“Fixed ops” means the service and parts department at a car dealership. It’s the part that makes money from repairs and maintenance, not from selling cars.
Service share is the portion of local vehicle service work a dealership captures compared to competitors. When the hosts say they “lost four points of service share,” they mean customers are choosing other providers for maintenance and repairs.
Genesis is a luxury car brand connected to Hyundai. The vehicles are designed to be more upscale and comfortable than regular Hyundai models. It may be mentioned in dealership talk because it’s one of the brands a store sells.
An 84-month loan is a car loan you pay over seven years. It can make the payment look smaller, but you usually pay more overall and you may still owe a lot if you trade early.
A 72-month loan is a car loan paid over six years. Longer loans can keep payments manageable, but they also mean you may still owe money when you want to switch cars.
If you trade in early, you might still owe a lot on your current car. That remaining amount can get added to the cost of your next car, making the next deal harder to afford.
Incentive spend is the money automakers allocate to discounts, rebates, and financing offers to move inventory. Higher incentive spending can support sales in the short term, but it can also signal weaker demand and contribute to a cycle that affects used prices and trade-in values.
Negative equity means you owe more money than the car is worth. If you trade it in, that extra amount often gets added to your next loan, which can raise your monthly payment.
Those numbers are how long the car loan lasts. Longer loans can make the payment look smaller, but you usually pay more interest overall and you can get stuck owing more than the car is worth.
This phrase points to the supply-demand mechanics behind price changes—specifically how tight inventory can push prices higher. When supply is constrained (fewer CPO units, fewer low-mileage trades), buyers compete more for the same cars, raising transaction prices.
CPO means “certified pre-owned.” It’s a used car that a dealer checks and usually backs with extra warranty coverage. If fewer CPO cars show up, used prices tend to go up.
These are common used-vehicle sourcing routes for dealers. “Service line trades” are vehicles taken in from customers coming through the service department, while auctions and online channels expand inventory options—especially when acquisition competition is tight.
Stellantis is a big car company that owns brands like Jeep and Ram. They’re reporting how many cars they shipped, which helps explain what’s available to dealers.
“Q1” means the first three months of the year. “Shipments” are how many cars the company sends out, which isn’t always the same as how many customers bought.
A “Hemi V8” is a type of V8 engine design. It’s known for making strong power and it’s a common selling point on certain Mopar/Chrysler-era trucks and cars.
The Jeep Grand Wagoneer is Jeep’s big, upscale SUV. When it’s mentioned as a driver of sales, it usually means buyers are spending more for a more luxurious version.
The Jeep Cherokee is one of Jeep’s more common SUV models. They’re saying it helped Stellantis sell more vehicles overall.
Term
auto loan interest tax deduction
They’re mentioning a tax rule that could make the interest on an auto loan less costly. If it exists or changes, it can affect how attractive financing a car feels to buyers.
This refers to a tax incentive that lets eligible buyers deduct up to $10,000 of annual interest on certain auto loans. It’s aimed at boosting demand, but eligibility rules (like income limits and assembly requirements) can significantly reduce how many buyers can actually use it.
The incentive only applies to cars that are built in the U.S. and bought after a certain date. If you’re not sure whether your exact car qualifies, you may miss the benefit.
Some tax breaks only apply if the car meets rules about where it’s built. If you don’t know those rules, it’s easy to assume your car qualifies when it doesn’t.
All-American Ford is the dealership where the guest works. It’s mentioned so you know whose perspective you’re hearing about in the service business.
Concept
RO count is up
In a service shop, an “RO” is basically a ticket that says what work needs to be done. If RO count is up, it usually means the shop is getting more jobs.
They’re talking about a service setup where the dealership comes to you (or picks up your car) and brings it back after service. The goal is to make it easier so customers are less likely to switch to someone else.
“Mobile service” is the idea of delivering maintenance/repair to customers at their location using mobile units (often vans/trucks). The discussion frames it as a retention tool: making service convenient increases the chance customers keep using the same dealership.
A retention tool is anything that helps keep customers coming back. In this case, making service easier (like coming to you) helps customers stay with the same dealership.
This means customers stop using the dealership and go to a non-dealer repair shop instead. They’re saying convenience is how dealers try to prevent that switch.
They mention Ford as the company behind the effort. In plain terms, Ford is supporting the dealerships so they can offer services like mobile service more broadly.
They’re talking about official customer surveys done by the car maker. The surveys compare how people feel about the normal service visit versus the mobile service experience.
The hosts describe a customer lifecycle effect: once customers try mobile service for the first time, repeat visits and referrals increase. This is a common growth model in service businesses—first experience drives trust, which then drives word-of-mouth.
Term
KSHers
“KSHers” sounds like a specific internal job title or team name at the dealership. In this segment, they’re involved in routing appointments—especially deciding when a customer should be offered mobile service. The exact role isn’t spelled out here.
Brick-and-mortar expansion refers to adding physical dealership/service facilities—more buildings, bays, and real estate—to increase capacity. The hosts contrast this with mobile service expansion, arguing that mobile growth can be cheaper and faster than building new shop space. This is a business operations concept tied to how service throughput scales.
The hosts discuss the technician shortage facing the auto industry, including NADA’s estimate of roughly 37,000 techs short per year. They connect the shortage to regional labor constraints and explain how dealerships can respond by building relationships with trade schools, attending career fairs, and creating long-term career paths. This is a workforce strategy concept that affects service capacity and customer wait times.
They’re saying dealerships should treat technician hiring like a long-term plan. Instead of just offering a job, they should offer training and a clear path for how someone’s career and pay can grow over time. That helps keep good techs around.
A career path of training means you don’t just hire a tech and hope—they get step-by-step training to grow. It can also help them see a future at the company, which makes them more likely to stay.
Here, fleet means the company’s set of service vehicles used to send techs out to customers. Having enough vehicles helps you cover more jobs and keep the schedule moving.
Technician turnover is how many techs quit or move on over a period of time. If turnover is high, it’s harder to keep quality consistent and you spend more time training new people.
EVs are cars that run on electricity instead of gasoline. Mechanics working on them need extra training because the electrical parts are different and more complex.
They’re talking about how much money each repair ticket brings in. The claim is that mobile service can raise that per-ticket amount, not just the number of tickets.
Retention means getting customers to come back again and again. The idea is that mobile service makes it easier for people to keep using the same dealership.
Term
five-star ruler review
This refers to online customer ratings—specifically the difference between high (five-star) and low (one- or two-star) reviews. The host argues that mobile service improves satisfaction, which then improves ratings and reputation.
Mercedes is mentioned alongside Ford in the context of mobile remote service for dealers. The comparison suggests both brands have invested in service delivery models that reduce customer friction and improve efficiency.
OEM is the company that made the car in the first place. In this context, they’re saying the car makers themselves pay attention to what dealers are doing.
RO’s means repair orders. It’s the official service ticket for your car once you bring it in for work. The discussion is about how often those service tickets end up with a video that customers actually watch.
They’re talking about filming your car while it’s up on the lift so you can actually see what the mechanic is seeing. The point is that the video can build trust, but only if the customer knows to expect it and understands why it matters.
The service advisor is the person at the dealership who helps set up your service visit. They take your description of the problem, create the service paperwork, and explain what’s going on. Here, they’re being credited with telling the customer to look for the video.
Role reversal means putting yourself in the customer’s shoes. The host is saying that if you were dropping your car off and someone promised a video, you’d want to know where it is and what it’s for—otherwise you might ignore it.
They’re talking about goals for how often videos get made and watched. Even if you try for everyone, it’s hard to hit 100%, so they’re using a practical benchmark (like 90%) to judge whether the process is working.
This is shorthand for a vehicle inspection “pass” or “clean bill of health,” where common safety and condition items check out. Tires, brakes, and leaks are typical points technicians verify before recommending service or approving a customer-facing report.
“Clean bill of health” just means the car seems fine based on the inspection. They’re using it to describe a vehicle that doesn’t have obvious safety problems or leaks.
Company
Cox
They mention “Cox” as a company whose software helps dealerships send customer videos. The point is that different tools may work differently in how the video gets from the shop to the customer.
It’s not enough to make a helpful video—dealers also have to get it to the customer and make sure the customer actually sees it. This segment is about why that step can break down.
They’re talking about a video that might include swear words. If the advisor thinks the customer shouldn’t see that, they may hold the video back instead of sending it.
The software can automatically stop swear words from making it into the video. That matters because if a video includes profanity, the advisor might choose not to send it to the customer.
