One of Corina Diehl's keys to running a profitable dealership group is focusing on fixed operations. "It's my arena," the CEO of Diehl Automotive Group in Butler, Pa., said, adding that she can control it more than other elements of the business.
It's a sentiment shared by some of her peers, such as Erich Gail, CEO of Cardinale Group in Seaside, Calif.
"I cannot echo that any louder," he said, noting that it was what he — like many dealers — relied on during the dark days of the Great Recession.
Diehl and Gail joined Rick Ford, CEO of RFJ Auto Partners in Plano, Texas, and Sue Jacobson, senior client services director of Dealer Teamwork, on a panel focused on dealer profitability Thursday at the Automotive News Retail Forum: NADA.
Jacobson noted that fixed operations is not just about having a service lane and fixing cars and trucks. "It truly is the financial security for the dealership and their employees," she said.
Recruiting and retaining talent, especially technicians, has been a challenge for many dealers. Diehl, whose 500-employee dealership group also has a well-developed collision business, said a key way to attract and keep good people is not only by paying well but by being family oriented.
It's also important to make sure employees are effective at what they do, and Ford said that means not overloading them with too many complicated software programs, for example. "The reality of it is, it really boils down to the people executing with whatever tool you choose," he said.
Gail agreed. "There's no shortage of shiny bells and whistles that can fill our CRMs with tons of busywork," he said.
Looking ahead, margin compression is expected to continue to be a concern, the panelists agreed. But dealers who cut their teeth on the downturn a decade ago will be well-positioned. Ford said those bleak times "helped us all get better."
