Sonic bets big on iPad
Skip to main content
Sister Publication Links
  • Automotive News Canada
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
AN-LOGO-BLUE
Subscribe
  • Subscribe
  • Account
  • login
  • HOME
  • NEWS
    • Dealers
    • Automakers & Suppliers
    • News by Brand
    • Cars & Concepts
    • Coronavirus Coverage
    • China
    • Shift
    • Mobility Report
    • Special Reports
    • Digital Edition Archive
    • This Week's Issue
    • When the chips are down: Big Tech’s needs put dent in car output
      GHSP
      Mich. supplier showcases technologies to fight distraction, virus
      Shoppers to choose how they use digital retail
      Ford's ‘Finish Strong' ad sets right tone for '21
    • Hyundai Motor Group sets first overseas fuel cell plant in China
      Inside Huawei's push to develop smart roads that talk to driverless cars
      Vehicle production line at GAC-Honda, Honda's joint venture with GAC Motor Co.
      Honda books sales growth in 2020; Nissan slips
      Mercedes-Benz China
      Mercedes, Audi, BMW post record high deliveries for 2020
    • Detroit Aerial Panorama during sunset
      Developing future workers to fuel growth in mobility
      Getting around in Las Vegas often involves long waits for a crowded monorail ride, below, or taking escalators up and down to cross elevated pedestrian walkways along the Strip.
      Las Vegas offers best and worst in transportation challenges
      Where is transportation headed?
      In pandemic environment, RV industry ‘roaring back'
    • Why Waymo boss says ‘self-driving' needs to go
      Revel
      The moped-sharing startup with thousands of EVs and hundreds of collisions
      ELMS_Headquarters_i.jpg
      EV maker Electric Last Mile to move HQ in suburban Detroit
      Uber logo on a car window
      Uber appeals $59M Calif. fine over sexual assault data request
    • Elon Musk interview
      Tesla’s Model Y, on sale since March, is a showcase of EV technologies competitors will benchmark.
      Technologies of Electrification
      Cadillac’s Lyriq EV will be unveiled Aug. 6.
      Future Product Pipeline
      A CALL TO ACTION
    • When the chips are down: Big Tech’s needs put dent in car output
      In 14-brand Stellantis, who will make the cut?
      Why Waymo boss says ‘self-driving' needs to go
      Hot topics at virtual CES: AVs, air taxis and drones
    • Access F&I
    • Fixed Ops Journal
    • Marketing
    • Used Cars
    • Retail Technology
    • Sales
    • Best Practices
    • Dealership Buy/Sell
    • NADA
    • NADA Show
    • Automakers
    • Manufacturing
    • Suppliers
    • Regulations & Safety
    • Executives
    • Talk From The Top
    • Leading Women Network
    • Guide to Economic Development
    • PACE Awards
    • Management Briefing Seminars
    • World Congress
    • Aston Martin
    • BMW
      • Mini
      • Rolls-Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Fiat Chrysler
      • Alfa Romeo
      • Chrysler
      • Dodge
      • Ferrari
      • Fiat
      • Jeep
      • Maserati
      • Ram
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
      • Holden
    • Honda
      • Acura
    • Hyundai
      • Genesis
      • Kia
    • Mazda
    • McLaren
    • Mitsubishi
    • Nissan
      • Infiniti
    • PSA
      • Citroen
      • Opel
      • Peugeot
    • Renault
    • Subaru
    • Suzuki
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
      • Seat
      • Skoda
    • Volvo
    • (Discontinued Brands)
    • Virtual reveals (Sponsored)
      • GENESIS: 2021 GV80
      • KIA: 2021 K5
      • LEXUS: 2021 IS
      • NISSAN: 2021 Rogue
      • TOYOTA: 2021 Venza and 2021 Sienna
    • Auto Shows
      • Detroit Auto Show
      • New York Auto Show
      • Los Angeles Auto Show
      • Chicago Auto Show
      • Geneva Auto Show
      • Paris Auto Show
      • Frankfurt Auto Show
      • Toronto Auto Show
      • Tokyo Auto Show
      • Shanghai Auto Show
      • Beijing Auto Show
    • Future Product Pipeline
    • Photo Galleries
    • Car Cutaways
    • Design
  • OPINION
    • Blogs
    • Cartoons
    • Keith Crain
    • Automotive Views with Jason Stein
    • Columnists
    • China Commentary
    • Editorials
    • Letters to the Editor
    • Send us a Letter
    • Nikon turns lens on auto factory, build quality
      Bosch_information_domain_computer web.jpg
      Bosch, Continental battle to supply the brain of the connected car
      A victory lap for Detroit car design
      Stellantis_logo_blue_background web.jpg
      In 'merger of equals,' PSA is buying FCA, Stellantis prospectus says
    • view gallery
      1 photos
      The Bridge
      view gallery
      12 photos
      Leo Michael's best of 2020
      view gallery
      1 photos
      UAW Deal
      view gallery
      1 photos
      Exit Voluntarily
