Fixed Ops Magazine - 2022 Vol19 04 - 26

DISADVANTAGES OF SERVICING EVS NOW
* Cost. The cost of installing high voltage lines, updating
electrical panels, buying equipment and hiring/training
technicians
can be cost-prohibitive.
There will also be an increase in energy costs to
charge and maintain EVs in inventory. In addition,
you have to account for the drivers who swing-by for
a free charge because your dealership's EV charging
station is listed on the charging network.
* Training. Training technicians is not cheap and
there will be lost production at your dealership while
a tech pursues certification. Especially now when
techs are difficult to recruit, this is a tough decision
for dealers who are already low on techs and have
work booked out for weeks. Tech turnover is also notoriously
high. Investing in training only to see a tech
walk out the door months or a year later is a serious
complication.
* Delayed ROI. Studies show that both OEMs and
dealers will see a significant decrease in service and
parts profits as EVs naturally require fewer maintenance
visits than fossil-fueled vehicles. A dealership
that spends $100,000 to $200,000 on equipment
and training to support EV service may not breakeven
or see a ROI for years.
* Small Market. Data can be attained to show the
number of EVs registered in your primary market
and it
is strongly encouraged to carefully review
these numbers before investing. Currently, the EV
26
market in your area may be too small to warrant the
cost. In all likelihood your market will grow, but it
may be best to take a " wait and see " approach. This
is especially true for small shops, those in rural areas,
and/or those who are struggling to meet current service
demands.
ASSESS YOUR BUSINESS MODEL
Every dealership is different so assess your own business
model and goals before deciding to charge into the
EV service market. No one knows for sure where the EV
market is going, but it certainly is growing. Careful consideration
of your shop's role in this new market should
be a part of your long-term business planning.
Lawson Owen is the
founder and CEO of
Proactive Dealer Solutions,
a provider of effective
lead management
and conversion
services for the auto
and motorized vehicle
dealership sector. He is
a thought leader in lead
and process management and has been inspiring management
teams for over 20 years. Lawson has helped
implement more than 4,000 business development
centers throughout the US and Canada.
Fixed Ops Magazine - 2022 Vol19 04

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