Schedule a MotiveLogic Demonstration
Contact a MotiveLogic Representative

Service Drives Profitability

"The significant decline in new-vehicle sales means that dealers are relying even more heavily on the service operations. In many cases, this income is keeping dealerships open." - J.D. Power & Associates

Profitability Demands Visibility

Rapid, innovative management dashboards provide instant visibility for active management control.

Visibility Creates Opportunity

Increasing the average repair order by just one hour of customer-paid repair work improves one dealer's annual revenue by $675K (with margin of $135K), equivalent to 4.5 months of new car sales revenue without any margin.

Search

Why MotiveLogic?

Today’s Model for Success Requires Constant Coachingtm

 

Constant Coachingtm is the culture created by the use of High Octane Business Performance Dashboardstm from MotiveLogic.  The information necessary to extract maximum profitability from existing operations is immediately and continuously available to employees and management.

 

Further, it reveals how and where to increase overall revenue, improve market share and profitability.

 

MotiveLogic Provides Continuous Business Information for:

  • Establishing natural, internal competition among team members at every level

  • Dispatchers to see open bays, techs needing more work, vehicles on hold too long, and how long each tech has been working on every RO

  • Clear displays of advisor sales to goal, and dispatchers' movement of vehicles through the shop

  • Managers to quickly pinpoint any area needing attention

Increasing Revenue, Profit and Cash Flow from Fixed Operations by:

  • Optimizing, managing and tracking Key Performance Indicators
  • Real-time workflow management with critical business visibility of dealership groups and franchised dealerships

  • Multiple rooftop monitoring from a single viewpoint, from anywhere in real-time

Yesterday’s Dealership Profit Model is No Longer Valid

Today, automobile dealers rely on the net profits from fixed operations to keep their lights on.  NADA reports that the average new vehicle department’s net profit slipped below breakeven in 2006 and never returned. Expanded inventories, generous OEM incentives and higher floor plan costs cut into dealer profits. Used car profits, once 28% of average operating profits, have collapsed with increasing fuel costs and consumer demand for fuel efficiency.

Service revenue is currently dependent on warranty work, which is declining as vehicle quality improves.  Worse, customer-pay work is declining as the independent repair shops’ market share continues to increase. Manual reporting from older technologies cannot deliver the information flow required by dealerships Fixed Operations Service Departments in today's ultra-competitive environment.

The Path to Profitability is No Longer the Same

Previously, automotive dealers relied on trainers, coaches, motivational speakers and a variety of word-track and menu selling techniques to encourage and train their employees to become more successful at serving customer needs with additional products and services.  Realistically, the methods employed by trainers, coaches and motivational speakers can be highly effective but difficult to maintain beyond a short period of time.  Unless continuous feedback occurs, employees return to doing business "the same old way".  The time it take for this to happen can be measured in days and weeks.  It doesn't take very long for each of these investments to evaporate.

 

Menu selling and word-tracks are perceived by most customers as either unnecessary add-on sales or programmed pitches that do not relate to them or to their vehicles.

 

What can dealerships do?  The MotiveLogic flagship platform is a business intelligence system designed by and for Automobile Dealerships and Dealership Groups to continuously encourage maximum productivity and effectiveness from fixed operations.

 

Click here to request a demo.