    • Shifting gears away from the stick shift
      SEMA still a wonderful circus
      Penske still has plenty of races to win
      Ford's turn in the hot seat
    • January 12, 2021 | Automotive industry shined in 2020
      December 8, 2020 | In a year that lacked luster, All-Stars showed how to shine
      November 24, 2020 | Female talent in automotive is expanding
      November 17, 2020 | Automakers are getting creative with vehicle reveals
    • Dave Versical
      Female CMO is new norm
      Daron Gifford
      Biden era holds big promise for future of electric vehicles
      A show we love to hate ... but hate to miss
      Magna car output web.jpg
      Who will build the Apple car?
    • Is sales recovery nearing an end?
      Beijing's uphill battle to boost EV sales
      Nasdaq-like Star Board poised to become key finance platform
      Virus outbreak upends ranks of EV startups
    • Ford's ‘Finish Strong' ad sets right tone for '21
      UAW settlement brings justice, voting rights
      Dealers should be treated as partners in EVs
      Bergstrom Chevrolet-Buick-GMC-Cadillac of Oshkosh donates a new truck to Habitat for Humanity.
      Commitment to safety begets lasting loyalty
    • Is banning ICEs in our best interests?
      GM should share EV risk with dealers
      Ready to buy Mirai, but where to fuel?
      From Toyota store to hydrogen highway
  • DATA CENTER
  • VIDEO
    • AutoNews Now
    • First Shift
    • Special Video Reports
    • Weekend Drive
    • AutoNews Now: Stellantis may reconsider Peugeot's U.S. return
      AutoNews Now: Toyota to pay $180M in U.S. emissions settlement
      AutoNews Now: NTSB to automakers: Improve EV emergency response guides
      AutoNews Now: Cadillac's electric Celestiq teased at CES
    • First Shift: GM said to be considering electric Corvette crossover
      First Shift: Subaru to slow output due to microchip shortage
      First Shift: Trump administration delays increased fuel-efficiency fines
      First Shift: Ford, NADA rethink political donations in wake of Capitol siege
    • N.J. dealer helps position peers for ‘electric revolution’
      DCH Millburn Audi
      'Finding the diamond in the rough': How 2020's No. 1 dealership retains talent
      Don Johnson Motors
      'Distinctive culture' cuts turnover, carves career paths at Wis. dealership group
      Why 2020 could be a record year for buy-sells
    • Why the pickup is the auto industry's 'battleground'
      Carlos Ghosn's quest to restore his reputation
      Why Ford must execute to avoid 'deep trouble'
      Why Honda is 'locked and loaded' for 2020
  • EVENTS & AWARDS
    • Events
    • Awards
    • Congress Conversations
    • Retail Forum: NADA
    • Canada Congress
    • Europe Congress Conversations
    • Leading Women Conference
    • Fixed Ops Journal Forum
    • ANE Shift
    • Shift: Mobility at a Crossroads
    • Shift: The Future of Mobility (CES)
    • 100 Leading Women
    • 40 Under 40 Retail
    • All-Stars
    • Best Dealerships To Work For
    • PACE Program
    • Rising Stars
    • Europe Rising Stars
  • JOBS
  • AN Solutions
  • +MORE
    • Leading Women Network
    • Podcasts
    • Webinars
    • In the Driver's Seat
    • Publishing Partners
    • Classifieds
    • Companies on the Move
    • People on the Move
    • Newsletters
    • Contact Us
    • Media Kit
    • RSS Feeds
    • Shift: A Podcast About Mobility
    • Special Reports Podcasts
    • Daily Drive Podcasts
    • AAM
    • Gentex
    • Reputation.com
    • Ricardo
    • Ricardo
    • Allstate: Want more from your F&I?
    • Ally: Navigating the future of automotive retailing
    • Amazon Web Services: Any place, any time, any channel
    • Amazon Web Services: The power of the cloud
    • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
    • Epic Games: Transforming the auto industry with digital assets
    • FTI Consulting: Crisis as a catalyst for change
    • Google: 5 trends shaping the auto industry's approach to a new normal
    • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
    • IHS Markit: Autonomous vehicles: Automotive and transportation disruption
    • IHS Markit: COVID-19: The future mobility delusion
    • IHS Markit: The battery electric vehicle (BEV)
    • Level5: 2020 Automotive E-Commerce Report
    • Naked Lime: Bring social reputation together as part of big-picture marketing
    • Wells Fargo Auto: Switching gears from LIBOR to SOFR
    • Ally: Do It Right
    • DealerSocket
    • Deloitte: Cyber everywhere: Preparing for automotive safety in the face of cyber threats
    • Facebook: The road to a zero-friction future
    • Guide To Economic Development
    • PayPal Credit: How consumer financing helps drive sales for online auto parts retailers
MENU
Breadcrumb
  1. Home
  2. Dealers
April 02, 2012 01:00 AM

