Preparation for 2023 Dealerships

It’s that time of year when we start preparations for next year. Next year will likely see the average age of vehicles on the road approaching a record 13 years. The average mileage on these vehicles will increase as well to record levels. This will create the foundation for a record fixed operations year for dealerships.

Warranty work will be down as new car availability hasn’t improved dramatically. Used car prices will moderate. However, the market values shouldn’t crash. With these factors in mind, preparing for 2023 should place a large focus on fixed operations. Vehicle owners will be more likely to invest in vehicles they own. Let’s look at opportunities for increasing our customer pay work. Advisors must be well-trained and have best practice processes. Every car must have suggestions for owners about what the vehicle needs to be safe and reliable. Good, better, best menus must be available and presented to every customer.

Declined services must be tracked, with follow-up marketing plans. Marketing to owners out of vehicle warranty is a must. The trend of losing clients after a warranty expires is an issue that illustrates an amazing opportunity for growth. If customers care when in warranty is impressive, why do clients leave?

The service experience must be so impressive customers won’t accept an independent shop’s service. Everything must be seamless. Staffing is critical and must be such that when customers need service, appointments aren’t weeks out. Dealerships that focus on fixed operations expense absorption will have a record for 2023. If you need help with that, give us a call. It’s what we do.

Sincerely,

Rob Gehring, President
Cell: (419) 282-1351
rgehring@fixedperformance.com

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