All too often today, business decisions are base on only the tangible, track-able and concrete means of the ubiquitous spreadsheet. Sometimes spreadsheets lie. In most businesses, there are certain functions or aspects that can make no dollars and cents
sense, that are not only necessary but are, in-fact, essential to the sustainability of the company. These necessary functions make other, more profitable, departments work or aid in the marketing efforts of the company as a whole. Take for example Ruff’s
RV Center in Euclid, Ohio. Ruff’s has been around for over 25 years and has weathered; oil embargoes, double-digit interest rates, the advent of internet sales and a host of other things that put several other competitors out of business. How does this small,
family owned and operated RV dealership stay successful? “That’s easy”, says Rick Stohlman General Manager, “It’s still about the Service Department”. “My Father and Uncle started this business when they closed their service station (that’s what we used to
call gas stations, back in the days of windows being cleaned and oil being checked) when ARCO pulled out of Ohio in 1980. They had built a great reputation for auto repairs in the area, and wanted to still do that. Because of local zoning issues with the building
they purchased, they needed to be a motor vehicle dealer of some kind. The property had been used as a travel trailer dealership in the past and they chose to continue with that in the front while they concentrated on auto repair and service in the back.”
Now fast forward 30 years, and that little mom & pop shop is now a thriving, profitable and growing RV dealership in the major market of Cleveland, Ohio. Their motto or tagline is “The dealership that service built”. While it is certainly the front end (vehicle
sales and accessories store) of the operation that turns the profits that fuel growth, it is the service department that pushes the traffic. The service department, which in a good year is a break-even profit center, not only drives the traffic into sales,
but also is the “brand” of Ruff’s RV. As large national chain dealerships gobble up other formerly family owned dealerships in the market they use big advertising budgets hawking low sales prices. In most of these large chain stores, their service departments
concentrate on warranty work and accessories installation, and have meager offerings for maintenance, engine and chassis work. At Ruff’s, Rick and his team concentrate on customer relationships formed through the award winning service department. “Our customer
base, both new and old, knows that we are going to be here to keep their investment running,” says Stohlman. What Rick does not share is that there gross profit is typically higher on unit sales because of their relationship based sales approach. “The sales
department has the fewest number of people in our whole operation”. “My service technicians are responsible for as many vehicle sales as anyone else here. Think about it, if you were in a market for making a large purchase wouldn’t it be great to get advice
from the guy who is going to help you maintain it. That’s how my dad and uncle started things, and I’m not going to re-invent the wheel now”.