Retail Observer

RETAILOBSERVER.COM SEPTEMBER 2016 78 S E R V I C E D E P A R T M E N T RO S ome appliance dealers still think that their service department is just a necessary evil. They do not give much thought to the service department and feel that it is just a function or expense of the sales department. The fallacy of this kind of thinking is that these dealers are completely unaware of the potential profits that can be had by a service department that is managed well. I have been in the appliance sales and service business for over 36 years and I can tell you from experience that your service department can be a very profitable part of your business as long as you know how to manage it. Today's service business is not the same as it was back when I started my business. The customers of today are more sophisticated and demand a high level of service that fits into their busy life styles. Two hour windows of arrival, Saturday and evening service are a common request, especially from the two income families. Three day turnaround time on repairs bring a sad frown from the customers and the value of the repair vs. the cost of a new unit is always in question. My point here is that if you are going to manage a profitable service department, then you need to know how. Appliance service is continually changing; we are an industry that is constantly in flux. Our ability to recognize these changes and keep up with them will be the difference between a profit at the end of the year or a complete and utter loss on the P&L. Take this for what it is worth, but in my many years of being in the appliance sales and service business, I have found one constant that keeps me in business. What is that constant? The constant is keeping up with the latest nuances in servicing the ever changing demands of my customers. I have been to many conventions but the one that brings me the most in management and technical education is the PSA National All Service Convention. Why? Because of the quality of the classes being held and the credibility of the presenters. Their "peer to peer" learning experience along with industry acclaimed certification can only be found at NASC 2016. Peer learning is one of the best forms of education and enables you to design a plan for profit that fits your business model. The National All Service Convention in Dallas on September 26th through 29th… is not just for technicians. The business specialist program is offered for owners and service managers and will help you run a better and smarter service department. Here are some examples of questions that you may have and that will be answered in the PSA "Business Specialist Program." © 2016 REASONS YOUR DEPARTMENT NOT BE PROFITABLE: 1. Your expectations of your service department are that they are function of the sales department and can never turn a profit. 2. Not knowing your true cost for the service department. 3. Below standard productivity. 4. Not realizing the true income potential of just one service technician. 5. Not knowing or caring about the growth of the department. 6. Not knowing how to choose the proper trading partners or technicians. 7. How does productivity factor into your profit level? 8. Inadequate technician training? The "Business Specialist Program" © 2016 classes are designed to be presented in a logical order starting with understanding your business, your company's growth plan, establishing your price based on your true cost, how to negotiate fairly, financial statements and learning how to do your true cost of business. It then moves on to negotiating fairly so everyone wins and marketing your service business. We then move on to leadership and understanding yourself and other people along with giving you a sample of benchmark industry standards including average revenues and gross profits on sales and service business throughout the industry. So what do you think now? Your service department can be a huge profit center if you run it the right way. PSA can help you with this, but only if you attend the convention September 26th through 29th. And while you are becoming a newly trained business specialist how about bringing your technicians for the best technical training available from manufacturers like Electrolux, General Electric, LG, Samsung and Haier America. Don't wait, go online now and sign up while there is still availability. Go to www.psaworld.com and click on NASC 2016 or call 1-888-777-8851. See you there. IS YOUR SERVICE DEPARTMENT JUST AN EXPENSE? Ralph E. Wolff , MCAP, CSM, CE

• Cover