Fixed Ops Magazine - 2020 Vol17 03 - 24

INCREASING FIXED OPS PROFITABILITY
By responding to the needs of their customers in fixed
operations departments by supplying innovative products, Inspectron appears primed to help those same
fixed operations technicians fulfill the demands of their
own customers with attentive, high-quality service. All
of this comes at a time when fixed operations departments are being asked to shoulder a greater share of
the revenue-generating burden within the dealerships
they serve.
The 2019 Industry Insights Report, co-authored by
Dave Cantin Group and Wards Auto, revealed that 53
percent of the 262 participating dealerships were actively involved in making improvements to their fixed
operations departments in the hopes of boosting revenues. When ranked against other potential strategies
for increasing revenues, improving fixed operations
topped the overall list of priorities, with expense review
and variable operations finishing second and third, respectively.
Furthermore, fixed operations departments are now being relied upon to maintain dealership profitability with
growing regularity. Pursuant to the 2019 Third Quarter
Blue Sky Report from Kerrigan Advisors, dealers saw
fixed absorption - the gross profit of service and parts
as a percentage of total fixed overhead expenses - increase to its highest level since 2010. It also indicated
that dealers are increasingly more reliant on fixed operations departments, as a high-margin revenue stream,
to defray the costs of operating their businesses.
Even in the wake of the global spread of the COVID-19
virus, with the Kerrigan Index declining nearly 48 percent from its December 2019 high, managing director
Ryan Kerrigan promoted the capability of fixed operations departments to stabilize dealerships' revenues
and aid them with post-pandemic rebound efforts. 
"The business model is resilient because of its diversification with fixed operations and used vehicle revenue
often sustaining losses in new vehicle sales," said Kerrigan in an April news release.

24

Ultimately, the ever-increasing expectation that the
fixed operation should carry a larger share of a dealership's financial load provides Woitrin, Marlow and the
rest of the Inspectron team with a prime opportunity to
demonstrate the worth of their new products.
"I have OEMs right now that are looking to use our
WiTorch in multiple facilities," said Marlow. "With just
one torch per bay, it could be used for pre-delivery
inspections, certified pre-owned inspections and warranty issues. When you add all of those things together,
you have so many levels of savings. Most people I talk
to already have three or four ideas of how they can use
it, and how it can be integrated into their shops."
Ian Douglass is a business

communications

consultant, project manager and author whose
career began with a stint
as a new media producer
for ABC News in Detroit
and continued with a
role as an on-air reporter
for NBC News (WEYI) in
Flint, Michigan. Outside of   broadcast journalism, Ian
has written articles for numerous online publications,
and coauthored the autobiographies of UFC Hall of
Fame fighter Dan Severn, and professional wrestlers
Buggsy McGraw and Dylan "Hornswoggle" Post.
Ian is a graduate of the University of Michigan in Ann
Arbor, and earned a master's degree from Northwestern University's Medill School of Journalism, where his
voice continued to be used to introduce the student
news broadcasts for nearly a decade after he graduated. He has earned several awards for marketing and
journalism, beginning with a Mark of Excellence Award
from the Society of Professional Journalists alongside
his broadcast journalism classmates at Northwestern
University, and most recently a Streamy Award nomination as a creative contributor to one of the most popular sports-based channels on YouTube.



Fixed Ops Magazine - 2020 Vol17 03

Table of Contents for the Digital Edition of Fixed Ops Magazine - 2020 Vol17 03

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