Ken Hite's Blog – January 2017 Archive (2)

Let's Address The Elephant In The Room...Service Retention

Franchise Dealers have the opportunity to earn hundreds of thousands in financial compensation from their OEM, assuming the dealer's service retention is at specific OEM guides. Unfortunately, a very high percentage of dealers are unable to take advantage of the financial windfall.

Let's put this in perspective. A tier 1 OEM has been offering PPM-Pre Paid Maintenance with every vehicle sold, it's inclusive in the MSRP. The metrics are as follows.

50% of the customers never show…

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Added by Ken Hite on January 24, 2017 at 9:54am — No Comments

Fixed Operations: The Dealers Last Stand or Renewed Opportunity?

It's easy to make a compelling argument that franchise auto dealers are at significant risk of going through a serious downturn, very similar to big box retailers like Macy's, J.C. Penny, Sears and even Nordstrom. Nordstrom is known for its exemplary customer service, liberal return policy and in-store amenities. The company also prides itself on selling apparel that buyers see as unique, fashionable and worth a premium price. Nordstrom's floor traffic is down, causing serious…

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Added by Ken Hite on January 5, 2017 at 4:17pm — 2 Comments

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