Are you interested in reducing your Re-conditioning cost, speeding up deliveries and increasing your Monthly Inventory Turns? View tho short presentation to find out how the Car CareDNA program can help your dealership.
2. Today’s Presentation Will Cover:
A look at some of the challenges facing the
Automotive Industry as we begin to recover.
Dangerous Trends that are effecting revenue and
profits
Preventative Actions that you can take
Our Solution
Mach2 Innovations LLC.
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3. Your Business is Being Attacked!
Fact: Profit margins are lower on font end gross.
Fact: Today’s vehicles require less maintenance and dealer’s
are seeing their customers less frequently.
Fact: Warranty dollars are down by over $10 Billion over the
last 5 years.
Fact: Training is on the decline as dealerships pull from their
resources and spend less on employee education.
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4. Dangerous Trends Effecting Your
Profits!
Less vehicles sold in 2007-2010 will continue to have a major impact on Service revenue
and profits so additional revenue streams are needed.
Shoppers are becoming more educated and have become more savvy when purchasing
aftermarket products and services and continue to look to items with higher perceived
value.
Consumer Reports rates Automotive Protection Plans such as corrosion protection, paint
sealants and interior protection as a “Don’t Do” item when purchasing a vehicle.
According to NADA reports, sales of the highest profit margin products like Interior and
Exterior protection continue to stagnate below 20% due to lack of confidence in both
product and the ability of the detail departments to deliver according to a recent F&I
Showroom study.
Mach2 Innovations LLC.
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5. Facts About Your Competition!
Fact: The Automotive Detailing Industry is a $6.1 Billion industry and is considered a
lucrative opportunity according to industry reports.
Fact: There are over 13,000 small businesses with the largest players carrying only 15% of
the market.
Fact: Your Customers continue to look outside the dealership for their Appearance
Maintenance needs either through expensive car washes that damage the exterior or
professional detailers.
Fact: Your Competition is charging up to $400.00 for a detail including scratch and swirl
removal, stain removal, tire dressing, shampoo and wax. And your customers are paying
them.
Fact: Your Competition treats detailing as a profit center…do you?
Mach2 Innovations LLC.
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6. The Good News!
2012 saw record profits in the Dealerships across the board.
The SAAR* (Seasonally Adjusted Annual Rate) reached 16 Million for the
first time since 2007 according to NADA reports for August 2013.
Car Sales are up 6.6% and Light Truck Sales are up 12.7% over last year
according to NADA reports for August 2013.
Incentives from Auto Makers are up almost 8% from June to July 2013
with some at their highest levels in 3 years.
The question is, what can you do to set yourself apart and take
advantage of this improving marketplace?
Mach2 Innovations LLC.
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7. The Devil is in the
Details!
Mach2 Innovations LLC.
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10. Delivering
In the past, the idea
Perfection of delivering the perfect vehicle has been
hindered by:
Lack of qualified personnel
No formal training on Products and Techniques
Having to re-do work from improper lot maintenance
Rushing through the process
Outside demands on the department
Employees who don’t care
All of this adds up to a Department that has no chance of being profitable
unless things change.
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11. Delivering
Perfection
With our system, we can easily have your most
novice employee turning out better work than
your most experienced buffer in a matter of
hours…
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12. Delivering
How We Do It:
Perfection
Structured training on our products and methodologies
Master Appearance Technician Certification Program
24/7 support
Continuing Education
Sales Training for F&I, Aftermarket, and Service Drive
One stop shopping for all detailing and buffing supplies
Consulting and shop design
We will turn your detail shop into a World Class Appearance Center!
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13. Delivering
• 35 Years of Product Development and Experience
Perfection
• A Curriculum That Includes:
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Interior and Exterior Cleaning Procedures
Diagnosis
Prep
Paint Corrections/Buffing Techniques
Proper Polishing Techniques
Product Installation
Specific Usage of Toweling
Inventory Control
• 24/7 Support
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14. Delivering
Starting with the basics and moving through Advanced Paint Correction
Perfection
Techniques, our Program is designed to produce quality employees from within
your organization, while building pride and boosting employee morale.
There are 3 levels of Certification within the StudioA curriculum.
•Apprentice Appearance Technician (AAT)- Proper techniques and tooling training
for cleaning interior and exterior surfaces on the vehicle quickly and consistently.
•Certified Appearance Technician (CAT)- Diagnostic and Technology training,
proper surface preparation techniques, and identifying and documenting problem
areas.
•Master Certified Appearance Technician (MCAT)- Advanced buffing and
correction techniques and Certification.
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15. Delivering Perfection
We can customize your existing detail bays into StudioA Certified Appearance Center.
Just like your Service Technicians, each bay will be occupied by one MCAT with his own
tools, supplies, and work space.
Also like a Service Technician, MCAT’s will be trained
to work together with the AAT’s and CAT’s as a well
oiled unit, with each team member knowing exactly
what his/her job is and how to do it.
Your detail department will be the envy of Competitors
and Colleagues alike.
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16. Delivering
Perfection Dealership…
Benefits to Your
•Stand out from the Competition
•Increase Inclusion Rates with Real Life Value
•Increase Customer Retention
•Higher Margins
•Increased Penetration
•Create new revenue streams through your Service Department
•Increase Detail Revenues
•Attract Higher Quality Employees
•Less Employee Turnover
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17. Delivering
Perfection to Your Dealership…
Added Benefits
A
Our Program includes a 2 year Manufacturer’s Warranty backed by:
AND
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19. Dollars and Cents...
Pre-delivery Detail New Vehicle
Example:
200 New Vehicles per Month Average
$155.00 Billed to New Car Dept. for PDI
$105.00 Product and Labor w/ 2year Manufacturer’s warranty
Net profit per vehicle- $50.00
TOTAL PROFIT: $10,000.00*
*Before Upsell
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20. Dollars and Cents...
Pre-Owned Reconditioning Detail
Example:
100 Used Vehicles per Month Average
$145.00 Product and Labor w/ 2year Manufacturer’s warranty
$245.00 Billed to Used Car Dept. for Recon/Get Ready
Net profit per vehicle- $100.00
TOTAL PROFIT: $10,000.00*
*Before Upsell
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21. Dollars and Cents...
Addendum & Aftermarket Sales
Addendum Example:
300 New and Used Vehicles per Month Average
$199.00 Addendum With 2year Manufacturer’s Warranty (in addition to delivery costs)
TOTAL Revenue - $59,700.00
Aftermarket Example:
30% Inclusion of 5 year plan for a total of 90 plans/mo. at additional $599.00
TOTAL Revenue - $53,910.00
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22. Dollars and Cents...
Service Drive Detail Sales
$299.00 Customer Detail Example:
Average of 2000 Appointments per Month
3% Sales Rate – 60 Details/mo -
$17,940.00
5% Sales Rate – 100 Details/mo -
$29,900.00
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25. Moving Forward
Making the Change…
Walk Through Evaluation
Receive our Complimentary Dealership Proforma
Complete Dealer Documentation
Place Order for Start Up Kit
Schedule Product Launch Training
Mach2 Innovations LLC.
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