Articles

While more and more dealerships recognize how important parts and service sales are to overall profitability, many are sending troubling signals to their current – and potential – marketplace: they’re cutting back on their product support sales force to save money.

Here we go again. When the market contracts, dealerships drop the employees responsible for growing the most-profitable part of the business. Perhaps they doubt the value of product support sales reps. Perhaps they still think the shingle sells.

Whatever the reason, they’re sending quite a (negative) signal to their customers. They’re reducing customer contact just when the dealership most needs face-to-face demonstrations of the benefits of its products and services.

In AED’s upcoming Product Support Opportunities Handbook, more than 450 equipment customers from across the country reveal why they choose the vendors they choose for parts and service.

They select maintenance services based on convenience and price because they feel there’s no technical advantage to be gained from dealership technicians doing the work. If we’re talking about changing filters and fluids, they may have a point. But filters and fluids are not what regularly scheduled preventative maintenance service should be all about.

Equipment manufacturers want their product operating at peak performance levels at all times, and they set maintenance intervals accordingly. How well can a dealership communicate this to current and future customers if there are fewer employees to deliver the message?

Equipment users choose independent mechanics or their own staff for maintenance services 95% of the time. That means dealerships are missing out on almost all of this business. Sure doesn’t look like the shingle is doing a good job of selling maintenance services.

If customers don’t see the need to turn to the dealership to maintain their equipment, we as an industry have not done – and are not doing – a good job of explaining why the dealership is so important in eliminating downtime.

And now, in an effort to save a few bucks, some dealerships think they can hammer home that message with fewer employees.

Sure, you can save money by reducing the number of product support sales reps. But that’s like the Fram oil filter. The company based its advertising campaign on “pay a bit more for a Fram oil filter now – or pay for a much-more costly engine repair later.” The trouble with the pay-me-later scenario is that the customer chooses to go elsewhere for these services. And once it’s gone, it’s very difficult to get that business back.

The product support sales force is essential to a dealership’s success. But its role still is highly misunderstood and grossly undervalued.

Profitable dealerships view their product support sales force as highly sophisticated professionals, and expect corresponding results. Serving as the experts on the features and benefits of the dealership’s products and services is just the first step. These dealerships also make these employees an integral part of a well-oiled (no pun intended) sales operation. They are required to work closely with the equipment sales and rental sides of the business to capitalize on each and every opportunity to expand all types of business.

The dealership uses these employees to offer customers a comprehensive – and, hopefully, irresistible – package of products and services that eliminate the desire to go elsewhere.

Not surprisingly, this isn’t an easy position to fill. This isn’t a delivery person. Nor is it a public relations “Good Time Charlie". This is a skilled, well-trained professional salesperson.

If this were the make up of dealership product support sales reps, there’d be no doubt about the value they provide to either the customer or the dealership.

In tight economic times, dealerships should be adding market coverage – not contracting it. The Fram oil filter approach has turned out to be true. Imagine if 95% – not the existing 5% – of customers’ maintenance needs were handled by equipment dealerships. Think of the profit that would add. But how can dealerships get there with fewer salespeople?

You know what? It can’t.