Fixed Ops Magazine - 2022 Vol19 03 - 60

ADMINISTRATION DEPARTMENT BY DAVID BOYLE
THE
PROFITRICH
SERVICE
BAY
The most profit-rich service bay you may be ignoring
W
hat is your shop's most productive service
bay? The answer depends on how you are
looking at productivity. Some will say it's
the bay with your most productive tech. That may be
true, but it also depends on how you are measuring
technician productivity. Our industry tends to track
hours as productivity, as that's what we are selling, but
you don't deposit hours into the bank.
The only real measure of bay productivity is revenue.
Or, more importantly, the bay's gross profit (GP) contribution.
And that involves a lot of variables. For example,
if you have a bay producing 16 hours in an 8-hour
day, that'd be good, right? But what if it's your lube bay
with an effective labor rate of $35/hour? Then, maybe
not. This is an example of a bay that produces a lot of
hours, but not a lot of GP due to the
type of work performed.
Your most productive bay is the one
that contributes the most GP to the
business. So, what bay is that? Be60
fore
we answer the question, you must also consider
the amount of control you have over the work done in
each bay. Going back to the bay with the highest-producing
tech in terms of hours, this is often a drivability
or some sort of diagnostic tech. And while this may
be high-gross and diagnostic labor, it's not very predictable.
As much as we would like to, we can't predict
when vehicles will break. As such, this type of work can
be difficult to count on day in and day out.
What bay
am I talking
about?
I REFER TO THIS BAY AS THE
" HOLY GRAIL "
There is one bay, however, that I refer to as the " Holy
Grail'' because it has everything: predictable work,
very high GP, and high technician efficiency that make
it an ideal producer. What bay am I
talking about? Your alignment rack-
perhaps the most misunderstood
and underused profitability driver
in your shop. In this article, I provide
some tips to help you look at that

Fixed Ops Magazine - 2022 Vol19 03

Table of Contents for the Digital Edition of Fixed Ops Magazine - 2022 Vol19 03

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