All organizations must evaluate their core competencies. As an Auto Dealership, selling, servicing, and repairing cars are definitely at your core. What about washing and detailing cars?
Conversations with General Managers, Sales Managers, and Service Managers indicate that managing the detail department is frustrating:
- Fixed cost for a variable service
- High turnover, less professional worker
- Artistic personality – visual thinkers do not mesh with the technical workforce of a dealership
- Control of chemicals and equipment is time consuming and distracting
- Performance is critical to the overall CSI score
Outsourcing to a professional company with standards, processes, and ethics can be a great way to simplify a basic process and if done correctly turn it into a strategic partnership – an auto detailing service that works.
Variable cost structure. By negotiating a per car price for each type of service, you take a fixed cost and make it variable. In addition, by pricing the make ready and sales delivery services into one price, you know exactly what investment you will have in a vehicle.
No more staffing issues. Find an outsource company that provides onsite management, as well as area and marketing management support. You end up with a depth of expertise and support for no extra cost. The cost of hiring including ads, interviewing, background checks, and motor vehicles reports is moved to the outsource partner.
Lower the cost of damages. Part of the business of detailing and washing cars is that accidents will happen. By using an outsource company the cost of damages associated with detailing is the responsibility of the organization causing the damage. This should reduce out of pocket deductible costs and lower insurance premiums.
Invest in a Partnership rather than Purchase a Commodity. The real opportunity in outsourcing the detail process is in selecting a “professional company” as a partner – more than just a car wash company.
Our sources indicate that with focus and clear performance goals and outsource company can help improve CSI scores by providing new and pre-owned cars for customer delivery that meet customer expectations. The most common reason for a low score on a survey is the car was not clean and presentable – from a car owner’s perspective.
A partner realizes that they are working in the “dealership’s house.” Although they recognize they are a guest on your property, (using your bays, water and electricity), they understand that they need to understand your business as a member of the dealership team.
A partner will offer services which the dealership can mark up and gain additional revenues: touch up paint, odor removal, pin striping, tin removal, headlight restoration, etc.
Overall, by outsourcing the auto detail function at a dealership and selecting the right strategic partner, an auto dealership should be able to get the best from and auto detailing service:
- Move a fixed cost to a variable one
- Simplify staffing headaches
- Add services to expand customer offerings and profit dollars
- Improve consistency of the detail quality