Company
True, true video
They’re talking about a video service tool that helps prevent problems like swear words showing up in customer videos. It also tries not to capture random background noise from the shop.
The hosts discuss a workflow where technician-created service videos can either be sent directly to the customer or routed to an advisor for review first. That “review then send” step helps ensure the message is accurate, appropriately framed, and consistent with how the dealership communicates with customers.
Word tracks are like a short script for what to say. The idea is to keep the explanation simple so customers don’t get lost in technical details.
Term
link vs embedded video
They’re debating whether the message includes the video right inside the text or if it sends you to a link. Either way, the advisor needs to tell the customer what to expect so they don’t ignore it.
Not every text message is guaranteed to arrive. Some customers opt out, and phone carriers can limit or delay messages, so the dealership needs the right system/provider to make sure texts get through.
“Master” doesn’t clearly name a specific car in the context you provided. It may be referring to a person’s job title instead of a vehicle. If you share the exact car name (make/model) mentioned, I can explain that specific car.
They’re saying dealerships should test their customer follow-up systems like a checklist. If the texts or emails go out at the wrong time (or too many times), customers get annoyed even if the service itself was good.
BDC is the dealership’s lead-follow-up team. Their phone system helps make sure people who inquire about a car get contacted quickly and consistently.
Term
RO
RO usually means a Repair Order—basically the paperwork that starts when the service team begins work on your car. In this case, the dealer’s system sends texts automatically when that paperwork is created.
Trade-in means you bring your current car to the dealer and use it toward buying a different car. Here, the dealer’s system is prompting trade-in offers right after service, which can annoy some customers if it’s too much.
The segment describes automated text triggers tied to service workflow events (e.g., when an RO opens). It also mentions using criteria/parameters so customers aren’t contacted inappropriately (like sending service-drive prompts to a very new car), which is crucial for avoiding negative customer experiences.
They’re talking about whether the customer agrees to get texts and videos from the dealership. If a customer opts out, the dealership loses the ability to send those updates, which can make it harder to guide them through the repair.
MPI typically stands for Multi-Point Inspection, a standardized checklist inspection used in service departments. The hosts discuss sending an MPI video to customers and how engagement metrics can be used to judge whether the process is working.
The hosts call out labor cost as a major fixed-ops pressure point, noting it’s rising and affects staffing decisions. In service departments, labor cost directly impacts technician productivity, advisor support, and overall return on investment.
Stream Companies is a company that helps dealerships find missed opportunities and improve how they sell and market. They’re offering a free report in this segment.
“Ford recalls” refers to manufacturer recall campaigns issued by Ford for safety or compliance issues. In fixed ops, recalls are a recurring service workload that requires tracking, scheduling, and customer communication to ensure vehicles are corrected.
Sometimes dealers use several software tools at the same time, and they can end up sending messages that step on each other. That can confuse customers and make them feel like they’re being spammed.
Cool Springs is the area where the dealership group operates. Different places can have different customer habits, so the same service strategy may perform differently.
Nissan is a car brand. When people talk about Nissan in a service or dealership context, they usually mean how that brand’s cars are supported—like parts, repairs, and warranty work.
Company
X time
“X time” sounds like the software the dealership uses to make and send the inspection videos to customers. It helps organize the process so the right video gets to the right person.
They’re talking about a drop-off in the process. Even if the shop makes the inspection video, customers might not get it, might not open it, or might not act on it—so fewer repairs get approved.
They’re describing a way dealers price tires in different “levels” instead of one option. That makes it easier for a customer to choose based on budget and what they want from the tires.
The discussion suggests advisors may hold back a diagnostic or inspection video if it’s unclear or easily misunderstood. This is about managing customer perception and comprehension—balancing transparency with communication quality.
A service menu is a structured list of recommended maintenance and repairs that advisors present to customers. The goal is to standardize what’s offered, track advisor “penetration” (how often it’s offered), and improve close rates by making recommendations consistent.
In this context, “penetration” means how often a recommended service is offered to customers (and potentially how often it’s accepted). It’s a performance metric used to measure advisor consistency and sales effectiveness in fixed operations.
“Close” refers to converting a customer’s interest into an approved repair or service. The “40% of the time” figure is presented as a target or observed conversion rate from the menu offers to actual work being authorized.
BG Chemicals is a company that makes car cleaning products that shops sell and install as part of maintenance. In this segment, it’s also connected to how advisors are trained and how they present options to customers.
CDK is a company that makes software dealerships use to run day-to-day operations. Here, they’re cited as having data about how long customers wait to reach service.
Hold time is how long you’re stuck waiting on the phone before someone answers. Shorter hold times usually mean better service and less frustration for customers.
Daily reporting means checking in on what happened in the service department every day. It helps the team stay consistent and spot problems early instead of waiting weeks to see results.
An upsell is when they suggest extra services while you’re already at the shop. Ideally it’s based on what your car actually needs, not just a random add-on.
An air filter cleans the air entering the engine, which affects combustion efficiency and engine performance. Service departments often recommend replacing it at intervals, and it’s commonly included in maintenance upsell menus.
A multi-point check is a checklist-style inspection of several important things on your car. The goal is to catch issues early and make sure safety items are reviewed during the appointment.
Instead of one “take it or leave it” service offer, the shop gives you a few clear options. That makes it feel more like helpful planning than a sales attempt.
“Preferred” here refers to a middle-tier option in the service menu—typically the recommended maintenance level that balances cost and thoroughness. In practice, it’s often aligned with manufacturer guidance and what the shop believes is necessary for long-term ownership.
A service menu is a list of repair/maintenance options you show customers. It helps customers understand what they can choose and can also prevent arguments later about what was offered.
Service transparency is being upfront with customers about what the car needs and what the choices are. When people understand the situation, they’re more likely to feel good about the decision.
“Used vehicle acquisition” is the process of sourcing and bringing pre-owned inventory into a dealership, often through trades, auctions, or wholesale channels. The hosts call it a major pain point in 2026 and discuss internal workflow—especially partnering service with sales—to increase the odds of acquiring good trades.
Data mining means using information the dealership already has to find opportunities. In this case, it’s used to figure out who might have a valuable trade-in.
They’re talking about a service that comes to you. It picks up your car or you, then drops off a loaner so you don’t have to spend time traveling to the dealership.
Standalone means Genesis has its own setup instead of sharing the same service area with Hyundai. That can change the customer experience—like how busy the shop is and how personalized service feels.
They’re saying Genesis service is designed to feel more personal. Instead of a huge shop with lots of cars coming in, it’s smaller and the team can focus more on each customer.
Pickup and drop-off service means the dealership handles getting your car to the shop and back. It helps you avoid taking time off work just to get maintenance or repairs done.
Time to repair is how long it takes the shop to fix your car. If it takes too long, it can mess up scheduling and make it harder for the dealership to help the next customer.
A loaner car is a replacement vehicle the dealership gives you while your car is in the shop. They’re saying you can’t keep people waiting too long because the loaners have to be available for the next customer too.
A “menu” approach means the shop offers service options in a few clear packages, like choices you can understand quickly. Instead of a confusing list, customers can pick what fits their needs and budget.
They’re distinguishing between what the shop actually charges and what customers believe they charge. The hosts argue that customer perception (“we’re more expensive”) can drive lost business even when the dealership is competitively priced.
It means the customer you almost had—then they decide not to book the work. The discussion is about how advisors can prevent that by presenting choices and benefits clearly.
Instead of saying “it costs $X and that’s it,” the advisor should offer choices. When customers see options (and what each one means), they’re more likely to say yes.
Service financing means you can pay for repairs over time instead of all at once. It’s one of the tools advisors can use to make the cost easier to approve.
This is basically about where people take their newer cars for service. If the number drops, it means fewer customers are sticking with the dealer for routine work. That can happen if the dealer doesn’t keep in touch or make service feel easy.
“Lube oil filter” refers to routine maintenance that typically includes an oil change and replacing the engine oil filter. It’s often one of the first scheduled services owners do during the first couple of years. Dealers frequently use these visits as a chance to build long-term customer relationships.
“Handoff service” and “follow through” describe the process after a sale—how the dealership communicates upcoming service needs and ensures the customer actually books and completes them. When that process is inconsistent, customers may drift to independent shops or other dealers. The segment frames this as a key driver of whether new-car owners return for routine maintenance.
Toyota is mentioned in the context of changing its service/warranty-related program timing (“two year” down to “one”). That kind of policy shift can affect how often customers are prompted to return to the dealer during the early ownership period. The hosts use it as an example of how manufacturer decisions can influence dealer service retention.
