunkle is President of Customer
Research, Inc., a leader in providing CSI,
Customer Loyalty and Revenue Generating
solutions exclusively to the automotive industry
since 1967.
June 2008
Fixed Ops Magazine p. 57

Administration
How to Measure the
Value of Training
By Hal Scott
The point of training includes a
variety of objectives, not the
least of which is knowledge,
but is that enough How many
of you are willing to train the
employees just for the sake of knowledge
Not many in the real world.
The reality check
Is this how it goes for you on training
day You are short handed so your team
and you must take over extra duties. So
what do you stop doing in order to
create the extra time or do you just
work longer hours today With the
absence of a team member comes direct
and indirect costs. You pay them to be
gone, sales are reduced, travel and meal
tabs come in later and you buy pizza for
the employees that are covering because
they are too busy to leave for lunch.
And what about the reduced level of
customer service
p. 58 June 2008 Fixed Ops Magazine

But, that probably does not happen at
your store. And besides, the customer
will understand. Why in the world
would you train your staff A better
question is; how do you know if the
training is a good value
About now the editor is wondering if I
missed the point of the assignment. I get
it, but this topic is complex. We need to
train, but it better be worth it when all is
said and done.
“
Decide if your
average and below
average performers
have potential and
are willing to
improve.
”
do not, you have just wasted your time,
energy and money. That is your fault as
the leader.
How to measure success
The employee is back and things are
clicking along pretty well. They are using
the new skills and actually helping each
other with them as well. Is that enough
Not by a long shot. You must find a way
to measure the improvements and the
changes as a result of the training.
Determine what should change; behavior,
performance, money. Be specific
about the items. Hours per RO should
go up by 0.2, sales by $3,000 or CSI by
two points. Track the changes daily and
share the data with the team. But what
about the training that results in soft
skills such as “how to handle an angry
customer” or “how to prevent angry customers”
That may be harder to measure
but you can still watch the skills in use
and look for the tips from the training.
Of course, this means that you must
know what your employee learned if you
are to measure their success. This is
getting harder as we go, isn’t it
How much
training is enough
This is a difficult question. Of course
you must meet the manufacturer’s
requirements, but what of the optional
training Should you put more training
into your best people and less in the
average and below performers
Continued on p. 61
What you should expect
Start out by deciding what will make
each training class worth the investment
for you and your team. Be specific!
There is no wrong answer, but have an
answer. Tell the employee what you
expect from them as a result of this training.
Also, every person you send will
come back with a different learning
point.
You may wonder if they attended the
same class. This is actually good; at least
they got something out of it. Your
responsibility is to ensure that each
member of the team shares their new
knowledge and skill with the rest of the
team right away so it is fresh. Start utilizing
the new skills tomorrow! Hold a
brief meeting and download the information.
Let the person that attended
the training conduct the meeting. If you
June 2008
Fixed Ops Magazine p. 59

service parts body shop
Announces...
“Tooling Up
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A Training and Education Conference
dedicated to all the Fixed Ops
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• 16 Educational Workshops given by 16
different industry experts on service,
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• Get the information you need to better
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profits.
• Hear about the latest available tools to
optimize the internet for service, parts
and body shop.
June 20-22, 2008
Orange County, California
Irvine Marriott Conference Center
Further Info: www.FixedOpsConference.com
Email: info@FixedOpsConference.com
Call 800-727-1466
Don't miss this chance to learn about
ways to improve your skills by getting
together with top industry teachers.
• Who should attend
̌ Dealer Principals
̌ General Managers
̌ Fixed Operation Directors
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̌ Body Shop
Managers
Sign up online at:
www.FixedOpsConference.com
Sponsored by:

