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Getting Along With Your Whole Goods Sales Departme ...
Getting Along With Your Whole Goods Sales Departme ...
Getting Along With Your Whole Goods Sales Department
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Well, good morning, everyone. My name is Bill Hoig, and on behalf of Bill Mays and the Machinery Advisory Consortium, I'm going to be helping you go through the session of getting along with your whole goods salespeople and sales departments. And as we go into that, it's very interesting to me that as I deal with basically hundreds of dealerships each year, what's most interesting is that the parts department and the service department don't always get along quite as smoothly as they should. In fact, in some instances, you may even find that the parts department and the service department don't even like each other very well. But they have one unifying force that always occurs, that always brings them together, and always makes them one. And that unifying force is both departments can't stand the sales department. And so as we look at that, we need to look at how we pull those together. And as we get through this, one of the things I want to share with you is the Machinery Advisors Consortium is that we practice what we preach. Because many of the things that we're going to be talking about today are the things that we have to do to work together as independent consultants in an organization. We have to trust each other. We have to have mutual respect for each other. And we have to communicate extensively. And as a result, our group works together quite nicely. And that's the same kind of work that you'll have to do as you want the different departments within the dealership to get along with each other as they work smoothly. Now as a group, what we like to talk about is balance. And what you see here is that every department has a sales portion to it. It has a quality portion. And then to get that productivity, they have processes that they have to put in place. And what we like to see is a balanced dealership where each department is contributing in a balanced way to the total dealership. Now as you look underneath that, you'll see a small triangle. And I don't know about y'all, but how many of you are old enough to know what a teeter-totter is? Well, in this politically correct and safety-minded world, you don't see a lot of teeter-totters anymore. But if you're as old as I am, you got to use them. And so one of the things that you noticed about a teeter-totter is that if you have the big kid on one end and a small kid on the other, it's out of balance. And in fact, the small kid is probably wondering what's going to happen in his life, being stuck up in the air and wondering what the big kid is planning on doing. And so it's important to get that balance. One department is dependent upon another department. And as we move forward, we want to get that balance because a balanced dealership will be most successful. And in that, because of that, you'll have repeat customers and return on assets. And what's important in today's world is understanding that return on assets is just as important as repeat customers. Because if you don't have that, you're not there five years down the road when that customer is going to need you the most. And so it's very important to have even balance in that, financial balance, repeat customers, and departmental balances all working together to have that repeat customer. Now when we talk about the whole goods department, right, wrong, or indifferent, we need to say that it's probably the service department's largest customer. Now I'm not going to say they're the easiest customer or the best to get along with, but they are the largest. However, we want balance in that also. What we look at in service departments is that the internal or the sales department doesn't take up more than 20% of the time or business of the service department. If it takes more than that, the service department is out of balance. And if it's out of balance, then as we go into an economic downturn, the dealership is not able to be able to maintain its cash flow and successfully maneuver that economic downturn. So we want balance in the service department. So as the business turns down, we can still go back to that retail customer group and continue to grow, expand, and cash flow our business. So that's a very important side of it. The next thing that you would see on that list is that we have three or four or maybe even five independent but mutually dependent businesses under one roof. In today's world, we can find places that can drop ship most of the parts we want within 24 hours at our business. We can find independent service centers that will work on our equipment. We can find sales groups that just mostly sell product and don't worry about product support. And so as we look at this, the competitive advantage that a dealership has is that we have all those businesses under one roof. And if they would mutually depend on each other and support each other, it gives you competitive advantage to fight against those independent competitors that are trying to take our business away. And so it's an important piece that we look at. And why do I say there's three, four, or five? It depends on the structure of your unit. You probably have a parts department and a service department. There's two. Many of you have a rental department. There would be three. All of you have a sales department. That would be four. And some of you are now working on telematics and technology and guidance and all that. You may have a fifth department called technology, which supports all those ramifications out of the other departments that have to touch the technology portion of the dealership today. So when you get into it, there are a number of things that you run into with a mutual business. And if you can get them all together working and pulling the rope in the