Export Service - News You Can Use

Welcome to "News You Can Use".  This page was created to provide Distributors with ideas or tips from other Honda distributors in the LAC Region on how to improve their service operation.   Here you will find ideas or tips on how to satisfy customers, increase income, decrease expenses, etc.

In order to make this site useful, we need your input.  So send me an e-mail with an idea or tip that has worked for you and I will post it here for others in the region to see.  By sharing this information, every Honda distributor will get the chance to improve their business.

Be sure to check back on a regular basis to see what's new.  If you have any questions or comments please drop us an e-mail.

Best Regards,

Export Service

lee_dasilva@ahm.honda.com


Topics and Links

    April '04
iN Navigation Contest
March '04
Quality Feedback
February '04
Improving Customer Relations
January '04
Recalls and Product Update Tips
December '03
Avoiding Technical Jargon
November '03
Time Management
October '03
Voice of the Customer 
September '03
Service Promotions
August '03
Staff Meetings
July '03
At-Home Follow-Up Callers
June '03
Get Your Techs Busy First Thing in the Morning
May '03
"Tarde de Damas" in Honduras
April '03
Honda Service Culture Contest Winners!
March '03
Thank you Juan Carlos Sancho Ramirez!
February '03
Business Ethics
January '03
Marketing / Promotions Budget
December '02
Recent Service Promotions
November '02
Tie Service Manager's Pay to Parts Department
October '02
Increase Income by Decreasing Expenses

News You Can Use -  April 2004 

         iN Navigation Contest         

In keeping up with the “Information Era”, the Export Service Operations Department of AHM is proud to announce the one-stop shop for all your Honda Distributor’s information needs – Interactive Network (iN). We have upgraded from hondalac.com to in.honda.com. Starting April 21, 2004, your Honda distributor will experience the efficiency gains of utilizing the flexibility of the internet.  The iN has made the exchange of information seconds away with a click of the mouse.  ESO is confident that your Honda Distributor will notice a great improvement not only in the functionality, but in the available content as well.  

Contest Information

As a demonstration of the wealth of information available in iN, ESO has developed a contest that could win you and your iN administrator FREE Honda shirts in the available size and color of your choice.  On April 21, 2004 you will be able to login to iN and access the three new buttons under the SERVICE tab:  HondaLAC QIC, Service Library, and eTAR. All you will need to do is provide accurate answers to five iN navigation questions using the new and existing functions and register to win a pair of stylish Honda shirts. 

To register to win your FREE Honda shirts, follow the instructions below:

1)    Go to http://www.in.honda.com

2)    Use your Distributor Number, User ID and Password to login

3)    Click on the SERVICE tab

4)    Click on the Service Library button

5)    Then, click on News You Can Use and open the article titled “iN Navigation Contest”

6)    Then click on the iN Navigation Contest Registration Form link

7)    Complete the Registration Form and fax or email it to your Territory Service Manager – Attn: Lee DaSilva at (310) 783-3292 or lee_dasilva@ahm.honda.com.

Contest Rules

iN Navigation Contest Registration Forms will be collected from April 21st through May 13th.  Eight registration forms that have correct answers will be picked and the lucky WINNERS will receive a pair of Honda Shirts.  Only one entry per distributor will be accepted. The WINNERS will be announced on May 14th in iN. The WINNERS will be sent the Honda shirts via FedEX the following week. 

GOOD LUCK!

Top of Page

 

News You Can Use -  March 2004 

Quality Feedback

Although Honda takes great care in building quality vehicles, the Honda distributor in the marketplace may find it necessary to report product quality issues. The Honda distributor is in the best position to provide accurate product information.  In fact, Honda depends on distributors to provide information to initiate quality-improvement activities.  The QIC Report is designed to gather the quality information needed to initiate a product investigation.  This may lead to a factory counter-measure or a field-fix procedure.  In other cases, it will create awareness and no action will be taken.  Sometimes it may be necessary for the engineers to inspect a defective part to help determine the cause of the quality issue.  When sending the part in question, always tag it with the corresponding vehicle VIN and QIC Report number.  When returning parts for QIC investigation ship to the applicable address listed below:

JAPAN PRODUCTION

HONDA MOTOR CO., LTD.

