September '15

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58 • RV PRO • SEPTEMBER 2015 rv-pro.com T his time of year is the perfect time to sit back and reflect on your year-to-date performance by your fixed operations team. As a dealer, general manager or fixed operations director, you might want to start with the operating profit line of your financial statement and measure your team's performance with the following industry benchmarks: • The service department operating profit at 20 percent of gross profit • The parts department operating profit at 30 percent of gross profit If you are exceeding those benchmarks, congratu- late your team for a job well done. If, however, you are falling below those benchmarks you obviously have some work to do, so let's begin by asking a simple question: Are your expenses too high or are your gross profits too low? After working with hundreds of dealers I have found that in most cases the fixed operations team is doing a good job in controlling expenses, but they are missing out on huge opportunities to increase their gross profits. Wouldn't you agree that you can't "save your way into increased profitability?" If so, then why are so many dealers missing out on the level of gross profits that they deserve? The answer is people! • Do you have the right people in the right position? • Do you have the right people properly trained to become top performers? • Do you have the right number of people to exceed your customers' expectations? • Do you have compensation plans that reward individual performance? • Do you hold your people accountable for their performance? Take a look at the individual performance of your fixed operations team — technicians, service advi- sors, service managers, parts managers, and warranty Honing Your Fixed Operations The right people, properly trained, equals record profits for the fixed operations department. DON REED is the CEO of RVDealerPro Training, a Reynoldsburg, Ohio-based provider of sales and service training, F&I compliance solutions and sales recruiting. For more information, call the company at 888-553-0100 or visit the company's website at www. dealerprotraining.com. Productivity for the shop department should run at 100 percent, meaning technicians produce 40 flat rate hours billed for every 40 clock hours worked. If productivity is lower, investigate why and correct it. If productivity is at 100 percent or higher, it's time to add more techs.

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