same direction, it will help everyone be successful. And of course, the key is a challenge is to have all those departments make money or make profit. Again, one of the important things is in some of the socialistic things that we run into nowadays, sometimes making money is considered negative type of thing. But if you don't make money, you're doing a great social injustice because like I said earlier, if you don't make enough money that you're there five years down the road to take care of the customer when they need you the most, then you have done them a great disfavor. So it's really important that all the groups are able to have a return on investment so that they can be there to support the customer and especially support and cause repeat customers in the making. Now the bottom bullet point that you see on the screen there is that parts and service in the big scheme of thing of the dealership is designed to cover the cash flow for the expenses of the dealership. And that the sales people, their purpose is to develop capital in the dealership. The ability to have stuff and the ability to grow sales and to have the working capital available to do that. If I could be really kind of simplification to this, parts and service makes payroll, sales makes and whole goods makes capital. So payroll, capital. So any time a sales person gets a paycheck, they should hug a tech. So get a check, hug a tech because what you have here is that the cash flow of the business is coming from parts and service. Any time you walk out to your shop and you see an overhead crane or you have a special tool or EST tool or service truck, that is you ought to thank sales because they have built the capital to allow that to happen. So if you get a check, hug a tech but on the other side of it, if you've got stuff to work with, you need to understand the importance of what sales is doing also. So together we're necessary and needed and because of that, then we want to try to walk together as a team to create repeat customers and return on assets. Now as you see from this balance slide, all of the departments are interdependent on each other if they are truly working with each other to be successful. So for instance, the largest customer of service is going to be the whole goods department. We want it in a balanced and a healthy way to be 20% of the business of the service department. We want the other 80% to be outside retail customer business so that we have the proper balance and the proper cash flow and the proper profitability that is needed to cover the expenses of the dealership. If we look at the parts department, approximately 45% of the parts business should be going through the service. So the parts department is looking at the importance of the service center to receive parts. So service is dependent on sales as their biggest customer. Parts is dependent on service as their biggest customer. And then sales is dependent upon parts to create that customer satisfaction and customer relationship because 55% of the parts business goes directly to the customers that creates the positive atmosphere so that when they walk on a site to talk to a customer, they're positive about what the product support does for the dealership. And so sales is dependent on that support from parts. Parts is dependent upon the service department for a major portion of their business and the service department is interrelated and dependent upon the whole goods department for a major portion of their business. So when working together, they really become important to each other and they become successful. I apologize. I'm having trouble with the screen changing here. There we go. Now, some of you already understand the importance of that good relationship. And so, you know, not all dealers have a problem in this area, but when you look at it, we want to make sure that everybody is working as best they can. And those dealerships that have strong relationship departments, congratulations, and thank you very much for doing that. And it wasn't by accident. It was planned. And it usually starts from the top down, creating that camaraderie, creating that relationship, and creating that desire that everybody work together. It's very important and good for the balance. Now, the focus, though, is you need to have a shared vision. And I really like the term vision because what I run into a lot of times is for people, when they look at what they need to do next, they run to a mirror and look in. Or they look into the rearview mirror and see what they've done. And as a result, they get focused on themselves or they get focused on their department and are not focused on the proper things to help them be successful. A vision means that you actually go to the window and look out, see what's coming over the horizon. And having that common vision, that common vision then helps everybody pull the – everybody looking out, seeing what's coming. And as a result then, you're proactive in your approach in doing business with your customers and in the industry. And that proactive approach is going to serve you well as you move forward. Now, one of the things that you see on the screen there is the focus on the retail customer. And if you – while you're sitting at your desk and watching this, if you could pull out a piece of paper and a pen, I'd like to share with you a couple of sequences that might be helpful as we get later on into this that you might want to write down to help you understand what I mean by focus on the customer. In our Western society and in almost every industry in the world, everybody at least mouths the idea that we're focused on the customer. That concept actually comes from servant leadership. And that service leadership is really one of the principles that you'll find in the Bible as it comes out. And that's one of those things that's permeated out into the business world and into our society as we look at that. And that is customer focus or that