(*ALWAYS send the part(s) to Japan with a copy of the QIC Report)

                           Attention:          Honda Motor Co., Ltd., Quality Control Center

                                                     Service Engineering Department

                                                     Overseas Service Operations

                           Address:          Auto Quality Analysis Office (AQAO)

                 52-1, Hagadai,

                 Haga-machi, Haga-gun,

                 Tochigi-ken 321-3325

                 JAPAN

              Telephone:        +81-28-687-2127

               Fax:                   +81-28-687-2157

 

NORTH AMERICAN PRODUCTION

AMERICAN HONDA MOTOR CO., LTD.

(*ONLY send parts to the factory when requested to do so with a copy of the QIC report)

                           Attention:          Honda of America Manufacturing

                                                     WPI, QIC Report Failed Parts:  U.S. Production

                                                     -OR-

                                                      WPI, QIC Report Failed Parts: Canadian Production

                            Address:          24500 Honda Parkway

                  Marysville, OH 43040                                                

               Telephone:        937-642-2737

                Fax:                   937-644-0596

Reporting quality concerns and submitting QIC reports is your responsibility as a Honda Distributor. Please do your best to provide quality feedback in a timely manner to the factories. Only you can tell the factory what quality issues exist in your market.

“YOU ARE THE EYES AND EARS OF HONDA”

 Top of Page

 

News You Can Use -  February 2004 

Improving Customer Relations

Are your customers completely happy with their vehicle service visit?  The service department’s top priority should be to follow up with customers in order to find out exactly what they think.  Calling customers soon after their service visit will allow the service department to act quickly on any concerns or complaints.  Using customer feedback, good or bad, will help your service department provide your customers exactly what they want and more.  Some ways the service department can be proactive to improve customer relations include:

It has been found that more than anything else customers want their vehicle fixed right the first time. As the saying goes, “you only get one chance to make a good first impression.”  Exceeding customer expectations should be the goal of every service department.  Providing your service customers with what they want will keep them loyal Honda owners for life.

Top of Page

 

News You Can Use -  January 2004 

Recalls and Product Update Tips

You are watching the nightly news or reading your favorite Internet News source and you hear about the latest Honda recall.

Instead of dreading the news, you can view this as an opportunity to demonstrate to your customers the care and concern you have for them and their vehicle.

You know that one of Honda’s overlying corporate goals worldwide is Lifetime Owner Loyalty.  We have to continue to build upon the Honda brand image.  Any time we have a product situation that we feel needs to be remedied, we ask that customer to return their vehicle to the Distributorship so we have the opportunity to make their car the very best they can have.

The whole point of a recall or product update is to fix the problem before it ever actually occurs.  This gives the customer a much better feeling of convenience, security, and safety because they know we’re watching out for them.  We are taking care of their vehicle long before it actually fails. 

We know that some Distributors consider advising a customer of a recall or product update a very negative activity.  In this case, we ask you to put yourselves in the position of a customer that might suffer a breakdown because their vehicle was not updated.

When you are notified of a Recall or Product Update:

Be Aware of the situation – read all the published information, check website or the Interactive Network for any news. 

Inform your Staff Review the information with all the involved associates.  This would include the Service staff, Parts staffs, Sales staff, telephone receptionists, and anyone else that could be contacted by customers. 

Plan activities carefullyEach department should be fully aware of their role.  Each activity should be planned to maximize customer convenience. 

Prepare the Technicians – have the Technicians complete the actual repair/inspection so they can do it quickly and accurately.  Make sure that they have the proper tools if a special tool is required. 

Ensure parts availabilityVerify that you have the proper amount of parts on hand and understand the process if special ordering procedures are needed.

Respond to inquiries quickly If customers phone with questions about a recall or update you haven’t heard about, take their number, contact your Territory Service Manager, and get back to the customer quickly.

We’ll continue with more tips in a future edition.

