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Today, even the most seasoned parts managers are in danger of burnout.

Dealership parts backorders, a symptom of the ongoing inventory shortage, are creating more than profit loss. Interdepartmental tension, frustrated customers, and a stressed-out parts staff have only increased since 2020.

Some parts departments aren’t even getting an ETA for the parts and accessories they need. More loyal customers might be understanding, while most blame the dealership. 

For parts managers, an already difficult job has been exacerbated. Nobody wants to be sitting on their hands waiting on parts, yet that’s the very situation we find ourselves in today. 

What can management do to take hold of the dealership inventory problem and be a positive force?

According to industry experts, the inventory shortage will continue into 2024. 

Though predictions are what they are, dealerships across the country can agree that mass influxes of inventory are not on the horizon. 

E-commerce swallowed up traditional car buying out of necessity that later morphed into convenience. And today's buyers love convenience. So much so, in fact, that customer satisfaction with the buying experience reached an all-time high. 

Most dealerships got a handle on online sales just in time to face a new problem with inventory shortage. Today that issue is top of mind. 

Still, we’re an industry that adapts to changing needs and overcomes them! Dealers can meet the demand for online sales while combating shortages with car pre-sales. 

Not only that, pre-sales are a versatile tool that will also help salespeople learn how to sell cars when it’s slow. 

Parts managers and Service managers face the biggest challenges in increasing profit for services and monitoring the ROI of third-party resources. 

Today, fixed operations are faced with an even more urgent need to increase revenue, while inventory shortages result in unmet needs and plenty of backorders. 

How can a dealership create a successful parts department and a thriving service lane under the current conditions? The answer is simple yet complex.

Accessory catalogs are a dime a dozen. Complex accessory selling systems with reporting to prove R&I, incentive employees, and strategically boost sales are not. 

When your bottom line is a significant department focus, it's vital to have tools that give you a well-rounded picture of what you're selling. Insignia Group is that tool for selling accessories at a dealership. In addition, we have many different reports available that managers can use to monitor their teams and move products faster than ever before—including the report for parts and vehicle views.

You have the Insignia Group system, and you’re pretty sure you’re selling accessories to customers, so now what do you do?

Find out if it’s true! Our system is great for presenting accessories, tracking orders, creating new product bundles, adjusting pricing across the board, and making fixed operation jobs more effective. All those things are wonderful—until you discover that only half the teams that are supposed to be using it are actually using it.

Today, the automotive industry is in critical need of strong leadership. The nature of car buying continues to bend and reshape itself amid the ongoing challenges initiated in 2020. 

Though the term “Dealer Principal” can sometimes be used interchangeably with “General Manager,” this article is geared toward dealership owners. 

Exceptional customer service and high-integrity business practices start at the top of any owner’s priorities! To become a successful Dealer Principal, you’ve got to start with perfecting your own skillset as a leader, customer service manager, salesperson, parts expert, and service strategist. 

Here are three tips for setting yourself apart:

“Leadership is lifting a person's vision to high sights, the raising of a person's performance to a higher standard, the building of a personality beyond its normal limitations.” - Peter Drucker

To lead a dealership or dealer group as the General Manager is to consistently raise the standard for every department. From the cleaning crew to the finance department, General Managers have the ability to command excellence that sets the store apart.

Consumers Want to Connect

The world is increasingly impersonal, with self-checkout, automated answering services, social media, and online shopping. It would be easy to assume consumers don’t care about a personal touch anymore. It turns out that’s not true. 

An article from McKinsey & Co. states, “The Next in Personalization 2021 Report reveals that companies who excel at demonstrating customer intimacy generate faster rates of revenue growth than their peers. And the closer organizations get to the consumer, the bigger the gains.”

What does that mean for selling online? Here are a few things you can try:

• Connect with your customer with a welcome video. 
• Include parts staff directory with a fun fact and photo about each to make them memorable.
• Utilize live chat with a person, not a bot!
• Show accessories on the vehicle for better understanding and visualization. 
• Send personal follow-ups and thank you messages.

Dealership service advisors have the opportunity for upward mobility. With a high school diploma and some automotive education or experience, you can begin your career as a service advisor with a clear path for advancement. 

From there, becoming your dealership’s top service advisor will increase your salary and put you on the path to climbing the ladder. Whether your plan is to become the top service advisor—and maybe, eventually, a service manager, or even a general manager—it starts with excelling in your current role. 

In an ideal world, your dealership supports your advancement and offers continuing service advisor training to help you improve. If that’s not the case, there are things you can do to create your own success. 

Follow these dealership service department best practices to become the top service advisor in your store by 2023!