service leadership. Now, here's something if you've got your pen and paper out that you might want to write down. If you put yourself first, you'll end up last. Okay? Again, if you put yourself first, you'll end up last. If you put others first, you'll end up number one. Again, if you put others first, you end up number one. And that's part of that servant leadership. And in today's society, one of the struggles that we have with our teams and some of the troubles we have with working with each other, is everything now is messaged to us, focus on yourself. It's all about you. And in so doing that, the principles that we've learned from servant leadership is that when you focus on you, you end up being last in that chain and everybody suffers. But if you focus on, in our case, the customer or someone else, it ends up elevating you and making you number one. Now, why is that? Well, let's go back to if you put yourself first, it's all about you. If it's all about you, and it's all about you, you have a tendency to focus on self-focus. So you might want to write that down, self-focus. That leads to selfishness. And from there, from selfishness, it leads to self-victimization. Because in the selfishness stage, something's going to happen where it's not fair, or somebody else got more than you did, and you couldn't obtain what you desired and want. And as a result, that leaves you in self-victimization. Self-victimization, if you write down that next step, leads to self-indulgence. You're looking at a way of stopping the pain, how you do it either social media or whatever that might be. It could be buying things, playing with toys, playing video games, something to escape. That self-indulgence, though, leads to self-addiction. And that, again, can be anything, but many of you have run into that with some of your folks, social media, cell phones, being addicted to it, can't get off of it, all the way down to drugs and alcohol and some other things that are kind of unruly. And then that self-addiction leads to self-destruction. Too much of a fun thing ends up destroying us and causing us to withdraw from the world and not creating the types of relationships that can make us happy and give us purpose. At that point, we've lost our purpose, and that's what happens when you put yourself first. Now, when we go over to the other side, putting others first, and in our case, putting the customer first, we end up number one. So if I'm an employee of a dealership, if I put the customer first, that's going to make that customer like, become loyal, help us, and become a repeat customer. Then as an employee, if I put my dealership structure first, second, that means they're going to be successful, and I'm third, they're going to reward me for that. And by putting the customer first in that sequence, I now become number one as far as having purpose and being successfully reimbursed and being successful at what I do. Likewise, as managers, if you put the customer first, and then your employee team second, and the dealership third, the dealership ends up becoming number one. So that vision, that customer focus is very, very important. And that's something we know works, and it's something that oftentimes we walk away from. Oftentimes, people forget it's the customers that pay our wage. And so when we can get the salespeople to think in those terms and have a common vision, and they're putting the other departments first as we put the sales department first in our work, everybody ends up being number one. And as a result, the successful balanced dealership is always taking that servant leadership principle of putting others first or the customer first together, and that's what leads to great teamwork. Now, it requires planning, it requires process, and it also requires constant execution. You can't do it once, and then it'll always be that way. You have to continually work at it and continually work for that. So when we look at communication, the key is centered around communication. And by the way, too often, our businesses are consumed in emergencies, and that's because we're reactive and not proactive. And I know it's easier to say that than to do that, but quite frankly, if you plan for an emergency, which we should be doing, then it's not an emergency anymore. And so it's important to take a look at how we go about setting up our processes and working and putting others first and working that process so that we can respond to everybody in a timely, efficient, and effective manner. One of the things that it's just not, to get along with the sales department, it's just not having them make a bunch of demands on us and we say, okay, I'll do it. No. It's having a good, formal, and informal way of communicating and going through a two-way street and making it happen. We need to know what they have going on. They need to know what we have going on. And then we look at how we put that together and how we go about making it happen. So some of the things we need to know about them. Well, we need to know what customers that they're quoting whole goods to. We need to know what their promising or expected promise states are. Whether or not the machine has certain requirements that need to be pre-delivered or what additional attachments that need to be put on it. And also whether or not we need to put attachments from another vendor on it and order those attachments or special parts, special electronics, and things of that sort that allow us to know where they're going. And of course, more importantly, is what do we do with the trade and what reconditioning needs to be done. How can we interface and interact with the sales department and the parts department to make sure everything is being flowing effectively as we go through that. Now, one of the things that is probably most contentious in the whole goods and service department is trades. It's very easy for a sales department, a whole goods sales department, to get in upside down on