Promote Your Service Dept. to Increase Revenue

According to the National Auto Dealers Association in 2007, 46% of the total dealership operating profits was brought in by service departments. Successfully plugging your service bay could up this percentage by giving you two sources of additional revenue: an immediate increase from customers spending more of their service dollars with you, and an increase in future sales.  Customers who service their vehicles at your dealership are more likely to buy from you when that time comes.

Here are some ideas to get you started promoting your service department:

  • Advertise—anywhere and everywhere.  Just like branding your dealership is important, so is making sure you include your service department’s contact information wherever it’s appropriate.  Give the department a prominent spot on your website.  Send out service specials via email and direct mail from the service manager.  This should place your dealership at the top of their mind when they have an automotive need (service, purchase, parts, etc.).
  • Make Customers Comfortable—Give them a tour of the dept. (it has to look nice), introduce them to the service manager, and explain what your technicians will be doing to their car.  For those about to purchase a vehicle from you, showing them around before they even enter F & I may make them more likely to buy warranties from your dealership–what a great way to increase your back end gross!  The more comfortable they are leaving their car with you, the more likely they will be to come back.
  • Incentives—just like people need a little push to buy a car, they often need that same push to be inclined to service their vehicle at your dealership.  Try creating a loyalty program that gives money off future purchases, offer gift cards for purchase (great gifts for those on set budgets, college students, and the elderly) or simply send coupons redeemable for repeat visits.
  • Compete—most vehicle owners think that independent shops are less expensive.  If this is the case in your area, you’ll either need to lower your prices to remain competitive, or communicate the value of getting work done at a dealership shop.  Create emails for each past and future customer explaining this, including your technician’s certifications, studies about quality of work, and anything you can find that will show them getting work done with you is worth the extra cost.

The service department is already a huge source of revenue for most dealerships.  With car sales slowing down, what types of things, if any, has your dealership done to promote your service department?  Have you built this promotion into your sales pitch?  Any tips?