Fixed Ops Magazine 2025 Vol 22-1 - 32
With fixed labor times and rates, warranty jobs can
lower your overall ELR. Efficient dealers maximize
profitability by ensuring technicians can complete
warranty repairs within the allotted time without compromising
quality. Achieving this
requires ongoing
technician training, investment in the right tools and
equipment, and streamlined processes.
By understanding these factors and implementing
strategic measures, dealerships can optimize their ELR
and enhance overall profitability.
THE HIDDEN COSTS OF
WORK-IN-PROCESS (WIP)
Work-in-Process (WIP), as I tell all my clients, is an
expense until the dealership gets paid. You've already
paid for the part, covered your technician's time, and
now you need to recover those costs along with your
profit margin. Yet, WIP is one of the most overlooked
drains on FixedOps profitability.
The costs of WIP extend beyond just waiting for the bill
to be paid. Consider how many extra unbillable days of
loaner cars were used, the parking spaces tied up by
aging vehicles, or the risk of damage to customer cars
sitting on the lot. Add to that, technicians forgetting
where they left off on a job, customers negotiating
32
" longevity discounts, " and countless other unrealized
losses that come with prolonged repair times.
My rule of thumb? One way or the other, your average
repair order begins losing gross after about five days.
Addressing these hidden costs requires efficient workflow
management, clear communication with customers,
and strategies to minimize delays and inefficiencies.
By keeping WIP under control, dealerships can protect
their profitability and enhance customer satisfaction.
REASSESSING YOUR
DISCOUNT STRATEGIES FOR
MAXIMUM PROFITABILITY
Discounting is often viewed as a necessary tool to
stay competitive, but its true impact on profitability
is often underestimated. Blanket discounting policies
such as automatic discounts for fleet customers
or service packages should be regularly reviewed to
determine their actual value. Many dealerships continue
long-standing discount programs that no longer
align with today's market conditions, unknowingly
eroding profitability.
The cumulative effect of seemingly small discounts can
be surprisingly large. A 5% discount here and a 10%
Fixed Ops Magazine 2025 Vol 22-1
Table of Contents for the Digital Edition of Fixed Ops Magazine 2025 Vol 22-1
Fixed Ops Magazine 2025 Vol 22-1 - 1
Fixed Ops Magazine 2025 Vol 22-1 - 2
Fixed Ops Magazine 2025 Vol 22-1 - 3
Fixed Ops Magazine 2025 Vol 22-1 - 4
Fixed Ops Magazine 2025 Vol 22-1 - 5
Fixed Ops Magazine 2025 Vol 22-1 - 6
Fixed Ops Magazine 2025 Vol 22-1 - 7
Fixed Ops Magazine 2025 Vol 22-1 - 8
Fixed Ops Magazine 2025 Vol 22-1 - 9
Fixed Ops Magazine 2025 Vol 22-1 - 10
Fixed Ops Magazine 2025 Vol 22-1 - 11
Fixed Ops Magazine 2025 Vol 22-1 - 12
Fixed Ops Magazine 2025 Vol 22-1 - 13
Fixed Ops Magazine 2025 Vol 22-1 - 14
Fixed Ops Magazine 2025 Vol 22-1 - 15
Fixed Ops Magazine 2025 Vol 22-1 - 16
Fixed Ops Magazine 2025 Vol 22-1 - 17
Fixed Ops Magazine 2025 Vol 22-1 - 18
Fixed Ops Magazine 2025 Vol 22-1 - 19
Fixed Ops Magazine 2025 Vol 22-1 - 20
Fixed Ops Magazine 2025 Vol 22-1 - 21
Fixed Ops Magazine 2025 Vol 22-1 - 22
Fixed Ops Magazine 2025 Vol 22-1 - 23
Fixed Ops Magazine 2025 Vol 22-1 - 24
Fixed Ops Magazine 2025 Vol 22-1 - 25
Fixed Ops Magazine 2025 Vol 22-1 - 26
Fixed Ops Magazine 2025 Vol 22-1 - 27
Fixed Ops Magazine 2025 Vol 22-1 - 28
Fixed Ops Magazine 2025 Vol 22-1 - 29
Fixed Ops Magazine 2025 Vol 22-1 - 30
Fixed Ops Magazine 2025 Vol 22-1 - 31
Fixed Ops Magazine 2025 Vol 22-1 - 32
Fixed Ops Magazine 2025 Vol 22-1 - 33
Fixed Ops Magazine 2025 Vol 22-1 - 34
Fixed Ops Magazine 2025 Vol 22-1 - 35
Fixed Ops Magazine 2025 Vol 22-1 - 36
Fixed Ops Magazine 2025 Vol 22-1 - 37
Fixed Ops Magazine 2025 Vol 22-1 - 38
Fixed Ops Magazine 2025 Vol 22-1 - 39
Fixed Ops Magazine 2025 Vol 22-1 - 40
Fixed Ops Magazine 2025 Vol 22-1 - 41
Fixed Ops Magazine 2025 Vol 22-1 - 42
Fixed Ops Magazine 2025 Vol 22-1 - 43
Fixed Ops Magazine 2025 Vol 22-1 - 44
Fixed Ops Magazine 2025 Vol 22-1 - 45
Fixed Ops Magazine 2025 Vol 22-1 - 46
Fixed Ops Magazine 2025 Vol 22-1 - 47
Fixed Ops Magazine 2025 Vol 22-1 - 48
Fixed Ops Magazine 2025 Vol 22-1 - 49
Fixed Ops Magazine 2025 Vol 22-1 - 50
Fixed Ops Magazine 2025 Vol 22-1 - 51
Fixed Ops Magazine 2025 Vol 22-1 - 52
Fixed Ops Magazine 2025 Vol 22-1 - 53
Fixed Ops Magazine 2025 Vol 22-1 - 54
Fixed Ops Magazine 2025 Vol 22-1 - 55
Fixed Ops Magazine 2025 Vol 22-1 - 56
Fixed Ops Magazine 2025 Vol 22-1 - 57
Fixed Ops Magazine 2025 Vol 22-1 - 58
Fixed Ops Magazine 2025 Vol 22-1 - 59
Fixed Ops Magazine 2025 Vol 22-1 - 60
Fixed Ops Magazine 2025 Vol 22-1 - 61
Fixed Ops Magazine 2025 Vol 22-1 - 62
Fixed Ops Magazine 2025 Vol 22-1 - 63
Fixed Ops Magazine 2025 Vol 22-1 - 64
Fixed Ops Magazine 2025 Vol 22-1 - 65
Fixed Ops Magazine 2025 Vol 22-1 - 66
Fixed Ops Magazine 2025 Vol 22-1 - 67
Fixed Ops Magazine 2025 Vol 22-1 - 68
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