Several weeks ago we published an article that discussed the 6 Elements of Effective Accountability Management. The second of these elements, “Clearly Defining and Communicating Your Expectations,” is a critically needed, but rarely well-practiced, discipline within the retail automotive industry. You’ve heard it before: people will rise to the level of performance and/or behavior that is set for them. Mind reading is not a job requirement, in spite of what some dealership managers…

The labor sales potential for any franchised dealer’s service department is first dependent on the units in operation (UIOs) for that franchise in the dealer’s market. Unfortunately, very few of the manufacturers provide this UIO information to their dealers. For a fee, vehicles in operation (VIOs) are available by zip code from R.L. Polk, Inc.

Since there are other estimates used in the calculation of labor…

When I started my retail automotive consulting practice in 1987, I chose to state as my unique value proposition, "Guaranteed 1,000% Return on Investment." During my first few years as an independent consultant, I was shocked to learn that very few of my potential dealer clients had a clue about what this meant. So I would explain that, for example, if the dealer would invest $2,500 in professional fees with me, I would provide a money-back guarantee that I would assist in increasing the…

Since we initiated the Up To Speed blog, I’ve received numerous emails that suggest that one of the biggest road blocks to retail automotive success is the dealership (or department) culture. Because this is our first newsletter of 2012, I decided it opportune to tackle this thorny issue. “Culture” can be defined as the shared values and practices of the company’s (or department’s) employees, and it’s important because it can make or break your dealership. Business cultures…

Over the last fifteen years I’ve conducted numerous dealership sales meetings, at which we perform an interactive exercise called “Who Do You Know?” I ask each salesperson to write down just one name of someone they know in each of about 75 categories that I read to them over a twenty minute period. After the exercise is completed, I inspect the pages and pages of names that they’ve written down and I normally say something like, “Don’t talk to me about not having enough…

This is a pretty basic question, right? But when discussing this subject recently during 2012 annual business planning conferences with several client dealership service managers, I discovered that the answers were far more elusive than they should have been. Most of the NCM client dealers continually try to achieve 5% - 8% year-over-year improvement in Fixed Operations profitability. And those that successfully do so fully understand that it doesn’t just happen. This level of…

Most of you are probably adding the final touches to your 2012 business plan. At NCMi, we refer to this annual planning process as budgeting. Many experts agree that automotive dealership budgeting is as much an art as a science. Because industry business cycles are not repetitious, a good budget may result as much from experience, sound instincts, and good judgment as from anything else. Nevertheless, a budget is pretty much a view into the crystal ball, attempting to…