Franchised dealer service departments are facing a massive shortage of first-owner vehicles in the coming three years due to the 46% drop in new vehicle deliveries since 2007. No matter how aggressively first-owner customer retention is pursued, there isn’t enough gross profit in oil changes, and the few remaining first-owner maintenance services, to create profit in a service stall. While this is happening, the Aftermarket is booming. The second and third-owner market of six-year and older vehicles is growing substantially, including repair orders averaging three hours, with $1.20 in parts sales for every $1 of labor. While the vehicles in the typical dealership service drive are four years old or newer, the average registered vehicle is now over 10 years old and growing older!
Ed Kovalchick will review the current situation, and map out the steps for a dealership to take advantage of this larger and far more lucrative market, without spending a lot of money.
What you’ll bring back to the dealership:
- About the tremendous opportunity for growing the service business profitably.
- Techniques for competing with Independent Shops.
- About additional parts profit opportunities.
- The steps necessary for creating additional service and parts profits
Ed Kovalchick founded Net Profit Inc in 1979, and since then he has presented fixed operations workshops and speeches worldwide, including the National Auto Dealers Association, Mexican and Brazilian Auto Dealers Associations, South American Parts Distributors Association, Australian Auto Dealers Association, Canadian Auto Dealers Convention, Japanese Service Manager Guild, Tokyo Honda Management Team, as well as conducting hundreds of workshops in dealer fixed operations management here and abroad. He has trained field and regional management, as well as dealer personnel for Briggs & Stratton, Honda, Acura, Isuzu, Nissan, General Motors, Toyota, Ford, Kia, Hyundai, BMW, Porsche, Mitsubishi, and Chrysler.
Ed began in the automotive business as a dealership technician apprentice, became a master technician, and later opened an independent repair shop, eventually purchasing his own automotive dealerships, including six franchises in Alabama. He writes a fixed operations column for Dealer Magazine, and he has authored hundreds of other magazine and Internet articles through the years.
He is a graduate of the University of Louisiana and past president of the Independent Garage Owners Association. He served on the Advisory Boards of VC Tech and Wyo Tech colleges.