Top of Page

  

News You Can Use -  December 2003 

Avoiding Technical Jargon when explaining Service and Repairs to your Clients 

One of the main functions of a Service Receptionist (Advisor) is to explain a complex service or repair so it is easy for a client to understand.   

A tool that is available to help with the explanation is the “Service Advisor Illustrated Technical Guide”.  This guidebook is located at the “What’s New” section of HondaLac.com and can be downloaded for your use. 

Clear, simple explanations of automotive systems help to put your clients at ease and build trust.  You want to explain in each instance what their vehicle is going to get in the way of a service or repair.  The “Service Advisor Illustrated Technical Guide” has illustrations of all the major automotive systems.  The illustrations can help your clients better understand what will be happening to their vehicle. 

To explain things simply, you should avoid technical jargon.  When your clients aren’t mechanically or electronically inclined, make an effort to help them comprehend what’s going on. 

To help your clients understand, use as few acronyms and abbreviations as possible.  You can’t go wrong by saying “anti-lock brake system” instead of “ABS” and by saying “fuel injections system” instead of “PGM-FI.”

Keep explanations brief and to the point.  Electronic fuel injection, for example, is a system that delivers the fuel to the engine, under pressure, through electric valves (the injectors).  ECMs, PCMs, and other control units in the vehicle are simply types of computers.

Which is not to say computers are simple, but at least most of your clients have some familiarity with computers.  Also, your descriptions of parts or devices as “electric” instead of “ electronic” may be somewhat less intimidating to some clients.

Even components that aren’t so high-tech may need some explaining.  For example, you could describe a CV joint as the flexible driveshaft coupling that allows the front wheels to steer and go over bumps.

Even though some emission control systems are far from new technology, they may not be well understood.  Just say that the evaporative emission and positive crankcase ventilation systems, for example, allow fuel and crankcase vapors to be burned in the engine instead of being released directly into the atmosphere.

Be aware that clients who aren’t mechanically adept may feel a little disadvantaged, and it doesn’t matter whether they’re male or female.  If they don’t know what’s going on, it’s the job of the Service Receptionist to help them understand all aspects of the service or repair.

Top of Page

 

News You Can Use -  November 2003 

Some Tips for Time Management

Time management is one of your best “special tools,” and it’s available to you anytime throughout the day.  Knowing when and how to use time management can control the outcome of your day.

We hope you are using the Franklin Planners that we conducted Time Management training with last year.  It’s a great tool to help with prioritizing all your tasks.

Part of a Service Receptionists job consists of being aware of the status of repairs on the repair orders the S.R. is responsible for.  The S.R. has many more responsibilities, but the repair orders that are written make up the bulk of their work.

A helpful time management technique is the 10 – 2- 4 method.  This is a way to organize the day to help your S.R.’s keep track of the progress of all their repair orders.  The 10 – 2- 4 method helps develop the habit of contacting the clients with updates as to the status of their work progress at 10 o’clock, at 2 o’clock, and at 4 o’clock.  (Of course these times can be adjusted to fit in with the local customs). What you’re doing with this system is controlling your time by initiating the calls to the clients.  When you call the client at a set time, they are less likely to call you.  This is especially helpful if your S.R. is busy completing some of the other duties that have been assigned to them.  The 10 – 2- 4 method serves as a very important way to let the client know that you haven’t forgotten about them and their vehicle.

Even though your client told you that they’ll be picking up their vehicle at the end of the day, they still are thinking about the service or repair (and it’s cost) at various times throughout the day.

Your calls not only assure clients you haven’t forgotten them but also prepares them to expect another call from you later.  The anticipation of you calling them means you get them out of the mode of calling you, and you put them in a better state of mind to be receptive to any news you give them later. Under normal circumstances, your clients should never have to call you to find out the status of the work on their vehicles.  After all, you are the professional they’ve entrusted their vehicle to.

Effective and timely updating is your responsibility, and not the customer’s.  So get time on your side by using the 10 –2- 4 method every day!  You might be saying that normally, our clients never call us to check the status of their service or repair.  If that’s the case, think of the pleasant surprise the client will have when you call them with a status report!  This system could help you with “Competitive Differentiation!”