a trade in, especially as the economy is starting to downtrend. And part of that is their own fault because they haven't included the service department in the process of evaluating a trade. And there's a number of processes that you can put in together to make that a more efficient and more effective system in helping both departments. The second side of that is it's easy to get even with the sales department when they want to have special privileges or special discounts on the recon is we can use the recon as a dumping place for our techs if we don't have enough jobs to keep them busy. And so that can actually balloon and cause used equipment to have a lot of write-off, recon to have a lot of write-off time as a result because the sales department can't absorb all the cost of that and the price of the machine out in the marketplace. However, it's always important though that it's not the service department's responsibility to bail the sales department out of a bad deal. And so it's important that when they get upside down and if they haven't used you as part of that process, they need to understand that they need to step up and take responsibility for their decision to move forward on the use. And so what we want to try to do in getting along with the sales department is work out a process or a communication system that helps both parties win as they move forward. At this point in time, if there's anybody that has any questions that you'd like to bring up on the screen, please feel free to do that. And also, we'll take time at the end, but more importantly, if there's something that catches your attention now, one immediate answer, please pop that question in and we'll address it right away. Now one of the things that is always an interesting discussion is whether or not the parts and service or product support should discount their work and parts to the whole good sales people. There's various rates. The best practice is the answer is no, we don't stamp that. We treat you like we treat our best outside customer and give you the same discounts that we give them, but you are our customer and we treat you as such and we give you the pricing that we give our outside customers. The reason for that is really profitability because if the parts and service departments are responsible for making payroll, as I said earlier, or covering the expenses of the dealership, they need to be profitable. And heavily discounting to a 20% customer in your dealership would critically handicap their ability to do that. Of course, the age-old question is, you know, I'm just taking money out of one pocket and putting it in the other. And indeed, there's a little bit of that, but not really because what the human tendency is, is if I have a lower-priced product, I ask less money for it in the marketplace. If I have a higher-priced product, I ask more money for it in the marketplace. So if we expect parts and service and product support to make payroll or to cover the dealership expenses, we need to let them do their job. Whole Goods, you need to find out what the real value of that equipment is in the marketplace and price it. And overall, what we found, those that discount to the Whole Goods department make less gross margin as a total dealership than those that don't discount to the Whole Goods department. And when they don't discount, the whole dealership has more overall gross margin and more ability to get return on assets so that they can serve the customer down the road. So it's kind of like an oxymoron. You would think if you save the salespeople money, they would actually get more money on the deal. They don't. And so by holding your own in the area of parts and service margins, you end up helping the whole dealership do a better job of getting those parts and service margins. Now, the other communication that is really important is when new product is being released by your OEMs. And I think it's important that any time a salesperson goes to some kind of training on new product or product, that they take the materials back and communicate those to you so that you have an understanding of what the sales spins are on some of this equipment. And then you're in a better position to be able to meet the promises that are being made by salespeople and the OEM and its performance. Now, when they introduce a new machine, that means there's a lot of activity that has to go on. The salespeople need to tell you what the new machine is. A lot of times the OEM will require service training for each dealership that's handling that machine to happen before the machine is shipped to them. And it also means that we need to take a look at a new parts stocking list and figure out what we need to have on hand and what we don't need to have on hand. And if we can get all three of the groups together to have those communications, everybody wins. When the parts people sit down with the service tech that went to training on the new equipment and they go through, that service tech has a gut feel of what is at risk of failure and what's not, what's electronic and what needs to have backup, what parts they need to have when a machine goes down that he can't work around and keep the machine going. Those are important questions that you need to have while you're preparing for the new machine to come in. So, special tools that you need and also, of course, from the product support side, all the maintenance items that you need, all the higher volume moving parts that maintain the reliability of the unit as you go forward. And so, when a new product comes out, those communications have to happen. The other thing that you need to be aware of is a lot of times when a new product is coming out, there are a number of those units pre-sold before they even hit the lot. And so, what's important about that is being prepared and you got to do this in advance. So, you can't wait until you see something arrived to start doing these things. You need to do them