A New Year, A New Opportunity to Excel
As we approach the end of another year, it’s the perfect time to reflect on the wins, the challenges, and the opportunities that lie ahead. Fixed Operations continue to play a pivotal role in dealership profitability, yet they require continuous refinement to stay competitive and profitable.
The service department is not just a back-end operation—it is the backbone of a dealership’s success. It’s where customer loyalty is built, margins are realized, and reputations are earned. However, as vehicles, customer expectations, and operational challenges evolve, so must our strategies.
Today’s customers expect more: faster turnaround times, transparency in recommendations, and convenience throughout the process. On the other side, dealership leaders are tasked with maximizing shop capacity, improving margins, and managing an ongoing technician shortage. These demands require clear focus and commitment to the areas that matter most.
To step into the new year with confidence, Fixed Ops leaders must sharpen their focus on critical areas that drive efficiency, performance, and growth. Let’s break down 10 key areas that deserve your attention.
1. Elevate Service Advisor Performance
Service Advisors are the face of the department. They are often the first point of contact for customers, and they set the tone for the entire service experience. Advisors are responsible for more than just taking notes or opening repair orders—they are trusted guides who bridge the gap between technical expertise and customer understanding.
Yet, far too often, Service Advisors are handed this critical role without the proper tools, training, or coaching to succeed. This oversight results in inconsistent performance, frustrated customers, and lost opportunities to build long-term relationships.
To elevate advisor performance, training and mentorship must become priorities. Ongoing programs that focus on customer communication, active listening, process adherence, and workflow efficiency are key. Training advisors to ask the right questions, clarify customer concerns, and deliver clear explanations of repairs ensures customers feel understood and confident.
Performance expectations also play a crucial role. Identify and communicate measurable KPIs that matter: effective labor rate, customer satisfaction index (CSI) scores, hours per repair order, and more. These metrics provide clear targets for success and help advisors understand how their daily efforts contribute to the department’s overall goals.
It’s equally important to ensure advisors have the tools they need to excel. Digital vehicle inspections, real-time updates, and service software that reduces manual tasks can simplify their responsibilities and allow them to focus on the customer. When advisors have the right mix of training, support, and technology, they are empowered to deliver exceptional results.
Recognize and reward your advisors for their contributions. Celebrate wins, address challenges quickly, and create an environment where they feel valued. An engaged and well-supported advisor not only improves the customer experience but also drives revenue and retention.
2. Redefine the Customer Experience
The customer experience doesn’t begin when a vehicle enters the shop or end when it leaves—it spans every interaction along the way. The new year presents an opportunity to rethink the service journey and identify friction points that may frustrate customers or hinder loyalty.
The first step is to evaluate how customers schedule service appointments. Does your current system make it easy for them to book an appointment online or through their preferred method? A smooth, intuitive scheduling process can improve convenience and increase customer satisfaction right from the start.
Once customers arrive, the focus should shift to creating a seamless and transparent experience. Are your wait times reasonable? Do Service Advisors take the time to explain repair recommendations clearly and with supporting visuals? Customers value transparency, and tools like digital vehicle inspections can be powerful here. Showing customers exactly why repairs are necessary builds trust and eliminates uncertainty.
Throughout the repair process, proactive communication makes all the difference. Customers don’t want to be left in the dark. Providing status updates via text messages or calls ensures they feel informed and respected. Simple gestures, like notifying them when a part is delayed or when their vehicle is ready for pickup, demonstrate that their time matters to you.
Don’t overlook the small details either. Courtesy vehicle washes, comfortable waiting areas, and clear payment options contribute to the overall experience. These touches aren’t just “nice-to-haves”—they build lasting impressions and encourage repeat visits.
Finally, collect and act on feedback. Send post-service surveys to understand how customers feel about their experience and identify areas where you can improve. A customer-focused approach fosters trust and retention, both of which are invaluable to long-term success.
3. Measure What Matters
In Fixed Operations, numbers tell the story. Yet with so many metrics available, it’s easy to lose sight of what truly drives performance. The new year is an opportunity to refocus on the KPIs that have the greatest impact on efficiency, customer satisfaction, and profitability.
Start with the fundamentals: hours per repair order (HPR), technician productivity, and customer retention rates. HPR measures how effectively labor is being sold and utilized on each repair order, while technician productivity reflects how efficiently your shop is operating.
Customer retention rates are equally vital. Acquiring a new customer costs far more than keeping an existing one. Focus on how many first-time service customers return for subsequent visits, and identify opportunities to improve that number through loyalty programs or better follow-ups.
Another key area is the effective labor rate (ELR). While total sales are important, ELR shows how efficiently your department is monetizing technician hours. Even small increases in ELR can result in significant profit gains over time. If you’re underperforming here, it may indicate issues like discounting, poor scheduling, or underutilized labor capacity.
Don’t drown in data. Instead, establish a structured reporting cadence. Weekly, monthly, and quarterly reviews provide opportunities to analyze performance trends and adjust strategies as needed. Share the results with your team so everyone understands what’s working, where improvements are needed, and how their efforts contribute to overall goals.
