Look At Me!

stan ribeiro newsletterThat’s your repair orders, sending you a message. Look at and review your repair orders. Learn from them. Adjust your strategies accordingly.

We all know that monitoring the activities of your staff is of the utmost importance. It is no longer enough to look at sales or gross profit, effective labor rate or even hours per repair order. Although they are Key Performance Indicators (KPI’s) that point out strengths and weaknesses, they are not a complete picture. What’s happened to the simple life?

Well, we became focused on Fixed Operations, as an important part of survival. Some of you may remember when the service and parts departments were called the “back end” of the business. It was in some cases an “evil necessity”. Some managers were so focused on new vehicle sales that they overlooked the service customer. We are neither the “back end” nor an “evil necessity”. We are the backbone of the dealership.

Factories are concentrating on the retention of their customers rather than swinging for the home run type mentality. That concentration is now imbedded in the hearts and minds of successful stores, particularly the service, parts and body shop departments.

Now with all that being said, how do we monitor such a complex agenda? The repair order! The repair order is not just a legal document it is the window of your operation, a perfectly painted canvas of the practices in your store. Getting to know this information is critical to success. It is crucial for identifying trends (good or bad) and the strengths and weakness of your staff. With a well-drawn out policy to monitor the repair order, hard copies of the final invoices, are your road maps to understanding your customer pay business. Let’s look at a few of the observations available to you and what is important for you to get from them.

Repair order work mix. This helps you understand the type of work that you are providing to your customers. Determine if it is mostly repair work or mostly maintenance work. A healthy combination of the two leads to retention and profitability.

One line repair orders. Are your advisors just taking orders or are they actively listening to your guests and advising them accordingly?

What is the average age of the vehicles you service? How does this tie in to your advertising promotions? Are you pulling from your market? Where should you promote your services and what type of services should you promote?
Are you competitive in your market as it relates to pricing, hours billed, cost of sale and even gross profit? Let’s face it, none of us can take gross profit percentages to the bank. Isn’t NET more important than gross profit percentages, effective labor rates, or even hours per repair order? Looking at hard copies will always have value especially for warranty compliance and reviews.

How is all this accomplished? Get ready, R.O.S.E (Repair Order Survey & Evaluation) is on its way.

Call your M5 Consultant now or visit www.m5ms.com for answers to your Fixed Operation needs.

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