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
    • COVID-19 vaccines reaching auto plants, but challenges remain
      Working online to book COVID shots, office manager Billie Jean Pellet “typed so fast smoke came off the keyboard,” said dealer Earl Stewart.
      Dealership team hunts for vaccine
      Hope stalls for rebound in European auto sales
      Dana net income falls 53% in Q4
    • Changan
      Huawei, battered by U.S. sanctions, plans foray into EVs, report says
      VW China
      Top VW China exec said to eye joining Renault as local CEO
      Geely to create separate EV business unit
      Valeo, Faurecia outperform China market in 2020
    • The industry is racing to modernize the way in which EVs are built
      As EV output explodes in China, e-axle drive assembly automates
      Plus to roll big rigs on a ‘continuum' toward self-driving future
      Lidar moves beyond vehicles to underpin a reimagined logistics chain
    • Fisker's next wave: A premium people's car
      A worker fixes a power line in Austin, Texas, last month.
      Bidirectional EVs could lend a hand in power crisis
      Toyota banks on plug-ins as rivals push BEVs
      A look at some EVs and their range
      Here are the mileage ranges of the top EVs
    • 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
    • COVID-19 vaccines reaching auto plants, but challenges remain
      In SPACs, dealers see viable option to go public
      New-school solution for recruiting auto techs
      Is your dealership a great place to work?
    • 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)
      • MITSUBISHI: 2022 Outlander
      • NISSAN: 2022 Pathfinder and 2022 Frontier
      • GENESIS: 2021 GV80
      • KIA: 2021 K5
      • LEXUS: 2021 IS
      • NISSAN: 2021 Rogue
      • TOYOTA: 2021 Venza and 2021 Sienna
    • Auto Shows
    • 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
    • Fisker gets a rare second chance to build his own car company
      The new Stellantis pickup: Schrödinger's Dakota
      Gerry McGovern is right man to steer Jaguar reinvention
      Forget the Ford GT; Moray Callum's biggest hit is the aluminum F-150
    • Jaguar is about to undergo its fourth reinvention in five decades as owner Tata Group takes a second crack at shaking up a brand whose glorious past has rarely translated into a profitable present or sustainable future.
      Jaguar Redo, Part IV
      view gallery
      1 photos
      Chip Shortage
      Jaguar is about to undergo its fourth reinvention in five decades as owner Tata Group takes a second crack at shaking up a brand whose glorious past has rarely translated into a profitable present or sustainable future.
      view gallery
      9 photos
      Leo Michael Cartoons - Q1 2021
      Dealers hiring from hospitality sector
      view gallery
      1 photos
      Hospitality Hires
    • 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
    • March 2, 2021 | Will EV bets pay off?
      February 23, 2021 | Reliability continues to soar
      February 16, 2021 | Apple looks to take bite out of automotive
      February 9, 2021 | ‘Super’ opportunity for automakers
    • Jamie Butters
      EV plans and some damn lies
      Mark Paul
      What dealers can do if D.C. power shift affects recalls
      Reinvention of Jaguar is a tall task for McGovern
      Are we in the midst of a fourth industrial revolution?
    • Shanghai hints at how Chinese cities will pursue electrification
      How Tesla, GM transformed EV market in 2020
      Is sales recovery nearing an end?
      Beijing's uphill battle to boost EV sales
    • U.S. Dealership lot
      Lean lots won't last without new dealer discipline
      Taiwan Semicon microchips BB web.jpg
      Chip shortage shows need for new thinking
      Digital demands squeeze smaller auto retailers
      President Joe Biden’s move to electrify all government vehicles could push forward charging infrastructure development.
      Dealers aren't wrong to be wary of EV hype
    • New look at Nissan a positive sign
      Embrace EV ideas at our doorstep
      Buying EV without dealer is just easier
      Dealers are right to worry about EVs
  • DATA CENTER
  • VIDEO
    • AutoNews Now
    • First Shift
    • Special Video Reports
    • Weekend Drive
    • AutoNews Now: Toyota RAV4 probed for fire risk
      AutoNews Now: Nissan 'breakthrough' could lower emissions
      AutoNews Now: Most buyers still undecided on EVs, J.D. Power finds
      AutoNews Now: Biden tackles chip shortage with lawmakers, order
    • First Shift: Volvo's electric push includes online-only sales
      First Shift: U.S. dealership profits surge 48% to record high
      First Shift: Tesla output in Calif. resumes after 2-day shutdown
      First Shift: Ford's Farley: 'We need to bring battery production to the U.S.'
    • Bert Ogden Auto Group
      Back to basics: How a Texas group is cutting costs, saving millions 
      COVID, chips and checks: Sales headwinds and tailwinds for 2021
      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
    • 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
    • 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
    Five Star Automotive buys 5 Ind. stores, expands into Midwest
    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
    Five Star Automotive buys 5 Ind. stores, expands into Midwest
    Five Star Automotive buys 5 Ind. stores, expands into Midwest
    CDK completes sale of international unit
    CDK completes sale of international unit
    OBITUARY: Stuart Cavender
    Looking to the Future
    Sponsored Content: Looking to the Future
    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 3-1-21
    THIS WEEK'S EDITION
    See our archive
    Fixed Ops Journal
    Fixed Ops Journal 2-8-21
    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)
          • MITSUBISHI: 2022 Outlander
          • NISSAN: 2022 Pathfinder and 2022 Frontier
          • GENESIS: 2021 GV80
          • KIA: 2021 K5
          • LEXUS: 2021 IS
          • NISSAN: 2021 Rogue
          • TOYOTA: 2021 Venza and 2021 Sienna
        • Auto Shows
        • 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
        • 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