CWI: Service Time Management

Time is one of the many elements of our lives that we deal with every day. It is one of those elements, however, that does not change.  We do not have the ability to add more time to a day. As a result of that fact it is important that we use all of the time that we have as effectively and as efficiently as possible.

Rarely do we accomplish that. We do things over and over again, we defer conclusions and decisions, we get interrupted with unrelated issues, we have to deal with meetings and the internet and the telephone. There is a lot to the use of your time.

This course will introduce you to different styles of work and a series of steps that you can consider to more effectively manage your time. At the conclusion of the course you will have been exposed to a wide range of options for you to consider that will assist you in managing your time more effectively and efficiently.  Don’t miss out on this powerful learning program.

CWI: Service Customer Retention

All of the training and tooling in service, and the inventories and systems in parts, and all the good work by professional salesmen will be wasted if you cannot keep your customer for life. The Japanese taught us that in the 1970’s, and Harvard Business School did the definitive research in the 1980’s. This class deals with the facts of customer retention and “how to” minimize the number of customers that “defect” from your dealership.

The statistical impact of defection on profitability across differing Industry groups is exposed. It is shocking. In the Industrial Distribution business, if you can increase your customer retention 5%, then you can increase your profitability as a Company by 45%. There is no single element of what we do that has the impact on dealership profitability like customer retention. The tools you should use to minimize customer defection are discussed in detail in this impactful class. Everything that we do in the performance of our jobs is at risk if our responsiveness and convenience are not to the customers’ liking. Don’t miss out on this powerful program.

CWI: Service Inspections

Customers, for the dealership service department, have grown used to performing service maintenance and minor repairs either themselves, or with the help of independent mechanics. This has led them to the conclusion that repairs are easily done and that they can diagnose problems with their equipment without much help from anybody.

While it is true that some of the customers, employees, and independent mechanics can perform very technical work, it still remains the dealership that has access to all the technical expertise that is provided by the manufacturers of the equipment.

The parallel that will be presented in this program is that of the doctor. The technician performing the inspection is a qualified analyst, trained to know what to look for and what the symptoms mean. The inspections that we are talking about here are diagnostic inspections to be performed prior to conducting any repairs, quality control inspections to be done after work has been completed, and machine appraisals which would be required of machines being traded in or being purchased used.

This program on inspections will provide you with an outline – a process – to follow in developing the inspection programs listed above for your dealership. This outline will allow you to improve all repair processes as well as have a more consistent condition report on used equipment.

CWI: Service Pricing

Too often, dealerships call around to the neighboring dealers and ask for their service pricing. While it is understandable to want to know what the pricing is in your territory, it is more important to develop the price structure that is required to attract the business and also produce the profit necessary to operate a dealership.

We will expose the “peanut butter” labor pricing for what it is – an over-simplified, unrealistic pricing mechanism – and provide an alternative to consider. It all starts from the skills of the men, as well as the degree of difficulty of the work involved. This requires that we know the skills of the men we employ, and then use their skills on jobs that match that skill. Consider that the wage that is paid to the men is a direct reflection of the skills that the men have, and we have a starting point to determine labor rates. It is called a “wage multiple.”

This methodology has been in use for a long time, but not by sufficiently large numbers of dealerships.  Currently, most of us over-price low skill work and underprice the high skill work. We will define and describe the wage multiple so that, upon the completion of this class, the participants will be able to return to work and recalculate their labor rates with this new method and evaluate whether or not they should apply it in their Service Department.

CWI: Service Market Capture

The parts and service businesses within the construction equipment Industries has never had a precise method to calculate the share of the labor market for a specific brand. To some degree this has allowed the service business to operate without a critical performance measure being in place.

This program married the market potential, which is covered in another class, with the actual sales for a dealership for a specific brand. The market potential model allows a dealer to calculate the potential consumption of labor on specific machines. That, together with the actual service sales, allows a calculation to be done arithmetically that determines the percentage of a customer business obtained by a dealer.

This class provides a detailed methodology to calculate the share of the market the dealer obtains. This is the market capture rate that the dealer obtains in the labor business. Ideally, we would be able to perform this calculation by machine model.

Similarly, we touch on the “mean time to failure (MTF)” statistics provided by the OEM’s for their products. With territory potential, market capture we can drive market coverage methods which with the MTF the sales force can be targeting customer needs in a timely manner. This program covers all the details and methods required to perform the calculations required to measure market capture.