Remember, time has no control over you, except for the fact that each day has only 24 hours, no more and no less.  We all have that same amount of time in a day; how you use time for the best results is up to you.

Top of Page

 

News You Can Use -  October 2003

Voice of the Customer

We all know how important it is to our business that we obtain accurate information concerning our customers.
QDSS 2000 has a number of tools that can help you to obtain and analyze customer information.
 
The New Owner Survey portion of QDSS 2000 helps you to gather customer demographic information.  This information can help your advertising company target promotions to the type of people that can purchase a Honda vehicle.
 
The Quality Delivery Survey will give you information about the customers perception of the sales process and the delivery process. 
 
The Total Satisfaction Index Survey gives you information about the customers perception of the Service experience.
 
Even if you receive a small amount of survey returns, you can still trend the results over time and make any necessary changes.
 
There are a number of other techniques that you can use to obtain the Voice of the Customer If you have customers that wait for vehicle completion in your waiting room, you can conduct a short informal focus group with the waiting customers over a cup of coffee.
Another technique is to review service files for customers that haven’t returned for any maintenance or repair in one year.  Some dealers invite these customers to an informal dinner and use this as a means to determine why they haven’t returned to the dealership.
Part of the “thank you” for the customers information could be a small token of appreciation.  A small token can generate more than it’s worth in “word of mouth” advertising.

Top of Page

 

News You Can Use -  September 2003

Service Promotions 

Within a few months, most of you will be receiving your first 2004 models.  For the first time in many years, we don’t have a new vehicle or a major model change.

We would like to suggest conducting a Service Promotion as a method to bring additional clients into your facilities to see the 2004 vehicles.  

You have heard various General Managers (such as Juan Fernando Hinostroza and Camillo Carrizosa) speak about the benefits they obtained from a Service Promotion.  The Service Promotion not only helps to increase parts and service profits but it can result in additional new car sales. 

We would like to stress that although the activity is called “SERVICE PROMOTION”, to be really successful, the activity is a complete Distributorship activity.  All Departments need to be involved.   

Targeting clients that are ready to purchase a new vehicle is a tactic that can be used.  Having all the new models on display, with brochures and a staff of knowledgeable salespeople should be part of the promotion.   

While the client is waiting for the vehicle to be inspected is a good time for the sales staff to renew acquaintances with the client, make mention of the new models and have brochures available. 

A “low-key” approach and a follow-up at a later date may result in the sale of a new vehicle. 

Export Service Operations has provided support to many Distributors conducting Service Promotions in the past.  If you would like to talk about this, please give any of us in Export Service Operations a call.

Top of Page

 

News You Can Use -  August 2003

Staff Meetings

Most of you have a regularly scheduled meeting with your staff.  Some of you have monthly meetings, some of you have weekly meetings, and some of you have meetings on an “as needed” basis.

We would like to suggest an agenda item for you (you all have prepared agendas for your meetings, right?).  The item is “Constant Improvement Ideas”.  Our former COO Mr. Hyogo, once said to us “ We must change even what we do well.”

Set aside some time in the meeting to verbalize ideas about areas or processes to improve upon.  Some ideas will come from someone’s imagination, some will come from concentrating on a problem to overcome, and some ideas will come from the media, other industries and other business people.  The most common technique is “brainstorming”. 

It is very important to capture the idea by writing it down.  Otherwise, the idea tends to disappear.  You can categorize ideas for later retrieval according to the departments within your organization.  For example, New Car Department, Used Car Department, Parts Department, Service Department, etc.

Any group can write down many ideas.  The leadership challenge is to decide (1) what is important, and (2) what can you actually implement.  If you are just starting on this activity, start small with something that’s fairly easy to do.  This will encourage your team and help with the motivation to do more involved projects.  It is very important to do SOMETHING.  We really stress this. If nothing happens with this exercise then your team doesn’t see the benefit and it become a waste of time.

