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