That depends on the “expert” that is
speaking, but you can start here. Decide
if your average and below average performers
have potential and are willing to
improve. If the answer is no to either
question, then pass on the training.
Spend your money and time on people
that will likely get better; the higher
skilled and better performing employees
– they want to win. You can not train
them enough. Remember that training is
as much a privilege as a requirement.
The right to be trained must be earned.
“
Start out by deciding
what will make each
training class worth
the investment for you
and your team.
”
Mandatory training
You are probably well versed in this type
of training; the one where your arm is
well behind your back. Of course you all
must deal with mandatory training from
your vendors and manufacturers. Some
of this training is good and some less
than useful. However, it must be done,
so approach it with a positive attitude
and insist that something is learned.
Sometimes, just having lunch or dinner
in an informal setting during the training
sessions will offer the best opportunity
for learning. A word of caution
though – avoid overtraining in this category
unless the training is exceptional.
Do not go just for the free food and a day
off of work.
Conclusion
To help you decide if the upcoming
training is worth the investment, run
through this check list to ensure that you
are getting value for the training:
• Does the department earn the invested
money back through increased
sales
• Is there improved employee satisfaction
within the department
• Do you get to check off a box on
somebody’s mandatory list
• Is there a perceived value to the end
customer (certification status for personnel)
• Will the training result in employee
loyalty
• Is the knowledge transferable to other
employees
• Can the person do something new or
better upon return
• Can a new or improved skill actually
be demonstrated
Oh – and by the way! At the risk of being
a killjoy, the training that you do in your
department must meet these same criteria.
Your employees have every right to
ask the same questions of you. Ask yourself,
“who is accountable for the results
of in-house training in your department”
If you are not sure how good a
trainer that you are, just videotape one
of your meetings and watch it later –
alone in a dark room at home. After you
have reviewed the session, and probably
destroyed the tape, decide in what areas
you can improve and then seek help.
When was the last time you were trained
to be a trainer It takes work – but it’s
worth it!
Hal Scott is the president of the
Automotive School of
Management which specializes in
continuing education for Fixed
Operations managers in Service,
Parts, Body Shop, Reconditioning
and Quick Service.
June 2008 Fixed Ops Magazine p. 61

