PowerSports Business

November 6, 2017

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SOLUTIONS www.PowersportsBusiness.com Powersports Business • November 6, 2017 41 Year-end is approaching — prepare now for 2018 It's almost year-end, so that means it's time to clean the shop, and prepare for the new year. Now is the perfect time for your deal- ership to clean up. Let's look at each department and items that should be accomplished. As you begin the new year, begin it with confidence! PARTS DEPARTMENT I am starting with parts because it is such a critical part of the dealership. Service cannot work on units without parts and sales cannot build out units without parts. They have a big role. Many dealers think doing a physical inventory in parts is all that needs to be done. That in itself is a big task, but there is so much more to do. 1. Physical inventory. Complete a physi- cal inventory. This is needed because as we all know there are many things that "hap- pen" to parts throughout the year. Doing a physical inventory is cumbersome and long, but so necessary. 2. Procedures. Tighten up your parts procedures; who can get parts and who can't. Allowing everyone to access the parts room could be costly. 3. Generate reports. If available in your DMS, run reports on lost sales, obsolete parts and months no sale. Do not just run the reports, but do something about them. Ana- lyze and make changes as needed. 4. Reorganize and clean. Give the parts area a good cleaning. Organize the counter. Throw away all those notes tossed under the counter. Get rid of old catalogs, magazines, whatever other garbage there is. Use Windex, Clorox or other cleaning product to scrub those coun- ters. Most parts counters have never seen a cleaning cloth; hopefully the counter does not fall apart. Freshen up the floor by moving mer- chandise around. 5. Training: Do some training with the department. Make sure processes and proce- dures that are in place are reviewed, and new ones created as needed. SERVICE DEPARTMENT Nothing usually occurs in the service depart- ment at year-end; however several things should be taking place. 1. Review all open Repair Orders. Know their true status and what is going on with each of them. Be sure to make good notes in each Repair Order. You do not want units sit- ting in the shop waiting for pick up. All units completed should be cashiered out as soon as the unit is picked up. You do not want to have units in your shop for over 20 days. Twenty days is a lot; less than 10 is much better. 2. Match units to Repair Orders. Be sure that all open Repair Orders have an actual unit in the yard. Too many times the Repair Orders are open without a unit in the yard. 3. Warranty claims. Are all warranties up to date? Submitted to the manufacturer, pend- ing payment? Know what is happening with warranties! Warranties can make or break a service department. 4. Clean, clean and clean some more. A clean and organized area is worth it, and increases efficiencies. I can count on one hand the number of bays that are clean and orga- nized at the dealerships I have visited. 5. Tool check. Check all of the tools your techs use. Broken and unusable tools slow the process and significantly reduce efficiency. 6. Train your technicians. Do you have experienced techs? Use them to teach new techs new skills. Cross training is necessary and worth the time. Contact your OEMs to see how they can help. SALES DEPARTMENT There is much to do here as well. Many people think their sales department doesn't need any year-end help. Think again. Here are some things to do. 1. Major unit physical inventory. Take the time to touch every unit on your list. Yes, the floor checker comes in but probably does not touch those used units. You should only rely on yourself to be sure inventory is accurate. The only one responsible is you. 2. Tagged units. Are your units tagged with the correct pricing? Are they neat and legible? If not, clean them up. 3. Paperwork. Is it all up to date? This means unit folders, all contracts are signed and filed. Have all deals been finalized? If not, and the paperwork is done, finish the process. 4. Void quotes. Take the time now to void all quotes that are old. File them away or if you have a DMS, run a report and follow up with those customers. If you have a CRM module, be sure to set followup dates. 5. Change up the floor. Add some pizazz! Make sure the floor is clean. Hang something up to draw attention to a specific unit or a specific line. 6. Train. Have scenario trainings with the sales and F&I teams. Discuss process and FOLLOW ME PAULA CROSBIE See Crosbie, Page 42

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