Let’s talk about something most Dealerships don’t want to think about…economic downturns. They’re coming, whether we like it or not. The real question is: are you ready?
The State of Dealerships Today
Most Dealerships are one bad month away from serious trouble. Why? Because they’re stuck in old thinking patterns. All eyes on moving metal, while Fixed Ops gets overlooked. But when car sales inevitably slow down, what’s going to keep your Dealership afloat?
Your Service Department could be your saving grace or your biggest liability. The difference comes down to planning and execution.
Learning from Other Industries
Let me tell you about a conversation I had with my cousin who’s in the grocery business…
Grocery stores have this whole science of selling down to an art. They know exactly where to put every item to maximize sales. They’re strategic about every aspect of their business, from product placement to pricing.
Now, I’m not saying we should start moving our oil filters next to the candy rack. But it made me wonder: are we missing opportunities in our Service Drives? Are we thinking strategically enough about our customer flow, our upsell process, our entire Service Department layout?
The Power of Preparation
Last year, during a hurricane in Florida, Christian called his son to check on him. You know what he was doing in the middle of this storm? Making muffins with his grandmother.
Why wasn’t he panicking? Because they had a solid disaster plan. Hurricane-reinforced windows, generator, two-way radio – the whole nine yards. They were prepared, so instead of freaking out, they were baking.
Now, think about your Dealership. When economic storms hit, are you going to be baking muffins, or are you going to be scrambling to keep the lights on?
Fixed Ops: Your Economic Shield
Your Service Department isn’t just a necessary evil…it’s your shield against economic uncertainty. But too many Dealerships treat Fixed Ops like an afterthought.
When car sales slow down, a well-run Service Department can keep you afloat. But… you can’t just flip a switch and suddenly have a top-performing Fixed Ops Department. It takes planning, investment, and a complete shift in mindset.
The Warren Buffett Approach
You know who’s not worried about economic downturns? Warren Buffett. Why? Because he’s always prepared. He’s got a plan to win no matter what. There’s no scenario where he doesn’t come out on top.
We need to take the same approach in our Dealerships. That means:
- Understanding our financials inside and out
- Investing in our Service Department even when times are good
- Training our team to be the best in the business
- Creating systems that work regardless of economic conditions
The Execution Gap
Now, I know what some of you are thinking. “Chris, this all sounds great, but my team can’t even get a simple tire change right.” And you know what? You might be right.
We recently shared Christian’s story of when he tried to schedule a simple tire change. Multiple texts, confirmations, the whole deal. And guess what? The Dealership still dropped the ball. No tires, no appointment, just excuses.
This is what I call the execution gap. It’s the difference between knowing what to do and actually doing it. And it’s killing dealerships left and right.
Closing the Gap
So how do we close this gap? It starts with a mindset shift. You need to stop thinking of your Service Department as a cost center and start seeing it as your profit powerhouse.
This means:
- Investing in training for your Service Advisors and Technicians
- Creating systems that make it easy for customers to do business with you
- Leveraging technology to streamline your operations
- Constantly measuring and improving your performance
The Wrap
Economic uncertainty is a fact of life in our business. But it doesn’t have to keep you up at night. By focusing on your Fixed Ops Department and preparing for the inevitable ups and downs, you can create a Dealership that doesn’t just survive downturns…it thrives in them.
If you’re ready to start building your economic shield and want to see how to implement these strategies in your own Service Department, book a 15-minute strategy session with our team. We’ll show you exactly how to turn your Fixed Ops into a profit machine, no matter what the economy throws at you.
Remember, in this business, it’s not about hoping for the best. It’s about preparing for the worst. So, are you ready to start baking muffins while your competition panics?