right up front when the OEM is announcing its delivery dates of the new product and you're looking at it and a constant communication between the sales department and the other departments as to what's pre-sold, what's coming, what's ordered and the potential in the marketplace for the machine. Those discussions all need to happen as you move forward. And of course, one of the things that you run into in communication is Whole Goods oftentimes likes to sell everything. And so, as a result, they want to continually bring in new manufacturers that they can represent their line, that may have synergies with the lines that they currently have. But when doing that, it's very important that the product support people are involved in that because it's just not bringing in the line. Most of those lines have a parts ordering requirement. They have special warranties and special tools. You have to understand the warranty systems and how the parts ordering system works and whether or not your dealer business system is aligned to be able to do that and whether all these things have to come into play. And if you don't have the luxury of having unlimited space, where's it going to go, how do you prepare for that, how do you rearrange all your other parts and service tools to make sure that you've got space for everything. So when a new line is being considered, this is a time that the product support side of it needs to be actively engaged in that discussion. And return on investments in these new lines has to be determined and it should be determined more from a customer use financial standpoint as opposed to an emotional standpoint. We need to have this product because it's really a cool product. And so those are things that you want to be aware of as you move in into those kinds of discussions when new lines are being considered. The other thing that you want to take a look at that's really important is the purchase warranties and maintenance and repair contracts. The construction industry has done a good job of looking at maintenance programs, preventive repair maintenance contracts and things of that sort on a regular basis. But also extended warranties is something that we need to hold these people to start looking at as we go out. They need to be actively engaged in selling that along with our own teams as we look at the various different opportunities. And it's important that we understand that in this new day and age. What's interesting is that as the new generations are taking over these businesses, we're going to have to actually teach relationship. And what do I mean by that? The loyalty and trust factors that we've developed with our customers over the years and as they have aged is going away. Younger generations are more plugged in to technology. They just as soon deal with a keyboard than with another person. One of the interesting things that I've been researching as I've looked at the social behaviors of the different generations as they've been moving up into positions of ownership and position of management. One of the things that I've found is that the Gen Z generation is now moving up underneath the Millennials is that 65% of them believe it's okay to lie. So if you're building a relationship on trust and loyalty and fulfilling your promises, you're going to lose. The younger generation really doesn't have anything that says that's important to me because they've been focused on social media and of course, you know the old adage, if it's on the internet, it must be true, right? So the reality is they're used to not running into truth and they're not used to trusting what they see or trusting other people. So what's important here is that they also come into the situation where they can learn to trust and learn to believe your promises. The longer we can extend warranties, the longer time we have to develop that relationship. So that's a very important strategy that we need going into the future as younger generations are coming up. To have time to develop these relationships and to earn the business and the respect of the customer because they're not used to living that in their personal and everyday lives. So that's why I mean by teach relationship. Also, we need to work with, as we talk about these warranties, what's covered and what's not covered and help the salesperson understand that. So there's some training and some communication there that's really required. I don't know how many times I ran into this. You bring a machine in, the transportation is not covered by warranty and the customer says, well, the salesman said it was or I didn't know that. And so it's really important that the person that is communicating the delivery of that new equipment to the customer is able to accurately show that and tell the customer that as they go through. So that's really an important side of that that you need to have built up so that the salespeople aren't making promises that you can't meet. And so it's important that they better understand and properly and have their processes in place to properly deliver that information. And so, again, as you look at any of these items, the process internally so that you don't spend a lot of time having to go and submit claims and things of that sort, need to understand all those things. And some purchase warranties are different than others. If you're using an outside person instead of a OEM to do this, but again, it's a very important strategy as you move forward in developing relationship. Some of you also may have a product support sales representative, which is, I call it a PSSR. Many of you may have some different names for that. But their principal purpose is to go out and increase parts and service sales. Oftentimes this person has some technical skill sets that the salespeople want them to go out and troubleshoot service problems or performance problems, which takes them away from their job. Now, it doesn't mean it's a bad thing, but it also means that