It’s easy to pull back and play defense when there’s a lot of uncertainty in the market. But, historically, the teams that lead in fixed ops, are the ones who come out ahead.
Jeff Cowan, President of Jeff Cowan’s Pro Talks and author of The Forgotten Rules of Professional Salesman, joins us on today’s episode of Service Drive to discuss how dealers are overlooking their most stable revenue source while fixating on showroom headwinds.
Cowan’s central argument is that dealers are walking past packed service lanes while fretting over slow showroom traffic and miss an obvious revenue opportunity that’s already in motion. He said that the average dealership service drive sees roughly 60 customers per day, translating to between two and five potential vehicle sales daily if salespeople engage those customers during morning drop-off and afternoon pickup hours.
Part of the problem
Cowan points to continued economic resilience, despite persistent headwinds over the past 18 months, noting that key indicators remain robust. He said dealers should focus less on fear-driven narratives and more on operational fundamentals, particularly within fixed operations.
While service lanes, he said, remain active and fully booked in many stores, even as showroom traffic softens. The revenue opportunity isn’t coming; it’s already there.
Lessons from the past
Rather than scaling back, Cowan said dealers should invest more aggressively in service operations, as top-performing stores historically do during downturns. He cited patterns from previous disruptions, such as the 2008 recession and the COVID-19 pandemic, in which leading dealerships grew their fixed-ops efforts while competitors pulled back.
That approach, he said, remains critical today.
“If you want to sell more cars, sell more service.”
A recurring obstacle, Cowan said, is that service managers often want to invest but can’t. Training programs, process upgrades, and new tools are frequently delayed or denied, which limits the department’s ability to grow.
He argues that this reluctance to invest not only caps service revenue but also weakens the overall dealership ecosystem.
OEM benchmarks
Part of the issue, Cowan said, stems from reliance on manufacturer benchmarks that underestimate service potential. He notes that many OEM targets for hours per repair order fall short of what is realistically achievable based on vehicle condition and mileage.
With the average vehicle entering the service lane carrying 60,000 to 70,000 miles, Cowan said dealers have significant untapped opportunities to recommend necessary maintenance. When those needs are not addressed, customers often take their vehicles and dollars to independent repair shops.
Sales channels
Cowan also tied service performance directly to future sales, stating that customers who get thorough, transparent service are more likely to return when it’s time to buy their next vehicle.
He encourages dealers to treat the service lane as a sales channel by deploying sales staff to engage customers during service visits, thereby identifying trade-in opportunities and generating incremental vehicle sales. Even modest efforts, he said, can produce measurable results.
In addition, Cowan recommends proactive outreach strategies, such as contacting existing customers about upgrade opportunities or trade-in values. These efforts, when executed consistently, can drive additional showroom traffic without relying solely on traditional lead sources.
Ultimately, Cowan framed fixed operations as the foundation of dealership stability and growth. Dealers who invest in service, empower their teams, and engage customers effectively, he said, will be better positioned to navigate uncertainty and outperform competitors.
