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When I hear people talk about the parts departments in dealerships, I’m amazed at how simple they think it is to work behind the counter. They believe parts people just hang out, look stuff up and hand parts to customers.
If you’re in the parts department, you know that’s not exactly what happens. During the busy season, there may be eight people waiting by the locked front door, ready to rush in behind you. They want you to find parts for equipment that they do not have any information about. While you are trying to help them, a service tech needs parts for equipment that has been at the dealership for 2 weeks and they are now just looking for them. Then, all of the phone lines light up with people who want you to look up a part and give them the number so they can order it online.
A parts department at season is like no other department in a dealership. At times, it may seem like an impossible task to make everyone happy. The additional challenge is that it’s the highest profile area of every dealership. More people are touched by what happens at that parts counter than in any other department in the company. Everything is happening at the same time and everyone is in a hurry to get their part and leave.
Some people might say, “Well, just hire more parts people!” That’s easier said than done. Not just anyone can be pulled off the street and put at a parts counter. There is a substantial amount of knowledge you need to have. Second, because of the flow of customers, you might have 20 people to take care of at the parts counter in an hour. Then, just as suddenly as it started, the flow of people and phone calls stop. So, for 60 minutes you can’t catch your breath and then for an hour nothing is happening. How do you staff for that?
That is why I tell dealers time is your enemy in the parts department. If you want to do a good job at moving and selling parts, time is one thing you have to get your arms around.
Create a High Performance Dealership with Bob Clements is a new series brought to you by Yanmar.
Yanmar — Don’t settle for less when you can have more. For example, Yanmar makes all its compact tractors’ major drivetrain components – the Yanmar engine, transmission, and axles — in-house. Because they’re made to work perfectly together, you and your customers get a hardworking machine with more usable horsepower, less power loss, and a smoother, more comfortable ride. Yanmar’s tractors are designed to work as hard as you do for a lifetime. Strengthen your dealership with Yanmar today: AgMarketing@yanmar.com or call 770-877-9894.
Utilizing Space
As you think of time in the parts department, it’s important to look at all of your parts processes and find ways to be more efficient. You want to find ways to take less time every day to operate at peak performance. For instance, take a moment and think about your space. Where is it not being used to the best of its capacity?
Do you have walls behind your parts counter that could be used differently? In many dealerships, I find that the walls directly behind the parts counter are loaded with items that aren’t fast selling. These could be anything from chains and bars to gloves and safety glasses. These are all important items, but can be better stored in a different place.
Next, look under your parts counter. If you are like most dealerships, the shelves are packed with parts manuals — along with all the other junk that somebody left or put under the counter to get it out of the way. These manuals are important, but are often not used on a daily basis.
Finally, is your countertop clean or is it piled high with a random assortment of flashlights, fuel stabilizers — and maybe even a shop towel that a tech left after picking up a part?
As I mentioned earlier, time is an enemy of the parts department. Anything you can do to reduce the amount of time it takes to move a customer from the parts counter to back out the door is a bonus for both you, your dealership and, more importantly, your customers.
Think of your parts department as a fast food drive thru. Every customer that pulls up and places an order expects to get their food in a fast and efficient way so they can move on down the highway. Customers are more interested in how long it takes than the food itself. Now, granted, if the food is bad, it doesn’t matter how fast they get it, they probably won’t come back. Yet, if the food meets their expectations and in 60 seconds or less it’s handed to them out of a window, they are happy.
That measurement of time from when the order was placed to food in hand is called the “Transaction Time.” The goal of most fast food restaurants is to make the transaction happen in 60 seconds or less. Hitting that target or exceeding that 60-second window lets the store know if they are meeting their customers’ expectations.
Have you ever thought about your parts department transaction time? Your transaction time is the average amount of time it takes for a person to interact with your parts counter team and leave with either the part they need or an answer to their problem, leading them to be satisfied with the transaction. The parts transaction time is often a neglected, yet critical element that dealers must measure and manage.
You obviously want to get a customer in and out of your parts department as quickly as possible, since doing so allows you to take care of more customers in a shorter amount of time. I have found over the years of working with dealers that striving for a transaction time of around 4 minutes is a good goal. I understand that it might be tough to do in the beginning. However, if you achieve that target, it will have a huge impact on customer satisfaction and your dealership’s profitability.
Saving Time
Reducing the amount of time it takes to care for a customer can be something as simple as removing stools from the front of the parts counters so customers don’t sit down. We want customers to feel comfortable and welcome in the dealership, but at season, you can’t afford to have your parts staff spending unnecessary time with customers, listening to old stories.
It’s important to build strong relationships with your customers, but I have found that if they sit down, they have a tendency to socialize more than if they are standing up. The extra time doesn’t add to the quality of the experience they have with your dealership. In most cases, it’s just time that could have moved the next customer through your parts process more quickly.
If you’re busy at the parts counter and all the phones are ringing, do you really want a customer to sit down with a cup of coffee and talk to you for 20 minutes? It’s not that you don’t want to take good care of customers; it’s just that you don’t want your transaction time to increase in the process.
Keep in mind when the season slows and you have more time, there is nothing wrong with moving the stools back. At that point, time is not at a premium and it gives you a good chance to build those relationships that are critical to growing your business.
Getting rid of stools can be a challenge at first. Your parts staff might actually think that all you care about is ramming customers through the dealership. Actually, that’s exactly what you want to do — and that’s not an impersonal approach that hinders customer satisfaction.
Think again about that 4-minute transaction time. If you have eight customers and two parts counter people, the last two customers are going to wait in line 12 minutes before they are helped. If you had a 7-minute transaction time, those last two customers will have to wait in line for 21 minutes. That’s right! Moving customers through faster actually helps you provide better customer service.
Staying on the topic of stools, I don’t think it’s a good idea to have them behind the parts counter either. Parts employees who are sitting down aren’t going to be as effective as if they were standing up and moving. So my advice is to get rid of your stools at season.
Learn more in Part 2 of “Why Time is Your Enemy in the Parts Department,” which will post in tomorrow’s Daily Email Update.
Create a High Performance Dealership with Bob Clements is a new series brought to you by Yanmar.
Yanmar — Don’t settle for less when you can have more. For example, Yanmar makes all its compact tractors’ major drivetrain components – the Yanmar engine, transmission, and axles — in-house. Because they’re made to work perfectly together, you and your customers get a hardworking machine with more usable horsepower, less power loss, and a smoother, more comfortable ride. Yanmar’s tractors are designed to work as hard as you do for a lifetime. Strengthen your dealership with Yanmar today: AgMarketing@yanmar.com or call 770-877-9894.