We’re back with, Mike Maroone, for the second installment of his interview with CBT Automotive where we discuss a number of topics including employee turnover and retention. Why your dealership’s service drive is a profit center. What to do to develop a higher gross margin and more.
When it comes to employee retention, many believe that turnover rate can be decreased by adjusting several aspects such as pay-rate and hours of operation. Though there is not one thing that will ultimately change retention, Mike does think a good place to start is with the days and times employees a scheduled to work.
Mike tells CBT’s Jim Fitzpatrick,“You have to have manageable work hours that give a balance between play and work time.” He explains at his dealership in Colorado Springs, employees are required to work a 40 hour week. Beyond that, it is up to the employee if they would like to put in extra time, as often many of them do. Another practice Mikes team follows is implementing a full-time trainer. Understanding that your employees want to grow and prosper and giving them resources to do so allows you to not only retain the employee but also to groom them into the leaders they and you know they can be.
Another topic point discussed by the pair revolved around service drive and how you can maximize it as a profit center. After 2008 many dealers realized the profit potential that the service drive provides. Part of this comes from how car owners are now holding on to their vehicles longer and the size of margins. Mike agrees that there is room here to grow and prosper but that only comes after solving two big issues that are found in a dealership. The first, acquiring and developing the right technicians. Secondly, rising to the standard of guest expectations. This includes but is not limited to having the right training for customer-facing service technicians, adequate technology, and a trusting environment.
As the interview inched toward a close we went on to speak about auto disputers like Uber and other car-sharing companies, Proper and successful marketing strategies and how if your dealership is on the right path and is accumulating profit, there is no reason to give up on it. If you are successful in your efforts as a dealer keeping in mind the employees who run it, that success will only continue. To hear more on what Mike had to say, watch the full interview above.