Sonic bets big on iPad

From service to sales, tablet use spreads

Amy Wilson
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    PHOTO COURTESY OF APPLE INC.
    At Mountain States Toyota, service tech Ryan Baessler, left, and service director Jeff Jenkin work on a vehicle using the iPad.

    With iPads in hand, service advisers at 34 Sonic Automotive Inc. stores are greeting customers -- and watching repair orders grow as they walk around the vehicle.

    At the stores that use service iPads, customer-pay business is up. For example, grosses per repair order have risen 11 percent on average at Toyota dealerships and 8 percent at Lexus stores. Apple even acknowledged Sonic's accomplishments in a rare shoutout during the iPad maker's earning conference call last October.

    By next April, service department iPads will be in all Sonic stores. And the retailer's big Apple initiative doesn't end there. Sales reps already are getting iPads, too.

    "We've made a huge, huge, huge, multiple-tens-of-millions-of-dollars commitment to go this way, and it's just going to keep getting bigger," Sonic President Scott Smith said in an interview. "We're rolling out the iPhones and iPads to technicians, to service writers, to salespeople, to F&I, to porters -- and it's not cheap."

    Sonic, the nation's third-largest retailer, is spending $57 million on technology this year. It's placing a big bet that arming its customer-facing employees with Apple devices will increase their productivity, convince customers to spend more and improve loyalty. Sonic is bucking the trend of other large public dealership groups by staying out of the acquisitions market now in order to invest internally.

    Other big retailers are heading down the same path with tablets, but Sonic's efforts are on the leading edge.

    AutoNation leaders have said they will arm their sales and service staff with tablet computers this year and next. Asbury chief Craig Monaghan envisions a day when tablets replace PCs in most areas of the dealership. Asbury has used iPads in some store pilots. Group 1 Automotive is using tablets in service departments at some stores. Lithia and Penske are running service department pilots.

    Selling tires, maintenance

    Sonic's budget for Apple products is big. But executives expect the payoff to be even bigger.

    "Technology isn't a cost center," said Heath Byrd, Sonic's chief information officer. "It makes you a ton of money."

    He said $24 million will be spent on iPads, iPhones and related software this year.

    Evidence of the expected payoff is mounting in service departments. Securing just one or two high-dollar repair jobs the company otherwise wouldn't have gotten will cover the cost of an iPad, he said.

    Sonic piloted the service iPads at a Denver Toyota store last summer and, after good results, began a full-scale rollout last fall. The company started with Toyota and Lexus stores and moved to Honda and Acura stores. Cadillac and Chevrolet stores are next.

    While the average increase in gross revenue per repair order is 11 percent at Toyota dealerships and 8 percent at Lexus stores -- the only results Sonic will share -- Sonic says some dealerships -- especially in markets with young, tech-savvy shoppers -- have reached as high as 20 percent. Sonic estimates that the iPads are responsible for at least 5 percentage points of the increase, a rate that if achieved at dealerships companywide would equate to a $7 million incremental jump in Sonic's gross revenue, Byrd said.

    The gain is coming in areas ranging from tire sales and vehicle detailing packages to maintenance and minor collision repair, said David Padgett, Sonic's vice president of fixed operations. Sonic has had to hire more porters and entry-level service techs at some stores to handle additional work.

    The maintenance numbers are startling. Stores with service iPads are now averaging a 41 percent closing ratio on adding a maintenance item to a repair order. That's up from under 10 percent before the iPads, Padgett said.

    Service adviser Jared Russell of Toyota of Fort Worth, a Sonic Automotive dealership in Texas, uses a tablet to present a service menu to a customer.

