S5E03 - Fixed Operations: How Video is Changing Dealer Performance
About this episode
Ted Ings, founder of Fixed Operations Roundtable, discusses how video technology is revolutionizing dealership fixed operations by increasing transparency and customer trust. Technicians now create front-facing videos explaining vehicle issues, leading to faster approvals and higher service department profits. The episode also highlights the growing importance of fixed operations amid rising vehicle ages and economic challenges, and explores improved collaboration between service and sales departments, including service drive vehicle acquisition. Ted shares insights on the critical role of service advisors in customer loyalty and the cautious integration of AI in diagnostics.
Ted Ings of Fixed Ops Roundtable shares fixed ops technology innovations, including technician video MPIs and AI, and explains how they improve transparency, approvals and strengthen overall service department performance.
Episode Breakdown
00:00 - Meet Ted from Fixed Ops Roundtable!
03:07 - What's the biggest Fixed Ops innovation?
05:29 - Measuring video engagement and ROI
06:04 - Implementing the technology
07:30 - How service drive acquisition is connecting departments
09:07 - Sales-to-Service handoff
10:20 - Service Advisors vs Sales: Impact on customer loyalty
11:03 - Will AI tools diagnose vehicles before techs?
12:13 - The technician shortage debate
For more information about our guest, visit their LinkedIn.
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transparency
"This is a game changer for dealerships and for the consumer because the consumer now is getting transparency from the dealership,"
Transparency means the dealer tells you everything clearly about the car and the price, so you know exactly what you are getting and paying for.
Transparency in car buying refers to clear and honest communication about pricing, fees, and vehicle condition between dealerships and consumers, helping buyers make informed decisions.
fixed operations
"but dealers are seeing a big, big gain in fixed operations in labor and parts."
Fixed operations are the parts of a car dealership that handle repairs, maintenance, and selling car parts, which help the dealer make money all year round.
Fixed operations refer to the parts of a dealership business related to service, maintenance, and parts sales, which provide steady revenue beyond new car sales.
Service Drive
"and the Fixed Operations Department, the Service Drive, it is such a huge opportunity for dealers into 2026 and beyond."
The Service Drive is where you take your car at a dealership when it needs fixing or maintenance.
The Service Drive is the area at a dealership where customers bring their vehicles for maintenance and repairs. It is a key part of fixed operations and customer retention.
Margin Compression
"all the margin compression on the front end of the transaction, what better opportunity is there to drive profitability,"
Margin Compression means dealers are making less money on each car they sell because prices and profits are getting smaller.
Margin Compression refers to the reduction in profit margins that dealerships experience on the sale of new vehicles due to increased competition, incentives, or other market pressures.
Fixed Ops
"It is a pleasure to have a Fixed Ops expert here to share with our listeners all things they should be thinking about to drive performance in their service and parts departments..."
Fixed Ops means the part of a car dealership that fixes cars and sells parts. They help keep cars running and make money for the dealership.
Fixed Operations, or Fixed Ops, refers to the service and parts departments of a car dealership that handle vehicle maintenance, repairs, and parts sales. These departments are crucial for dealership profitability and customer retention.
age of vehicles
"And the age of vehicles out there now being approaching 13 years, right? I think it's gone up to 10ths from last year."
Age of vehicles means how old most cars on the road are. Older cars usually need more repairs and parts.
The age of vehicles refers to the average number of years that vehicles on the road have been in use. An increasing average vehicle age can impact maintenance needs and parts demand.
multi-point inspection
"...The MPI, the multi-point inspection video from the technician, giving them an update..."
A multi-point inspection is when a mechanic looks at many important parts of your car to make sure everything is working well and to find any problems early.
A multi-point inspection (MPI) is a thorough check performed by technicians covering various key systems and components of a vehicle to assess its condition and identify any maintenance or repair needs.
transparent pricing
"And this is a game changer for dealerships and for the consumer because the consumer now is getting transparency from the dealership."
Transparent pricing means the car shop tells you exactly how much things will cost and what they are doing, so you know what to expect and can trust them.
Transparent pricing refers to dealerships openly sharing the costs and details of repairs or services with customers, which helps build trust and improves the buying or service experience.
DMS
"There are a lot of companies, including some of the big DMS companies who are all now very much involved"
DMS is a computer system that helps car dealerships keep track of cars, sales, and customers all in one place. It makes running the dealership easier and faster.
