Editor’s Note: This is Part Two of a two-part column by Don Reed that appeared in the March 2019 issue of RV PRO. Part One can be found here.
Maybe you’re one of those dealers who is afraid to make changes to your processes so you can provide a higher level of service to your customers and start making some money because those changes might upset your technicians? To you I say, “Who owns the store?”
How about employee compensation plans? Have you been paying your advisors, technicians and parts personnel on that same old hourly wage pay plan for a decade now with no performance incentives to produce at a higher level? Do you think your employees are already paid enough to do their job, so no incentives should be necessary? If so, then I’d say you are lost in the ’60s!
Of course, this conversation would not be appropriate without including your management team. Are they leaders or administrators? Are they looking for new ways to grow your business, improve your customer service, reduce repair cycle time and drive productivity – or are they stuck in the infamous comfort zone of underachievers?
By now, I’m guessing some of you may think I’m being too harsh. Well, I just shared with you four examples of what we find in dozens of dealerships across the country and I find there is only one way to turn these underperforming dealerships around and start earning the return on investment that they deserve. It starts with a profit improvement plan to identify where your opportunities for improvement are.
Next, identify what needs to change in order to capture those opportunities, and finally, implement a performance-driven training plan that gives all employees the skills they need to become top performers and break out of their comfort zones. Most of you don’t have bad employees – you just have bad processes!
Once you’ve started on this plan you can expect to experience the following benefits:
- Happier employees with less turnover
- Increased employee productivity in all positions
- Competitive compensation plans that will attract new hires
- Higher profit margins
- Reduced repair cycle time
- Better control of your service scheduling
- Ensure every customer leaves your store with a “safe and reliable RV.”
- Less HEAT (i.e., upset customers) cases for mangers to deal with
- A top-notch work environment
- Higher net profits
Remember, once you develop your plan as a dealer or manager, you must get committed and stay committed to your plan with no exceptions! This will indeed become the year for record profits in your service and parts operations.