Archive for the ‘Hot Topics’ Category

2010 NADA Convention & Expo

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We hope you had a chance to drop by our booth or attend the famous DealerTrack Party at the 2010 NADA Convention and Expo in Orlando, Florida.  Everyone had a great time and we feel it was a very successful convention for DealerTrack.  Here are a few highlights.

DealerTrack Press Releases: DealerTrack had several major announcements prior to the show.  Many of them included key advancements for our Dealer Management System.  Some of the announcements are:

The DealerTrack Booth: The 2010 NADA Convention and Expo may have been slower than in years past but you couldn’t tell by walking into DealerTrack’s booth.  We couldn’t keep up with the demand and had to fly in 5 additional sales representatives to demo DealerTrack’s Dealer Management System.  We were so busy that AutoNews.com featured us in an article at http://www.autonews.com/article/20100213/BLOG06/100219927#comments.

DealerTrack’s booth included an oversize video announcing DealerTrack’s DMS Switch & Save Program.  Save 50% off the cost of your DMS or we’ll pick up your tab for a month.  For more details visit www.dealertrackdms.com/rd/ssblog.

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DealerTrack’s OpenTrack Event: DealerTrack is committed to providing an effective, easy, and affordable integration platform for our customers.  This year we hosted an exclusive event for vendors interested in integrating with DealerTrack DMS.  The event was a huge success with over 100 3rd part vendors in attendance.  You can expect many new partnerships with DealerTrack in the near future through our OpenTrack program.  Here are a few pictures of the event.

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DealerTrack’s Party at Cuba Libre and BB Kings: DealerTrack’s party was the highlight of the show.  Thanks to all those who attended.  Here’s a few good photos.  Enjoy!

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SingCuba Libre

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Follow Up Webinar: It’s not too late if you missed all the action at the 2010 NADA convention.  Register for our webinar to find out what all the DealerTrack buzz was about.  http://www.autonews.com/article/20100213/BLOG06/100219927#comments.

Automotive News Features DealerTrack DMS

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Automotive News recently featured DealerTrack in the article below.

Don’t tell DealerTrack CEO Mark O’Neil that this year’s convention is sleepier than years past.

O’Neill said the dealer management system maker had to fly five additional sales people in from Salt Lake City Saturday because of customer demands for demos at the company’s exhibit.

“We had to bring people in,” O’Neil said as he waited for a conference room to clear of customers so he could conduct an interview.

That crush around DealerTrack and several of the IT vendors at the show contrasts with the smaller number of exhibitors this year and the absence of such biggies as GM.

DealerTrack is hawking a new vehicle inventory system that dealer personnel can get on their smart phones. DealerTrack has a special on DMS software that guarantees the company can cut a customer’s costs by 50 percent or DealerTrack pays for a free month of service.

The company brought 73 employees to Orlando, including 60 sales reps. They’ll be joined by the five reinforcements.

O’Neil said DealerTrack also booked four suites at a local hotel for customer demonstrations, some of which can take more than an hour.

Top Five Tips for Service Pricing

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Auto Dealership Service Department

1) Price Competitively

Understand your market; know what your competitors are charging for similar services.  Simple research techniques that are easy to put in place – look at competitors’ ads on a weekly basis; do some mystery shopping once a month to get an idea of what types of services and promotions they offer.

2) Maintenance Bundles

Use oil changes and basic maintenance services as “loss leaders” to bring customers in and increase your service department efficiency.  Utilize maintenance bundles – don’t just rely on manufacturer recommendations, but provide your customers with dealer-recommended options as well.

3) Shop Supplies and Taxes

Depending on what state you operate in, you may be able to pass along certain fees to the customer.  When appropriate, be sure to include shop supplies charges, hazardous waste fees, miscellaneous fees and all applicable taxes.  These items often are overlooked and can eat away at your profit.

4) Variable Labor Rates

Simpler repairs and maintenance services must be priced in line with your competition.  More advanced repairs such as engine, transmission and electrical work can be priced differently.  Most “Quick Lube” establishments will not be able to complete these types of repairs as they require a different level of expertise or specialized equipment that often is only available at franchised dealerships. Also, evaluate the makes and models of cars you are servicing.  For instance, repairs on a Chevy Malibu are less intricate than those on a Corvette.  Set you service pricing accordingly for models that require more highly skilled technicians.

5) Grid Pricing

Use grid / matrix pricing and be sure to test escalation rates.  Verify that all cent amounts will be “.88” or “.99” – with exception of the 1.0 hour rate.  These additional cents really add up.  Try to avoid using too many grids as they become cumbersome to manage.

DealerTrack DMS Announces the Switch & Save 50% program

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DealerTrack DMS launches the DMS Switch & Save 50% Program.  Auto Dealers can now trade up from their current Dealer Management System* and get all the robust functionality they need and higher customer satisfaction** than other top competitive solutions – for half the cost.  If DealerTrack can’t save auto dealerships 50%, we’ll pay for one month on their DMS.

