The Parts Department: How to Get Started with Bar-Coding
 
Parts profitability depends on efficient management and control of inventory—from the moment the dealership receives a part to the moment it's sold to a customer or installed by a technician.
 
Parts bar-coding inventory systems help dealers receipt parts orders and take cyclical or periodic partial inventory audits as well as annual physical inventory audits. With a bar-coding system, parts orders can be scanned and placed into inventory up to 50 percent faster than the same tasks can be completed manually. As a result, parts get to the technician or customer quicker. Systems available also manage and report on parts inventory levels, providing the precise information that helps dealers better manage inventory.
 
Once bar codes are on all parts in inventory, bar-coding is useful at the point of sale. Instead of looking up part numbers and typing them in, sales personnel can scan a bar code. Sales and counter personnel know the inventory count is accurate, particularly if you do a “perpetual bin count,” so they’re less likely to “check the bin” and more likely to sell additional peripheral parts.
 
Here’s what you need to do to implement a bar-coding system:
1. Lease the hardware needed
   • Laser gun
   • Portable label printer
2. Program the codes into the system
3. Do a full inventory—basically restock your inventory using the bar-code system
4. Train the staff
 
Chris Bavis is a management instructor at NADA University’s Academy. Reach him at cbavis@nada.org. Learn more at www.NADAuniversity.com or contact 800-557-6232 for information about Chris’ upcoming Parts Seminar on the West Coast.

Uptick in Recalls Smudges Industry's Improved Performance
The rash of recalls in the U.S. reached a total of 15.4 million recalled vehicles in 2009, following a 14-year low of 9 million in 2008. The 2010 figure could be around 18.7 million drawing more attention following Toyota's safety issues last year.
Edmunds Auto Observer, June 21, 2010

Senior Driver Fatalities Down
A study released by the IIHS indicates more seniors are hanging onto their licenses longer. Fatal crashes per licensed driver over 70 fell by 37 percent, and fatalities per licensed driver over 80 fell by 50 percent. Study reflects statistics from 1997-2008.
Detroit News, June 22, 2010

KBB Survey Reinforces Appeal of CPO Units for Teens
Chances are parents will agree with a new study from KBB indicating a teen's first car should be used rather than new, and most preferred a certified pre-owned. Half of those surveyed said they don't like to haggle over price, but 26% said they loved to bargain with dealers.
AutoRemarketing, June 22, 2010

UAW’s New President Focuses on Organizing Toyota’s U.S. Workers
The United Auto Workers have a new leader, Bob King. His first target will be transplant automakers like Toyota that operate in Right to Work states. It also appears that the new UAW leadership will support other progressive causes like Wall Street reform.

Domestic Manufacturers Leading the Way For June Discounts
According to the June TrueTrends by TrueCar Report, not only will discounts continue to remain high, the domestic manufacturers will lead the way with brand discounts topping 10% across the board.

Experian Shares Latest Auto Loan Trends, Top Lenders
Experian Automotive reviewed first-quarter data regarding open auto loans and found the better the credit standing, the more growth there has been as compared to the first quarter of 2009. Experian indicated the only growth came within the super prime and prime categories at 2.69 percent and 2.34 percent, respectively.

Study Shows Driver Acceptance of Vehicle Audio Messages
 
Research study conducted by Synovate Motoresearch on behalf of ATX Group, a leading provider of connected vehicle (or telematics) services for the global automotive industry, finds drivers want to receive notices, vehicle and driving info, becoming increasingly more comfortable using interactive voice recognition (IVR) systems to receive this type of info more safely. For more information visit the ATX Group.

Beep! Automotive Ad Network Introduces Brand-Specific Targeting
 
Goodway Group's Beep! Automotive Ad Network today announces brand-specific targeting initiative. Allows automotive advertisers to reach auto shoppers that are most likely to purchase an individual brand. Goodway layers the user-specific data to target the campaign specific to that brand's customer profile. For more info visit the Goodway Group.

Liquid Motors and Carfax Announce Internet Marketing Summits

The "Drive More Sales with Improved Internet Marketing" Summits sponsored by Liquid Motors and Carfax are well underway for 2010. These joint sponsored events have been well-attended by dealers striving to improve their Internet sales and marketing strategies. Upcoming summits include June 23 in Washington, DC. Click here for Chicago in September and Phoenix in October.

Mystery-Shopping Your Incoming Phone Calls
By Bill Adkins

Great service is what drives our business and keeps our customers coming back. Let’s make sure your great customer service extends to incoming telephone calls. Why not mystery-shop your receptionist and phone system? As we always say, “Inspect what you expect.” Here’s what happened to me on a day I called a few different places of business:

•  After answering the phone, the receptionist put me on hold for several long minutes before returning.
•  Upon learning that the party I was trying to reach was out of the office, the receptionist did not suggest voice mail or offer to take a message.
•  Transferred calls repeatedly resulted in disconnects.
•  A pleasant and enthusiastic voice was the exception rather than the rule.
•  The automated messages were very long, and there was no way to skip through and push the button needed to reach the appropriate person or office.

First impressions speak volumes about you and your business. Let’s make sure the impression your people are giving is the right one.

And here’s another idea that may help you create great second and third impressions: Most dealers have menus for the service department and F&I. Why not have menus for customers and receptionists? Provide customers with a menu of who to contact after delivery for help with various issues—and provide receptionists with a menu of who to refer customers to for assistance with various topics. You’ll save time, and you’ll please the customer.

Bill Adkins, a management instructor at NADA University’s Academy, can be reached at badkins@nada.org. Learn more about the Academy at www.NADAuniversity.com or contact 800.557.6232 for details on upcoming seminars on parts, service, and financial management.

At a recent trade media press event, Robert Bosch LLC introduced the KTS 340, a dynamic new diagnostic tool for the North American market, providing technicians with greater efficiency and accuracy -- plus a reliable diagnosis -- when working on domestic, Asian and European vehicles. Bosch used the media event to introduce a number of new products and training events. Click here or click on the image to learn more about this great asset to the technicians in your service department!

Premium Telematics Market Faces a Crossroads
How free turn-by-turn nav is changing telematics

Now that Ford has put Sync in even its budget level models, and free turn-by-turn navigation is the trend, what is the future for on-board navigational systems, you ask? There is no definitive answer as yet.

"Free turn-by-turn navigation was the first shot over the bow for the whole industry," says Scott Sedlik, vice president of marketing for Inrix, a provider of real-time traffic services. "OEMs are seeing what's available now on iPhones and Android phones, and realizing they have to offer some level of that functionality within their vehicles, for safety reasons and to differentiate themselves."

"That industry has seen the end of any growth and will be lucky to maintain its current volume," says Roger Lanctot, director of business development for the global automotive practice at Strategy Analytics.

Next to feel the pain will be makers of after-market navigation apps that are downloaded to the smartphone, according to Danny Kim, analyst and global manager for research firm iSuppli.

There's more to the story, however, as automakers and their suppliers reach to add more and more features, keeping themselves in the consumers' eye with other enticing aspects of navigation, including local search. Automakers and their dealers are very much aware of the fact that people love to stay in touch!

Coulomb Technologies Offers Free Charing Stations

No one doubts that electric vehicles are widening their scope of mainstream consumer interest. But the big question has always been, once you buy an EV and take it out on the road, are you going to get "stuck" out there and not be able to make it home? So...up comes the ChargePoint America Program from Coloumb Technologies, in partnership with Ford, Chevrolet and smart USA. The program will provide 4,600 public and private charging stations at various cities across the U.S. by October, 2011. This is a start. Click here and then click on the image to learn more!