Articles by Don Reed - CEO

Don Reed - Does your parts department provide every customer the highest level of service they possibly can? Well, to answer that question properly, we must first determine who is the customer?...

Don Reed - If you want to focus on “controllable” expenses, then take a long look at policy adjustment and shop supplies. Implement a log for each of these and require your manager to review it with you weekly...

Don Reed - Starting today, ask each of your advisors what maintenance is required by your respective manufacturer. I’m betting they don’t know. If that is the case, then require them to read the warranty book and they will find the words...

Don Reed - It doesn't matter what the price of gasoline is or what the interest rates are because there will always be opportunities for improvement in dealing with the retail service customer...

Don Reed - First, I want you to determine the condition of your technicians. To do this, you should start by asking your service director/manager to conduct an assessment of their individual skill levels. This will answer two questions...

Don Reed - Any customer who declines a technician’s recommendation for these needed repairs and/or services should be turned over to the service drive sales manager or service manager for a second review with the customer ...

Don Reed - Total vehicles in use are at their highest levels in history totaling over 244 million. So, with a record number of vehicles on the road with a median age of 7 or more years, why isn’t the new car dealer thriving in the retail service and parts business?...

Don Reed - If new unit sales are down, of course F&I gross profits are also down. When new unit sales go down by 30 percent or more, there is a direct negative effect on service and parts revenue because of fewer PDIs and declining warranty repairs...

Don Reed - Let’s get serious about service and analyze what the real consequences are of this action. First, do you really believe your service manager will be able to spend the time needed to properly service 18 customers a day?...

Don Reed - Common sense tells us that increasing your profit margins is the easiest of the three ways listed above. This is the result of nothing more than an attitude on the part of the dealer and his management team to follow NADA guides...