Is Your Staffing Strategy Costing You Customers?
In our latest episode of The Parts Management Podcast, Chuck Hartle and Kaylee Felio?? dove deep into the challenges parts departments face, particularly around staffing and its impact on efficiency and customer satisfaction. Staffing shortages have been a persistent issue, with parts managers juggling multiple roles—shipping, receiving, counter support—you name it. It begs the question: How many people does a parts department actually need to function effectively?
Finding the Balance in Staffing
Chuck shared a couple of industry benchmarks. Traditionally, parts departments should allocate about 35-40% of their expenses toward staffing. Another approach is to measure gross profit per counterperson, but this requires looking at the department holistically. For example, the gross generated by a technician-facing counterperson might differ significantly from someone handling retail or wholesale.
Chuck illustrated this with a fascinating anecdote about a counterperson who believed he deserved a raise based on his gross sales. To test his claim, Chuck swapped his role with another team member and quickly revealed how different roles generate different results based on the time and type of customer interaction. The takeaway? It's about teamwork and overall department performance, not just individual contributions.
How Parts Departments Influence Customer Retention
Another important conversation revolved around the often-overlooked role parts departments play in customer retention. While service departments get much of the spotlight, the truth is that parts and service are inseparable. As Chuck put it, they’re "Siamese twins." Technicians need the right parts on hand to maximize efficiency and labor hours, which directly contributes to customer satisfaction.
Having the right inventory mix is critical. Automation and ASRs (Automatic Stock Replenishment) can help, but they’re not perfect. A well-managed inventory that ensures parts are available when needed is key to delivering a seamless service experience.
The Future of the Customer Experience
We also touched on the evolving customer experience. Automation is increasingly being used in service departments, but it’s not yet foolproof. Customers may schedule an oil change when their vehicle is actually due for a 40K-mile service—a gap that automation often misses. Chuck highlighted the need for communication tools that balance automation with human interaction.
At the heart of it, customers want to feel cared for. Whether it’s a phone call or a face-to-face recommendation, dealerships must meet customers where they are, building trust through genuine engagement.
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Upselling or Educating?
Finally, we tackled the often-misunderstood art of upselling. As Chuck pointed out, it’s not about pushing unnecessary services; it’s about recommending what the vehicle genuinely needs. Customers are capable of making informed decisions when given the right information, and this dialogue can strengthen trust rather than erode it.
Key Takeaways
If you’re a parts manager or dealership leader, this episode is packed with insights you can’t miss. Let’s keep the conversation going!
?? Listen to the full episode on The Parts Management Podcast! https://www.partsedge.com/thepartsmanagementpodcast
What’s your biggest challenge in managing parts departments? Share your thoughts in the comments or send me a message.
?? Interested in learning how PartsEdge can help optimize your parts department? Reach out today to see how we can support you in managing inventory, improving efficiency, and driving profitability.