Around the country, dealerships are scrambling for more service technicians. By 2026, it’s projected that there will need to be 46,000 more techs. That’s a 6% growth rate from 2016.

The number could be larger, too. Think about those who are quitting. An industry shortage of 20-25k techs is predicted in the near future.

So, what can you do to keep the service techs happy at your dealership so that these numbers don’t impact your business?

Understanding some of the reasons why techs might not be as happy as they could be is your key to success. Keep your repair department running smoothly and take note of what you should focus on.

Improve Company Culture

Half of all entry-level techs are leaving within two years of employment. One of the reasons ties in directly with company culture!

Think about it. At any job, people want to feel appreciated. In a service-related job, this desire goes up – but often, techs are in the background and don’t get the recognition they deserve.

Things as simple as taking the time to greet your employees and checking in on them from time to time can make a big difference. Giving out recognition awards at meetings and a bonus here and there doesn’t hurt, either. Equip your techs with nice locker rooms and climate-controlled garages so they can do their job comfortably.

RELATED: Grow Your Own Service Technician: A General Manager’s Guide to Thriving in the Tech Shortage

Remove Barriers

Make the process easier for techs to get started in the field by removing some of the roadblocks that lead them to you.

Many new techs are heading to dealers right after paying for trade school – and then they’re expected to use their own money to purchase equipment and tools out-of-pocket.

Set a reasonable salary expectation and think about buying tools for them once they’ve reached a milestone (working for 120 days at the dealer, let’s say). Give them a clear career path and early incentives. Don’t hesitate to attend career days at local high schools to try and cultivate talent yourself – you don’t always have to wait for it to come to you!

These are just a few things to think about when it comes to attracting and keeping the best technicians at your service department. Remember: a good technician drives profits to your dealership, so the investment you give up front will pay off.

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Autonomous vehicles are designed to make driving (or in this case, not-driving) safer. No one would argue that every attempt should be made to reduce the number of car accidents, but the more vehicles that stay on the roads, the fewer that end up in your shop for collision repair service.

No matter what side you come down on in the autonomous vehicle debate, there’s little to suggest this trend is simply a passing fad. So what can you do as a parts manager to stay competitive when one of your major revenue streams is poised to pass you by like two driverless cars in the night?

Tapping into online sales channels is critical for opening up new revenue opportunities. Online vehicle parts and accessories sales represent a $12 billion industry, and consumers are turning to their devices more and more to shop around. Amazon alone is projected to sell $8 billion worth of parts and accessories this year. Customers utilize every digital channel at their disposal to educate themselves, researching parts online through search, retail sites and customer reviews before making a purchase.

 Selling parts online is a volume play for your department that can more than make up for the loss of collision repair revenue. You can be more proactive in selling to customers all over the world, and most parts manufacturers offer substantial OEM kickbacks and incentives for reaching certain sales figures that are only achievable online.

If you’re waiting for a crash in the autonomous car revolution, you’re not going to get it. Brick and mortar parts departments can’t be afraid of going online to maximize their sales channels. Just like the cars of the future, you don’t have to maneuver the online road yourself. The experts at RevolutionParts will help you sell on Amazon, eBay, your own website, or through our Storefront Plugin, guiding you through the process at every turn.

Contact RevolutionParts for a demo today.

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Your eCommerce Wins Don’t Happen in the Margins

For most Parts Managers, selling parts with slashed margins is about as enjoyable as driving with slashed tires. Yet, that’s the reality parts sellers face when opening up an eCommerce platform. The comfortable profit margins you’re used to as a result of markups at your over-the-counter business shrink – a lot – in the more competitive online space.

Let’s get the numbers out in the open first. You’re probably used to profit margins as high as 35% at your parts counter. Well, depending on the part, you might sell the same exact item online for cost+15% (on the high side) all the way down to cost+2% (on the low end).

The reality is, there’s nothing you can do about these slashed margins. You can’t cheat the system, since online retailers like Amazon and eBay reward competitive pricing models. If you sell brake pads at cost+35% online, you flat-out won’t be shown to customers.

RELATED: The Parts Manager’s Guide to Selling on Amazon and eBay

Change your profit mindset, and the revenue will follow

RELATED: The Parts Manager’s Pricing Guide to Maximize Gross Profit

10% of something beats 30% of nothing

Your parts counter is your baby. We totally understand. And we’d never suggest you have to make the ultimate choice between your counter business and your online platform. You’re not replacing high margins with slim ones – you’re adding a new source of volume-based online revenue to what you’re already making in-store.  So get greedy and start looking at slashed margins as a huge opportunity!

Getting online for the first time and figuring out the best pricing model for your inventory and your brand can be tricky. That’s why the online selling experts at RevolutionParts have created tools to optimize your pricing to become a volume seller on Amazon, eBay, your webstore and our Storefront Plugin.

Contact us and request a demo today!

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