Rapids Honda Increases Profits By Bringing In-House Accessory Facilities
And revenue is driven by a process where the sales team, led by General Sales Manager Katie Young, delivers 100% of the products that the dealership sells to 100% of the customers 100% of the time, he said. he noted.
It took five months to set the stage for the change. This included the hiring and training of five new employees who mainly do installations.
Aside from the additional labor expense, the start-up costs were minimal. Spah has converted underutilized space in detailed stalls into accessory installation bays at virtually no cost. Product manufacturers provided free training to their employees, and underlayment and rust inhibitor manufacturers provided dealer installation equipment free of charge in exchange for purchasing their products.
The change has produced other benefits which cannot be measured or quantified but which are nonetheless significant. For example, in-house installation helped with quality control.
âIf your own employees are doing the job, the level of accountability is higher,â Lacey said.
The process is faster – typically one day for one installation versus three with external vendors.
And after-sales service morale has improved because the process gives entry-level employees the opportunity to develop specialized skills and increase their pay, he said.