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Improving our Inventory Processing Process

Carsten, your intense technical knowledge produces a value to the car industry. Your value would go up 100x if you adopted a car dealer and sat in the store(s). You'd watch and document the 100's of variables that happen hourly on the sales floor.
Agreed. Vendors that adopt this approach tend to be most successful in their ventures.

Unfortunately, many choose to ignore this advice. Instead, they spend months or even years developing their offering, only to find that many of their assumptions were misguided.

Tekion serves as a prime example of this - they purchased two dealerships to use as incubators for their DMS.
 
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Unfortunately, many choose to ignore this advice. Instead, they spend months or even years developing their offering, only to find that many of their assumptions were misguided.
Dealers have FORCED software companies to gimme more leads or your toast!

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Dealers, you're only selling 1-1.5% of your monthly visitors.​

In ecommerce, the shopping cart is the boss. No one can argue with the boss. Car shopping has no shopping cart. Car dealers are the boss. Software vendors serve the boss. Dealers think leads are the shopping cart.

Dealers, you've made the bed you're sleeping in. The world is changing and the aggressive, unhelpful chat popups and 800 lead gen CTAs is costing you biz. Reset and See the world differently. Look to dealers that have INSIDERS guiding the software decisions. CarMax, Carvana and Pioneering Dealers like @Ryan Everson's Garber Autos, @BillKVMotorCo Kirksville, @jscole86 Huebner Chevrolet Subaru | New Chevrolet, Subaru dealership in Carrollton OH | driveHUEBNER, @Jeff Kershner's DriveMB, @Tallcool1's clocktowerauto.com (love the "Text a Sales Representative" ;-)

#ToughLove
 
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How do we fix it? We have someone test drive the vehicle from a Consumer Perspective, not a mechanics perspective. They find the things that they know need attention. Now when the vehicle goes to the technician, it includes a list of a few items that the technician knows need repaired. The technician is more likely to actually LOOK for issues that are hidden. In addition, the test drive is less important.
The other way to fix this is to stop paying technicians flat rate. Hire a foreman-like position responsible for managing all workflows and set up teams in your recon department all having their own specific duties (initial inspection, test drive, heavy work, maintenance, etc). Pay them hourly and manage them based on avg time to turn X amount of cars. Carmax has this down to a science and I know a few independents who have adopted a similar strategy to great success. A lot of tech appreciate not having to clock hours and you'll be able to better control quality and spend.
 
The other way to fix this is to stop paying technicians flat rate. Hire a foreman-like position responsible for managing all workflows and set up teams in your recon department all having their own specific duties (initial inspection, test drive, heavy work, maintenance, etc). Pay them hourly and manage them based on avg time to turn X amount of cars. Carmax has this down to a science and I know a few independents who have adopted a similar strategy to great success. A lot of tech appreciate not having to clock hours and you'll be able to better control quality and spend.
I agree.
 
I noticed that several people mentioned doing a thorough inspection AFTER the appraisal, but we check all of these things in the appraisal process. We're already in front of the car and going over it anyways, so I think it's actually more efficient just to do it all at the same time. We check all the windows, locks, air/heat, lights, touch all 4 corners of the screen, everything. Our goal isn't to use those things to devalue the car, it's just so that there aren't any surprises. Techs aren't going to care about a random window that doesn't roll down as much as the front guys, so that's our job. We don't like surprises. Mechanics are used to them.

As far as getting techs to do a thorough drive, the truth is that with the lack of mechanics and how hard they are to replace, they know they have the leverage to almost do whatever they want. If you threatened a tech with their job if they didn't do the drive, I'm still not sure that they would do it. To me, and I'm not in this position yet so it may be more impossible than I can imagine, but I believe that there is a culture that has to be created in the service department that people seem to feel can't be created. The leader in me can't help it, but I refuse to believe that it can't be done. But as all of you know (and the point that you're trying to get across to Carsten) is that we are talking about a massive wholesale change if you want to change the culture in a service department to caring. The silo effect is incredibly powerful. It always amazes new people when they come in and see how culturally different the sales and service departments are. It's like they aren't even owned by the same person.
 
The silo effect is incredibly powerful. It always amazes new people when they come in and see how culturally different the sales and service departments are. It's like they aren't even owned by the same person.
This is huge. If everyone isn't on the same page culturally it's nearly impossible to go down the road of achieving the same outcome. All employees from front to back, porter to owner, need to be on the same page of specifically what the goal is.

This is very hard in a traditional dealership because of who/how they hire. Carmax has a culture like we're discussing but it's not just because they teach it, it's because they're very picky in who they hire. They would rather have a team player/leader they can train, over a rockstar who is going to work solo. Traditionally, dealerships hire people who can make money and those are driven by personal success - not the success of others. Hard to teach culture to someone who's only personally motivated.

Having worked on both sides of the fence there's a high contrast between the two. I'd wager there's a good middle-ground but I have yet to see it.
 
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They would rather have a team player/leader they can train, over a rockstar who is going to work solo.
1,000% agree with this. We don't hire salespeople. We hire customer service reps who we believe are team players. If the average dealer saw my sales staff, they would never believe we sell 150 cars per month.