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Why Service Managers Are The Dealers Of The Future

Opening Story

The wildest thing happened last night. This is not one of my usual rants about business or leadership.

Here in Downtown LA, we have been hearing blasts since the protests started. Last night one blast was so loud it shook the building. I went outside and saw a man on the bridge.

Dynamite had blown off his hand. He was running up the street with half an arm gone and a gas can in his backpack.

I still cannot believe it happened.

Summary

This episode mixes a wild LA story, listener questions, and service department management advice.

The main point is simple: as fixed ops trends change the market, service managers are becoming more important. A strong fixed ops manager or auto service manager may end up leading the business.

To do that, service managers need to build four skills:

  • Leadership
  • Accountability
  • Numbers
  • Sales

Those are the core service manager responsibilities.

A Strange Night In Downtown LA

We had been hearing explosions for days. Last night one sounded like a car bomb.

I went outside to see what happened. A man was down on the bridge. Dynamite had gone off in his hand.

It looked like he had tried to blow up the bridge over the 110. Instead, he blew off his hand and ran away with a gas can in his backpack.

It was one of the craziest scenes I have ever seen.

Audience Question: Weirdest Thing In A Customer’s Glovebox

Without any more body parts flying around, we asked a lighter question:

What is the weirdest thing you have ever found in a customer’s glovebox?

People have seen cash, weed, guns, and sex toys. We want to hear your best story.

Send it on YouTube, Facebook, LinkedIn, or by email.

This Week’s Questions

The questions were weak this week. Jeremy is even offering $100 to the person who asks his favorite question after he gets back from family vacation.

If we answer your question on the show, we send swag. That includes a T-shirt, a coffee mug, and new stickers.

Question: How Do I Get MPIs Done?

The question was simple: multi-point inspection (mpi) work feels like pulling teeth. How do you get the team to do it? The person asking had been a service manager for six months and had not moved the numbers.

The answer is not a trick. It is leadership. We have a course on this coming soon.

Leadership Comes First

When a service manager says advisors will not do walk-arounds or techs will not do inspections, that is a leadership problem.

If people will not do the most important part of the job, then the issue is not the team alone. It is the standard.

This is where service advisor training matters. The manager must set the tone, teach the process, and hold the line.

Build A Model, Then Raise The Bar

Start with the techs who already want to do the work. Keep them close.

If you do not have one, hire one. Tell that person they are the model. They inspect every car.

You can bring in one or two new techs if needed.

Then coach the whole team. Use contests to make it fun. Practice every day. Then raise the bar step by step until the process is a must-do.

It should take weeks, not months.

That kind of discipline helps service department profitability, because it turns the mpi into a habit.

Comment: Bringing Back Old School Customer Service

One viewer said that before COVID they were moving digital, but now they want to go back to hands-on service.

That is not really a question, but the idea is solid. Old-school service can still set a shop apart.

Comment: Content Is Underrated

Another viewer said the content is underrated and underwatched.

That was a kind note. Thank you, Mom.

Comment: Psychopath Business Partners

One viewer said a business partner took control, turned others against him, and cost him a lot of money and time.

There is no easy fix for that. People like that feed on drama and keep gaslighting others.

The best defense is boundaries. Learn the signs early and protect your line.

Comment: Selling Ethically In Service

Another viewer left a family-run shop for a BMW dealer. He was told to sell more, but he would not tell a customer to spend $5,000 on a $1,000 car.

The reply was clear: we do not support over-selling. If you would not sell it to your mother, do not sell it. Treat customers like family.

If a store wants dishonest work, do not work there.

Why Are Service Managers The Future Owners, General Managers, And Leaders In Transportation?

Most general managers and dealers came from sales. They know little about service.

Their ego is tied to how many cars they sell. They think about sales first, not the shop.

That is why service managers are in a strong spot. A strong fixed ops manager already knows the heart of the business.

Why Fixed Ops Is Becoming More Important

As the industry changes, car makers are moving more toward direct-to-consumer sales. Some will merge. Some will change fast. That puts the old sales model at risk.

When that happens, service becomes the steady part of the business.

That is why fixed ops trends matter so much right now.

The Gap Service Managers Must Close

The risk is simple: many service managers know the shop, but not the numbers.

Most came up as the best tech or the most trusted person in the bay. That is good, but it is not enough.

They need training on financial statements, sales, and service department management.

They also need to understand the other side of the store. Managing advisors is not the same as managing salespeople.

I learned that when I went to F&I school and sold cars. It helped me understand both worlds.

An auto service manager who understands the numbers can protect service department profitability and lead with confidence.

Prediction: Service Managers Will Own The Future Service Businesses

I think that over the next 10 years, more car makers will merge or go direct to consumer. The old dealer model will fade for some brands.

When that happens, the service side will still matter. Warranty work will still exist. Local service will still matter.

That is where the future owner may come from.

A lot of dealers do not think deeply about service. They do not see how valuable it is. They will move into other businesses.

But many service managers will be ready to own the shop instead.

Closing

I may sound cranky, but after seeing a man run down the street with his hand blown off, I am still a little shook up.

Thanks for watching. We appreciate everyone who tunes in. We will see you again soon on Service Drive Revolution.

Q&A

Why does the episode say service managers may become future leaders or owners?

Because fixed ops trends are changing the business. Many dealers and general managers came from sales, not service. If more brands move toward direct-to-consumer sales, service may become the core business, and a strong fixed ops manager could lead it.

What is the best way to get MPIs done?

Treat it as a leadership issue. Find or hire techs who will do inspections, use them as the model, coach the rest of the team, and make the process routine with contests and practice. Keep raising the standard until the mpi is part of the job.

Does the episode support overselling service work?

No. The episode says not to sell anything you would not sell to your mother. The goal is honest advice, not pressure or fake repairs.

What skills do service managers need for the future?

They need leadership, accountability, numbers, and sales understanding. They also need to know how service department management works and how to read the numbers that drive service department profitability.

Why is fixed ops becoming more important?

Because the old sales model may get hit by maker changes, direct-to-consumer sales, and mergers. That makes service the steady part of the business and keeps the shop valuable.

Podcast

There's nowhere to go but up! Are you skilled enough to rise to the challenge? Find out. only on this week's Service Drive Revolution. Now streaming!

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