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- The POWER of the T/O
The POWER of the T/O
Unlock Hidden Revenue in Your Service Department with Strategic Follow-Ups
New and used car sales departments everywhere live and die by the "T/O" – or "Turn Over" – a critical sales strategy designed to present prospects with a fresh perspective when the buying process stalls. Your leadership team (General Manager, General Sales Manager, New Car Manager, and Used Car Manager) would never dream of letting a customer walk away without a manager intervention. That's how crucial the T/O process is.
Imagine the number of vehicles sold simply because someone took the time to provide a different viewpoint. Customers often reach a decision-making roadblock due to personality conflicts, unaddressed concerns, or minor hesitations. The T/O process breaks through these barriers, transforming potential walk-aways into successful sales.
But here's the million-dollar question: What about Service Department sales? Can we rehash and close more sales by simply asking the customer one more time? Absolutely! I've introduced this strategy to numerous dealer clients, and those who've executed it have seen phenomenal results.
Steps to Implementing an Effective Service Department T/O
1. Create a Comprehensive T/O Log
Track your progress meticulously. Your log should include:
Advisor name
Repair order (RO) number
Type of repair or maintenance
Parts amount
Labor amount
Closed and unclosed opportunities
By documenting these details, you'll start noticing trends in what's being sold and by whom. One store I work with generated $49,000 in parts and labor in just ONE MONTH using this process!
2. Establish a T/O Tracking System
Develop a dedicated "T/O basket" where repair orders can be placed when you're not immediately available. This system allows you to:
Call back customers even a day after their visit
Create a method to be instantly notified about waiting customers
Ensure no potential sale falls through the cracks
3. Master the Soft Sell Approach
This is your opportunity to build genuine rapport. Start by:
Asking about their service experience
Reviewing the initial advisor's approach
Highlighting amenities and special financing options
Sometimes, these overlooked details can be the key to converting a hesitant customer.
4. Provide Transparent, Prioritized Recommendations
Your communication strategy is critical:
Clearly explain what services can wait
Emphasize what requires immediate attention
Offer a nuanced approach beyond "all or nothing"
By being candidly informative, you build trust and increase the likelihood of additional services being accepted.
Training and Continuous Improvement
The T/O process is more than just a sales technique – it's a comprehensive training opportunity. You'll gain invaluable insights into:
Advisor estimate preparation
Customer pitch effectiveness
Multipoint inspection (MPI) execution
Recommended service legitimacy
Adherence to departmental policies
Use these insights to:
Praise exceptional performance
Provide targeted coaching
Implement necessary discipline
Final Thoughts
Don't just read about this strategy – implement it. Track your results, refine your approach, and watch your service department's revenue grow.
I challenge you: Try this out in your department and share your success stories!
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