SERVICE DEPARTMENT BY TRAVIS PETERSON OPTIMIZE & MODERNIZE W Four-Step process to optimize and modernize your service shop hen I think of Fixed Ops, I think of " slow and steady wins the race " . Sure, sky-high prices for the few and far between new vehicles on the ground are pushing front end profits up now, but fixed ops has always been the workhorse responsible for NEARLY 50 PERCENT OF A DEALERSHIP'S GROSS PROFITS. I believe you can push that percentage even higher with a 4-step process to optimize service operations and modernize service offerings. You always want to earn more business, even if in today's market your bays are at capacity. Looking forward, it Is always a good idea to set up your shop for future revenue growth. Lucrative opportunities exist if you work to optimize processes for more money back in your pocket while you modernize operations to leverage technological advances along with the coming transition to electric vehicles. The following four strategies will help increase gross profit and position 48 your shop for the future with perpetual benefits. Here is how: 1. OPTIMIZE WARRANTY LABOR RATE INCREASES The warranty process is complex and the total disruption caused by COVID-19 made it worse. I would venture to say that a lot of dealerships put the warranty submission process on the back burner last year. It could be that the person in charge of the submission process either quit or was laid off. As for the information about the anniversary date, it probably went out the door too. Now it's time to get back on track. fixed ops has always been the workhorse Submitting claims for the optimal reimbursement rate could add tens of thousands of dollars to your bottom line. However, the process can be tedious and time-intensive. Every OEM has its own set of rigid and complex rules that must be followed. Plus, each state has specific laws regarding submissions. You will likely need to pull several hundred or even thou