The Secret To Losing Gross Profit

The Secret To Losing Gross Profit

By

Eric Twiggs

“Every day you either get better or you get worse. You never stay the same."  Bo Schembechler, Football Coach

Meet "Jeff", a service manager who was a legend in his own mind.  As a veteran with over twenty years in the business, he knew it all.  Jeff attended the Service Advisor class and left a day early because it was "a waste of his time".   I sent him the links to our phone skills webinar only to have him remind me of how long he had been in the business. 

With all of his"vast knowledge", I wondered why the shop had a much lower gross profit dollar (GPD) lift than my average client.  When I asked Jeff this question, he responded by telling me about how bad the economy was in his area, and how his customers didn't have any money.

I had Jeff phone shopped on two occasions and he failed both calls with flying colors!    Business reached a point where "James", the shop owner, had to terminate Jeff and become the service writer. You'll never guess what happened next. 

Weekly sales improved from $14k to$21k and gross profit dollar lift rose to over $4,000 per week. Today, James is a successful alumni client with a weekly GPD lift above the national average. 

Why did Jeff leaving result in the business returning?   It's because he had mastered the secret to losing  gross profit.

The secret to losing gross profit is to stop learning.  In six years as a Coach, I have never met a successful client who said the following: "I already knew that!"

Those who've said this, have either been fired from their shop, or left the program without achieving their return on investment.  The following are some additional signs that you or someone you know has stopped learning:  

·         The Empty Workbook -- When you send your writers to class, do they come back with pages of notes or an empty workbook?   The key is to be proactive.  Before they arrive to ATI, let them know you expect them to take notes and to come back with specific ideas to improve your business. 

 If your manager returns without any notes, it's because you have failed to set the expectations beforehand.  The best defense is a good offense when it comes to dealing with the empty workbook!

·         Lack OF ASE Interest --  The technician who is unwilling to pursue or renew his  ASE certifications, even though you reimburse for it, has stopped learning.   I have a shop in the Midwest where the tech is complaining about wanting a raise, knowing that his pay plan would increase his base by 5% once he passed his next test! 

 Vehicle technology is advancing, and the dynamics of our industry are always changing.  If you have a technician with a lack of ASE interest, it bears the following question: What is he doing to improve his skills and increase his knowledge base?  Since there is no such thing as staying the same, he's getting worse if he isn't doing anything to get better.  Do you want someone who is on the decline, working on vehicles that are improving?   

According to John Maxwell, "the speed of the leader is the speed of the team." In other words, your people will do what you do.  The owner, who has stopped learning, is likely to have technicians not getting their ASE's, and writers with empty workbooks.   

What are YOU doing to improve your skills and increase your knowledge base?  If your answer is "nothing", you will succeed at losing gross profit! 

Sincerely,

Eric Twiggs

www.autotraining.net

 PS.   I have a list of books that our Top ATI Shop owners are reading.  Email etwiggs@autotraining.net  if you would like a copy.