Service Department Failure Points: Addressing Poor Estimates and Lack of Standardization
David Lewis
In-Dealership and Online Training for Sales, Fixed Ops, F&I, BDC & Management
Whatever system you use in your Service Department for preparing estimates for needed repairs, there must be a standard practice in place that you go by to avoid failure points in your price and presentation structure. When there is no predetermined process in place for making job estimates, some Advisors or Techs will just pull numbers out of thin air or do them by how much time they think it might take to do the job.
It can be quite daunting for customers when they're unsure about the cost of a repair or service. Without clear information on pricing and why the cost is as it is, they often wonder if the price is fair and if they could get a better deal at other reputable shops in their area.
It may be that your Technicians use guides like Chilton’s, Mitchell or All Data for estimating a job, and if Customers are getting two or three different estimates on the same work done in your shop, depending on the Advisor or the Tech, this lack of standardization is a failure point for your Service Department.
Today, the Internet makes it easy for Customers to find instant information on what they should be charged for any job they need performed. Most Customers will expect reputable shops to offer some kind of pre-inspection of the vehicle before they present an estimate on what it will cost for repair work or to replace a part. You need something to go by in the way of explanation, so they feel safe that they are not overcharged for the service they need.
Standardization starts with Advisors always doing a service walkaround with the Customer in tow, pointing out to them what they are seeing and why the problem is occurring, followed by a clear written estimate they can understand. If they do not know ahead of time what to expect, when they receive a bill that seems higher than what they would consider normal, they can easily feel they were taken advantage of by your Service Department.
Having more information is always better than having less to go on. When someone knows the reason things are happening, even if it is bad news, they can adjust their expectations and react accordingly. When you keep people in the dark it tends to stir up negative emotions and create doubt in the mind of the Customer.
Internet access means the days of random quotes and ballpark estimates are gone. Customers can quickly compare price quotes if they have the least bit of questioning in their mind, so you must be competitive, while at the same time knowing why you are pricing jobs the way you are pricing them.
Having a standard pricing menu that your Advisors and Technicians use for most common work that comes to your shop can eliminate many of the problems that occur when Advisors are shooting from the hip. Random estimates are always trouble, no matter what they are for, and there is really no need for them in today’s world of easy information access.
The fact that most car service Customers are already leery and fearful of what repairs will cost them, having standardized processes for estimates and pricing can help create the kind of secure environment that makes your customers feel safe. These are the kind of processes that can bring your customers back to you whenever they need service.
When they are working with service advisors that follow these best practices, the customers have greater confidence when it comes to pricing and quality of work and they are much more likely to take the suggestions and advice they receive as being valuable, accurate, and free from any kind of shady or questionable practices.
Online auto repair estimates are becoming more and more popular and many DIY Customers who tend to go to parts houses for parts and repairs they might do themselves, can quickly go online to find reliable pricing guides for the kind of work they need to have done.? People who know this will go to those websites, whether they plan to do the job themself or not, just to get some kind of comparable idea of what they can expect in the way of price estimates if they go somewhere to have their car serviced.
It is not a bad thing to review these sites yourself from time to time just to see what kind of ideas people are coming into your shop with when it comes to pricing certain jobs.? This may not be any kind of standard setter for your Service Department pricing, but it can certainly give you a chance to look into the mind of the average Customer and see what they might be thinking about the prices you give them in comparison to what they can find elsewhere in the marketplace.
Advisor Appearance: The Impact on Customer Perception
Too many times we tend to take the Customer for granted, and over the years we have gotten away from recognizing how important it is to dress professionally, to wear a name tag and wear a uniform that identifies us for this industry. Instead, we tend to blame our lack of concern for these things on the Customers need to feel entitled.
Dealerships that want to excel with their customers must recognize that we are not entitled to their business, we must earn it. We cannot carry ourselves in a manner that says we do not understand the importance of presenting ourselves properly for the Customer.
Being sloppy or overly casual in our appearance says to the Customer:
“Come to us. You need us. We do not need you. We are entitled to your service business because you drive the vehicles we sell, or because we are the experts, and the outside shops are less qualified to do the job.”
It was not that long ago when dressing professionally in a Dealership Service Department was considered customary practice rather than an option. Like the old service station attendants who wore uniforms and jumped into action to serve those who bought their gas, having a professional appearance plays an important role in how the Customers perceive those who work in this business.
