Insights

As Joe Kennedy said, “When times are tough, the tough get going.” And in tough - and uncertain - times, service profitability and cash flow become mission-critical for dealerships. Unlike system integrators, who have built businesses around support, many dealerships struggle to turn both support and service into a high-margin, well-oiled machine.

The problem? Profit vampires.

Profit vampires are the small, everyday habits that quietly drain your margins—often things that have been done the same way for years. By identifying these, you can quickly determine which ones are easiest to kill and which will have the biggest impact on your bottom line.

The process is simple:

1. Find the profit vampires. What’s chewing away at your service revenue? Discounting too easily? Poorly structured service contracts? Inefficient scheduling?

2. Quantify the impact. Which ones cost the most, and which are quick wins?

3. Prioritize and attack. Tackle one at a time until your profitability reaches the level you want—or until every profit vampire is put to bed.

The biggest challenge? Resistance from inside your own business. Change is uncomfortable, and employees often lack the skills to diplomatically and persuasively handle discount requests, customer complaints, and pushback. Building these skills into your employee training can make all the difference in keeping margins strong.

Now’s the time to get tough. Kill the profit vampires and take control of your service profitability.