Fixed Ops Magazine 2024 Vol 21-6 - 32

FEATURE BY JOSEPH MINNS
THE
HARD
TRUTH
ABOUT ELR
I
n today's competitive automotive service landscape,
dealerships and service centers face mounting
pressure to optimize operations, maximize revenue,
and maintain customer satisfaction. But how do
you address the critical challenges that plague service
departments while boosting profitability and streamlining
operations?
One of the most significant - and often overlooked -
challenges service departments face is understanding,
maintaining, and improving their Effective Labor Rate
(ELR). By optimizing ELR, service departments can
significantly increase profitability without sacrificing
customer satisfaction. A lesser-known fact about ELR
is that improvements directly enhance Labor Gross, as
labor costs remain fixed, meaning every improvement
flows straight to net profits.
Every Fixed Operations Manager has likely experienced
a General Manager's demand: " You have to get the gross
up! " The usual reaction? Managers try to drive more RO
traffic by sending out coupons, putting up signs, or
32
Optimize ELR to Boost Profitability Without
Sacrificing Customer Satisfaction
incentivizing advisors to sell more per RO. But often,
this approach is counterproductive, reducing the gross
profit on existing work. This is a common vicious cycle.
WHY ARE YOU LOSING ELR?
Having worked with hundreds of dealerships nationwide,
I've found that many managers struggle to

Fixed Ops Magazine 2024 Vol 21-6

Table of Contents for the Digital Edition of Fixed Ops Magazine 2024 Vol 21-6

Fixed Ops Magazine 2024 Vol 21-6 - 1
Fixed Ops Magazine 2024 Vol 21-6 - 2
Fixed Ops Magazine 2024 Vol 21-6 - 3
Fixed Ops Magazine 2024 Vol 21-6 - 4
Fixed Ops Magazine 2024 Vol 21-6 - 5
Fixed Ops Magazine 2024 Vol 21-6 - 6
Fixed Ops Magazine 2024 Vol 21-6 - 7
Fixed Ops Magazine 2024 Vol 21-6 - 8
Fixed Ops Magazine 2024 Vol 21-6 - 9
Fixed Ops Magazine 2024 Vol 21-6 - 10
Fixed Ops Magazine 2024 Vol 21-6 - 11
Fixed Ops Magazine 2024 Vol 21-6 - 12
Fixed Ops Magazine 2024 Vol 21-6 - 13
Fixed Ops Magazine 2024 Vol 21-6 - 14
Fixed Ops Magazine 2024 Vol 21-6 - 15
Fixed Ops Magazine 2024 Vol 21-6 - 16
Fixed Ops Magazine 2024 Vol 21-6 - 17
Fixed Ops Magazine 2024 Vol 21-6 - 18
Fixed Ops Magazine 2024 Vol 21-6 - 19
Fixed Ops Magazine 2024 Vol 21-6 - 20
Fixed Ops Magazine 2024 Vol 21-6 - 21
Fixed Ops Magazine 2024 Vol 21-6 - 22
Fixed Ops Magazine 2024 Vol 21-6 - 23
Fixed Ops Magazine 2024 Vol 21-6 - 24
Fixed Ops Magazine 2024 Vol 21-6 - 25
Fixed Ops Magazine 2024 Vol 21-6 - 26
Fixed Ops Magazine 2024 Vol 21-6 - 27
Fixed Ops Magazine 2024 Vol 21-6 - 28
Fixed Ops Magazine 2024 Vol 21-6 - 29
Fixed Ops Magazine 2024 Vol 21-6 - 30
Fixed Ops Magazine 2024 Vol 21-6 - 31
Fixed Ops Magazine 2024 Vol 21-6 - 32
Fixed Ops Magazine 2024 Vol 21-6 - 33
Fixed Ops Magazine 2024 Vol 21-6 - 34
Fixed Ops Magazine 2024 Vol 21-6 - 35
Fixed Ops Magazine 2024 Vol 21-6 - 36
Fixed Ops Magazine 2024 Vol 21-6 - 37
Fixed Ops Magazine 2024 Vol 21-6 - 38
Fixed Ops Magazine 2024 Vol 21-6 - 39
Fixed Ops Magazine 2024 Vol 21-6 - 40
Fixed Ops Magazine 2024 Vol 21-6 - 41
Fixed Ops Magazine 2024 Vol 21-6 - 42
Fixed Ops Magazine 2024 Vol 21-6 - 43
Fixed Ops Magazine 2024 Vol 21-6 - 44
Fixed Ops Magazine 2024 Vol 21-6 - 45
Fixed Ops Magazine 2024 Vol 21-6 - 46
Fixed Ops Magazine 2024 Vol 21-6 - 47
Fixed Ops Magazine 2024 Vol 21-6 - 48
Fixed Ops Magazine 2024 Vol 21-6 - 49
Fixed Ops Magazine 2024 Vol 21-6 - 50
Fixed Ops Magazine 2024 Vol 21-6 - 51
Fixed Ops Magazine 2024 Vol 21-6 - 52
Fixed Ops Magazine 2024 Vol 21-6 - 53
Fixed Ops Magazine 2024 Vol 21-6 - 54
Fixed Ops Magazine 2024 Vol 21-6 - 55
Fixed Ops Magazine 2024 Vol 21-6 - 56
Fixed Ops Magazine 2024 Vol 21-6 - 57
Fixed Ops Magazine 2024 Vol 21-6 - 58
Fixed Ops Magazine 2024 Vol 21-6 - 59
Fixed Ops Magazine 2024 Vol 21-6 - 60
Fixed Ops Magazine 2024 Vol 21-6 - 61
Fixed Ops Magazine 2024 Vol 21-6 - 62
Fixed Ops Magazine 2024 Vol 21-6 - 63
Fixed Ops Magazine 2024 Vol 21-6 - 64
Fixed Ops Magazine 2024 Vol 21-6 - 65
Fixed Ops Magazine 2024 Vol 21-6 - 66
Fixed Ops Magazine 2024 Vol 21-6 - 67
Fixed Ops Magazine 2024 Vol 21-6 - 68
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https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2023-vol20-01
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http://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2021-vol18-05
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/Vol18No05
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2021-vol18-04
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2021-vol18-03
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2021-vol18-02
https://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/fixed-ops-magazine-2021-vol18-01
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http://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/Vol17No4/
http://magazine.fixedopsmag.com/prismautomotive/FixedOpsMagazine/Vol17No3/
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