Some cars can send information to an app or system about what the car needs. That can include reminders like “oil change soon” or “tire pressure is low.” The hosts are saying this kind of reminder can help people come back for service.
Term
cash years
This phrase doesn’t clearly match a standard dealership term. It sounds like the host is talking about the right people/teams working together to contact customers and schedule service.
Concept
firefighting vs staying strategic
“Firefighting” means constantly putting out problems as they happen. “Staying strategic” means planning ahead and using a system so you’re not always reacting in panic.
They’re talking about how the service team isn’t just for repairs—it’s where you schedule maintenance and get help after you buy. The point is the salesperson should introduce you to that team so you know what to do next.
They’re saying that when you pick up your new car, the dealership should immediately introduce you to the service department and get your first service appointment scheduled. That way you’re not left guessing what happens after the sale.
They’re talking about the cost of labor—basically how much the shop charges per hour for technician work. If another shop is paying more, dealerships may need to adjust rates or pay to keep their best techs.
The hosts argue that technician retention is critical because losing top technicians hurts both quality and throughput. They also imply a cost-of-replacement reality: if you don’t match the offer, you may end up paying more later (or losing the tech anyway).
Concept
service walk before FNI
Some dealers do a quick “service walk” before the sale is finalized. It’s basically explaining what maintenance and service will look like so customers don’t feel surprised later.
Lexus is Toyota’s luxury brand, and the speaker references their dealership process while selling Lexus vehicles. This matters because luxury brands often emphasize customer experience and structured handoffs between sales and service.
NADA is a dealer organization, and the FTC is a U.S. government agency that regulates consumer protection. The webinar is likely about rules dealers have to follow when selling and advertising cars.
LIVE
Hey everybody, welcome back to another episode of The Daily Dealer Live.
I'm your host Sam Darkin. Thanks for choosing to be here with us on Daily Dealer this Friday,
the 17th of April. It's tax week. Cox Auto Inc. They just dropped the number. Dealers are pulling
a record 9.23 million bucks per rooftop in fixed ops. It's a great headline, but here's the kicker.
We've lost four points of service share to Independence and Mobile since 2018. Four points,
that's value. Record revenue, shrinking grip on that customer. Today on the show, we've got two leaders
in fixed ops with answers working to fight that trend. Jim Sabino, all American for New Jersey,
betting the service lane on mobile and pickup delivery and fighting the tech shortage at the
same time. Plus Chris McPhillips, fixed ops director at Nissan Hyundai and Genesis of Cool
Springs, Tennessee. Three brands, one roof obsessed with menu presentation and shop turn time. We'll
have great conversations with both those folks. A quick reminder as a follow up to Wednesday's show
with U.S. Senator Bernie Moreno and NADA President Mike Stanton. NADA's FTC webinar is coming up today.
It's at 3 p.m. Eastern. Clarifying finer points of what Senator Moreno called on Wednesday's show,
a cleanup on aisle nine, an automotive not registered yet. You can go to nada.org to sign up
and continue the conversation behind last month's FTC letter to 97 auto groups. Another reminder,
we're live across every CDG social media platform right now. Post your comments into LinkedIn,
YouTube, X, drop your questions, hot takes, war stories in the comments. We'll pull them all
into today's show. But first and first today's auto industry headlines. All right. Up first,
JD Powers is flagging a structural concern building beneath the surface of the new vehicle market.
Check this out. 84 month loans, they now account for 13% of new vehicle financing, 13%.
That's almost double the 2019 share. And get this, 72 month loans make up over 40% of
financed purchases. Even with those extended terms, average monthly payments have climbed
to $806 with nearly one in five payers paying over $1,000 a month in auto loan payments.
The issue is most buyers trade within three to five years, well before a six or seven year
loan pays off, meaning unpaid balances keep rolling into the next deal. JD Powers put it this way in
their report. The industry still has tools to keep this cycle going near term, but the buildup of
longterm loans growing negative equity and rising incentive spend could eventually create a day of
reckoning. Astonishing to me personally as an aside, 84, 72 months, not a huge favor to the
consumer. We've got to find a better way to make from a payment standpoint vehicles more
affordable to consumers. Back into the news, also from this week, used vehicle prices have jumped
$1,500, which is another pressure point on payments since mid-March. That's pushing the average
above $25,500. Can you believe that? A used vehicle, $255, this according to Carfax 7-day
median data, that follows a $450 increase in February and comes off prices hitting their lowest
point of the past year in January. SUVs and luxury SUVs continue to lead the climb and EV
prices have jumped $560 in the past month as gas prices push more shoppers towards electrified
options. The inventory picture behind the price move is familiar. Continued supply tightness
from the COVID era, fewer low mileage CPO vehicles entering the market and more buyers
gravitating towards used as new vehicle prices stay elevated. And for dealers that make sourcing
discipline the priority. Service line trades, auctions and online channels all matter more
today in a market where acquisition competition is super tight. That's why we talk about used car
sourcing all the time on Daily Deal of Life and we're proud to bring that as a continuing topic
on this show. Moving to an update on the OEM side, Stellantis reported a 12% increase in global
shipments in Q1 with North America up 17%. That's about 54,000 more vehicles than the same period
last year. The gains were driven by the Hemi V8-powered Ram light duty truck, the Rafet
Rest Jeep Grand Wagoneer and the new Jeep Cherokee. The company is also making a notable leadership
move bringing in former Hyundai VP of national sales Michael Orange as CDG reported this week for
a senior North America role. Orange is described as a dealer-centric leader and his hire is part
of a broader push by Stellantis to rebuild relationships with its retail network including
adding over 200 field staff in sales, serves and parts. And finally, today the auto loan
interest in interest tax deduction, remember that much-taunted by Trump, the dealers, we dealers
hope to move the needle in auto sales. It appears that it's underwhelming so far. As of two days
before the April 15th tax deadline, only 1.1 million taxpayers had taken advantage of the
deduction. That's way below earlier projections. I wonder if part of that's due to not a lot of
people understand it, not a lot of people understand how to qualify for it. I don't know it's got quite
the attraction people hoped. The measure allows buyers to deduct up to $10,000 in annual loan
interest on U.S. assembled vehicles purchased after December 31st, 2024, but income limits
and assembly requirements are narrowing the pool significantly. Only about 6 million vehicles
qualified under the IRS criteria. Analysts say confusion around the made in America
requirement is likely a factor in the low uptake. And that, folks, is a wrap on today's
auto industry headlines and welcome to Fixed Ops Friday.
Astonishing news. I could actually go on for the news for a little bit, but let's bring in some
comments before we dive into our first interview today on Fixed Ops Friday. Supervisor Dan says,
hello from 30,000 feet. Even in the air, I can't miss Fixed Ops Friday. Thanks for watching.
Hopefully, you're on an airline with great internet, so you can continue to follow us eager
long time poster. Just wrapped up my Mannheim Auction Day. MMRs keep on creeping up. Repos are
hitting the auctions and EV segment selling like cupcakes. Lauren Klein comes in. Welcome back, Lauren.
We really screwed ourselves during COVID. We'll let that comment stand for itself,
correct? Supervisor Dan, hello from Supervisor Dan. Actually, to props to your internet and
Wi-Fi, it popped it in twice to the chat, so I like that. Anyway, we welcome everybody's comments
into today's show. We've got a bunch of interesting topics as it relates to fixed operations and
profitability within automotive. Let's dive into our first guest and a repeat return to
Daily Deal Life, Fixed Ops Friday. Jim Sabino, All-American Ford, Hack and Sack and Paramus,
New Jersey. Jim, welcome to the show. Hey, Sam. Thanks for having me. It's great to be with you again.
It's good to have you back. Hey, for those that don't know you, tell about yourself and your stores.
How's business this April of 26? Business is great. It's very strong. RO count is up,
continues to stay steady and growing. March was good. Listen, I've been with the organization here
26 years strong and keep going. No end in sight for me yet, and I'm looking to grow and scale
every day. That's our mindset. That's the culture here. Yeah. So you saw that number from Cox that
we dropped, a record 9.23 million of fixed ops per rooftop, but dealer shares down to 29%. So
dealers are getting less, independence are getting more. That's a challenge.
You're betting on remote as many Ford dealers are. When did you know that that mobile and
pickup delivery remote had to be the core, not a pilot program for you? Well, it's a core because
it's such a retention tool part of it. So the retention, we're losing customers for many reasons.
So let's do everything we can to make it easy, convenient to do, continue to do business with
us and not defect to an independent or another, a private local guy, making it convenient by
mobile service, bringing the service to them. Something at this scale at Ford Motor Company
is a tremendous tremendous push behind that and the success of the dealerships. They're behind it.
