Understanding How the Numbers Work

Generally when I begin with a client, I have a casual conversation with the manager of every fixed operations department to determine what they know and how I can best serve them to get to the next level. The most common training they have received is where their desk and the coffee pot are going they are released to get to work. I have met service managers with over 30 years of experience that didn’t even know what their effective labor rate was or how to improve the result.

Now I admit that this is the training I received when I first started in fixed operations. I then spent years learning what works and what didn’t work in the fixed operations departments. There’s no way to calculate the cost to a dealership to use this philosophy. I understand that dealerships must fill positions that open up as soon as possible. To me it seems irresponsible to ask an individual manager without training, knowledge, and many times experience to get results and improve the operation. The general manager or owner might come back from a 20 group and call the service manager on the carpet because their effective rate is way below industry standard and needs to improve immediately.

Interestingly enough this service manager might not know how to improve or what this rate is. They might not even know what report to read in their DMS program or how to get to it. When the general manager or dealer principal gets tired of waiting for improvement the service manager gets canned and another new face joins the company. In a conversation I had recently a common controversy came up that I will share with you at this time. Is it better to have an experienced individual with bad habits or a new person with a strong desire to learn how to do it right and receives great training? Personally this controversy remains however my primary goal is to have an individual regardless of experience open to learning. The fixed operation business is full of numbers. Do your managers know how they work?

Sincerely,
Rob Gehring, President
Fixed Performance Inc.
rgehring@fixedperformance.com

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