If you’d like to talk about this concept, please give any of us in Export Service Operations a call.

Top of Page

 

News You Can Use -  July 2003

At-home Follow-Up Callers

(work for both dealerships and customers)


Customer follow-up is crucial. Everyone seems to agree on this point. But is it better done by an outside service or by a person hired by the dealership and dedicated solely to that purpose? A pair of dealer service managers opted for the latter solution and both have been quite pleased with the result.

One dealer in Ohio stopped using an outside follow-up service. Instead, he hired a local woman to work from her home. The personal contact is the advantage, he says. Customers would rather talk to a real person about their concerns than respond to a letter.

The key, he says, is finding a personable individual, as this woman is, who can “read” callers and know when to refer them to the service manager. The woman, who has been working for the dealership for four years, calls in the evening when people are apt to be home. A courier delivers each day’s repair orders to her home, so she can begin trying to reach people just after they have had their vehicle serviced.

This speed, says the dealer, is another reason he prefers this approach to an outside service. “That’s the biggest difference, we’re so prompt about getting back to people. They are usually surprised and happy when I call. Ninety percent of the time we are able to preserve relationships with customers.”

The caller records all her attempts to reach a customer on the back of the invoice; sometimes she may try for a month before giving up. After she reaches them, she comments on the back of the RO to indicate whether they were satisfied or not, or if the service manager should call them. She is paid by the contact.

The dealer says he never developed a script for her to follow, but he is thinking of creating a more uniform form for the answers. He also plans to create a way to track the responses, to see how people feel over the course of multiple repair orders.

In his view, having a local person doing the calling reflects the dealership’s commitment to being a family-oriented business. But while this solution is more personal than an outside service, there is a distance from the dealership that he sees as valuable. Because customers know the person calling is not working in the service department they feel comfortable saying whatever they feel. He advises service managers who want to try a similar approach to start by asking around the dealership to see if the staff knows anyone who might want the work. “Just remember,” he adds. “Personality is everything.”

Another service director follows a similar approach. The follow-up phone call person for a dealership in Santa Clara, Cal. puts in approximately 20 hours each week. The service manager says he chose a woman who had retired from retail sales. “She has a wonderful soft voice and is very friendly, both of which I think is important,” he notes.

The dealership installed a private phone line, headphone set, microphone and “user-friendly” answering machine in her home. Every Monday morning the service manager prints off a customer report from the dealership’s DMS system for her. The report lists all the pertinent customer and vehicle information and the RO number. The woman tells customers she is doing a follow-up call to make sure they are “completely satisfied” with the dealership service department. She then lists any positive or negative issues that come up during the discussion.

The dealership provides her with an outline of specific areas to pursue if they have a concern and she has the opportunity. If warranty work is involved, she closes by reminding customers about the CSI survey. When there is a problem, she calls the service manager, and both he and the dealer get a copy of all bad reports. The service manager reviews them with the service advisor, then the technician, shuttle drivers, parts manager and cashier, if necessary.

According to the service manager, the dealership used to have this woman follow a regimented script, patterned after the dealership’s postcard program, but customers did not care for it. An informal approach has worked much better. The service manager reports that while many customers do not return messages (he imagines they feel over-surveyed), people will call this woman a month after the fact if a question comes up. He surmises that customers feel comfortable talking to someone who is not working in the dealership. The dealership pays the woman $10 an hour plus reimbursement for phone expenses.

Top of Page

 

News You Can Use -  June 2003

Get Your Techs Busy First Thing in the Morning

How does technician tardiness effect your service department? Service managers often overlook the impact of technicians reporting to work late. With today’s demands for increased customer retention and profits, this is an area of management that can pay big dividends. Consider the following:

In a typical 12-technician service department, with an effective rate of $50 per flat-rate-hour, operating at 110 percent productivity, the impact of four technicians reporting a half hour late (or leaving a half hour early) on a daily basis can cost the department $2,343 in monthly labor sales.  That's $28,116 over the course of a year! The same is true if the technicians are physically present but not working. Consider this impact on profitability and take a good look at tardiness in your shop.

