Brian Kramer is the executive vice president of Cars Commerce, and general manager of AccuTrade with 28 years of automotive expertise. He leads digital innovation in car sales pioneering the first paperless and Web3 transactions. He is a recipient of Automotive News Top 40 Under 40 and advises Google's Dealer Board and Quantum5 while sharing valuable industry insights.

Inaccuracy in Appraisals 

Brian Kramer highlights a critical issue in the dealership realm: appraisal discrepancies. The average variance in appraisals is about $1,600. This arises from missed costs or incorrect estimations like underestimating tire prices or windshield costs. Consequently, such inaccuracies can lead to financial inefficiencies. To combat this, Brian emphasizes the importance of training and coaching to minimize errors. Accuracy should be prioritized over margin to ensure better financial management.

Coaching and Reverse Engineering

Brian Kramer underscores the value of proper coaching and reverse engineering in dealership operations. Effective coaching is crucial in helping employees understand the importance of accuracy in their tasks. Furthermore, reverse engineering can identify where errors occur, allowing for targeted coaching. Transitioning to the topic of explaining innovative ideas, Brian shares techniques to overcome communication barriers. He often uses analogies from everyday scenarios, like Starbucks or doctor's office experiences. These analogies help people grasp complex concepts about automotive retail issues more easily.

Conflict and Challenge in Discussions

Productive discussions often involve conflict and disagreement. Brian Kramer and Kaylee Feflio both agree that challenging existing ideas leads to better solutions. This approach fosters a culture of critical thinking and continuous improvement. Encouraging open and honest dialogue can uncover hidden inefficiencies and inspire innovative solutions.

OEM vs. Aftermarket Parts

Brian Kramer also touches upon the choice between Original Equipment Manufacturer (OEM) parts and aftermarket parts. He wishes he had known earlier about the high costs associated with OEM parts. Parts teams find it easier to stick to OEM parts as they are integrated into the system. In contrast, aftermarket parts can introduce friction in the process. However, using different tire brands for older vehicles can reduce costs. Transitioning to more cost-effective parts while meeting standards can be beneficial.

Importance of Asking Questions

Understanding customer needs and expectations is essential. Brian Kramer emphasizes the necessity of asking specific questions to achieve this understanding. This approach ensures that customers receive what they expect, leading to higher satisfaction rates.

Standardization and Pay Plans

Kaylee points out a significant issue: the lack of standard in structuring pay plans. Proper structuring of pay plans helps guide teamwork and predict dealership needs consistently. This consistency can lead to improved efficiency and better financial outcomes.

Parts Inventory Management

Effective inventory management is crucial for minimizing delays in service. Predicting inventory based on consistent vehicle sales patterns can be beneficial. Stocking the right parts proactively for commonly sold and serviced models helps streamline operations.

Recon Process and Challenges

Brian and Kaylee discuss various challenges in the recon process. Visual representations like date marking and status indication on vehicles can streamline this process. Additionally, daily checks and involved parts liaisons help track vehicle status from write-up to parts approval.

Prioritization in Dealerships

Breaking down recon delays by category can highlight specific bottlenecks. Proper distribution of work among technicians and prioritizing tasks appropriately can improve efficiency. This approach ensures that the workload is managed effectively.

Fixed Operations and Subletting Work

Fixed operations often have a different perception of sales department demands. Sometimes subletting work is necessary when the shop is overcapacity. However, this comes with risks, such as technicians and service advisors not getting paid. Subletting can be acceptable if there's a good relationship with the external shop and reliable work quality.

Trust and Transparency

Trust and transparency are essential for effective cooperation between departments. Successful examples include trusting relationships in different dealerships, enhancing overall efficiency. Transparency in operations helps to build trust and reduce internal friction.

Conclusion

The conversation between Kaylee Felio and Brian Kramer sheds light on numerous strategies for improving dealership operations. Emphasizing accuracy, proper coaching, and effective communication are key takeaways. By addressing inventory management and prioritizing tasks, dealerships can achieve greater efficiency. Trust and transparency remain foundational elements for fostering better collaboration. Finally, engaging in open dialogue and continuously challenging existing processes leads to innovative solutions.

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