they're not doing what they were originally hired to do, and that's increase parts and service sales. And as a result of that, you can get a conflict of, well, this person isn't financially supporting what we asked them to do, so that position sometimes gets eliminated because people don't understand all the dynamics that are going on. So what's important is, is they have a great relationship in regards to what that person's supposed to do. A very, very strong job description says, and a call process that they do to manage and be most effective for the dealership. A PSSR should never walk onto a owner's place of work. It's a business, and not be doing inspections and taking serial numbers and pictures and doing those kinds of things that are required to increase parts and service business. But I will also suggest to you that if you have a great relationship with your service department, teach them, or excuse me, your sales department, teach them how to do inspection. They should never be walking on a customer's location without a purpose. And they should be at least doing an inspection on machines that they anticipate that they'll be trading in on the future. And so they should also be doing the same types of things and both groups communicating back and forth extensively on what's needed. If you have a machine that comes in to the service center and it's got $30,000 worth of service work and it's on a skid steer, oh my goodness, sales needs to know that and they need to be offering different options. Likewise, the sales people, when they see something that needs to be done, they should be calling you up and saying, hey, here's some work that this customer needs and they should be championing this product support people. That relationship, if the sales people are the face of the dealership in front of the customer, they are the face of the dealership for both parts and service and rental and everybody else that's involved. And so that relationship, again, when we put the other first, we end up number one. And in those cases, all the departments can win from that particular situation. So having a very distinct plan for special product support people that are out selling them making sure that they have a fairly tight job description and have a very structured call process will help them be more effective and be more valuable to both the whole goods department as well as the parts and service department. One of the things that you're going to run into from time to time is negotiating invoices. And oftentimes you may hear through the grapevine, a salesperson comes in and says, oh, that customer is really upset with your last invoice on the repair of that machine. You need to write down some of the time. And you can see the tension happening between the different parties as we get into it. And it becomes even more important though as we move forward that we look at proper ways to get the customer engaged in repair services and also providing a platform to talk to customers with. If you have that pen and paper together, what I'd like you to do is write down three numbers. The first number I want you to write down 75%. The second number I want you to write down is 15%. And the third number I want you to write down is 10%. Okay, everybody have that? What do those numbers mean? Service managers, 75% of the time before you open a machine, you know what's wrong with it. And as a result, you can be proactive in ordering your parts, having everything done, and making your tech as efficient as possible. And because you know what's done with it, you can do an estimate and have a communication platform to discuss that with the customer, being proactive. And he's not going to argue with you or very seldom will he argue with you when you provide an invoice that he approved prior to you starting the work, okay? The second number that you have is 15%. That's the percentage of time that there's no way you can know what's wrong with that machine until it's laying all over the floor, okay? And 10% of the time is we just guessed wrong. We just missed it, okay? Now in every one of those cases, if you had an estimate, you took your best guess on there's no way we can know. And if we made a mistake, that 25%, if you had an estimate, that would give you a communication platform to discuss these differences and changes as you go along with the customer. Now the reason I say that is we have a tendency to live in the 15 and 10% world. And as a result, we're afraid our credibility will be damaged if we don't wait to the very end to tell the customer what the bill's gonna be. As a result, that creates a reactive mode and that creates a lot of tension and a lot of complaints from customers and pressure to write down our projects. So it's important that we take a look at operating in the proactive mode in that 75% and using the estimate in that other 25% as a communication device to go back and forth between the customer when we find out what the real issues are. And that gives you a more positive customer relationship process. Now as I've mentioned that, we talk about flat rates. And of course in our industry, unlike the automotive and truck industry, which has millions of vehicles and they don't have nearly the adversity to work on as we do, have good flat rates. Some of your OEMs have pretty decent flat rates, but they don't take into a factor, the grunge factor as I call it. They don't have to deal with rust and chemical corrosion and asphalt and all the salts and all the kinds of things, abrasive soils that you get into with our different equipment. And as a result of that, what happens is even on those repairs of equipment that we may even have a flat rate on, if it's been used, we still need to do an estimate where we can take in the grunge factor, set the customer's expectation and develop a platform, communication platform that we can talk back and forth on. Where we successfully use that, and I've been successful in implementing that