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There's
a hidden opportunity right in front of you that distributors
in other industries have long taken advantage of.
Take Domino's
Pizza. It sells pizza and soft drinks. But did you also know
it's in the transportation business? Domino's Pizza was the
first fast-food provider to deliver its product to the consumer's
home.
Then
there's McDonald's. It sells hamburgers and fries. But did
you know it's also in the real estate business? McDonald's
owns its franchise outlets and rents them to the franchise
holder.
And there's
the equipment business. Your company sells machines and parts.
But did you know it's really in the labor business?
Overall,
the only thing that sets one dealership apart from another
is how well its service department performs.
You may
have the most ambitious sales reps in the world and have every
conceivable part in stock, but if your service group isn't
up to par the customer will take his business elsewhere-including
his own service department.
While
most dealers realize this, they're having difficulty implementing
the concepts and systems that result in a more efficient product
support operation.
Flat-rating
systems and operating practices
- Get
the standard times from your manufacturers
- Load
the data into your computer system
- Start
with simple functions; for example, PDIs
Service
programs that can be sold
- Create
a maintenance program to sell
- Set
up inspection programs
- Develop
machine performance tools to sell
Business
managers in parts and service
- Introduce
financial operating metrics
- Introduce
operational standards
Product
support sales reps who actually sell
- Establish
sales objectives for each customer
- Establish
sales goals for parts commodities
- Establish
sales goals for service programs
Executives
who spend as much on product support as they do on equipment
- Assist
on a daily basis with some aspect of your product support
operation
- Work
to double service labor sales
Proper
market coverage that results in high customer retention
- Establish
customer territories that can be covered using the telephone
- Develop
and operate promotional campaigns on a regular basis
- Focus
on customer retention
Good
use of technology, systems and processes
- Tune
your systems, whether they're mechanical or manual
- Eliminate
time from processes
- Review
all documents and reduce the operation's need for them.
AED's
Product Support Opportunities Handbook shows that customers
want dealers to be more involved in their business. But dealers
have to prove they're capable of doing so.
Start
working on these issues now so you're prepared to handle additional
aftermarket work as the economy picks up.
In the
1980s, the word "paradigm" became a part of business vocabulary.
Paradigms are patterns. Change is precipitated by outsiders,
people who are not part of the current paradigm.
Equipment
dealers have seen this phenomenon many times, particularly
with auctions and rentals. What will be next? Will it be the
maintenance business? The replacement parts business?
Don't
forget the fundamental truth about business: You get what
you earn or what you deserve.
To learn
more, check out the offerings from Quest, Learning Centers.
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