DMS stands for Dealer Management System, which is software used by car dealerships to manage inventory, sales, customer relationships, and service operations. It helps streamline dealership processes and improve efficiency.
service department
"and we hear a lot about the connection between the service department and the CIS department."
The service department is where cars get fixed and maintained at a dealership. They help keep your car running well.
The service department in a dealership handles vehicle maintenance and repairs, playing a key role in customer satisfaction and retention.
CIS department
"and we hear a lot about the connection between the service department and the CIS department."
The CIS department is a team at a car dealership that talks to customers and helps with selling cars.
CIS stands for Customer Interaction Specialist, a role or department focused on managing customer communications and sales opportunities in a dealership.
customer lifetime value
"Trying to build more customer retention, trying to increase customer lifetime value."
Customer lifetime value means how much money a dealership can make from one customer over many years.
Customer lifetime value is the total revenue a business expects from a single customer over the duration of their relationship.
customer retention
"Trying to build more customer retention, trying to increase customer lifetime value."
Customer retention means making sure people keep coming back to buy or service their cars at the same place.
Customer retention refers to strategies and efforts to keep customers returning to a business over time, which is critical for dealership profitability.
reconditioning
"Reconditioning is bigger than ever for dealers on the sales and on the fixed-up side."
Reconditioning means fixing up used cars so they look and work well before selling them.
Reconditioning refers to the process of repairing and preparing used vehicles to be sold again, often involving cleaning, mechanical repairs, and cosmetic fixes.
good-used cars
"There's a shortage of good-used cars."
These are used cars that still run well and don't have many problems, so people want to buy them instead of new cars.
Refers to used cars that are in good condition, often sought after by buyers looking for reliable vehicles at a lower price than new cars.
auction
"The best place to find them may not be at the auction."
An auction is like a sale where people bid money to buy cars, and the person who offers the most money wins the car.
A marketplace where vehicles are sold to the highest bidder, commonly used by dealers to acquire inventory, including used cars.
courtesy appraisal
"502.1s Courtesy appraisal. 503.0s Because we're paying top dollar today."
A courtesy appraisal is when a dealer looks at your car and tells you how much it might be worth, usually for free.
A courtesy appraisal is a free vehicle evaluation offered by dealerships or sellers to estimate the value of a car, often to facilitate a trade-in or sale.
service records
"516.4s And the dealership already has the service records. 518.7s The car can be put up on the lift."
Service records are papers or files that show what work has been done on a car to keep it running well.
Service records are documented histories of maintenance and repairs performed on a vehicle, which help verify its condition and upkeep.
put up on the lift
"518.7s The car can be put up on the lift. 520.3s We're at the auction, they can't take a look at that."
Putting a car up on the lift means using a big machine to raise the car so a mechanic can look underneath it.
Putting a car up on the lift means raising it using a hydraulic or mechanical lift to inspect or work on the underside of the vehicle.
sales to service handoff
"One that historically we've been very poor at as an industry and that's the sales to service handoff. Once a customer buys a vehicle, every dealership has a process that the customer will be introduced to the service department. Do they do it?"
After you buy a car, the dealership usually connects you with the people who fix and maintain cars. This helps you know where to go when your car needs service.
The sales to service handoff is the process where a dealership introduces a customer who just purchased a vehicle to the service department. This handoff aims to build a relationship between the customer and the service team to encourage future maintenance and repairs at the dealership.
technician shortage
""Forget it. There's no technician shortage. Really? No. There's no shortage of technicians. You're sagging against what we're hearing from a lot of people in the industry. There's no shortage of technicians. There's a shortage of technician development programs.""
A 'technician shortage' means there aren't enough trained car mechanics to fix cars quickly. This can make it harder to get your car serviced on time.
The term 'technician shortage' refers to a lack of qualified automotive technicians available to work in the industry, which can impact service quality and wait times at repair shops and dealerships.
technician development programs
""There's no shortage of technicians. There's a shortage of technician development programs. Awesome.""
Technician development programs are classes and training that help car mechanics learn new skills and get better at fixing cars.
Technician development programs are training and educational initiatives designed to prepare and improve the skills of automotive technicians, helping to address workforce quality and availability.
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