“We 3x'd Fixed Revenue!” – How Dealers Are Leaning Into Service for the Next Cycle | Nathan Shaver, Managing Partner at Shaver Auto Group
About this episode
Nathan Shaver, managing partner at Shaver Auto Group, shares insights on how his dealership successfully pivoted to focus on Fixed Operations, tripling service gross in just 18 months. He discusses the challenges faced by dealers today, including margin pressures and shifting consumer behavior, and emphasizes the importance of reallocating resources towards service. The conversation highlights practical strategies for improving service department performance, customer retention, and adapting to market changes. Nathan also touches on his background in the automotive industry and his innovative approach to dealership operations.
margin pressure
"Dealers are facing margin pressure, shifting consumer behavior, and a market where new car profits can disappear fast."
Margin pressure means that car dealers are making less money on each sale because of higher costs or more competition. It makes it harder for them to stay profitable.
Margin pressure refers to the decreasing profit margins that dealers experience due to rising costs or increased competition. This can make it challenging for dealerships to maintain profitability.
consumer behavior
"Dealers are facing margin pressure, shifting consumer behavior, and a market where new car profits can disappear fast."
Consumer behavior is how people decide what cars to buy and what they want from dealerships. It's important for dealers to know this so they can sell more cars.
Consumer behavior refers to the trends and preferences of buyers in the automotive market. Understanding these behaviors is essential for dealerships to adapt their sales strategies and meet customer needs.
Fixed Operations
"Nathan breaks down how his group pivoted to Fixed Operations, tripled service gross in just 18 months, and used technology and discipline to drive sustainable profitability."
Fixed Operations is about the services a dealership offers after selling a car, like repairs and maintenance. It's important because it helps the dealership make money even when they aren't selling many new cars.
Fixed Operations refers to the parts and service departments of a dealership, which provide ongoing revenue through maintenance and repairs. This area is crucial for dealerships as it helps stabilize profits, especially when new car sales fluctuate.
sustainable profitability
"If you're trying to balance sales, service, and long-term retention, this conversation matters."
Sustainable profitability means making a steady profit over a long time, not just making money quickly. It's important for businesses to stay successful in the long run.
Sustainable profitability refers to the ability of a business to maintain consistent profits over time without relying on short-term strategies. This is crucial for long-term success in the automotive industry.
Dodge Ram
"...ing my teeth at Huntington Beach, Chrysler Jeep, Dodge Ram. And more recently, my family partnered with Bob..."
The Dodge Ram is a big truck that people use for carrying heavy loads or towing things like trailers. It's known for being strong and comfortable, which is why many families and workers like to drive it.
The Dodge Ram is a full-size pickup truck known for its powerful performance, rugged design, and versatility. It has been a significant player in the truck market since its introduction in the 1980s, often praised for its towing capacity and comfortable interior, making it a popular choice for both work and leisure.
Stellantis
"...but I've been with Stellantis for 18 years. I believe Jeep, Ram, Dodge, there's a really strong branding behind the products."
Stellantis is a big car company that makes many different brands of cars, like Jeep and Dodge. It was created when two companies merged together.
Stellantis is a multinational automotive manufacturing corporation formed from the merger of Fiat Chrysler Automobiles and PSA Group. It encompasses several well-known brands, including Jeep, Ram, and Dodge.
Jeep
"I believe Jeep, Ram, Dodge, there's a really strong branding behind the products."
Jeep is a brand of cars that are built for off-roading and adventure. They are known for their tough, durable vehicles.
Jeep is an American automobile brand known for its rugged vehicles, particularly SUVs and off-road vehicles. It has a strong heritage and is associated with adventure and outdoor activities.
traditional retail car model
"...evolve away from the traditional retail car model. I didn't know what that meant..."
The traditional retail car model is how cars have usually been sold, where you go to a dealership to buy one. This is changing with more online options and direct sales from manufacturers.
The traditional retail car model refers to the conventional way of selling cars through dealerships, where customers visit a physical location to browse and purchase vehicles. This model is evolving with the rise of online sales and direct-to-consumer approaches.
pre-owned car
"...to measure whether or not a pre-owned car had been smoked in at levels that are dangerous..."
A pre-owned car is just another way of saying a used car, meaning it has been owned by someone else before. They usually cost less than new cars.
A pre-owned car, also known as a used car, is a vehicle that has had one or more previous owners. These cars are typically sold at a lower price than new vehicles, but their condition and history can vary widely.
No Smoke
"...that project you're referring to in particular is a business called No Smoke. I invented a way to measure..."
No Smoke is a company that checks if used cars have been smoked in, which can make them less valuable and harder to sell. They have a special way to measure this.
No Smoke is a business that focuses on assessing whether pre-owned cars have been smoked in, using a method developed to measure smoke levels that could affect future occupants' health. This innovation addresses a common concern in the used car market.
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