They market it, advertise it, that they support it. They help us build out the vans, the whole nine.
So by doing that gives us a huge advantage to make it convenient, keeps their retention and also
keeps satisfaction in a very high play also. So the Motor Company manufacturer independently
surveys customers for the shop and for the mobile truck. Mobile truckers always hire
on those surveys that were returned because the convenience level is just unmatched. It really
is. So since we last talked, how has your mobile offering grown within your group there at All American?
It grows every month, Sam. We continually find customers that we've never done business for.
We've never been exposed to and that's a lot on our part. We work, we grind hard every day,
try and market and advertise and find end users, a lot of fleets, a lot of municipalities.
You know, the one and two, the mom and pops, the are built-in business that we keep is first-time
customers are scheduled at delivery, a time of delivery. They're scheduled for a mobile appointment
for their first. We introduce them to mobile and they get them used to it. So then what happens is
that a repeat and referral starts kicking in. So I love this. I cannot get this again. They call,
they get a recall notice. They immediately call, they want to get a mobile service.
And then we have all of our BDC and KSHers trained that if an incoming appointment comes in,
that's a mobile-friendly appointment, we offer that first before the in-shop appointment is made.
And that's, you have to be on that every day, every day.
What's the cost delta to you between having a customer come to the shop and then you delivering
that remote experience to them? Is it more expensive, the remote, or after Ford's support,
are they pretty equal? They run pretty equal. I mean, listen, there is a support, this, you know,
the capital investment of all the vans, you know, but it's an expansion of their mobile base.
So we're able to expand our footprint and our capacity without the traditional brick-and-mortar
expansion. So this gives you a really good advantage because it's much cheaper to do mobile
expansion than it is brick-and-mortar with actual real estate and buildings. You know,
so we can increase our, we typically run between 15 and 17 percent a month of the total RO count
are done mobile. So that's a good percentage and it continues to drive revenue.
And, you know, go ahead. Oh, no, go ahead. So NADA says the auto industry is short about 37,000
techs a year. Northeast cost of living is brutal. It's expensive. Correct. Where are you going to
find those technicians to, you know, man the mobile service and or in store? How are you
addressing the tech shortage today in April of 26? Great question. Great point. So you have to be
active. You have to be, you know, the trade schools that are in your area. You have to
have a relationship with those. You have to show up at career fairs and you have to promote your
business. And then you have to explain what happens. This is not just a job. It's a career.
You have to set up a career path, continuing training, you know, working their pay. They're
going to start at this to potential in three years, potential in five years, you know, they're
going to be supported and we're going to have them. So we want long-term thought when it comes
time to hiring technicians, not isn't a short-term game. It's a long-term play and we will stand
behind support them, train them financially, pay them correctly. It's very, very important that you
pay your staff properly. You're never going to retain anybody because people are going to get
bored. They're going to get swayed by somebody else with a little bit more money. So do the
right thing, set them up on a career path of training and pay them properly. And you have
to constantly think outside of the box and maybe, maybe a trade school is not going to be your only
source to find them. You know, we can look at, like people that for our mobile service department,
maybe a pool service company, we can find somebody that maybe a technician there and we can set them
up on a training course. They're ready to use the driving of vehicle and going to people's houses
to service their pools. That's what I was going to ask is on the mobile side, you've got a big
enough fleet, big enough percentage of your operation pulls from that. Yes. It's got to be
a different aptitude to do mobile service. So you're driving around by a little bit more in
control your schedule, a little bit more freedom, flexibility, not as major jobs. Like pool service
you mentioned is one area you look. Is there another you look for that ideal mobile service tech?
Well, they are customer facing first and foremost, right? So they're representing your brand out there.
They're face to face with the customer. So they have to be able to speak properly, answer questions,
be polite. We dress them in different uniforms. So they have a little bit more of a professional
or polished look while they're on the road. They're always tucked in and their vans are clean.
And yes, it's their office. So most of the guys take pride in their vans because it's their office.
It's their assigned to that truck. They don't get in a different one every day. So all the tools are
set up and neat and organized. And not everybody can be a mobile service technician. They just,
some of them don't want, they just want to be in the shop and you're right. There is a lot
of freedom. They're out there. They get their list of jobs. They work with our mobile service
coordinators as far as they're done with job A. Now they're going to job B and etc. and things like
that. I would think some would thrive in that environment, but others would be challenged
in it. So tech turnover according to industry stats is 16.5%. What's your number and what
has helped you to increase that retention over time in the technician role? Well, luckily,
we don't have a tech turnover issue here. We really don't. We pride ourselves in treating them with
the highest level of respect. We pay them properly. We're very, very, it's a great place to work for
us as far as technicians. And today's market, they can really make a very, very good earning.
Really, they can earn big money here. And anywhere in this industry, if you set your sites on doing
the right job, increasing your skill, always train, show up to work. You're going to do well
in this industry today. You really are. But not everybody coming out of college or high school
understands the opportunity that is being a technician. We've talked about that many times
on this show. We've got to do a better job of training and representing the opportunity that
exists because it is jointly, it's technician, which is mechanical, but it's also electric
technical, which is being able to think through technology, which it's becoming much more of
tech driven field, being a technician, right? It sure is. Especially when you roll in the EVs
and the hybrids. So yes, right? So you're a technician. You're an air conditioning. You're
an electrician. You're a heater. You're all the above. And you're factoring these high technology,
high level performing cars today. It's huge. Yeah. So some dealers that aren't as big a fan of
mobile, which I can't imagine are many right now, might say, hey, mobile cannibalizes RO count.
You get a couple mobile service vehicles going and it's going to mess with the brick and mortar
business. Are they right or wrong? Are they thinking about mobile wrong in 2026?
Listen, everyone's entitled to their opinion. In my opinion, they are very, very wrong.
It only increases your RO print, which drives your revenue, right? So I can service at any
five ROs per day on the Vans per day, per day without expanding one bay in my existing footprint.
So it's a convenience level. Listen, your Vans are out there. It's marketing your brand, right?
So everywhere those Vans go, they're all lettered up, right? It's marketing. The customer retention
increases. Repeat referral happens immediately. There's so much data in the marketplace that
shows that customer satisfaction level goes through the roof. Now, who doesn't want a satisfied customer?
You know, the five-star ruler review versus a one-star or two-star ruler. I'll take five-star
all day long. They're just going to continue to do business with you because you're making it
convenient. You're taking the pain points away. A lot of comments coming into the chat here.
Patrick Block, Motive Ventures says, happy anniversary to the launch of the Ford Mustang
April 17, 1964. Happy anniversary, Ford Mustang. There you go. Igor Kaye comes in and says,
Ford really pushing mobile service for dealers. Ford and Mercedes does the mobile remote service.
Very efficient. Probably they are the brands with the best and most efficient mobile service.
And he also comes in and says, love Paramus, New Jersey. Used to live in Edgewater, says Igor.
But I think you're right. We have a Ben store. We have Ford stores. Ben's, Ziggler Ben's in the
Chicagoland does an incredible job with remote service and really looking to expand it in every
single possible way. Ford, let me just comment. Ford is the absolute leader. They set the tone.
They actually paved the road that everybody now is pulling on to. Which is great. All the other
factories, all the other OEs are following suit because they see success and a lot of data proves
that. Then it creates a lot of vendors now to support the mobile service growth. We talked
about this last time is approximately 4,400 vans in the Ford Motor Company, Lincoln mobile network.
So just think about every day on a spaghetti map on the cross the country, 4,400 vans in motion every
single day providing a service. So it's pretty cool. And it will only grow. I see Roger. Roger
Conant comes into the taxi says it's fear of change. The reason people wouldn't be doing it.
False events appearing rear. So you came up with a clever acronym on that. Thanks,
Roger, for posting into the comments. So all right, I want to shift just a little bit with you
if we could. You do video MPI and do you do video MPIs in both brick and mortar and also
mobile? Do you do a video MPI for mobile as well or no? The vans have the vans that the device is
out there to do it. Yeah, a lot of our mobile service, the fleet customers, we really don't,
but they the retail customer we do. So okay, you know, we do a lot of rental car companies and
etc. So we don't do those. Okay, so we get a lot of factory folks that watch this show props to
every OEM that watches. And I have a rep that actually works with some of our stores sent me
a text message. So I'm going to I'm not going to out him in terms of the OEM, but he wrote me a
little text that hey, Sam, I'd love to get your take on this. He says so and so he's the district
parts and service manager. He says, I just watched your fixed ops Friday last Friday. It was about
video MPI says great listen, he said one issue I'm having in this district and including your stores
full disclosure is not creating the video but getting advisors sending them to the customers
and having them open and having the customer open and watch the video. He says district stats are
about 80% of RO's get a video created on it 60% of those get sent to the customer and only about
40% get viewed. What's your take on that? What's the missing element in this?
