On a normal business day at your dealership, keys pass through dozens of hands. They're passed back and forth between salespeople, sales managers, porters, and service technicians, which can quickly lead to disorganization.
If your dealership is still using pegboards or other manual methods to account for vehicle keys, there’s not an accurate way to determine how long someone has had a key checked out or even who checked it out. When keys go missing, the costs mount quickly.
The Cost of Replacing Keys
Not only is mismanaging keys unproductive and frustrating for employees, it leads to unnecessary expenses. In an informal survey of representatives from seven dealerships and automotive groups of various brands, we found that the cost of replacing keys ranged from $12 to $220, with an average cost of $84. The cost of replacing fobs was anywhere from $49 to $550, with an average cost of $191.
Respondents reported that each month, they lost anywhere from one to 60 keys, with the average being nine and the most common response being one to five. If your dealership lost five sets of keys and fobs at an average total replacement cost of $275, that’s $1,375 a month and $16,500 a year. That’s less the average of nine sets, which would amount to $29,700 annually!
The Trickle-Down Effect of Ineffective Key Management
Key replacement costs add up quickly, but that’s not all you have to worry about. Often, lost or unidentified keys results in impatient customers waiting for test drives, affecting the customer experience.
So what can you do to minimize the impact of missing keys? The first step is to make sure you know where your keys are at any given time and ensure only authorized employees can access them. If a key does slip through the cracks, have a system in place to be alerted that the key hasn’t been returned so you can look into the situation further.
It might not seem like a big deal to shell out a couple hundred dollars for a missing set of keys every now and then, but consider the long-term effects. If missing keys are costing you sales, how much is a solution for that problem worth to you?