CWI: Service Market Strategy

The only way to position your labor business is to provide customers with something they value.  The fundamental principles of customer value are to offer something the customer wants and needs and to provide that offering better than your competition can.

This class provides methods and a road map to follow in developing a strategy. We identify three key strategies for enhancing customer value. Companies focus on being: Better – through the provision of superior quality labor and service. Faster – sensing and meeting changing customer requirements more quickly than others. Closer – creating durable linkages and even partnership with channel members and customers.

This program takes you more deeply into operational excellence offers customers good pricing as well as convenience and reliability. Then we examine labor leadership which is the result of superior product performance. Finally, customer intimacy which utilizes “micro” marketing techniques. These strategies for providing customer value indicate the importance of the marketing focus in overall strategic planning. Customer value offers a way to gain strategic advantage over competitors and to differentiate the company’s products or services.

Communications is the critical element to successful implementation of a strategy for the parts business. The final emphasis of this class is to ensure that the strategy is effectively communicated to all employees so that they will be committed to executing the strategy.

LWS: Service Absorption

A properly managed Service Department is critical to the financial health of your company. Customer loyalty is crucial when it comes to your success in your business. In the midst of managing the service business for the highest levels of customer loyalty, we often overlook the many ways in which profitability itself impacts the business.

The profits provided by the service business goes to cover the expenses and costs of operating the business. This is the contribution of profit to the business. This is all very straightforward, of course. But where we all clearly understand the contribution of profit to the business, absorption is something that is less clear.

In the 1950s, the model of Absorption was developed as a way of managing profits and expenses in the service business. This important class offers clarity in the financial aspects of a fiscally healthy service business, and how it positively impacts the overall strength of the dealership.

LWS: Service Maintenance Programs

Everyone knows about the repair and rebuild business. That is where the excitement is for technical people. In the product support business, we have two major goals: reduce the owning and operating costs for the machine owner, and protect the residual value of the machine. The first step to understanding how to reduce owning and operating costs is to understand the importance of the maintenance service recommended by the OEM. Most customers view maintenance as the necessary evil of changing fluids and filters. There is much more to it than that. How to develop a maintenance program to reduce those operating costs is the theme in this program.

There is a fundamental conflict that has to be dealt with in the labor management group. Maintenance is boring, anyone can do it. In fact the OEM dealer has less than 6.5% of the maintenance market. Nearly 90% of the maintenance is done by a customer mechanic. Yet survey data indicates that nearly 90% of the customers would give the maintenance business to the dealership if their price was less than what the customer currently pays.

This program will discuss the methods and processes to follow in order to be able to meet that price and performance need.

LWS: Service What’s Your Why

It is of critical importance to be able to communicate effectively. In order to be able to communicate effectively means being clear. Clarity is all about understanding and acceptance of what it is that we do and the context within the Company. Many people can tell us what they do. Some people can even tell us how they do it. But people struggle with telling us why they do it.

The answer to the question “what do you do,” is not simply the same as describing your job function. It is much more than that. This also takes into consideration the culture of the business. Each of us has to be clear on the direction of the market, of your company within the market, and how each of us can impact that. This program explores how we can have more clarity in our communications with each other in the course of our day job.

The “What you do” question is the key point here. This class discusses the who we serve in our jobs, why we do it, and significantly what we create in performing our important work. What value do you bring to your work?

LWS: Service Making Money

With everything that goes on in a labor business it is easy to forget that we also have a responsibility to make money. We have to make money to be able to pay competitive wages to attract and retain talented employees. We have to make money to have available buildings and equipment that allows us to perform repairs and rebuilds and maintenance on the equipment we represent. We need to make money to be able to provide the most current tooling and training to provide effective and efficient labor.

This program provides you with the understanding of the costs of operating the service business. It exposes you to the means and methods of how to make money. From understanding how the labor prices are created and how those pricing systems work. How the prices are calculated and the variables that are in use. You will learn their effect on the gross profit. The approach used to derive the price points based on skill sets, job degree of difficulty and frequency, will be explained in detail.

When performing repairs and maintenance the employee needs to understand the impact that their work makes on the profitability of the department and in fact, on the dealership as a whole. This class provides all of that.