Increase Service Absorption Rate
Service absorption rate measures how much of a dealership’s total overhead (fixed expenses) is covered by gross profit from the service and parts departments. A 100-percent absorption rate means the dealership could break even if it sold zero new or used vehicles. The industry benchmark is 80 percent, but top-performing stores exceed 100 percent.
Increase Customer-Pay Labor Revenue
This is the highest-margin category. Focus on growing customer-pay RO counts and dollars per RO through better marketing, retention, and advisor training.
Increase Customer-Pay Labor Revenue
This is the highest-margin category. Focus on growing customer-pay RO counts and dollars per RO through better marketing, retention, and advisor training.
Grow Parts Sales
Ensure your parts department is not just serving internal needs. Build a wholesale parts business selling to independent shops, body shops, and fleet accounts. Offer online parts ordering with delivery.
Grow Parts Sales
Ensure your parts department is not just serving internal needs. Build a wholesale parts business selling to independent shops, body shops, and fleet accounts. Offer online parts ordering with delivery.
Improve Technician Productivity
Measure hours flagged versus hours available. Identify bottlenecks in the workflow, invest in tools and equipment that reduce repair time, and ensure parts availability so technicians are not waiting for inventory.
Improve Technician Productivity
Measure hours flagged versus hours available. Identify bottlenecks in the workflow, invest in tools and equipment that reduce repair time, and ensure parts availability so technicians are not waiting for inventory.
Control Expenses
Audit every line item of fixed operations expense. Negotiate better rates with vendors, eliminate unnecessary subscriptions and services, and ensure your staffing levels match your workload.
Control Expenses
Audit every line item of fixed operations expense. Negotiate better rates with vendors, eliminate unnecessary subscriptions and services, and ensure your staffing levels match your workload.
Add Revenue Streams
Sublet work (outsourcing specific repairs), accessory installations, detailing, and fleet maintenance contracts all contribute to absorption without necessarily adding overhead.
Add Revenue Streams
Sublet work (outsourcing specific repairs), accessory installations, detailing, and fleet maintenance contracts all contribute to absorption without necessarily adding overhead.