I just I'm shocked, Sam. I'm completely shocked. The views or where it gets the traction when a
customer gets a video of their car on the lift. And you know, they just view it. I've never heard
that before. I'm shocked and I don't know the reason why that customers are only 40% are opening
and viewing those videos. Yeah, I would love to hear from our listeners online. If you've got a
perspective on it, we'll actually also ask our second guest. The one I am curious about,
you know, the getting the customer to watch it, it makes me wonder if maybe there's technology
that's blocking the text from coming or like it's being dished up in some way where the customer is
not clear about what that video could be. Could that potentially be a part of it, Jim?
Well, it could be. But again, that should start with the service advisor letting them know upon
write up that they will be receiving a video of your car once it's in the shop. So, you know,
letting them know to expect it and then say if somebody told me that do a role reversal, right?
If I was checking in my car and it's service advisor told me that I'm in. I'm like, okay,
where's the video? I'm like looking for it. I want to see what's going on with my car.
I would be interested. So, I'm shocked. I'm shocked. We try, you know, and do videos on every
car possible, right? So, we strive for 100%. Unfortunately, you know, you can't get there,
but 90% is a really good number, okay? Yeah. As it should be because the customers need
to get used to that. So, every time they come here and they need good and bad, they can't always be
afraid to like, oh my God, what's this video going to cost me? They have to see the good news also.
So, when you get a clean bill of health, good tires, good brakes, no leaks.
Excellent. Thank you for coming in today. We appreciate your business. Boom.
Yeah. So, I followed up with a text to him and I said, hey, what's the platform that you're
using to deliver those videos? He said it varies across the different stores. He said,
we see a lot of X time and I know Cox has a great product. I'd be curious just what is
the challenge between the advisor sending it and delivery and engagement between the customer. So,
to me, is the setup right? Is there some sort of technology that's blocking it? Maybe there's
not consent to send that video yet. So, that would be a curious thing. I don't know if you have a
perspective on that, but the staff that really gets me is 80% get the video created of the ROs.
I agree with you. I'd like to see 90 to 100. But then of the 80% created, only 60% of those get
sent to the customer. What are some reasons why an advisor may decide not to send the video to
the customer? That makes no sense. Well, it does when you, if you ever had an opportunity to view
some of them before they're sent, sometimes the technicians are not going to say, you're cringy
a little bit. I said, I can't send that one because maybe he said something that he shouldn't have
said. Got it. Got it. Okay. So, the advisor ends up, so the advisor is, and I'm not sitting in
the lane doing it. So, this is good education for me. This is why we do fixed hops Friday.
The advisor might see it and go, hey, there's an F-bomb in the background. There's a poster
somewhere. Or the technician, he, she explains the repair in a way that doesn't connect well
with the customer maybe. And that's the difference for the 20 point delta and the send.
Correct. And there's, there's, the company we use is incredible and has, it actually
will block out any type of profanity. We talked about that last time on the show. Who do you
use? Who, who delivers yours? True, true video. Okay. Very good. And my karma I think does similar.
It blocks out, there's a conversation in the bay next to you. It will not pick it up. I mean,
it's just, somebody rotating tires, it will not pick that up. So, it's very, very cool. But if it
wasn't explained properly, so you have two options to do it. The technician can make the video and
shoot it directly to the customer or they, or you can set it up where it goes to the advisor for
review and then they send it to the customer. That's a preference per dealership on them.
How do you set it up? How do you do it? Do you have it sent direct from the, you do a review?
Okay. And what, what percent of the videos do you think your technicians create get
withheld or prevented from being sent? In the beginning, in the beginning it was a little higher
because they were still getting used to it. You know, we've worked with them with word
tracks and kind of keep it simple. Don't, don't over technical explain it because you're going
to lose the customer. A lot of customers don't understand that. Keep it simple and short.
30 seconds, 40 seconds, backs and that's it. Yeah. Yeah. Interesting. So, a lot of good comments
online. James Beverly comes in says the service advisor has to educate about the video and I
agree service director, the service advisor need to work together with the technician to
deliver the best video. Dancy says, does the text actually embed the video or is it a link to the
video? I never click a link within a text for any reason. What's your experience, Jim? Is it a,
link or is it a link? It's a link. It's a link. But again, you have to set the customer's mind
that you're going to get a link that's, you know, yes, it's going to be your video. So,
it comes as a link and then it'll bring you to our app. You've got to educate at the service drive
about this video that's coming and I think yoga car says customer will get a text message if sent
their vendor has a lot of opt outs, depend on the carrier, different carriers will throttle,
not deliver messages based on their rules. So, I do think you've got to have a good process
with a good provider and everybody's got to be rowing in the same direction. Debra comes in
and says my father was an independent mobile service tech after retiring from the military and
was a master tech back in the late 70s until he passed on 2010. He made a good, I can't see the
rest of it, but I think she's saying he made a good living doing that props to him and condolences
on his passing. But great to hear stories even many, many decades ago of people that have been
successful in this world with this strategy. So, what percent of the videos that you send,
do you know this metric, get engaged with, get opened and responded to?
Oh yeah, gosh. So, the ones that are sent were over 90%, like 92% are opened and engaged and a
lot of times they're opened multiple times. We can see every time they go back to it and play it
again and play it again and then we can see if they sent it to like a spouse, somebody for one,
hey, can you look at this video? What does this mean? They can send it to somebody else. We can
see that also. You know what, it just hits me hard in April of 26th. It is interesting. We have got
to in automotive get good at testing systems and processes and making sure that every step
along the way, whether we're talking about advertising, listings, BDC phone systems,
like every system and process, we've got to test it and make sure it lands right. We,
Yossi sent me a text that posted to social media from one of our listeners that said,
look, I went into this dealership. I had a great experience at the dealership and as soon as my
RO closed out, I got four text messages from different systems asking if I wanted to trade in
my car. And then I got another four text messages from different systems asking me to leave a review
on sites telling him I was happy and satisfied. He said, after I got eight text messages, I was so
pissed off. I didn't want to go back again. So they're like great service this dealer, but horrible
follow up. And I think, I think to the district rep that sent me that text, I think if dealers aren't
following that process, the customer is going to have some unintended consequences. Have you run
run into anything, Jim, where you've uncovered something that's broken in one of your service
departments and you've had to fix it recently. And if so, what? Yeah, well, of course, you know,
you want to, you talk about like vehicle acquisition to your service drive. So yeah,
that they get a text for that. So when any time an RO opens up, it triggers out a text.
And it just, hey, and we set the parameters up. They're not, you know, like a six month old car
is not going to get a text to require their vehicle and service drive. So at least the
criteria that we set up, they get a text upon write up. Also the service department, the advisor
also informs the customer that they're going to receive a text. And that's how we communicate.
So the preferred communication is text messaging. So as soon as the RO opens up, they get pinged.
And if they're a reoccurring customer, it says, welcome back. Nice to see you. And then that's
going to be your open lines of communication. And that's also going to be the same text link
that will have the video on it. So they're used to it. If it's a new customer, they need the
education of the policy because they have to opt in. Now, if they opt out, then you lose them.
You don't have that ability to communicate through text. You can't send them the video.
You can't send them a payment link. You can't do anything, which is bad. But there's always people
that opt out, Sam. And we know that. Of course. And they have the right to do that. I just think
it's unusual for someone to opt out on a video. And actually, to your point, James Beverly comes
in the text says, hey, when a customer picks up their car, if you really want to get to the bottom
of the problem, the advisor needs to ask the customer what they thought of the video. Did they
watch it or did they not? It also strikes me that if you culturally you're not set up that,
hey, this is what we do 100% of the time we send a video MPI. If people are trying to prove it
doesn't work, if you show low engagement, that just justifies it. It's going to make you send
less. So it's probably a downward trend. You've got to believe in the process before you roll it
out, Jim, to your team. That's fair. Yeah, correct. Yes, I agree. All right, Jim. Last question. And
then we're going to put you in the waiting room. We'll bring you back for the roundtable at the
very end. What's the biggest lie most dealers tell themselves about fixed ops in April of
2026 that's costing them money today? Jim. The biggest lie. Yeah. Wow. Wow.
