Truck service as a profit center |
Hello, all. Today I would like to talk about the much
maligned and lowly service and explain why it may be the most important work a
shop can do. The variety of service levels requested varies from minimal to
comprehensive and everything in between and occasionally the requests are just
plain puzzling. Some customers merely want the oil and filters changed, some
want an LOF (lube, oil, and filter) with a minimal inspection, and some want a
full inspection along with the oil and lube. Fleets often provide their own
checksheets and these often have several levels depending on mileage and
equipment differences. Some customers go so far as to specify an oil or filter
brand, and some want to bring their own.
Service
work is an area of opportunity for a shop as well as a chance for the customer
to keep his equipment in good condition. It is a rare case of being a complete
win/win for both parties, if the shop is fair in dealing with the customer and
proactive in selling needed work. Traditionally, the service is the
loss-leader, billed at near cost. Profit is expected to come from the work
found during the inspection. For this reason, services are often done by the
least experienced techs and serves as a sort of training ground for new hires.
The problem is that even if that tech is well trained and closely supervised,
equipment defects are bound to be missed. This is a problem for the shop as
well as the customer. The shop may miss out on profitable work, and the
customer may suffer an untimely breakdown. Worse yet is if the breakdown is
caused by something that should have been caught when the truck was in for
service.
The only
way around some of this is if a detailed inspection sheet is agreed on by
customer and shop and is then followed and signed by the mechanic. The sheet
must specify exactly what is to be checked during service. It is not good
enough that this sheet is turned in with the work order, then allowed to
languish until the job is billed. The inspection must be done first, and given
to the supervisor or service writer who can call the customer to authorize
repair. It is always easier to sell work on a vehicle that is already being
worked on than to try to schedule a second visit. The customer will appreciate getting
needed repairs done during a scheduled time, rather than having to come back
in, and this helps create goodwill. It always amazes me that some shops don’t
follow this procedure. I guess they feel that if they schedule a full shift,
there will be no time for extra work. But too much work is always a good
problem to have, and if there is not quite enough work for the shift, the
existing work always seems to magically stretch to fill the available time. Almost
invariably a little too much work is just the right amount. Novice mechanics
doing services must be thoroughly trained as to what is expected and their work
closely checked until it is clear they know what to look for.
If everyone is vigilant in handling services all parties can
benefit. The shop makes more money, and the customer gets needed repairs done
when the vehicle is down for service.
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