The automotive industry is experiencing turbulence. Stubbornly high interest rates, the threat of auto tariffs, and economic uncertainty are causing vehicle sales to slow. For many dealerships, this means tighter margins and a need to find new ways to stay profitable. Fortunately, one department continues to offer a reliable revenue stream whenever car sales decline: Fixed Operations.
Service and parts sales are the backbone of dealership profitability, often accounting for the majority of gross profit. Yet, many dealerships still underutilize their service departments when it comes to maximizing revenue and customer retention. In this article, we’ll explore how dealers can leverage Fixed Ops to remain profitable, even when vehicle sales are down.
During periods of strong vehicle sales, many dealerships focus heavily on moving new and used inventory. But when sales slow, dealerships must shift their strategy toward increasing revenue from service, parts, and customer retention programs. Here’s why:
One of the easiest ways to drive more customers into your service lane is by leveraging recall work. Every year, millions of vehicles on the road are affected by manufacturer recalls, yet many go unrepaired due to lack of awareness or convenience.
By using BizzyCar’s Recall Management Platform, dealerships can:
Dealerships have exclusivity to fix recalls and since recall repairs are covered by the manufacturer, customers face no out-of-pocket expense, making it easier to get them through the door. And once they’re in, dealerships can use the visit to educate them on additional service needs.
Consumers are demanding more convenience than ever, and dealerships that adapt to this trend will win. Mobile service allows dealerships to send technicians to customers’ homes or workplaces to perform recalls, maintenance, and minor repairs without requiring a dealership visit.
BizzyCar’s Mobile Service Platform helps dealerships streamline the process by:
By offering mobile service, dealerships can capture more business from busy customers while reducing pressure on their physical service bays.
Many dealerships rely on outdated marketing methods to bring in service customers. But to truly maximize Fixed Ops revenue, targeted, data-driven marketing is essential.
Some effective strategies include:
A well-executed service marketing strategy ensures that customers keep coming back instead of choosing an independent shop.
Customer experience in the service department directly impacts long-term dealership loyalty. A poor experience can drive customers to third-party mechanics, while an excellent one ensures they return for future service, and eventually, another vehicle purchase.
To enhance customer experience, dealerships should:
Providing a seamless, efficient service experience can increase retention and lifetime customer value for the dealership.
Many service departments still rely on manual processes and outdated systems that slow them down. Investing in modern Fixed Ops technology can significantly boost efficiency and profitability.
Key areas where technology can help:
By leveraging the right technology, dealerships can increase service throughput, reduce operational costs, and boost customer satisfaction.
With new car sales slowing due to economic conditions, dealerships must rethink their revenue strategy, and Fixed Ops should be the priority. By focusing on recall management, mobile service, customer retention, and service marketing, dealerships can create a steady, high-margin revenue stream that keeps them profitable, no matter the state of the market.
BizzyCar helps dealerships unlock the full potential of their Fixed Ops department. If you’re ready to boost service revenue, improve efficiency, and keep customers coming back, contact us today to learn more.