Cost of labor. Everybody's, you know, the cost of labor is incredibly high and it's continually
going up. And I don't know if that's a lie, but it's a lot of dealers that I know,
you know, are always aware of what it costs to operate your headcount, your support staff,
you know, your return on your investment with your advisors, where your sales points at and
things. So, RO drives a lot. Listen, gross usually answers all questions or solves all problems. So,
if you're running a very efficient and your gross profit is there within where you need to be,
that usually cut quiets and simmers everything down. So, I think cost of labor is probably going
to be my answer to that question for now. Jim. What do you think about retention in 2026 as a
key metric? What's your biggest metric in fixed ops today? Jim. So important. Retention is a
make or break. You want to survive and you want to continue to grow and scale. Retention needs to
be in everybody's forefront. It has to be top of mind every single day. Every single day. Only
decisions you make. Retention needs to be revolved around that. And on that, Jim Sabino,
All-American Ford Hack and Sack in Paramus, New Jersey. Thanks for being on the show today.
We'll have you back at the end for the roundtable. Thank you, Jim. Thank you. Fun conversation today.
All right. Let's talk stream companies. Today's episode is brought to you by stream companies.
How much revenue is slipping through the cracks at your dealership? Stream companies missed
opportunities report analyzes your strategy and highlights where you can drive more sales faster.
Request your free report today at streamcompanies.com slash DDMOR. Again, streamcompanies.com
slash DDMOR. Props to stream companies for supporting today's content, including that
awesome conversation we just had with Jim Sabino on all things fixed ops, including mobile,
Ford recalls, customer retention, and even kind of leaning in and continuing the debate on video
MPI, which just as an aside, I don't get it. Like, I have this debate often with people.
Like, video MPI is like a key core process in any successful fixed ops department today.
But it doesn't happen 100%. And I appreciate the OEM rep that texted in, shared his own
perspective. We've got folks coming into the chat, bring a couple of these in before we go to our
next guest. Yoga car says dealers often sign up for a lot of new shiny tools. And nor does the
vendor ask if there's a conflict with other vendor, nor does dealer know. So I think that's
fair. There are overlapping processes. And sometimes those overlapping processes can cost
the customer's peace of mind as they're getting barraged by multiple conflicting competing texts.
And then James Beverly comes in, disappointed customers will see alternative service needs.
That's right, they'll go elsewhere. And great to see Mr. Sabino. I used to work for their point
pleasant location back in my retail days, says Lauren Klein in the text. So all right, let's
continue on with fixed ops Friday. Next up, Chris McPhillips, fixed ops director,
Nissan, Genesis and Hyundai of Cool Springs. Welcome to the show, Chris.
Happy Friday. Thank you very much. Happy fixed ops Friday. Great to have you on the show.
For those in our audience who don't know you, you're big in the social media world. A lot of
our listening audience is familiar with you, your face, your, your story. Tell us a little bit
about who you are, what you do and what you do out there in social media as well. So I guess
I've been doing this a while. I mean, pretty much all my life, it's a wonderful vessel for anybody
looking to get into the car business. The fixed ops side, the service side is a,
a great tool to, you know, support your family and have fun and learn about about cars and people
and selling. It's a little bit of everything all in one. It's a really great experience.
Me, I, you know, had a pleasure of working with a lot of great owners and dealers. And now I have
a home here with the managing partner, Jason Stacey, and we've done some amazing things since
August when I joined the team. All right. How's business there at your stores? You've got Nissan,
Genesis, you've got Hyundai. It's pretty wonderful. Okay, good. All right. So you, you heard that
little debate about video MPIs. You guys have video MPIs. What, what system do you use to
deliver video MPIs at your locations? We use X time. Okay. So you do X time. Have you ever heard
that where there is a loss between, so, you know, video creation at 1% tech or the service advisors
decide not to send the video and then such a high percent of consumers don't end up engaging with
or opening the video. Have you ever seen that? What could be a possible cause of that in 2020?
The video, but sometimes when we're quoting tires or multiple types of parts versus, you know,
like a value advantage or the, you know, the OEM part, it's kind of convoluted. But yes,
we get sent out. So reasons like that potentially would be able to make a call, you know, kind of
explain before something is sent out. And then maybe the guest approves the work and then just,
you know, send it through and don't even send the video. So we always try to quote three tires,
you know, good, better, best. And the next time it's hard to sometimes quote that because it comes
over like $3,000 instead of just one set of tires. Okay. So some of it could be system or process.
Honestly, yeah. The way it shows up. Wait, what makes it hard to do that? Explain that to me
again, just so I can understand that. Because when the quote comes over, it's going to have three
prices and it might come over as a bundle like, oh, you need $3,000 for the tires instead of here's
like the options. Got it. Okay. Yeah. So maybe technology needs to adapt a little bit too to
help us deliver our best. That's, that's, that's good feedback. And that might be some of the
reasons why some of the advisors would withhold a video from the consumer that comes back from the
tech if it doesn't look quite right. Or if it's easily misunderstood. So what's, tell us in your
stores, Chris, what's something that you've done this past year that's really raised the bar of
performance at your stores? Yeah, we do service menus. And every morning, the advisors get a
report on their penetration and on their, the way how many times they offered the service.
We, I believe in it, they believe in it now, as explained at the wind to a restaurant.
And the restaurant offered you a cheeseburger. And then you left or saw someone eating an apple pie.
Yeah. I think we know they had apple pie here. I just got offered a cheeseburger.
Yeah. We believe in 100% of the time offer 100% of the services. So we'd want the advisor to
present that 100% of the time. And then we'd hope that have opportunity to close on that 40% of the
time. Okay. And then like I said, daily. And what's the technology that you use to deliver that menu
to the customer? BG. Say it again. BG chemicals. Okay, BG. So they train on it. They've got an
electronic delivery tool to do that. And how long ago did you implement this menu 100% of the time,
which by the way, is an old notion finance has been doing that for decades now. And it's
interesting to me sometimes how long it takes certain parts of the selling world to filter into
the fixed ops world. So I come from car sales and finance before I got into this. There you go.
That's why. All right. Right here in August. So probably like, October is when it, you know,
really implemented and priced correctly, you know, made a competitive and I just an astronomical
price that was grabbed at the middle like we're charging this just because so we called around
and, you know, had the text, you know, gave some of the labor time up so we could be competitive.
And then we chose the labor rate that made smart the right choice for our store and we
start pricing things the right way. So what, what were some of the initial pushback you got from
service advisors in doing this before we have you give us the results in April? Close them down.
You know, they don't have time to do it.
Things like that which offer a service. Yeah. That's interesting. The objection. Hey,
I don't have time to do it. Although I would tell you you've got the conflicting competing stat
from CDK that says average hold time in service when trying to get a hold of a service advisor
or anyone in fixed ops is nine minutes. That's from 2025 in a report that came out last year.
Our service teams really are overburden. We've got to decide what are the most important tasks.
You said, hey, menu is important. So how did you overcome that objection of we don't have time?
Well, we, we have to inspect, right? What we expect. So yeah, the daily reporting, being out in
the drive, showing them how it does work. And then the technicians love a ticket that comes back
with menu items sold. The guests will actually get out in a more timely manner also because
now the guests isn't waiting for potentially to have an upsell for tire rotation or for an air
filter because they've created the work, the work goes in, the technicians able to, you know,
produce the work, then create the multi point, check the brakes and the safety items. If nothing
else is needed, the guest is gone versus waiting for, well, let me go find the guests for a tire
rotation or for me to go find the guests for an air filter cars on the rack. It just slows down the
whole process of a basic service. Yeah. So when are you presenting that? And, and, and how do you
do a menu so that doesn't feel like it's selling to the consumer, right? So service advisors,
even though it certainly is a sales job, most service advisors, I know, don't see themselves
as sales. And I think that's helpful, right? They're advocates to the consumer. They're trying to
help fix and solve problems for the consumer. Well, how do you present the menu so it doesn't
come across as a sales job? Because we give them choices. They always have three choices.
So they have the minimum way to service the vehicle, like a preferred way. And then obviously the,
the best way for the guest to really enjoys a car, they're a car enthusiast, they're going to keep it.
