Ideas To Improve Service Billing Efficiency

Improving the efficiency of the Technicians which ultimately increases the output of hours sold (billed hours) in the shop is very often the single largest profit improvement opportunity in the Service Department, maybe in the store.

In conversations with RV Dealers and from my personal experience when I am on-site starting a new project, this particular area of improvement opportunity seems to be consistent at many dealerships. It is not unusual to see shops that are running less than 50%, meaning that less than one half of the time available for sale is actually being produced and sold to someone. The lost revenue in this scenario can be significant. Take a look at this example:

    6 Technicians X 8.0 hour work day schedule X $90.00 labor rate X 21 working days X 12 months = $1,088,640.00 in labor sales revenue potential

But if the Technicians are only 50% productive (proficient) the real revenue is this:

    6 Technicians X 8.0 work day schedule X $90.00 labor rate X 21 working days X 12 months X 50% proficiency = $544,320.00 actual labor sales or $544,320.00 in lost potential, plus the related parts sales.

That should get your attention. Okay, here is one more item to take into consideration, the real cost per billed hour produced or as I call it the

Improving the Value per Repair Order

Featured in RV Pro Magazine – December 2012

Implementing 12 steps related to improved value per repair order can have a dramatic impact upon a dealership

Service Advisor Compensation

It is always interesting to see just how creative some dealerships can be when it comes to designing compensation plans for employees in Fixed Operations particularly the Service Advisor position. Just when I think I

Pick the Low Hanging Fruit

All too often in this business we strive to move our organization to an advanced level before we maximize the potential that exists right now, right in front of us. That is like building a rocket ship without first building the launch pad. Many Service Operations have tremendous potential in improving the value per repair order (customer pay) with just minor changes in operating setups and practices.

Being Proactive in the Service Department

When you are in retail business of any type, can you ever hope to be in control of your day? Yes? No? Well, Maybe. Somewhat. Sounds like a political answer I know, but it is absolutely necessary to try to gain control of your Service day. I hope to share some advice and tools that will assist you in doing so.