Measuring what matters doesn’t just provide insights—it builds accountability. When the team understands which metrics drive success, they can align their efforts and work together to achieve measurable improvements.
4. Maximize Shop Capacity and Throughput
One of the most common challenges in Fixed Operations is balancing capacity with demand. A busy shop can feel like a good problem to have, but bottlenecks and inefficiencies can leave potential revenue on the table. Maximizing throughput is about doing more with what you already have.
Begin by evaluating how repair orders are dispatched. Are technicians being assigned jobs that match their skill sets? Are priority repairs being handled promptly? A clear and effective dispatch system minimizes idle time and ensures the right technicians are working on the right jobs.
Parts availability is another critical factor. Delays caused by missing parts slow down repairs and frustrate customers. Work closely with the parts department to ensure commonly used parts are stocked and pre-ordered for scheduled repairs. A streamlined process for parts availability keeps technicians productive and repairs on track.
Multi-point inspections (MPIs) are also a key tool for boosting efficiency. When performed consistently, MPIs help identify necessary repairs early and improve shop capacity by prioritizing work. Digital inspections can further streamline this process, providing customers with quick, visual insights into their vehicle’s condition.
Scheduling strategies can have a major impact on throughput. Avoid overloading the shop on certain days while leaving other days underutilized. Staggered or balanced scheduling keeps workloads manageable and improves overall shop flow.
Improving shop capacity isn’t always about hiring more technicians or expanding facilities—it’s about addressing inefficiencies. A shop that runs smoothly can handle more vehicles, generate more labor hours, and deliver a better experience for customers.
5. Streamline Communication Between Teams
Communication is the backbone of any successful dealership operation. When parts, service, and sales departments operate in silos, delays and frustration are inevitable. Building clear lines of communication between teams is essential to achieving efficiency and delivering a seamless customer experience.
Start by improving collaboration between the parts and service departments. A lack of communication here can lead to delays, inaccurate parts orders, or wasted technician time. Implement systems that allow parts to be pre-ordered for scheduled repairs, ensuring they are ready when the vehicle arrives.
Within the service team itself, regular communication keeps everyone aligned. Service Advisors and technicians should be on the same page regarding repair priorities, timelines, and updates. Morning huddles or mid-day check-ins provide opportunities to discuss challenges, clarify responsibilities, and ensure work is progressing as planned.
Don’t overlook the relationship between sales and service. While the sales team focuses on new vehicle purchases, service departments have the power to keep those customers returning. A strong handoff between the two teams—such as scheduling a first service visit at the point of sale—keeps customers connected to the dealership and strengthens loyalty.
Improving communication doesn’t have to be complicated. Small changes, like better documentation in repair orders or shared updates between teams, can eliminate confusion and wasted time. When everyone is working together, the dealership operates more efficiently, and customers see the difference.
6. Prioritize Retention with Proactive Service Plans
Retention is the lifeblood of Fixed Operations. It’s no secret that keeping existing customers is more cost-effective than acquiring new ones. Yet many dealerships still focus heavily on bringing in new customers rather than strengthening relationships with those they already serve.
The solution lies in proactive service planning and building value through thoughtful, customer-first initiatives. Start by implementing maintenance plans tailored to your customer base. These plans outline scheduled services over the life of the vehicle, encouraging customers to commit to long-term maintenance while giving them clarity on upcoming needs and costs.
Transparency is key here. Customers appreciate knowing what to expect. Offer clear explanations of why routine maintenance matters and how following a schedule can extend the life of their vehicle and reduce long-term expenses.
Loyalty programs are another opportunity to drive retention. Offer incentives for repeat visits, such as discounted services after a certain number of appointments or bundled packages that provide cost savings. Even small gestures, like a free tire rotation with an oil change, can strengthen the relationship.
Consistency in follow-up also drives retention. Set up reminders for recommended services through email, text, or phone calls, and ensure customers have the tools to schedule easily. After each visit, send a thank-you message or survey to reinforce that their business is valued.
Proactive planning not only helps customers save time and money but also creates a partnership between them and the dealership. Customers who feel cared for and confident in their service team are far more likely to return for future needs and recommend your dealership to others.
7. Attract and Retain Top Technician Talent
The technician shortage is one of the most pressing issues facing Fixed Operations today. While the demand for skilled labor grows, the supply of technicians entering the workforce struggles to keep pace. In the new year, attracting and retaining top talent must be a primary focus.
Start by evaluating your recruitment strategy. How are you positioning your shop to prospective technicians? Highlight what sets your dealership apart, whether it’s state-of-the-art equipment, competitive pay structures, ongoing training opportunities, or a supportive work environment. A strong reputation as a great place to work attracts talent.
For existing technicians, retention begins with fostering a culture that values and supports their contributions. Create clear career pathways that offer opportunities for growth, such as certifications, training programs, and mentorship initiatives. Technicians need to see that their hard work can lead to advancement.