They want to make sure everything, you know, is done on their vehicle. So we just give them a
choice. Yeah. All right. So what's the result been since you've been doing this menu? You started
August or October, you said you've really gained traction over the last 60, 90 days. What is the
what is the result been? What's what metric? It's probably $90,000 a month. Wow. Okay. In,
in an additional work sold. Yes. And are the service advisors now that they're seeing the
additional revenue resulted, hopefully their pay plans reflected, are they starting to get bought
off into it more? What are some ways you're seeing where they're kind of getting excited if they are
bought off into it? I think it's the excitement of the technician and the, you know, advisor,
because now the techs, you know, are like so thankful. I'm like, thanks, you know, now I can
just get this car in the air and make sure it's safe checking tail lights and brakes and for leaks,
you know, I don't got to wait for you to sell me a cabin filter that I got to pull out of the
department or the department, hopefully it goes back in. Yeah, yeah. It saves us so much time
or such more efficient return. I think last month we turned 700 hours more than last year.
Wow. Okay. That's strong. So is there a next iteration of this menu or are you looking to
further kind of develop it or do you feel like you've got it honed in pretty well?
I feel the menus are good where my weakness would be is I need to get on the board with the videos.
We already do the inspection. We do some photos, but I'd really like a, you know,
100% video. I'd want to be very transparent. Yeah. So we were transparent up front with
our pricing. We showed you all of our pricing, all the ways to service the car. So now I'd like
every single technician to provide a video to every single guest. So that'd be my next venture.
Yeah. Yeah. And you said use X time, it seems like, right? So you just got to,
you've got to understand it and then you've got to deliver it out.
All right. So you're a Nissan, you're Hyundai, you're Genesis. What OEM in April of 2026 really
supports what you're doing from a menu standpoint, video retention. Who's leading the way from your
vantage point and service department today in 2026? With Genesis is going to be requirement in July
as part of our like program to receive dealer funds for the quarter. Yeah. So
immediately that'll be my first focus is getting that store and 100% video before July.
And then we'll parlay that into Hyundai and then into the song. Yeah. And will they allow you to
use whatever delivery system you want X time or whatever, or do they have a, an OEM supported
program? Yeah. With Genesis, you have to use X time. Yeah. Yeah. Okay. And I think for, does
Hyundai have similar as well, or do they leave it open? Currently right now, it's open with Hyundai,
but you're seeing with X time, just in case they bring it back, that's a lot of times they're
changing in our industry this year. Yeah. Yeah. Eager K comes in, says very interesting menu for
service. Menu not only provides choices to customers, but also protects the dealers
if a customer will claim something wasn't even offered. And now it's a problem. And
you know, Chris to Eager's point, it's interesting how in service, like the more transparency,
the more information we can deliver to the customer, the better decisions they can make.
And the higher the customer satisfaction is. And I think we're going to see a trend in that
direction. So props for you putting that menu in place and going through the, going through that,
you know, going through that process. We've talked about used vehicle acquisition. It's a huge
pain point in the industry in 2026. What are you doing in your stores to get used vehicles brought
in as service partnering with sales and anything on used vehicle acquisition? Typically, I'll address
like the sales manager, the fleet manager, let them know, Hey, tomorrow we have a high appointment
count. So they can pull their, you know, data mining, looking for equity. And I welcome many,
you know, the sales associates, they can come to my service drive. I love acquiring cars through
the service drive because we acquire potentially a great trade. And then, you know, another guest
so we don't lose the guest defect to another manufacturer. So when we have another product
we could sell potentially pick up a trade from another manufacturer, get that car customer
in our used car, and we just sold them the same brand again. So it's a, it's a win for the dealership.
It's tremendous asset. Yeah, yeah, very good, very good. The last thing I wanted to ask about
is do you do any mobile service? Are you doing mobile? You heard Jim talk a little bit about
that. Anything you're seeing in the mobile world? Nissan just recently brought that up in my last
meeting with my farm. I told him that we would be interested in it for sure. I think when you,
in our industry, if you stay like this and only do what used to work, yeah, you won't,
I don't know where you'll be in a few years. This industry continually is changing. And
especially the Genesis size, we have a whole company called Hop Drive that's picking up our
guests and dropping off loaners and really making it so the guest doesn't have to come to the store.
Yeah. So with dealer support or OEM support with Nissan or even Hyundai, I would be open to
doing the same thing that Ford is doing in other manufacturers for sure.
Yeah. Is your Genesis store, is it standalone or is it combined service drives with Hyundai?
It's a standalone. It's a standalone. Yeah. What do most people not know about Hyundai or
Genesis as it relates to service in 2026? Because you don't, you know, it's a developing brand.
We have the head of Hyundai, Randy Parker on talking about his desire to really grow the
Genesis brand over the next year. What do you see in the service department that stands out
on the Genesis side? I think it's super exciting. You know, the Genesis product at least here in
Franklin is booming. You know, we're selling many of them. The guest is new to the product
and we're just getting a chance to wow them and provide a more intimate service than maybe if you
went to a larger European store where there's like a hundred cars coming in and, you know,
we're picking up your car, we're dropping it off or when you come in, it's kind of in
because we're servicing maybe 25 guests a day instead of, you know, a larger European dealership
where you just, a number at this point. Yeah. Yeah. The guests know us. We know the guest.
It's a, it's pretty awesome. So Paul Salisman comes into the comments. He says, I'm guessing
Genesis is trying harder like Lexus did when they came on the scene many decades ago. What
are some other areas they're requiring a higher service level from your vantage point, Chris,
at the Genesis brand? It's the car and the pick up and drop off service and providing the cars.
Yeah. Yeah. So the original owner gets a vehicle pretty much anytime they want.
So you got to make sure you manage that correctly and then time to repair, right? You can't have
the guests down a lot of car forever because then you can't give it to the next guest. So
you're constantly in the shop managing that. Yeah. Yeah. Yeah. Very good. Well, Chris McPhilips,
fixed ops director, Nissan Genesis and Hyundai of Cool Springs. We're going to pop you back
into the green room then we'll go straight into our round table here shortly. So Chris McPhilips,
thanks for being on the show and sharing your perspectives about all things fixed stops.
In particular, your menu implementation here in 2026. Props to you for that process and thanks
for sharing it with our Daily Dealer Live audience. All right. And to our loyal listening audience,
thanks for being here with us. Thanks for being in the chat. We've got a lot of chat activity
today. I haven't been able to bring all of it in, but we're excited to turn back to our round table.
Jim Sabino and Chris McPhilips, welcome back for this fixed ops Friday round table. By the way,
it's one of the highlights to me of the entire week is fixed ops Friday because I learned so
much in particular this conversation today on video MPI and on menu. So let's dive into it. Here's
a, I've just got a couple of lightning round questions for you. Record revenue, shrinking
share, which numbers, which number keeps you up? The one that you captured or the one that you lost?
The ones I lost. One you lost. All right, very good. What are you doing in April of 2026, Jim,
and then Chris, to go after the one you lost? Identify why you're losing them. Identify why
they defected in the first place. Do everything you can to get them back, earn their business back
and keep them in the loop. Again, that's part of the remote service experience through mobile
service, pick up and delivery, and then having your customer facing employees properly trained
to make sure that you provide a high level experience every time. Jim, as you do the
post mortem, what's the number one loss reason in fixed ops in 2026 in your opinion? What's
losing customers to independence and other repair facilities?
Price point. Yeah, or perceived price point. I'm going to argue you with that. Do you think that's
real or perceived? Perceived is perceived. It's interesting because a lot of the stats I read
show that there's a customer perception we're more expensive. And then a lot of the reality shows
we're actually not given the extent of what we do. No, we do a lot of research to that point,
Chris. And we remain competitively priced every day, especially on the tires, brakes,
on the things that you defect the most on, right? So we could continually search and be
competitive on price points across the board. All right, Chris, what are you doing to prevent
the one that gets away? And what is the number one reason we're losing customers in fixed ops in
2026? The advisors aren't giving the guest options. It's like our price is $9.99. Yeah.
And that's it. No, that's not true. They're going to go to independent. The independent isn't
going to use an OEM. The car has time only just out of warranty. Give them an option. Maybe the
manufacturer offers a value advantage or a different kind of part. Or give them three options. We
can go this, this, and this. We have service financing. There's no value. It's just a price
that didn't really, the customer sold us why they couldn't, you know, fix the vehicle. So he
would did a better job selling the service advisor. The service advisor did offer the
benefit to the guest. Yeah. So you're filling that gap with the menu, which is working well.
And Jim, yeah. Jim, do you have a menu? Do you do a menu? We don't, not at the level that Chris
has. He's got a really good menu. We sell on a factory, a scheduled maintenance tool through
Ford Motor Company. And then, you know, obviously we tires, we offer a good, better, best three
options, three different price points. And, and we, you know, we, and, but you sell value. So
you can always focus on value. Value goes a lot further than price. So if you're, if your service
advisors are good selling value, why, and you should do business with us. And this is what
comes with it, the warranty, you know, everything else that goes with a factory train technicians
and so on and so forth, the loaner cars, all that things. It helps. But we don't have a menu at his
level. No. All right. Next question up. I found a data point from a provider that said dealer
share of service on vehicles that are under two years, two years old, dropped from 72% to 54.