process in some dealerships, what happens is that we have real-time work orders and that results in the service manager being able to close 75% of their work orders and invoicing them and calling the customer back within 30 minutes after the work is done. The machine has been tested. And so those opportunities allow us to make everything move more smoothly, more effectively and more efficiently. But the estimate becomes our industry's flat rate so that the tech has something to shoot for. What's interesting about that, if you don't have a target, you'll hit it every time. Unfortunately, you may not hit what you really wanted to hit. And so having that estimate becomes a target that the tech can go after and as a result allows them to move forward. Now why is that important for a good relationship with the whole goods department? One is on sales and new equipment, you can have flat rates on PDI, on infield startup, those kinds of things that you get into. But in that way, it makes it easier for them to quote a machine. And that's because you're dealing with new and this process you probably have done over and over again, it's pretty straightforward. However though, when you get into used equipment and if you get into recon of trade-ins, it becomes extremely critical that you have an estimate and that the whole goods people understand the value of the trade-in because of the amount of recon that's going to be needed. And secondly, they have approved that recon so that I run into techs just because of their perfectionist demeanor, they'll want to fix everything on a machine and by the time they get done, the machine is priced out of the marketplace because of that. So there has to be a discussion and understanding of what has to be done, make it run for the next customer or potential customer and what we can charge for it in the marketplace and get that balance. So an estimate is very critical as you go into that and you meet that need and the sales people approve that and so you're gonna have a much better relationship as you move forward and that communication process becomes really important. So at the end, I think what you're gonna find is, although we may have our, how should I say, grievances or pet peeves of the other departments, every department of the dealership is really important and we need to work together under one roof. We need each other, that's what's going to give us our competitive advantage if we do it effectively, efficiently, profitably, that's gonna give us the advantage over all the independents and all the outside forces that are trying to come in and take our business. And because we do it better and if we actually work with each other as true teammates, it's really important that that success moves forward with repeat customers and return on assets. I hate to admit this but I am a Green Bay Packer fan and I am from Wisconsin and I do enjoy watching them play but I will tell you, as good as Aaron Rodgers, the quarterback is, he's not very good if he doesn't have a good offensive line in front of him or a good defense to turn the ball back over to him to let him play some more. What that points out is there's no, you may have a superstar at your dealership, but your location, but if the whole team isn't stepping up, there is no superstar that can carry the whole team on its back. And so it's important that you understand that you're mutually dependent, each department depends on the other and that everything that is done right as a department for the other department will put you number one in your marketplace and number one with your customer. So with that, I want to thank you very much for spending the time with me. And on behalf of Bill Mays and the Machinery Advisor Consortium, we thank you for the opportunity to serve you today and share some of this information. Now, are there any other questions or anything that somebody would like a quick answer on before we close this? If not, thank you very much. And just wanted to let you know that you can always call Bill Mays or myself if you have any questions. You'll see the number, phone numbers on the screen. And again, Bill Mays is top-notch in this area and I do a tremendous amount of work in this area also. So feel free to give us a call, even just to have a chat and to bounce ideas off of us. So thank you very much and I wish you the best as you move forward for 2019. Take care now, goodbye.
Video Summary
In this video, Bill Hoig discusses the importance of effective communication and collaboration between the parts department, service department, and sales department in a dealership. He emphasizes that while these departments may have their differences, they must work together as a team to achieve success. Hoig explains that a balanced dealership is one where each department contributes equally to the overall goals and profitability of the business. He suggests that a shared vision, trust, respect, and open communication are essential for building strong relationships between the departments. Hoig also highlights the significance of focusing on the needs of the customer and the importance of providing excellent customer service. He discusses the role of warranties, repair contracts, and maintenance agreements in developing customer relationships and increasing parts and service sales. Hoig advises against discounting parts and service for the sales department, as it can negatively impact profitability and the overall success of the dealership. He also suggests implementing clear processes for estimating and negotiating invoices to avoid conflicts and maintain customer satisfaction. Hoig concludes by emphasizing the mutual dependence of the departments and the need for teamwork to achieve long-term success.
Keywords
effective communication
collaboration
parts department
service department
sales department
teamwork
balanced dealership
customer service
customer relationships
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