New Products
Customer Retention Program from NitroFill
The NitroFill Marketing program helps dealers turn the only service
every vehicle requires every month -- tire inflation maintenance --
into a true customer retention tool. NitroFill dealers have the
opportunity to utilize NitroFill Marketing Kits with every sale. Each
kit includes 5 nylon sleeved, machined aluminum NitroFill valve
caps, a windshield sticker to indicate the vehicle's tires are inflated
with NitroFill, and a registration card/key ring. The program also
includes a 1 year membership in the NitroFill Auto Club which
includes tire repair and replacement coverage, roadside assistance
and extensive Club benefits.
The program is activated by registering the customer's NitroFill purchase
online. Upon registering for the program, the customer prints
a benefits page that includes all program coverage and benefit data
ADVERTISERS DIRECTORY
@utoRevenue Page 49
Agri-Cover Page 65
Automotive Warranty Network Page 55
AutoSked Software Page 65
BG Products
Inside Back Cover
Car Brite / Valvoline Page 64
Car People Marketing Page 9
Car-O-Liner Page 65
Dealer Concepts Page 58
DealerSocket
Inside Front Cover
DME Automotive / JMSolutons Pages 15 and 65
Fixed Ops Training and Pages 31-38
Education Conference
Gardner Denver Page 21
HALO Special Edition Vehicles Pages 59, 61
and 63
Hal Scott's Automotive Page 30
School of Management
Insignia Page 65
Jeff Cowan's ProTalk Page 29
Justice Brothers Page 43
K&N Engineering Page 11
Kaeser Compressors Page 57
Karcher Page 53
MotorVac Technologies Page 50
MPI / Mobile Productivity Pages 17 and 64
NitroFill Pages 41 and 65
Parker TireSaver Page 64
PurigeN 98 Page 56
Reynolds and Reynolds Page 5
Sally Whitesell's Service Solutions Page 64
Shure Manufacturing Pages 12 and 64
SSI / Schaefer Systems Page 65
TSD Rental Management Software Page 3
Uview Page 19
Valvoline
Page 7, Back
Cover and insert
Warranty Forever Page 64
Wildeck Page 65
ZAK Products Pages 13, 23
and 64
and service provider contact information. It
also captures the customer's e-mail address
and codes it to the selling dealer for delivery
of the monthly newsletters. The e-
newsletters focus on the economic and
environmental importance of proper
vehicle maintenance. NitroFill automatically personalizes each
newsletter with the name, logo and contact information of the
selling dealer. The dealer has the ability to further customize the
newsletters with coupons, announcements, surveys, etc.
NitroFill is marketed as a routine service and NitroFill sends a final
e-mail to each customer prior to the expiration of their 1 year Club
membership asking the customer to return to their NitroFill dealer
to re-purge their tires. Although nitrogen doesn't spoil or wear out,
re-purging a customer's tires every year ensures proper nitrogen
purity, renews the self-sealing valve caps and renews their tire repair
and other Auto Club benefits.
MechaniCool MX18 Portable Air
Conditioner from iCool
iCool, LLC introduces the MechaniCool
MX18 Portable Air Conditioner.
Specifically designed for race teams, dealership
service bays, garages and technicians.
The MX18 is a self contained true air conditioner
requiring only a standard 110V,
15A outlet to provide cool, dry, comforting
air in the shop. The MX18 has a durable powder coat finish, large
rear tires for a dolly-style design (easily rolls over air hoses and
uneven terrain), a rubberized top tool tray, internal easy-to-drain
condensate reservoir, and directional/movable air ducts.
Benefits Include: Increased technician productivity, faster cool
down times on engines, cool air while working under the dash,
faster cool down times on brakes and a decrease in heat related
injuries. iCool provides cooling solutions for cold air anywhere.
K&N High-Flow Intake System Adds 31 Horsepower to 2008 Dodge
Challenger 6.1L
The K&N High-Flow Intake System for the 2008 Dodge Challenger
6.1L V8, (part no. 63-1114), increases horsepower by 31.42 hp at
5217 rpm over the stock Dodge intake configuration. To achieve
such a performance increase, K&N replaces the Challenger’s original
intake assembly including the air box, air filter and intake tube
with an all-new intake design. The new system draws air through a
K&N High-Flow Air Filter that increases airflow and filtering capacity
and never needs to be replaced. Protecting the chrome top coneshaped
air filter, and isolating it from engine heat, is a powder
coated steel heat shield that replaces the Challenger’s stock air box.
As it passes the filter, air travels through a K&N Roto-Molded
Polyethylene Tube that is formed and shaped, in the design phase,
to drive a more laminar flow of air to the
Challenger’s 6.1L V8 engine.
The 63-1114 can be installed in 90 minutes
or less and is backed by the same K&N
Million Mile Limited Warranty® as all
K&N OE Replacement Air Filters.
p. 62 June 2008
Fixed Ops Magazine

