Your service advisors can sell more service and keep customers happy
Hours per RO, simply put, is the total labour hours sold divided by the number of work orders written in the same period.
For example: if we wrote 927 repair orders in October and sold 403 hours, that equals 2.03 hours per RO.
This number tells us whether the service advisor is just an order taker or actively selling. Is the advisor talking to a customer booked for an oil and filter change and explaining the vehicle is due for scheduled maintenance? Are they explaining why that service matters?
It doesn’t seem difficult, yet many dealerships I work with are stuck at 0.8 or 0.9 hours per RO. Why is raising it so hard?
We can lose the game before the car reaches the shop.
- Are we booking the vehicle for the correct service?
- Do advisors or the BDC know the specials?
- Are we checking for recalls?
- Are we reviewing denied or recommended work from the history to suggest adding to the appointment?
Appointments should be managed by hours, not just number of bookings.
Selling scheduled maintenance
Do your service advisors know how to explain scheduled maintenance? A quick test: ask them what’s included in one of your larger services.
These services are recommended by the manufacturer for a reason. Yet I’ve seen dealerships that focus on oil and filter changes, without mentioning other scheduled maintenance. That means customers never get their transmission or differential fluids changed.
So what happens at 100,000 km when a transmission fails because fluid wasn’t replaced at 60,000 km?
Advisors shouldn’t sell what isn’t necessary, but manufacturers set maintenance schedules to keep vehicles on the road. When advisors explain them, are they building value?
Too often, advisors start by saying “oil and filter.” Customers hear that, stop listening, and wait for the price. When they hear $800, they assume an oil and filter change at the dealership costs $800.
Reverse the order. Leave “oil and filter” until the end. Build value first, then the price makes sense.
Ninety percent of customers buy tires from the first person who recommends them. If you let the technician quote tires later, customers are far more likely to shop around.
Preparation matters
Two days before the appointment, review the customer’s file. Look at any previously denied work that could be presented again. Confirm that the customer is booked for the correct service, check for recalls, and make sure the required parts are in stock.
When the customer arrives, a proper walkaround is critical. It should cover three things: document scratches and dents to prevent false claims, identify opportunities to add lines to the RO such as warning lights or wiper blades, and jog the customer’s memory about other concerns. More than half of customers remember something they want looked at once they do a walkaround with the advisor.
Tire sales in the service drive
Advisors should always check tires with the customer at the car. Ninety percent of customers buy tires from the first person who recommends them. If you let the technician quote tires later, customers are far more likely to shop around.
To succeed in the tire business, you need a display with pricing in the service drive, ready for the advisor to discuss on the spot. Don’t make the customer wait while someone from parts puts together a quote. Tire sales need to happen in the service drive, with the advisor present during the walkaround.
Enhance the ownership experience
Finally, use service visits to build relationships. Talk to customers about their vehicle and how they use it. Know which accessories you sell that can enhance their ownership. Salespeople excel at this — consider having one coach your advisors on how to connect with customers.
Managing hours per RO ensures advisors aren’t order takers, but active sellers. And while hours per RO is critical, don’t forget to also monitor your effective labour rate — a topic for another day.
