Dealership Profitibility

Strategies for Outclassing Independent Repairers

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Independent repairers can be formidable competitors for your customers who are easy targets for perceived cheaper parts and labour charges. Once a dealership has created a loyal customer base through their service department, they increase their potential sales opportunities for new vehicles. Customer’s Preconceived Beliefs About Dealerships It is crucial that service departments identify ways […]

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Tyre Sales – An Inconvenience ?

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Wheel Alignment & Tyre Sales – Increasing Dealership Revenue and Customer Satisfaction  What is the value of Wheel Alignment & Tyre sales to your dealership? Most dealers would answer this in terms of revenue and margin from the sale. Some might say additional work found when replacing the tyres (Disc/Brake Pads, shock absorber, etc.), whilst

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Service Department Financial Indicators

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There are numerous indicators available to management that contribute to an in-depth analysis of the financial health of the workshop. Each provides a detail that enables maximisation of workshop profit. Listed alphabetically below are typical examples of financial indicators in commonly use: Actual Turn-over as a % of Potential Turn-over Average Hours per Job Card

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Understanding Service Department KPI’s – Productivity

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PRODUCTIVITY Productivity represents a combination of the workshops Efficiency and Utilisation Productivity = (Hours Sold / Hours Available) X 100 Benchmark: 103% – 110% Hours Sold is a function of the work available to the Service Department that is dependent on the bookings taken by the Service Department and the Costing of the Repair Order

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Understanding Service Department KPI’s – Utilisation

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UTILISATION Utilisation is a function of the technician hours actually spent working compared against the time the technician is available to work. Utilisation % = (Hours Worked / Hours Attended) X 100 Benchmark: 85% – 90% Hours Worked is a function of the amount of work available to the Service Department. The Hours Worked value

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