Updated Productivity Jack from Rotary Lift
Rotary Lift has updated its popular
GUWSFF5 Productivity Jack to make it
even more user-friendly and easy to service.
The jack is used to aid in the removal and
installation of vehicle assemblies, including
transmissions, fuel tanks and axles.
An air assist feature has been added to the
jack, enabling technicians to use shop air to
quickly raise the adapter to the desired
height with just the push of a button. The
jack’s lowering valve is metered, making fine height adjustments
possible. This feature allows the jack to be positioned properly to
the vehicle for responsive component lifting and installation.
Rotary has also redesigned the productivity jack’s caster system to
improve its ability to effortlessly roll over all surfaces. The lockable
casters combine with a low center of gravity to provide excellent stability.
The compressor pumps feature oversized main bearings and automotive-style
replaceable insert bearings. Chicago Pneumatic ships all
of our RCP Series compressors charged with lubricant, after they
have been completely tested at full pressure. This guarantees reliable
operation upon arrival.
Should a customer need warranty or maintenance work, CP
handles all warranty repairs at the factory, and maintenance can also
be handled by any of more than 350 authorized service dealers in
North America. Each RCP compressor is mounted on a durable
ASME certified, powder-coated receiver tank, properly sized for the
compressor’s air flow and pressure. The receiver tank, supplied complete
with pressure gauge and condensate drain, stores the compressed
air to provide a steady supply even during periods of high
demand. The RCP Series is available in four different configurations:
Single Stage Electric from 2 to 3.5 HP
Two Stage Electric from 5 to 10 HP
Two Stage Gasoline Drive from 9 to 13 HP
Two Stage Electric Duplex from 10 to 20 HP
The jack is built with a corrosion prevention
system to ensure long life. The
system submerges the hardened chrome
cylinder in oil every time the lift is raised
or lowered, protecting the cylinder walls.
It has a lifting capacity of 1,100 lbs. and
offers a stroke of more than 43 inches
and a height of is 31.5 inches. A variety of
lifting tables are available for use with the
jack.
New Reciprocating Compressor Line
from Chicago Pneumatic
Chicago Pneumatic has introduced a
new line of single and two stage reciprocating
compressors with the durability
ideal for everyday use. Chicago
Pneumatic’s RCP Series consists of single
and two stage reciprocating compressors
from two to 20 horsepower. Each CP
RCP Series compressor is built with a
solid cast iron cylinder, crankshaft and
valve plates. The compressors have
unmatched heat dissipation due to their
aluminum heads and coolers with deep
fins and are engineered with balanced
pistons and crankshafts for quiet operation
with low vibration transmission.
June 2008 Fixed Ops Magazine p. 63

Marketplace
NEW! CAR BRITE SELECT
Simple. Trusted. Great Results.
VOC compliant. Video training provided. • www.carbriteselect.com
• Premium Fluid Maintenance Programs
• Industry Leading Equipment Placement Programs
• Service Advisor Sales Training
• Technician Training
www.zakproducts.com
• Innovative POS Materials 1-800-514-6011
• Effective Customer Retention Programs
Feature your company, product or service
on this Marketplace page and reach the
Fixed Operations Directors at every new
vehicle dealership in the United States with
our monthly circulation to 24,000 readers.
Contact Nick West at 877-349-3367
or Nick@FixedOpsMag.com
p. 64 June 2008 Fixed Ops Magazine

The automotive software
that gives you more time for
customer sales.
• Create more jobs/repair orders
• Generate more revenue
• Balance workloads
• Visaully manage production
• Increase CSI
June 2008
Fixed Ops Magazine p. 65

Profile
Staying on Course
By Nick West
Developing a personal relationship
with your customers
is vital for success in
the service department.
Darrell Greer, Service
Manager for Toyota of Escondido in
Southern California, knows that and is
always looking for ways to strengthen
that relationship with his customers.
His dealership conducts new owner
events that include introductions to
the service department personnel. On
the surveys completed by
event attendees, Darrell
noticed that a frequent customer
complaint was how
complicated the navigation
systems were to
figure out.
So he started conducting training seminars
for those customers (typically the
pre-MTV crowd) on how to operate
the navigation systems. The classes
were a huge hit! With over 25 people
attending the training each month,
Darrell has found a new way to
develop a personal relationship with
the customer. “They feel very
comfortable bringing their
vehicles back into our
service department knowing the
Service Manager personally,” says
Greer. “We are trying to offer something
to our customers that others
don’t. I have even had customers that
did not purchase their Toyotas from us
calling asking if they could attend the
training. Of course, we are more than
happy to have them attend!”
Darrell has worked at Toyota of
Escondido for 13 years with the last 2
being the Service Manager. He is
always looking for ways to improve his
department and based on his unique
navigation training for customers, it
looks like he is headed in the right
direction.
“
We are trying to
offer something to
our customers that
others don’t.
”
If you know someone who
belongs on this page, contact
Publisher Nick West at
nick@fixedopsmag.com
or 877-349-3367.
p. 66 June 2008
Fixed Ops Magazine