Punching in

First of all, let’s consider time clock usage. For some reason, technicians don’t see the value of proper time clock utilization, “I don’t get paid by the hour, I get paid on flat-rate.” And managers don’t reinforce the importance of proper “punching” of time clocks. We’ve all heard the reasons (insurance, legal reasons, etc) - but the bottom line is that technicians must “punch” the time clock consistently in order for the manager to effectively manage tardiness. Once you consider this basic requirement let’s look at some techniques to manage calendar utilization or tardiness.

(Note: Actual Time spent producing flat-rate-hours divided by scheduled work hours equals Calendar Utilization percentage.)

There are definitely some common traits that come into play regarding work habits. Since flat-rate technicians are only paid when they are in the stall, producing “hours,” departmental processes are important considerations on when the technician actually reports to work and produces hours. Do your technicians report to work and stand around waiting for the service advisors to start the repair order flow? Is there work to be done at their scheduled start time? If not, technicians will not show a sense of urgency to get to work. Remember the logic of the time clock, same logic, “I don’t get paid by the hour.” How can management reinforce the need to start working on time?

Some ideas

1. Pre-loading the technician stalls: This technique pays big dividends and encourages the technicians to start early. The best part is that it doesn’t cost the department a penny. As the last task of the prior workday, management should ensure that all technicians have at least one vehicle to start with, first thing next morning. These vehicles can be carryovers, used cars, PDI, etc. The important thing is that the vehicle is placed in the work stall and everything needed to start work is secured (parts, work authorization, etc.). This will encourage technicians to report on time because there is work to be done and flat-rate-hours to be turned. If an individual doesn’t report on time, the work is passed to another “on time” individual. Technicians don’t have to wait for service advisors and they can start their day with productive pay. In case studies, this technique will not only help eliminate tardiness and the resulting lack of production but also decrease the turnaround time to the respective new or used vehicle department.

2. Flat-rate-hour bonuses: The department procedure should provide for rate increases based on flat-rate-hours produced. (Example – Extra rate for over 40.0 FRH per week) This is becoming common in the industry as a method of technician retention. If you use this type of pay plan and have a tardiness or calendar utilization problem, consider tying the rate increase to the scheduled clock time. As an example, if the technician is scheduled to work 40 hours-a-week (five-day week) and is a half hour late daily he is working 37.5 hours a week, therefore his calendar utilization is 93.75 percent. In this example the technician receives a $1.00 per flat-rate-hour bonus for all flat-rate hours over 40.0 per week. As an incentive to report to work and start producing flat rate hours at the scheduled starting time, factor the incentive by the calendar utilization percentage. So instead of a $1.00 per flat-rate-hour bonus, the bonus amount would be $0.94 ($1.00 X 93.75%). If you don’t think this amount is sufficient, double the deduction! The point is, when the technician experiences some financial pain (small as it may be), the focus may help solve the problem.

Just a couple of suggestions; you can properly think of others. But the main thing is awareness and measurement.

Top of Page

 

News You Can Use -  May 2003

"Tarde de Damas" in Honduras

Last month AUTOMUNDO S.A. (Honduras) conducted their first "Tarde de Damas" event.  Also known as the New Owner Clinic, the event was conducted to accomplish two major goals: First, to get new women owners more familiar with their new Honda vehicle and the dealership.  And second, to gain the customer's trust and confidence in the dealership's staff.

 

The afternoon event began with a presentation on the features and benefits found on most Honda vehicles.  (NOTE: Special emphasis was placed on the safety features found in the vehicle.)  Then, a review was made of the maintenance schedule and maintenance requirements of the typical Honda vehicle.  We cannot stress enough the importance of this topic - too many customers assume that an oil and oil filter change represent the full extent of "normal maintenance".

 

At the end of the presentation, several ladies were invited up to change a tire on a new Honda Fit.  This simple exercise helped these customers develop greater confidence in their ability to handle this operation on their own and, more importantly, showed them that AUTOMUNDO was there to help them.