The visible presentation we give to our customers will contribute to how they perceive us from a personal and professional perspective. First impressions can go a long way toward making our customers feel more comfortable when they first come into the service drive to meet a Service Advisor.
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In a Service Department it is often the case that the first person the Customer sees and talks to is a Service Advisor. This means they often represent the first opportunity for service Customers to form an opinion of what to expect from the dealership in the way of professionalism and Customer service.
Since Customers are often anxious or fearful of the prospect of having to have their vehicles serviced or repaired, anything we can do to ease their fears and make them comfortable will play an important part in how they feel about our service and our Dealership.
A Service Advisor plays a key role for both the dealership and the Customer, and they should look the part of someone who can make expert judgments that will impact the Customer’s well-being and the value of their vehicle investment.
If they have an unkempt appearance in the way they dress or their personal hygiene or care, it will reflect on everything else they do with the Customer, and on what some Customers may be willing to accept of their advice or suggestions for further service work or additional preventative care.
In the same way, their work area should be organized and clean so the Customer feels that they care about such things and will care enough to feel comfortable with them handling their vehicle. When a person is wearing a uniform and name tag it tends to speak to the Customer of their level of experience and professionalism.
Whatever system you use in your Service Department for preparing estimates for needed repairs, there must be a standard practice in place that you go by to avoid failure points in your price and presentation structure. When there is no predetermined process in place for making job estimates, some Advisors or Techs will just pull numbers out of thin air or do them by how much time they think it might take to do the job.
It can be quite daunting for customers when they're unsure about the cost of a repair or service. Without clear information on pricing and why the cost is as it is, they often wonder if the price is fair and if they could get a better deal at other reputable shops in their area.
It may be that your Technicians use guides like Chilton’s, Mitchell or All Data for estimating a job, and if Customers are getting two or three different estimates on the same work done in your shop, depending on the Advisor or the Tech, this lack of standardization is a failure point for your Service Department.
Today, the Internet makes it easy for Customers to find instant information on what they should be charged for any job they need performed. Most Customers will expect reputable shops to offer some kind of pre-inspection of the vehicle before they present an estimate on what it will cost for repair work or to replace a part. You need something to go by in the way of explanation, so they feel safe that they are not overcharged for the service they need.
Standardization starts with Advisors always doing a service walkaround with the Customer in tow, pointing out to them what they are seeing and why the problem is occurring, followed by a clear written estimate they can understand. If they do not know ahead of time what to expect, when they receive a bill that seems higher than what they would consider normal, they can easily feel they were taken advantage of by your Service Department.
Having more information is always better than having less to go on. When someone knows the reason things are happening, even if it is bad news, they can adjust their expectations and react accordingly. When you keep people in the dark it tends to stir up negative emotions and create doubt in the mind of the Customer.
Internet access means the days of random quotes and ballpark estimates are gone. Customers can quickly compare price quotes if they have the least bit of questioning in their mind, so you must be competitive, while at the same time knowing why you are pricing jobs the way you are pricing them.
Having a standard pricing menu that your Advisors and Technicians use for most common work that comes to your shop can eliminate many of the problems that occur when Advisors are shooting from the hip. Random estimates are always trouble, no matter what they are for, and there is really no need for them in today’s world of easy information access.
The fact that most car service Customers are already leery and fearful of what repairs will cost them, having standardized processes for estimates and pricing can help create the kind of secure environment that makes your customers feel safe. These are the kind of processes that can bring your customers back to you whenever they need service.
When they are working with service advisors that follow these best practices, the customers have greater confidence when it comes to pricing and quality of work and they are much more likely to take the suggestions and advice they receive as being valuable, accurate, and free from any kind of shady or questionable practices.
Online auto repair estimates are becoming more and more popular and many DIY Customers who tend to go to parts houses for parts and repairs they might do themselves, can quickly go online to find reliable pricing guides for the kind of work they need to have done.? People who know this will go to those websites, whether they plan to do the job themself or not, just to get some kind of comparable idea of what they can expect in the way of price estimates if they go somewhere to have their car serviced.
It is not a bad thing to review these sites yourself from time to time just to see what kind of ideas people are coming into your shop with when it comes to pricing certain jobs.? This may not be any kind of standard setter for your Service Department pricing, but it can certainly give you a chance to look into the mind of the average Customer and see what they might be thinking about the prices you give them in comparison to what they can find elsewhere in the marketplace.