Investing in tools and technology also plays a role. Outdated equipment and inefficient processes create frustration and slow down productivity. Providing technicians with the resources they need to do their jobs effectively shows that you respect their time and expertise.
Recognition and appreciation matter too. Celebrate individual and team achievements, whether it’s meeting efficiency goals, completing certifications, or going above and beyond for a customer. When technicians feel valued and supported, they are far more likely to stay loyal to your shop.
Finally, explore partnerships with trade schools and apprenticeship programs. Building a pipeline of new talent ensures you can meet future demand while investing in the next generation of technicians. By prioritizing technician recruitment and retention, you set your shop up for long-term success.
8. Enhance Digital Tools for Efficiency and Transparency
The role of technology in Fixed Operations cannot be overstated. Digital tools are no longer just a convenience—they are a necessity for improving efficiency, enhancing transparency, and meeting customer expectations.
Start by evaluating your current systems. Is your shop fully leveraging tools like digital vehicle inspections (DVI), online scheduling, and automated customer updates? If not, these tools can dramatically streamline workflows and improve the customer experience.
Digital vehicle inspections are particularly impactful. Instead of relying on verbal explanations or paper notes, technicians can use images and videos to show customers exactly what needs attention. This builds trust and helps customers make informed decisions.
Online scheduling systems are another area of opportunity. Customers want flexibility and convenience when booking appointments. A robust online platform allows them to schedule 24/7, choose available time slots, and even specify concerns—all while reducing administrative work for advisors.
Automated updates—whether through text or email—also improve transparency. Keeping customers informed about repair progress, delays, or completion times reduces uncertainty and improves satisfaction.
On the backend, technology can help streamline dispatching, parts management, and technician workflows. Shops that embrace these tools not only increase efficiency but also reduce stress for their teams.
Take time in the new year to audit your current technology stack and identify gaps. Investing in the right tools ensures you’re working smarter, not harder, while delivering a better experience for customers and employees alike.
9. Reassess Pricing Strategies and Cost Controls
Profitability in Fixed Operations often comes down to the details: labor rates, parts margins, and cost management. While pricing can be a sensitive topic, reassessing your strategies ensures you remain competitive without sacrificing profitability.
Start by evaluating your effective labor rate (ELR). If it’s lower than your posted rate, it’s worth digging into the reasons. Discounts, inefficiencies, and under-utilized technicians can all eat away at potential revenue. Addressing these issues often leads to immediate improvements.
Next, review your parts pricing strategy. Are margins consistent and aligned with industry benchmarks? While customers value fairness, pricing transparency and clear explanations help justify costs. Avoid heavy discounting that undercuts long-term profitability and focus on communicating the value behind your service.
Cost control also deserves attention. Small expenses—like shop supplies, warranty rework, or unbilled technician hours—add up over time. Perform a detailed audit of your costs and identify areas where waste can be reduced without compromising quality.
Finally, consider introducing tiered pricing structures for labor or service bundles that provide value for customers while maintaining profitability for the shop. Thoughtful pricing strategies protect margins while helping customers understand the value of maintaining their vehicles with your team.
10. Commit to Leadership Growth
Strong leadership sets the tone for the entire Fixed Operations team. As a Service Manager or Fixed Operations Director, your commitment to growth not only impacts your performance but also inspires your team to aim higher.
Leadership growth starts with self-awareness. Take time to assess your strengths, weaknesses, and areas for improvement. Are you providing your team with clear direction? Are you coaching and mentoring effectively? Honest reflection allows you to identify opportunities to grow as a leader.
Invest in leadership training, coaching, or peer networks. Surrounding yourself with other leaders—whether through conferences, workshops, or industry groups—provides valuable insights and strategies to bring back to your team.
Strong leaders also lead by example. Set the standard for communication, professionalism, and accountability in your department. When your team sees you holding yourself to a high standard, they are far more likely to follow suit.
Prioritize team development as well. Spend time mentoring your Service Advisors, technicians, and support staff. Provide opportunities for growth, celebrate achievements, and empower your team to take ownership of their roles.
Commitment to leadership growth is not just about personal development—it’s about creating a culture of excellence that drives success for the entire department.
Building a Stronger Future for Fixed Operations
As we move into the new year, the opportunities to grow and improve Fixed Operations have never been greater. The 10 areas outlined here—elevating advisor performance, redefining the customer experience, improving efficiency, retaining top talent, and strengthening leadership—provide a clear roadmap for success.
The challenges may be significant, but with focused effort and a commitment to continuous improvement, every dealership can position its Fixed Operations department for a stronger, more profitable year ahead.
It starts with leadership, accountability, and a willingness to embrace change. Whether it’s improving shop processes, strengthening communication, or investing in your team, each step forward builds momentum.
Make the new year a turning point. Take the time to focus on what matters most, inspire your team to reach new heights, and ensure your service department delivers value for both customers and the dealership. Fixed Operations is not just about repairs—it’s about relationships, reputation, and results.
Let’s make this year the one where we set new standards of excellence and build a foundation for long-term success.
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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