Mr. Humberto Cerrato, Service Manager of AUTOMUNDO S.A. (Honduras) stated that the event was a complete success.  They are planning to conduct this event several times a year.

Our congratulations go out to Mr. Cerrato and the rest of the AUTOMUNDO staff for their accomplishments with this event.

If you are interested in conducting your own New Owner Clinic, please refer to the "Tarde de Damas" CD-ROM that was sent out to all of the distributors late last year.  If you cannot find your copy of the CD-ROM or if you have any questions, please don't hesitate to contact me.

Top of Page

 

News You Can Use -  April 2003

Honda Service Culture Contest Winners!

Here are the winners of the Export Service Contest that was held a short while ago.  They correctly identified the 12 steps in the Standard Service Transaction and took the time to respond in the correct manner.  Their prizes include a congratulatory letter and an official Honda polo shirt.  Please join us in congratulating them for a job well done!

Paul Ryan - Antigua

Camera Shy

Cesar Brischetto - Argentina

Jim Thompson - Bahamas

Camera Shy

Tjerk Neijmeijer - Bermuda

Camera Shy

Eduardo Palma - Chile

Camera Shy

Carlos Alberto Gomez - Colombia

Jacobo Granizo - Guatemala

 

Alfred Buck - Nicaragua

Rafael Segistan - Panama

However, this is only the beginning of this issue.  The Standard Service Transaction is not just a quick concept to be reviewed and then placed on a shelf to collect dust.  It is a process that needs to be instilled in every member of your service department.  Take the example of Fredi Bottigelli of IWE S.A. (Uruguay).  He has put together a presentation using the Standard Service Transaction book and is using it to train all of the members of his staff.  Well done, Fredi!!!

As we mentioned before, later this year we will be introducing a complete in-dealership training course on the Standard Service Transaction process to the LAC market.  The course will enable you to train your service staff on not only what the 12-step process is about, but also how to implement the process in your dealership.

Top of Page

 

News You Can Use -  March 2003

Thank you Juan Carlos Sancho Ramírez!

This month we would like to recognize Mr. Sancho, a member of FACO S.A. (Costa Rica), for his contributions to the improvements that were made in the rear suspension of the Civic.  According to his managers, he was instrumental in creating the QIC report that pointed out the problem.  His QIC report was sent to Honda Motor in Japan to assist in the redesign of the rear suspension of the Civic.

Keep up the good work, Sancho!  And Thank you!

Este mes queremos reconocer a el Sr. Sancho, miembro del equipo de FACO S.A. (Costa Rica), por sus contribuciones en las mejoras que fueron hechos a la suspensión trasera del Civic.  Sus gerentes nos han contado que el desarolló el reporte QIC para llamar la atención al problema.  Su reporte QIC fue enviado a Japón para asistir con el nuevo diseño de la suspensión trasera del Civic.

¡Bien hecho Sancho! ¡Y gracias de nuevo!

Top of Page

 

News You Can Use -  February 2003

Business Ethics

NADA (National Automotive Dealer Association) has just come up with a new code of ethics for dealerships in the US - a written statement showing how ethical dealers should behave.  Why, you ask?  Because they believe that if you can gain your customer's trust, you can increase your business.  Think about it, where would you rather do business?  At a dealership that has a reputation for shady and questionable practices, or at a dealership where every staff member treats you with the utmost dignity and respect every time you visit.

Grupo Q (El Salvador) has a written Code of Ethics - it is posted in customer waiting areas for all to see.  Not only does it serve to show customers the values Grupo Q strives to attain, it also reminds its employees of how they should behave the moment they walk onto the dealership grounds.

Here's a simpler view of how NADA views the business ethics formula:

Ethics = $

 

Here's how we think you should view it:

Ethics  =>  Lifetime Owner Loyalty  =>  $$$

 

Here's the SERVICE portion of the new NADA Code of Ethics for dealerships:

At this dealership, the service professionals will at all times...

