Fixed Ops Magazine 2024 Vol 21-3 - 37

5. Parts gross profit, like labor, is the sales price of
the part less the cost of the part. In basic principle,
parts are typically on a matrix so low dollar parts are
marked up two, three, or even four hundred percent
on very low dollar parts, and gradually come down
to a straight list in the one-to-three-hundred-dollar
range parts. Manual adjustments are the only real
factor that changes your average parts gross profit,
beyond normal work mix fluctuations.
6. Automotive hours per repair order are typically a
great measurement, if all other critical metrics are in
good condition. Why have a 2.5 hours per RO if your
labor gross profit is at 60%, when for the same dollar
amount of gross profit, you could be at 2.0 with 75%
gross profit? Better to focus on labor gross and ELR
first, and lock that in.
SUMMARY
If you master each of these profitability measurements,
you will be about 90% into the journey to being as profitable
as you can be. Until these few are mastered, you
may just be spinning your wheels, working harder and
harder, and not making any real progress.
Joseph Minns is the
Operations Director
for FrogData responsible
for warranty claims
solutions and leads the
performance consulting
team. He has 34 years
direct experience in
Fixed Operations, with
responsibilities that
have spanned from a single point dealer, to over 800
employees in a single dealer group of 27 dealerships
and 31 OEMs.
He holds multiple OEM Master certifications in Service
Management, Parts Management, Body Shop Management,
Commercial Vehicle Management, and is a NADA
Service Graduate. In his free time, he is a leader in the
Boy Scouts, a lieutenant in the fire service, and certified
underwater rescue diver.
MAY JUNE 2024 || FIXED OPS MAGAZINE
37

http://Hormann.us

Fixed Ops Magazine 2024 Vol 21-3

Table of Contents for the Digital Edition of Fixed Ops Magazine 2024 Vol 21-3

Fixed Ops Magazine 2024 Vol 21-3 - Cover 21-3
Fixed Ops Magazine 2024 Vol 21-3 - 2
Fixed Ops Magazine 2024 Vol 21-3 - 3
Fixed Ops Magazine 2024 Vol 21-3 - 4
Fixed Ops Magazine 2024 Vol 21-3 - 5
Fixed Ops Magazine 2024 Vol 21-3 - 6
Fixed Ops Magazine 2024 Vol 21-3 - 7
Fixed Ops Magazine 2024 Vol 21-3 - 8
Fixed Ops Magazine 2024 Vol 21-3 - 9
Fixed Ops Magazine 2024 Vol 21-3 - 10
Fixed Ops Magazine 2024 Vol 21-3 - 11
Fixed Ops Magazine 2024 Vol 21-3 - 12
Fixed Ops Magazine 2024 Vol 21-3 - 13
Fixed Ops Magazine 2024 Vol 21-3 - 14
Fixed Ops Magazine 2024 Vol 21-3 - 15
Fixed Ops Magazine 2024 Vol 21-3 - 16
Fixed Ops Magazine 2024 Vol 21-3 - 17
Fixed Ops Magazine 2024 Vol 21-3 - 18
Fixed Ops Magazine 2024 Vol 21-3 - 19
Fixed Ops Magazine 2024 Vol 21-3 - 20
Fixed Ops Magazine 2024 Vol 21-3 - 21
Fixed Ops Magazine 2024 Vol 21-3 - 22
Fixed Ops Magazine 2024 Vol 21-3 - 23
Fixed Ops Magazine 2024 Vol 21-3 - 24
Fixed Ops Magazine 2024 Vol 21-3 - 25
Fixed Ops Magazine 2024 Vol 21-3 - 26
Fixed Ops Magazine 2024 Vol 21-3 - 27
Fixed Ops Magazine 2024 Vol 21-3 - 28
Fixed Ops Magazine 2024 Vol 21-3 - 29
Fixed Ops Magazine 2024 Vol 21-3 - 30
Fixed Ops Magazine 2024 Vol 21-3 - 31
Fixed Ops Magazine 2024 Vol 21-3 - 32
Fixed Ops Magazine 2024 Vol 21-3 - 33
Fixed Ops Magazine 2024 Vol 21-3 - 34
Fixed Ops Magazine 2024 Vol 21-3 - 35
Fixed Ops Magazine 2024 Vol 21-3 - 36
Fixed Ops Magazine 2024 Vol 21-3 - 37
Fixed Ops Magazine 2024 Vol 21-3 - 38
Fixed Ops Magazine 2024 Vol 21-3 - 39
Fixed Ops Magazine 2024 Vol 21-3 - 40
Fixed Ops Magazine 2024 Vol 21-3 - 41
Fixed Ops Magazine 2024 Vol 21-3 - 42
Fixed Ops Magazine 2024 Vol 21-3 - 43
Fixed Ops Magazine 2024 Vol 21-3 - 44
Fixed Ops Magazine 2024 Vol 21-3 - 45
Fixed Ops Magazine 2024 Vol 21-3 - 46
Fixed Ops Magazine 2024 Vol 21-3 - 47
Fixed Ops Magazine 2024 Vol 21-3 - 48
Fixed Ops Magazine 2024 Vol 21-3 - 49
Fixed Ops Magazine 2024 Vol 21-3 - 50
Fixed Ops Magazine 2024 Vol 21-3 - 51
Fixed Ops Magazine 2024 Vol 21-3 - 52
Fixed Ops Magazine 2024 Vol 21-3 - 53
Fixed Ops Magazine 2024 Vol 21-3 - 54
Fixed Ops Magazine 2024 Vol 21-3 - 55
Fixed Ops Magazine 2024 Vol 21-3 - 56
Fixed Ops Magazine 2024 Vol 21-3 - 57
Fixed Ops Magazine 2024 Vol 21-3 - 58
Fixed Ops Magazine 2024 Vol 21-3 - 59
Fixed Ops Magazine 2024 Vol 21-3 - 60
Fixed Ops Magazine 2024 Vol 21-3 - 61
Fixed Ops Magazine 2024 Vol 21-3 - 62
Fixed Ops Magazine 2024 Vol 21-3 - 63
Fixed Ops Magazine 2024 Vol 21-3 - Page 64
Fixed Ops Magazine 2024 Vol 21-3 - Page 65
Fixed Ops Magazine 2024 Vol 21-3 - 66
Fixed Ops Magazine 2024 Vol 21-3 - 67
Fixed Ops Magazine 2024 Vol 21-3 - 68
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