Automotive & HD Business Management Articles.
Bob Greenwood. July 16, 2014. ( over 5 years ago ) 1,130 views
Times have changed. It is not about ‘SALES per RO’, to match ‘CAR COUNT’, it is about the right amount of billed hours per invoice/repair order with the right clientele.
When you’re doing it right, your shop will average 2.5 billed hours per invoice for general consumer work. When your internal processes are broken, you will average 1.7 or less.
When the billed hours are correct and billed out at the right door rate for maintenance and diagnostic hours, the bottom line profitability you really desire will appear before your eyes.
Don’t believe me? Do the math on your own shop and see what has being left on the table with your current processes.
You cannot correct this issue overnight as there is no silver bullet to insert into your shop, however, with the right self-discipline from management, this 2.5 number, as an average, can be achieved within 8 to 12 months. #1 – Focus on proper vehicle inspections, #2 – Quoting all work fully, #3 – Follow up on all deferred work, #4 – Work properly with one transaction at a time and secure your client relationship.
When this is done properly, you are now truly managing their vehicle for them and the magic 2.5 becomes a common number in your business. Well done.