A new report from Reynolds and Reynolds looks at some of the key fixed operations metrics that drive decision-making at dealerships, detailing both expected and unexpected data trends.The study also provides insight into how dealerships can improve results.
“When outcome sources become too diverse, benchmarks end up overly generic and applicable to very few actual cases,” said Jason Sideris, Vice President of Fixed Operations Product Management for Reynolds, in a statement. “This report is a unique opportunity to provide dealers with a sharper image than the benchmark data the industry has previously supplied.”
The company reviewed the data through the lens of urban classification, which is tied to the dealership’s ZIP code, and volume of business, which means Reynolds referenced the number of customer pay repair orders a service department looked at each month and assigned it a 1-5 classification.
The report found that larger urban classifications, which include more people and the availability for more potential hours (both total sold and per repair order), sold more hours than smaller classifications. This was found to be the case even with more competition for servicing customers through independent shops and competing dealerships.
Reynolds noted a similar trend emerges when looking at the data based on RO (profit per customer pay repair order) volume. In the report, they said higher volume directly connects with more hours sold each month. However, they also added that more hours sold “doesn’t always mean the service department is getting the most out of its people and processes.”
“The importance of available work is clear when looking at volume across urban classifications. Over the same window of time, Major Urban Class 1 volume dealerships sold nearly 200 more hours a month than Rural Class 1 volume dealerships — both of which average up to and no more than 12 ROs per day. This disparity increased exponentially when looking at the other volume classifications.”
Further details and findings are available in the report, which can be found here.