If you do not have a written Code of Ethics for your Distributor / Dealership, you may want to consider putting one together.  Start by asking yourself what kind of place do you want your operation to be in the customer's eyes.  Make sure that you share this list with every single one of your employees.  Place a copy in your Employee Handbook.  And lead by example - be the first one to commit yourself to following your new Code of Ethics.  Remember: Employees always follow their leader's example.  The rest will take care of itself...

See the rest of NADA's Code of Ethics on their website at www.nada.org

Top of Page

 

News You Can Use -  January 2003

Marketing / Promotions Budget

Have you ever wondered how much of your annual budget you should allocate to advertising and promotions?  This question probably applies to most of you as everyone is working on next year's budget.

The easy answer is it depends on how busy your shop is and what kind of business you want to attract.  The long-held industry standard has always been between one and five percent of your annual sales.  One percent is fine if you shop is completely full and your percent (%) of service market share is in the high eighties or nineties - and the only thing you want to do is put together a simple service reminder program.  Five percent would be more appropriate if your percent of market share was below fifty percent (<50%) and you wanted to aggressively grow your business.

But, if you were launching a new Express Change or Express Service operation, you can expect to spend upwards of fifteen percent (+15%) of that operation's revenue on advertising and promotions until it gets established.

Keep these figures in mind when you add the following to your 2003 Annual Service Plan - Service Promotion, Honda Customer Appreciation Day (HCAD), "Tarde de Damas", Service Reminder System, Express Change, Express Service, Service and Parts specials, etc.

Top of Page

 

News You Can Use -  December 2002

Recent Service Promotions - Honduras & Nicaragua

Last month, the Distributors in Nicaragua (AUTOMUNDO S.A.) and Honduras (AUTOMUNDO S.A.) conducted their first Service Promotions.  In both cases, I was present to assist them with their promotions and provide guidance to their staff members.  Customers who participated in either promotion were provided with a complimentary oil and oil filter change and a multi-point vehicle inspection.

Invitations were sent out to inactive Honda customers who had not returned to the Service Department in the past year.  To control the flow of customers, both Distributors required that each customer call ahead and receive an appointment.  As they came in for their appointment, the customers were directed to a clean and well-lit waiting room.  While there, they were provided with refreshments and a simple customer survey to fill out.  The purpose of the survey was to find out what they did and did not like about the Service Department.

As each vehicle was brought in for the promotion, it was assigned to a team of technicians (2 in Nicaragua and 3 in Honduras) who were responsible for changing the oil and filter and filling in the vehicle inspection form.  Each team was able to complete the required steps in less than 25 minutes per vehicle.  Once everything was complete, the vehicles were then washed and vacuumed.  At the time of delivery, the Service Advisors explained to the customers what, if anything, was found during the inspection and offered them a discount on labor or parts if they came back in during the next 30 days and had the required work completed.

In both markets, customers are still coming back to the Service Departments to get their recommended services completed, but here is a sample of some of the results:

                                                Nicaragua            Honduras

    Promotion length                   3 Days                2 Days

    Vehicles Inspected                 125                        92

    New Cars Sold*                  Unknown                     1

In both cases, the Distributors have stated that the results of the Service Promotions exceeded their expectations and that the customer response to the event was very positive.

Next Scheduled Service Promotion: Grupo Q (El Salvador) in San Salvador - February 19 -21, 2003.

* - As a direct result of the Service Promotion.

Top of Page

 

News You Can Use -  November 2002

Tie Service Manager's Pay to Parts Department

Here's an idea on how to get your Service and Parts Managers to work together more:

A dealer in the US decided to give them 5% bonuses on the combined profits of both departments.  That's right, the combined profits of both the Service and Parts Departments!  What happened?  "When a technician needed a part - it was always there."  "The two Managers started meeting more often."  "There was a sense of teamwork between the two departments."  Cooperation between departments always leads to increased sales and profits - especially when there is a healthy incentive involved.

Top of Page

 

News You Can Use -  October 2002

Increase Income by Decreasing Expenses

Here are some examples on how you can save money in your service and parts department:

Try some of these ideas and see how much you can save in a year's time.  Share your results with us - we'd like to know.

Top of Page

Last Update: 08 Nov 2004