The Client
Georgia Toyota Dealer
In this fast-paced industry, dealerships focus on smart investments to grow and profit. Those smart investments could take shape in financial analysis, facilities, and staff development. To gauge how well these investments pay off, they use Return on Investment (ROI) analysis. By understanding the ROI of different initiatives, dealerships can refine strategies, boost efficiency, and maximize profits in a competitive market.
Let’s take a deeper look at how this Toyota Dealer turned smart decisions into profitability with the right approach.
The Challenge
Investing in facilities and technology
The dealer had invested in 2 Hunter Quick Check alignment machines for their service drive, at the cost of approximately $120,000. After installation, the service department saw only a slight increase in the number of alignments being performed.
The ROI for the dealer was far below what was expected and what was necessary to cover the costs of the alignment check machines.
The Solution
Seeking a partner to help with ROI
Through a combination of hands-on performance consulting, coaching, training and talent management solutions, JM&A Group helped implement proven processes tailored to bottom-line dealership growth and set new records for fixed ops performance through an outstanding customer experience.
Here is how JM&A Group outlined the success plan:
- Developed a tailored process and word tracks for presenting the complimentary alignment inspection to the customer as part of the write-up process.
- Demonstrated the process while working shoulder to shoulder with the service advisor team in the drive.
- Demonstrated the benefit for the service advisor consistently presenting the complimentary alignment inspection to the customer.
The Benefits
Reaping the rewards
The dealer has gone from selling approximately 200 alignments per month to now selling approximately 550 alignments per month. The alignment penetration has gone from approximately 20% to approximately 60%. The Gross Profit on alignments alone has INCREASED by approximately $35,000 per month.
The Results
Identifying the real opportunity
Working closely with JM&A Group, there was a process analysis that was created and scripted dialogue for introducing the complimentary alignment inspection to customers during the initial service consultation.
The dealer initially was searching for a ROI and the real opportunity was the process. Through identification, working with the dealer to create incentives, and shoulder-to-shoulder assistance, this Georgia based Toyota store saw:
- 275% increase in alignment sales*
- Increase in average CP$/RO from $323 to $370
- 16% increase in CP Labor Sales vs. previous year
- 14% in CP Labor Gross Profit vs. previous year
The results were impressive and totally aligned with what the leaders at the dealership aimed to accomplish. A partnership with JM&A Group was exactly what was needed to get the Fixed Operations Department firing on all cylinders.
*Results based on one dealer's case study and are presented for demonstrative purposes only. Individual dealer results will vary.
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Case Study
