Reynolds’ fixed ops report finds varying trends between Canada, U.S.

A fixed ops report for the Canadian market has been released by Reynolds in both English and French, reflecting a culmination of business outcomes from dealerships across the country.

Data from the Fixed Ops Golden Metrics Report for Canada shows different trends to what was observed in the United States by Reynolds. As an example, Effective Labour Rate (ELR, a point the company tracks) does not have as much variance based on urban classification.

“In Canada’s case, urban classification does not appear to affect ELR as much as volume,” said Reynolds in its report. “Instead of the declining stair-step trend we saw by volume in the U.S., Canadian results emulate a bell curve.”

Hours (both total sold and per repair order) and Profit per customer pay repair order (RO) are other points the company tracked. In doing so, it found that RO is not as clearly impacted by urban classification and volume as it is in the U.S.

“When isolated, both urban classification and volume display interesting trends. As population in urban settings goes up, profit per RO goes up,” reads the report. “However, rural profits remain higher than small population centres by a decent amount.” Reynolds said this may be due to a lack of options in rural areas, which in turn can drive higher demand and therefore greater profits.

When it comes to rural areas, the report shows that service departments see on average 243 customer pay ROs per month. Reynolds compared shops using an automated tool against those that are not using one. The results show an additional 305.1 total hours (with .13 fewer hours per RO) and a $29.43 boost in ELR (by finding and adding work beyond basic maintenance to the RO.) An $87 increase in profit per customer pay RO was also observed.

Overall, based on the report’s findings, Reynolds said that regardless of the dealership’s location, whether large, medium, small, or rural area, “providing techs the tools to help get work sold has a big impact.”

The full report is available for download here.

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