Can it be done?
(This is a column I'm preparing for March release in MPN Magazine and I need your help.)
We’re working with a dealership where we’ve been able to improve their efficiency from 16% to 82% in a matter of a few months. Much of the improvement was actually achieved within the first month. The most immediate and obvious manifestation was that one of their techs who had never billed more than 80 hours in a month. He shot up to 125 hours in the first month, and he’s sustained that level for four months as of this writing. The not so immediate albeit much more important, their Service Department is profitable for the first time in the five years under the current ownership.
I can hear you asking, “How?” …which is exactly what I asked Bob Fitzpatrick, our Service Department Trainer. After all, you can’t just magically create more work… can you?
Here’s his reply. “Well, Otis” in a rather c’mon-Otis-try-and-keep-up tone, “you know that 2 week waiting list most Service Departments have in the heart of the season? And you know how it never seems to grow much past 2 weeks? And you know how it never seems to shrink much smaller than 2 weeks either, until of course, the season starts winding down? Well did yuh ever wonder why?” (Bob actually talks to me that way. But then so do most Service Managers.)
The reason that it never gets any longer than 2 weeks, is because most people just won’t wait any longer than that. Likewise it never gets any shorter than 2 weeks, because people will wait that long… but no longer! Most high end restaurants have a similar dilemma trying to reach their capacity on a busy Friday night. People will only wait so long for a table, no matter how much they wanna impress their date. The only way for restaurants to improve their “turns” is to get more people in and out. It’s the same thing with Service.
I can hear you asking, “How?” …which is exactly what I asked Bob Fitzpatrick, our Service Department Trainer. After all, you can’t just magically create more work… can you?
Here’s his reply. “Well, Otis” in a rather c’mon-Otis-try-and-keep-up tone, “you know that 2 week waiting list most Service Departments have in the heart of the season? And you know how it never seems to grow much past 2 weeks? And you know how it never seems to shrink much smaller than 2 weeks either, until of course, the season starts winding down? Well did yuh ever wonder why?” (Bob actually talks to me that way. But then so do most Service Managers.)
The reason that it never gets any longer than 2 weeks, is because most people just won’t wait any longer than that. Likewise it never gets any shorter than 2 weeks, because people will wait that long… but no longer! Most high end restaurants have a similar dilemma trying to reach their capacity on a busy Friday night. People will only wait so long for a table, no matter how much they wanna impress their date. The only way for restaurants to improve their “turns” is to get more people in and out. It’s the same thing with Service.
So what I need from the pool of genius on this blog is the "how". How do you shrink that waiting list?
Posts
5 ways to help shrink the waiting list:
ReplyDelete1. Flat rate pay plan
2. Strong pre-paid maintenance program
3. Same day service for scheduled maintenance
4. Dedicated parts to service staff
5. Invest in training your techs
Being 2 days behind makes us cringe. 2 weeks is insane. Quick turn service is profitable. YTD our shop is 55% net of sales - 97% proficient.
Otis:
ReplyDeleteThe Service idea is great, as long as you give the reader something tangible he can take away from the article and put into place. Albeit large or small, it shouldn't be a teaser for "Oh, for $995 I can show you how to make it work." You don't have to give your services away, but let them know that implementing at least one little freebie can help them; that way they'll be more enticed to "buy the whole thing".
Keith