So I think that's lube oil filter, some of the routine maintenance. Whose fault is that in April
of 26 sales, handoff service, follow through, or is it on the manufacturer? Chris?
Well, I don't even like Toyota went away from their two year being an insert down to one.
Yeah. It's, I bet it's probably a little bit of both. I mean, on our side, we could probably do
a better outreach. And then there could, you know, very more consistent process where, you know,
sales, the service, you know, introduction, you know, it's done like 100% of the time and
build that quick report, like the kindness, the humor, the empathy that we're going to be here
for you that they wouldn't even want to go to another service spot because this place is awesome.
They're so happy. And it's, you know, I want to bring my car here. Yeah. And by the way, the
younger generation, there's a data point out how in front of me from CDK that actually talked about
how there's a lot of, I forget what the latest generation is millennials or who it's not millennials.
It's, it's whatever came after, but, but they're, they're actually not going back to service
departments for recalls because they think they have to pay for the recall. So to your point,
Chris, education in 26 of the consumer is crucial. They would come back if they knew they didn't have
to pay for it, but they think they have to pay for it. Jim, does that surprise you?
It doesn't. You know, it's a combination of everyone involved is responsible, but I think the
end, the biggest responsibility lies on the dealership and that connection, that relationship
you build with your customer is important. That's a make or break. So, you know, the manufacturers
do everything they can to assist us. And, and, you know, especially with connected vehicle data,
connected vehicle data alerts the customer that, hey, your service is coming up soon,
you have low tire and your left front, low air and your left front tire schedule your oil soon,
schedule the oil now. And we see that same data. So it's up to us, put your BDC and your cash
years and your advisors to work every day. Contact your customer. They're your customer. Hey, you're
serve, I see your services doing this on alert. Would you like to schedule an appointment? We
can do it mobile. We can pick up and deliver or you can come in and wait for it. Let's go. Let's,
what works best for you. Yeah. Do you, it's interesting, both of your service directors
multiple points, like it occurs to me as you describe that a big part of your job is orchestrating
all these different processes in an efficient and effective way. How do you avoid individually
getting caught up in the firefighting and staying strategic in your roles? Because
in, in 2026 with all the technology and every, all the, all the processes, it would be so easy
to get stuck in firefighting and not get strategic. Chris, you did a great job with the menu.
How do you avoid firefighting in 26, Chris? When I walked into this store to me, I walked in like
an ocean. So I can choose to drown today or I can choose to be efficient, calm, and carry out the
task ahead of me. So people kind of, how do you stay so calm? Like, how do I not? If I don't, I'm
going to drown. Yeah. Come today. There's going to be waves. There's going to be undertow. Like,
I need to relax. I know what I need to do today. And then just, you know, easily go about it in a
calm, you know, manner and keep everybody focused and positive and, you know, filled with empathy
and love for what they're doing. I like, you use those, you've used those two words a couple
times. I really like that. Jim, what's your approach? How do you stay strategic and not fall
into firefighting? Well, firefighting, unfortunately, sometimes is a, is a unavoidable,
unfortunately. You know, the best thing to do is surround yourself with great people, hire, hire
great talent, support them, train them, and you can rely on them. You know, follow up is great,
be a part of it. Show them that you're there with them. You know, we're all in this together.
It's not at me against you or you, you know, I'm here to, we're working together. So
remain calm as best possible and just follow up is, is really something that I do often,
like multiple times daily, follow up, follow up, follow up. All right. I would love to do a
separate roundtable on this next question, but we just got a chat that came in. I want to bring
it up, get your reaction to it. Hannah, we need to do a roundtable on this because I don't understand
how this is still a comment in 26. Don T says in the comments, I think customers don't understand
the service department's role. Let's see. I think customers not understanding the service
department's role falls on the salesperson. We just bought a brand new car and we weren't even
shown where the service department was. How is that possible right now?
Jim, I'll take that first, Chris. Shame on that dealer because their processes are broken or
non-existing. One of the things that's required, every customer through our organization,
at time of delivery, goes to the service department, meets a service advisor,
gets their first appointment set up right then and there. It has to happen.
Every time. Consistency wins the fight every time.
Yeah. Is that happening, Chris, in your stores 100%? Do you think?
I don't know. There's three stores. I don't know, but I do see it often. I don't know to 100%.
Patrick Block ventures backs up that comment and says, same for me last year,
zero service interaction at sale. Lauren Klein says, better communication of the service
department value prop is so important at the time of delivery. It should be illegal in April of
26 for a salesperson to sell a car without a good parts and service introduction. And that's
where I think we should leave that part of the discussion. Final question up, both of you,
your best tech just got a $3 an hour offer more. So $3 labor hour increase offer across town.
What's your next sentence, Jim, to that technician?
It says you're not leaving. We're going to work this out. And Sam, you have to pay them.
You have to pay them. And that's what it is. If you're not paying them three, you're probably
going to pay them five. So, you know, that's what it is today. You cannot afford to lose
your best tech, no matter what, no matter what, any day, any day, you cannot lose them.
By the way, the grass is not usually greener on the other side. So breaking that down is a helpful
part too. Chris, your next sentence, hey, I got a $3 an hour offer higher across town. What's your
next sentence to me? I asked him where I failed him and where he felt he needed that I'm missing,
like, you know, what can I do better, you know, and work it out and make sure like, you know,
Jim's saying, sure, I'm going to, I'm going to pay him. But what did I do that can prevent this
next time for even looking? I want this, hopefully that, you know, raise your family and have fun
and, you know, enjoy coming to work, not looking for $3. Yeah. And then going back to the parts and
service piece, Paul says, how is service not part of the selling process before they make the purchase?
Patrick Block says, when I sold cars at Lexus, I had to do a service walk before FNI. It's amazing
with all the technology that exists out there. We've gotten away from some of the most basic
stuff. I choose to blame COVID. I think things got crazy during that time period. So that's where
we'll leave you that. Jim Sabino, fixed ops director, all American Ford and Chris McPhillips,
fixed ops director at Nissan Hyundai and Genesis. Thank you both for being on the roundtable, a
daily deal alive. Thanks for your perspectives today to both of you. Thank you, Sam. Thank you very
much. And hey, a quick reminder to our listening audience. Thanks for being here, but also tune
into the NADA FTC webinar. It should be a barn burner to a three o'clock. So we're about an hour
away from that start. You can go to NADA.org and register for that webinar there to our entire
listening audience. Thanks for being here and for watching daily deal live. We break down the biggest
moves in the car business as they happen. Do not forget, we're here live every Monday, Wednesday,
Friday, which means we'll be back on Monday at 1 p.m. Eastern. So if this is your world and we sure
hope it is, hit like, hit subscribe, turn on those notifications so you never ever miss a beat.
And we'll see you next episode. Thanks for being here, everybody.
About this episode
Record fixed-ops revenue is up, but service share is slipping—especially to independents—so the show focuses on how dealers defend retention in 2026. Jim Sabino (All American Ford) argues mobile service and pickup/delivery are core retention tools, while also tackling the tech shortage through trade-school pipelines, career paths, and proper pay. Chris McPhillips (Nissan/Hyundai/Genesis of Cool Springs) highlights service menus, daily advisor reporting, and video MPI engagement. The debate: why videos get created but not viewed, and how to improve advisor processes and customer education.
Today's show features:
- Jim Sabino, Fixed Operations Director at All American Ford Paramus
- Chris McPhillips, Fixed Operations Director at Nissan, Hyundai, & Genesis of Cool Springs
This episode is brought to you by:
Stream Companies – How much revenue is slipping through the cracks at your dealership? Stream Companies’ Missed Opportunities Report analyzes your strategy and highlights where you can drive more sales, faster. Request your free report today at https://www.streamcompanies.com/MissedOpportunitiesReport/
My Socials:
X ➤ https://www.twitter.com/GuyDealership
Instagram ➤ https://www.instagram.com/cardealershipguy/
TikTok ➤ https://www.tiktok.com/@guydealership
LinkedIn ➤ https://www.linkedin.com/company/cardealershipguy/
Threads ➤ https://www.threads.net/@cardealershipguy
Facebook ➤ https://www.facebook.com/profile.php?id=100077402857683