    No more interruptions

    The key? The iPads have unlocked a dealership's handcuffs to its dealership management system, he said. Service advisers no longer have to constantly interrupt a vehicle walk-around to run over to the service desk and enter data into a computer, a practice that made customers impatient.

    With the tablets integrated with the DMS, service advisers now can handle everything at the car with the customer. The software does not allow them to skip evaluation steps on a vehicle walk-around. Customers even help input some information and are more likely to find out a wear item is near the end of its life or have a bumper scratch pointed out to them.

    "If you give them just a little bit of time and are able to walk around the vehicle with the customer and let them decide on the condition of their fluid or the tires, the customer is more apt to buy from you," Padgett said.

    Customers can use the tablets to price-check competitors, and service advisers are empowered to match the lowest price, he said.

    If an unexpected problem -- say, a radiator about to fail -- is discovered after the vehicle is up on a lift, technicians can take pictures and send them to the customer. Sonic offers a discount on the additional repair, and the customer is more likely to approve the work because the picture enables him to verify the problem, Smith said.

    If a part for a minor fix, such as replacing broken interior trim, isn't immediately available, Sonic will send a mobile repair unit to the customer's home or office once the part arrives, Padgett said. That wasn't possible before. Customers love the convenience, he said. It can save Sonic money, too, because those parts are nonrefundable after 30 days and sometimes the customer never returns for the repair.

    Apple connection

    Sonic's iPad rollout comes after almost three years of planning and close work with Apple. Sonic executives were at Apple's Cupertino, Calif., headquarters when the original iPad was announced in early 2010. "We knew it would be a game-changer," Byrd said.

    Apple, which launched the iPad primarily as a consumer device, realized the iPad's potential for business after its early work with Sonic and other companies, Byrd said. Apple's growing enterprise support group helps Sonic and those other early corporate users.

    Apple's vendor partner, Lextech Global Services, a mobile application developer, has about half a dozen software engineers dedicated exclusively to Sonic, though the number rises during heavy distribution periods of Apple devices at dealerships, Byrd said. Sonic worked with Dealer Logix to build the service department application.

    Sonic won't talk publicly about how the iPad will be used in other dealership departments.

    Sales representatives started getting the devices last August, and 49 stores now have them in their showrooms. Rollout to sales departments will be complete next February, Byrd said. Eventually, about 3,500 employees will use an iPad, iPhone or both, he said.

    Sonic's leader anticipates that the technology will revolutionize its dealerships.

    Said Smith: "I'm so excited I can hardly stand it. We've been working on it for so long, and we're going to finally get an opportunity to see everything work. It's really, really, really cool."

    RECOMMENDED FOR YOU
    LMP trims size of N.Y. dealership group acquisition
    Related Articles
    Service lanes put touch-pad tablets to the test
    Letter
    to the
    Editor

     

     

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    LMP trims size of N.Y. dealership group acquisition
    Ga. car salesman loses job days after Capitol invasion
    CarMax ups return policy to 30 days
    CarMax ups return policy to 30 days
    Sponsored Content: PODCAST: Emerging areas of fraud risk and vulnerability
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    See more newsletter options at autonews.com/newsletters.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Digital Edition
    Automotive News 1-11-2021
    THIS WEEK'S EDITION
    See our archive
    Fixed Ops Journal
    Fixed Ops Journal 12-14-20
    Read the issue
    See our archive
    RETAIL TECHNOLOGY NEWSLETTER: Sign up for our Tuesday afternoon newsletter that breaks down the latest developments in how technology is changing the auto sales landscape.
    AUTOMOTIVE NEWS TV WITH TOM WOROBEC: Sign up for our afternoon newscast and catch up on the top news of the day with our brief video roundup.
    Get Free Newsletters

    Sign up and get the best of Automotive News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    Subscribe Now
    Connect With Us
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter

    Our mission

    The Automotive News mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in North America.

