You’ve probably heard the term “felt-tip review.” If not, a “felt-tip review” is when a repair order is reviewed to determine if certain policies have been followed.
During the review, we would determine if the advisor used the correct labor pricing and that the technician was flagged properly. From a sales perspective, verifying that mileage-based services or menu opportunities were sold. It is recommended to review a minimum of 25 repair orders per week for each advisor. This will aid in establishing coaching opportunities for that advisor.
So, why should I do this? You’re able to run a report in your system that tells you everything you need, right? In most cases, our managers look at the overall average. For example, if they have an effective labor rate goal of $150, and their report says $151, they are satisfied. And who has time to review the pricing on 25 repair orders anyway?
When you review the repair orders, you’ll find opportunities that are costing you money. That’s why we developed a tool to help review the repair orders for you.
Our ROSE+ software quickly surveys your repair orders and highlights pricing that’s out of line. This allows your managers to spend more time on the lane coaching and less time in the office looking at reports.
Here is an example of 25 repair orders with an average effective rate of $135. The stores set a goal of $130. Look closer; two of the repair orders had the labor reduced to $100 per hour, and one repair order paid the technician 1.0 more than they should have. When we change the labor sale to the correct amount and pay the technician the proper time, our effective labor rate increases to $147. That’s a $12 per hour increase in the effective rate. If you generate 1000 flat-rate hours per month, that’s $12,000 in lost labor sales or at a 70% gross profit percentage, $8500 in gross per month.
Over the last few years, labor rates have increased in a way we’ve never seen before. These increases are allowing our managers to meet and exceed their effective labor rate goals with little effort. This has created a lack of oversight of this metric and is leading to losses that no one is being held accountable for.
In today’s competitive automotive industry, efficiency is key. Ditch the time-consuming felt-tip reviews and embrace the power of ROSE+ to revolutionize your repair order management process.
ROSE+ meticulously scans your repair orders, identifying discrepancies and missed opportunities for revenue generation. This cutting-edge solution ensures that each repair order reflects the correct charges, optimizing your profitability without the need for manual intervention.
By leveraging ROSE+, your team can focus on providing exceptional service while the software handles the analysis. Identify undercharging, inconsistencies, and potential revenue streams effortlessly, empowering your managers to make data-driven decisions that enhance your bottom line.
Embrace innovation and efficiency with ROSE+. Take control of your financial success and unlock the true potential of your Fixed Operations department. Contact us today for a free consultation and discover how ROSE+ can streamline your repair order management, boost profitability, and drive sustainable growth for your business.
Our ROSE+ software takes a deep dive into your repair orders to uncover ways to increase your profitability!
Elevate your Fixed Operations department with our custom-tailored solutions. Our team offers in-depth assessments and specialized training programs, crafting strategies designed specifically to boost efficiency, maximize customer retention, and ensure long-term profitability. We’ll work closely with you to identify areas for improvement and implement targeted solutions that drive sustainable growth for your business.
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