How to Ethically Increase Your Repair Order Profitability

by author Team Quickride on July 27, 2022

repair

A dealership’s service center can only see so many vehicles per day. The most effective way to increase profitability, therefore, is  to focus on increasing each repair order's value. However, to increase service repair orders, customers need to agree to the additional services, and you only want to suggest services that the customer actually needs. These tips will help the service agents work with customers while increasing repair order values. 

Establish Relationships With Your Customers 

Take the time to build a relationship with each of your customers. Building a relationship establishes a greater level of trust. This trust translates to the vehicle owner being more likely to agree to additional agreed-upon services. 

In addition, getting to know each customer helps you learn about their car care and purchase decision-making habits. Some customers are cost conscious and only want the bare minimum of services performed to keep the car running. Other customers are willing to spend a bit more if it means they are getting more for their money. Then there are the quality customers who are more concerned about preventative maintenance and care. Once you know each customer, you know which ones are more likely to purchase additional services and under what circumstances. 

Schedule Appointments in Advance 

Aim to leave a couple appointment spaces available throughout the day. This leaves the service center time to give a vehicle more focused attention. If the customer agrees to additional services, they are easily accommodated. The customer can also be notified of their expected repair time and can schedule a shuttle ride with your dealership to leave and arrive at the time scheduled.

Offer Convenient Repairs When Needed

Again, you only want to suggest services that the customer actually needs. Upon inspection, you may find that a brake pad needs immediate replacing. If so, let the customer know. If the brake pad shows wear and tear but does not need immediate attention, let them know that they may need this service in the future. If a headlight is dim and needs replacing, offer to replace it for them if the customer doesn’t want to do it themselves. Many customers enjoy the convenience of small repairs that they don’t have to worry about themselves and will subsequently increase the size of your repair order. Because many customers are wary of extra replacements, if the repair is not critical, we suggest placing it on a list of items they may need in the future. If you don’t pressure the customer into non-critical repairs, they will build trust with you and come back to you for all their future repair needs.

Improve Customer Communications 

One of the biggest challenges service center technicians have is communication. Once a vehicle’s problem is diagnosed, they must inform the customer. However, telling them the problem and repair cost isn't enough. This bare-bones approach doesn't instill trust or confidence. Alternatively, take the time to explain what is wrong, why the repair is important, what the repair entails, the parts required, and the expected amount of time the repair will take. Explain in detail, but in a way that the customer can understand. Be careful of using terms that the customer does not know. This provides a level of transparency that will put the customer at ease, making it more likely that they will agree to the suggested service. 

Address Time Constraints 

Some repairs could take hours depending on the severity. To address this, offering a shuttle service can increase the likelihood of customers agreeing to more time-consuming services. A shuttle management software such as Quickride can help you drop off customers to go about their day and return them when their repairs are complete. The customer stays informed with a web app that gives them real-time updates on their vehicle’s service status and their shuttle location.  

Take the first step toward increasing the value of your repair orders by offering a shuttle service. A free thirty-day trial of Quickride makes it easy to get started.