Ford Auto World
SULLIVAN'S AUTO WORLD
Walter Sullivan the creator of Sullivan Ford Auto World pass away and his oldest daughter
Carol Sullivan-Diaz, a health care administrator by profession took over the business and found out that the family business is in economic trouble founded on existing financial performance and market outlook. In addition, CSAT results from car buyers show that the company has problems with their service quality. Sullivan Ford Auto World Facts:
- Average sales of 1,100 cars per year
- Announced Revenues:
$26.6 M – car sales (from last year’s $30.5 M)
$ 2.8 M – service & parts sales (from last year’s $ 3.6 M)
- Margins on car sales are low (5.5% of sales revenue & 25% for service).
- Auto World’s financial situation had been deteriorating for the past 18 months and running at a loss for the past 6 months.
- Past 12 months’ financials show that gross sales figures are not enough to cover fixed expenses
- Margins had been squeezed by promotions and other marketing efforts. Market:
- Because of increasing fuel prices, industry and in-house forecasts for future sales were discouraging.
- Trend is shifting towards vehicle service transactions.
30-day Purchasers CSAT Survey Results
- Auto world achieved better than average ratings
- 90% of customers said that Auto world informed them of what to do if they needed service
- Less than 33% of respondents said that they have been introduced to someone in the service department (which is a sales protocol)
90-day Purchasers CSAT Survey Results
- Overall satisfaction with Auto World Service Department was consistently low placing it in the bottom 25% of all Ford dealers
- More than 50% of respondents said they would rather use another Ford dealer for future service
- Major Concerns:
Promptness of writing up orders
Convenience of service hours
Appearance of the service department
Interpersonal variables such as attitude of personnel, politeness,
Walter Sullivan the creator of Sullivan Ford Auto World pass away and his oldest daughter
Carol Sullivan-Diaz, a health care administrator by profession took over the business and found out that the family business is in economic trouble founded on existing financial performance and market outlook. In addition, CSAT results from car buyers show that the company has problems with their service quality. Sullivan Ford Auto World Facts:
- Average sales of 1,100 cars per year
- Announced Revenues:
$26.6 M – car sales (from last year’s $30.5 M)
$ 2.8 M – service & parts sales (from last year’s $ 3.6 M)
- Margins on car sales are low (5.5% of sales revenue & 25% for service).
- Auto World’s financial situation had been deteriorating for the past 18 months and running at a loss for the past 6 months.
- Past 12 months’ financials show that gross sales figures are not enough to cover fixed expenses
- Margins had been squeezed by promotions and other marketing efforts. Market:
- Because of increasing fuel prices, industry and in-house forecasts for future sales were discouraging.
- Trend is shifting towards vehicle service transactions.
30-day Purchasers CSAT Survey Results
- Auto world achieved better than average ratings
- 90% of customers said that Auto world informed them of what to do if they needed service
- Less than 33% of respondents said that they have been introduced to someone in the service department (which is a sales protocol)
90-day Purchasers CSAT Survey Results
- Overall satisfaction with Auto World Service Department was consistently low placing it in the bottom 25% of all Ford dealers
- More than 50% of respondents said they would rather use another Ford dealer for future service
- Major Concerns:
Promptness of writing up orders
Convenience of service hours
Appearance of the service department
Interpersonal variables such as attitude of personnel, politeness,