Through the Looking Glass: Missing Profits in Your Service Department

Through the Looking Glass: Are There Missing Profits Sitting in Your Service Department?

Every profit stream is important in your dealership today and should never be overlooked — especially when it is sitting in your service department. Many times, a perceived smaller profit center may not get the attention it deserves.

Every profit stream is important in your dealership today and should never be overlooked — especially when it is sitting in your service department. Many times, a perceived smaller profit center may not get the attention it deserves.

These missed opportunities will not only generate more profit, but will help you provide a valuable service that promotes the safety and genuine concern for your customer. We all know the effort it takes for customer acquisition and retention, along with finding new profit centers, so any opportunity to build client retention while increasing profit should not be wasted.

Let’s take a look at the profit opportunity when dealing with glass. Demand for advanced driver assistance system (ADAS) recalibrations shows no sign of slowing down. In fact, according to a report by Specialty Analytics, based on a compound annual growth rate of 23 percent, approximately 90 percent of vehicles will contain ADAS equipment requiring recalibration by 2029. As ADAS calibration becomes more of a requirement, profit margins are higher than ever with windshield replacement and repair. Replacing just one windshield per day could increase annual profit by more than $80,000 for ADAS windshields. How many replacements can your service department do per day?

Many dealerships overlook the profitable revenue stream of windshield replacement and repair as it may seem small. When you take a deeper dive, however, you realize that a significant daily opportunity is already sitting in your service department and can easily be offered to clients while they are there for other service needs. Having a damaged windshield could be a huge safety issue if your client was involved in an accident; by providing on-site windshield replacement or repair service, you are keeping them and their family’s safety as a top priority. This can be easily pointed out during a walk around.    

Taking a few minutes to do a walk around when a vehicle is dropped off can reveal additional service opportunities, along with building trust and client relationship. When clients feel comfortable and confident, they will come back. Look at all the glass on the vehicle as the walk around is being conducted and point out glass that needs to be replaced or repaired.

All glass work can be done in the service department instead of being outsourced, which will bring the profit home to you. For a minimal investment, glass software will help you easily order the correct piece of glass for all makes and models, compare vendor costs and ensure quick delivery of the glass. Integrated software will network you to insurance companies and allow electronic processing of jobs to expedite payment. You can promote this additional service on your Website or other social media channels, along with adding a technology tool on your Website to provide quotes for windshield replacement.

Offering more services while they are at your dealership creates a better client experience and a better likelihood they’ll choose your dealership for their new car and service needs.

Brad Rhoades

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