View our savings calculator

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*If you use ADP (Elite, Drive, ARG/EDS, Web Suite 2006, Web Suite 2007) or Reynolds & Reynolds (Power/UCS, ERA, excluding ERA ES).  Conditions & Restrictions apply to the DealerTrack Switch & Save program.  Click here for details.

**Source:  National Automobile Dealers Association 2009 Bi-Annual Survey of Dealership Satisfaction with Dealer System Providers’ Products and Services.  2009 NADA survey.

How to use DealerTrack Service Price Guides

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DealerTrack recently launched their new Service Price Guide (SPG) product.  If you’re not familiar with SPGs, they are used to give service quotes and increase your service department efficiency. The quotes are based on a database created from time studies. Price Guides are available for nearly every manufacturer, enabling you to give a labor service quote regardless which franchise you work with.  SPGs can increase your gross profits and effective labor rate.

SPG can also help drive sales of aftermarket products. When working a deal and trying to up-sell an extended service contract, you can pull a quote for a water pump to show estimates of what the cost of those repairs would be with labor, parts, shop supplies and tax. SPGs can help used car departments more effectively value trade ins. When test driving the a potential trade, the Used Car Manager can look up the quote to estimate how much to take off the trade to cover repair costs. They also increase service profitability by increasing the number of labor hours sold per RO. In addition, they help to produce higher effective labor rates and can help to increase the number of customer pay RO’s written per month per service writer. SPGs increase customer satisfaction by providing a fast, consistent, and accurate estimates every time.

Service Price Guide Quotes can be created from the Repair Order list screen or from the Repair Order Function within a Repair Order.

After the SPG Quote has been created, it displays on this screen.

SD_SPG_Quote

The following fields display on this screen:

  • Labor Operation – If you have linked your dealership-defined Labor Op Code with the SPG Labor Op Code, your Labor Op Code will display here. Otherwise, the SPG Labor Op Code will display here.
  • Labor – Estimated Hours the labor op will take to perform. The Rate for the labor pulls from the linked labor op code, giving you the total Exten price.
  • Parts – Part Numbers and Descriptions for the parts needed for the labor op. The Hours column displays how many parts are selected over the number of parts that are in stock. the Exten column displays the total price for the part.
  • Additional Fees/Charges/Comments – As entered or selected using the options and functions
  • Quote Expiration Date – The default quote expiration date is 30 days. Modify as necessary.
  • Labor – Total Labor Charges
  • Parts – Total Parts Charges
  • Supplies – Total Supplies Charges
  • Tax – Total Tax Charges
  • Total – Total charges of everything included on the quote

SD_SPG_options

The following Options are available from this screen:

  • Add Part – Allows you to manually add a new part to the quote
  • Change Quantity/Hours Equal to x – Allows you to override the estimated hours for Labor lines, or the quantity of parts needed for Parts lines. Simply enter the quantity the line should be changed to.
  • Change Quantity/Hours Times x – Allows you to override the estimated hours for Labor lines, or the quantity of parts needed for Parts lines. Enter the number to multiply by to increase the hours or quantity.
  • Change – Allows you to adjust the Payment Method for the quote and the linked labor operation code
  • Delete Labor Operation/Line – Removes the Labor Operation from the quote for labor lines, removes the Part from the quote for parts lines, or removes the entire quote for quote lines. This option will delete whichever line of the quote you select.
  • Edit Comment – Allows you to key in comments about the quote. You can enter comments on any line.
  • Edit Parts List – Displays the Parts List, allowing you to re-select parts from the list. You can also adjust the Auto-Select parts and the parts that display for selection.
  • Fees – Displays the Fees list, as defined by your preferences. Select the fees that apply to the selected service.

SD_SPG_Functions

The following Functions are available from this screen:

  • Add Labor Operation – This function allows you to add an additional service to the Service Price Guide Quote.
  • Change Customer/VIN – Allows you to change the customer or vehicle associated with this Service Price Guide quote
  • Convert to Repair Order – This function allows you to convert the quote to a Repair Order. The repair order will have a status of “Q.” The selected parts will be placed on “Quote Hold”, and must be released by the Parts Department before the Repair Order can be closed. Please note that parts on “Quote Hold” are not taken out of inventory; other customers can purchase the parts until the “Quote Hold” has been released.
  • Delete Quote – This function allows you to delete the quote without saving it to a specific record.
  • Edit Comment – This function will allow you to enter a comment regarding the quote.
  • New Quote – This function allows you to generate a new quote for the selected vehicle. This function will only work if the quote has been converted to a repair order.
  • Print – This function allows you to print the quote to give to the customer.

There is a subscription charge to access the Service Price Guides data. Please contact the DealerTrack DMS Inside Sales Team at 800-429-3375 if you are interested in using this feature in your dealership.