Why You Need a Comprehensive Evaluation

mike stallings newsletterAsk yourself the following questions.

  • Does my Service Department generate a 10% return on investment before parts gross transfer?
  • What is my overall effective labor rate? Now let’s break that down. What is my effective labor rate for customer pay, maintenance, internal and warranty? All of these combined do not tell you the whole story. That is why you must know each one individually.
  • When was the last time you did a Repair Order Survey?
  • How many one line RO’s are going though your shop. The guide is 20%
  • How many menu opportunities does your shop have?
  • What is the average mileage and age of vehicles coming into your store?
  • Which advisors are doing the job and which ones are taking orders?
  • How many additional service requests are we getting from our techs and are we closing them?
  • How many of our customers are receiving Multipoint Inspection’s on their cars?
  • When is the last time you sat down with you fixed op personnel and ask them about their ideas and what is holding them back from being more productive?
  • What is your cost of sales?
  • What is the average parts sale to labor sale?
  • What is your average part gross?
  • Do you really need more people or better process?
  • Is discounting out of line in my store?
  • Do my current pay plans inspire my people or encourage complacency?
  • When was the last time all of my contracts were reviewed for all outside vendors?
  • Is my advertising effective, and is there a more opportunity out there?
  • What kind of training would benefit my people?
  • Should I install a parts matrix or a labor grid and what are the benefits? I know there are many types of these; what are the benefits and drawbacks of each?

If you cannot answer these questions, the Staff of M5 is ready to perform a Comprehensive Evaluation, make recommendations and help you answer the questions.


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