    AN-LOGO-BLUE
    Contact Us

    1155 Gratiot Avenue
    Detroit, Michigan
    48207-2997

    (877) 812-1584

    Email us

    Automotive News
    ISSN 0005-1551 (print)
    ISSN 1557-7686 (online)

    Fixed Ops Journal
    ISSN 2576-1064 (print)
    ISSN 2576-1072 (online)

    Resources
    • About us
    • Contact Us
    • Media Kit
    • Subscribe
    • Manage your account
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • NEWS
      • Dealers
        • Access F&I
        • Fixed Ops Journal
        • Marketing
        • Used Cars
        • Retail Technology
        • Sales
        • Best Practices
        • Dealership Buy/Sell
        • NADA
        • NADA Show
      • Automakers & Suppliers
        • Automakers
        • Manufacturing
        • Suppliers
        • Regulations & Safety
        • Executives
        • Talk From The Top
        • Leading Women Network
        • Guide to Economic Development
        • PACE Awards
        • Management Briefing Seminars
        • World Congress
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls-Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Fiat Chrysler
          • Alfa Romeo
          • Chrysler
          • Dodge
          • Ferrari
          • Fiat
          • Jeep
          • Maserati
          • Ram
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
          • Holden
        • Honda
          • Acura
        • Hyundai
          • Genesis
          • Kia
        • Mazda
        • McLaren
        • Mitsubishi
        • Nissan
          • Infiniti
        • PSA
          • Citroen
          • Opel
          • Peugeot
        • Renault
        • Subaru
        • Suzuki
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
          • Seat
          • Skoda
        • Volvo
        • (Discontinued Brands)
      • Cars & Concepts
        • Virtual reveals (Sponsored)
          • GENESIS: 2021 GV80
          • KIA: 2021 K5
          • LEXUS: 2021 IS
          • NISSAN: 2021 Rogue
          • TOYOTA: 2021 Venza and 2021 Sienna
        • Auto Shows
          • Detroit Auto Show
          • New York Auto Show
          • Los Angeles Auto Show
          • Chicago Auto Show
          • Geneva Auto Show
          • Paris Auto Show
          • Frankfurt Auto Show
          • Toronto Auto Show
          • Tokyo Auto Show
          • Shanghai Auto Show
          • Beijing Auto Show
        • Future Product Pipeline
        • Photo Galleries
        • Car Cutaways
        • Design
      • Coronavirus Coverage
      • China
      • Shift
      • Mobility Report
      • Special Reports
      • Digital Edition Archive
      • This Week's Issue
    • OPINION
      • Blogs
      • Cartoons
      • Keith Crain
      • Automotive Views with Jason Stein
      • Columnists
      • China Commentary
      • Editorials
      • Letters to the Editor
      • Send us a Letter
    • DATA CENTER
    • VIDEO
      • AutoNews Now
      • First Shift
      • Special Video Reports
      • Weekend Drive
    • EVENTS & AWARDS
      • Events
        • Congress Conversations
        • Retail Forum: NADA
        • Canada Congress
        • Europe Congress Conversations
        • Leading Women Conference
        • Fixed Ops Journal Forum
        • ANE Shift
        • Shift: Mobility at a Crossroads
        • Shift: The Future of Mobility (CES)
      • Awards
        • 100 Leading Women
        • 40 Under 40 Retail
        • All-Stars
        • Best Dealerships To Work For
        • PACE Program
        • Rising Stars
        • Europe Rising Stars
    • JOBS
    • AN Solutions
    • +MORE
      • Leading Women Network
      • Podcasts
        • Shift: A Podcast About Mobility
        • Special Reports Podcasts
        • Daily Drive Podcasts
      • Webinars
      • In the Driver's Seat
        • AAM
        • Gentex
        • Reputation.com
        • Ricardo
        • Ricardo
      • Publishing Partners
        • Allstate: Want more from your F&I?
        • Ally: Navigating the future of automotive retailing
        • Amazon Web Services: Any place, any time, any channel
        • Amazon Web Services: The power of the cloud
        • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
        • Epic Games: Transforming the auto industry with digital assets
        • FTI Consulting: Crisis as a catalyst for change
        • Google: 5 trends shaping the auto industry's approach to a new normal
        • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
        • IHS Markit: Autonomous vehicles: Automotive and transportation disruption
        • IHS Markit: COVID-19: The future mobility delusion
        • IHS Markit: The battery electric vehicle (BEV)
        • Level5: 2020 Automotive E-Commerce Report
        • Naked Lime: Bring social reputation together as part of big-picture marketing
        • Wells Fargo Auto: Switching gears from LIBOR to SOFR
        • Ally: Do It Right
        • DealerSocket
        • Deloitte: Cyber everywhere: Preparing for automotive safety in the face of cyber threats
        • Facebook: The road to a zero-friction future
        • Guide To Economic Development
        • PayPal Credit: How consumer financing helps drive sales for online auto parts retailers
      • Classifieds
      • Companies on the Move
      • People on the Move
      • Newsletters
      • Contact Us
      • Media Kit
      • RSS Feeds