DealerLOGIX

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Without a Consistent Sales Process, Service Managers Have the Unease of Having Their Family’s Income and Their Job Security Riding on the Abilities, Personalities, Quirks and Attitudes of Their

Service Advisors

Barriers to Service Department Profits

1.A flawed and unproductive sales process that is stressful to the Advisor and Guest

2.Virtually no sales are asked for when the Advisor and Guest are at the car (highest close rate situation), and almost all sales are asked for over the phone

3.Service Advisors who take the technician’s recommendations and decide for the customer what items they can afford or will want – most justified items are never presented to the customer

4.Service Advisors who present their pet services that they are most comfortable talking about (regardless of need for the Guest or the profitability to the dealer)

5.Service Advisors who are order takers, writing too many one item RO’s of just the primary concern of the customer

6.Service and package pricing that is not rationally developed to optimize profitability for the dealer

DealerLOGIX was designed to address all of these issues

All the Options, at the Right Time

•Most service departments in the U.S. generate significantly below their optimum profit because their Advisors don’t present all justified service options to the Guest, at the right time.

•Dealer LOGIX provides a proven, comfortable, sales process, and real time accountability tools to ensure that more than 80% of Guest visits result in an effective presentation of all service options at the most profitable time of the visit – at the car before it goes to the technician

•The close rate at the car can exceed 80% - it falls to 8% to 20% if the customer is contacted after the technician has the car

•Increasing your close rates by 2 – 3 times on the same car count dramatically grows your sales

You Control How Your Guests are Greeted and How the Service Options for Their Car Are Presented

In a McDonald’s Restaurant with 4 or 5 cashiers, do you get 4 or 5 different sales presentations?

Are the associates allowed to sell what they feel most comfortable selling?

“Hello, welcome to McDonald’s, may I take your order?”

“Hello, welcome to McDonald’s, would you like to try our new Angus burger combo today?”

Every cashier, every time, every McDonald’s

In virtually all non-DealerLOGIX dealerships, 4 or 5 different Service Advisors means 4 or 5 different (and usually bad) sales presentations

Triple Burger Sales Boost Case Study

¡A national burger chain expanded their menu by adding a double burger to their “classic” single burger offering

¡Sales for the double burger were way below projections – people did not want to buy the largest offering

¡The chain added a triple burger to the menu and the purchases went from a majority single burger purchases, to a majority double burger purchases, and few triple burger sales

¡If you have a service menu, you are offering a single burger to the customer – menu-based selling tends to result in all or nothing sales – DealerLOGIX double and triple burger options result in combo plus side sales

¡With DealerLOGIX you achieve higher sales and higher CSI because the customer is in control

¡Bottom Line: When given all of their options and put in control, Guests will BUY more than you can SELL them

What is DealerLOGIX?

•Web-based application software that formalizes a proven, professional , consistent service aisle sales process to optimize gross profit per repair order - No hardware or software – just need Internet access

•DealerLOGIX is a sales process that removes sales pressure from Advisors, and from the Guest

•Daily e-mail reports sent to dealership managers to enable immediate management and accountability to the process – no “rearview management” reduce or eliminate month end surprises versus budget

•Simple but powerful analysis tools for determining and adjusting service, product and package pricing – easily make accurate, rational business decisions instead of by the seat of the pants

•All program updates are immediately integrated and operational at no additional costs

•Consistent, regular, follow up and support to help you maximize the tools – we aren’t just supplying computer tools, we are supplying a relationship with people who care about the profitability of your dealership

Why DealerLOGIX Works

§Maximizes the revenue opportunity when the Advisor is face to face with the Guest before their car goes to the tech – the highest close rate, highest profitability point in the sales cycle

§Creates a comfortable process for the Advisor and Guest that is proven to result in significantly higher sales with less “selling”

§Is a proven, repeatable, and consistent, permission-based sales process

§Minimizes the impact of Service Advisors’ personality issues on your profits

§Full disclosure process adds more sales and protection for the dealership

§Provides management with minute to minute and daily tools to manage compliance with the sales process and analyze personnel needs – “REARVIEW MANAGEMENT MUST DIE!”

Full Disclosure Selling Turns "Eat It" Situations Into Sales

¡Typical Situation: Customer has the tires rotated but declines a computerized balance

¡3 days later an angry customer calls and complains about a new vibration in the front end – Service Manager agrees to a free balance to correct it

¡With DealerLOGIX full disclosure the customer signs off on the declined balance and all declined services

¡When the customer calls with the complaint, the Service Manager can say, “I see on the disclosure form from your last visit that you declined the balance that would have prevented that. I have time today to fix that for you and I’ll still offer you that package pricing.”

Full disclosure protects your reputation, cuts costs, and adds sales

Case Study: VW Service Manager

¡Mike McArthur first implemented DealerLOGIX as a Service Director at a Volkswagen store

¡Mike’s store achieved a .5 hour per RO increase within 30 days and added another .2 per hour within months and that level was consistently held

¡Mike then took a job with another dealership and made implementation of DealerLOGIX a condition of accepting the job – his new employer wanted the results he had achieved, and he wanted the tool that generated those results

¡Within 90 days of implementation at his new store, profitability and production had been increased by 20%

¡Mike then worked with a third store that had already implemented DealerLOGIX

¡Mike focused on implementing more fully the accountability tools offered in the DealerLOGIX process and in the training opportunities that it presented and a .4 hour per RO increase was realized and maintained

¡“We have found that implementing a full disclosure service sales process is imperative to improve the customer experience, retention, and maximize revenue. In all of my time in the chair, this was the only tool I found to produce instant impact to the bottom line.”

Mike McArthur

Payback Scenario

¡Average US dealership has 968 RO’s per month

¡Average hours per RO is 1.5

¡Effective labor rate is $86

¡Labor gross margin is 72% on average

¡Parts gross margin is 36% on average

¡Average ratio of labor to parts is .75

¡Average # of Service Advisors is 4

¡If DealerLOGIX increases hours per RO by .5

¡And the DealerLOGIX cost per month was $649

¡Then each Service Advisor would have to sell .119 more hours per day to cover the cost

¡You Have to Answer This: Do you think DealerLOGIX can increase your sales per Advisor by the labor of an oil change or cabin air filter every 3 days?

¡If yes, then it is a profit increasing decision – you get paid to make profit increasing decisions

¡Based on these same data points, an average DealerLOGIX user that increases hours per RO by .5 will generate an added $494,493 in profits per year

¡In 250 working days per year that is $1,978 in new daily profits

¡Typical full (subscription plus amortized implementation costs), daily cost of DealerLOGIX is $36.36

¡Is it a good business decision to spend $36 for a return of $1,900?

¡If we missed our target by 80% would it still be a good decision? (We would still achieve a 10 times return on our investment!!)

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