Fixed Ops Magazine 2025 Vol 22-1 - 49
Despite all of these challenges, we now find ourselves in
a position where we can offer more high-quality visits to
every client. If you're not experiencing similar difficulties,
count your blessings and keep charging forward.
ARE YOUR FIXED OPERATIONS COVERING
75% OF YOUR DEALERSHIP'S EXPENSES?
The above question is speaking to fixed coverage. Today,
there are more discussions than ever about fixed
coverage, even at the service advisor level. It's not a bad
idea for dealership staff to understand what it takes to
be a profitable business.
It would be easy enough to explain that fixed coverage
refers to how well a dealership's fixed operations covers
the dealership's overall fixed expenses. Without going
into the specific calculations, this is an oversimplification
but gets the point across. That said, do you really
want your service advisors distracted from their primary
duties of retaining clients through stellar service?
There are many variables to consider, and opinions vary
on what fixed coverage should be. That said, NADA
recommends 75% as a benchmark for fixed absorption.
Across the nation many parts and service clubs focused
on fixed coverage, report an average of 64%. Let that
sink in. There are markets across the nation well below
75% fixed coverage. Yes, the 75% fixed coverage goal is
the most common baseline target. However, there are
many dealer teams out there at 100%, or even higher. If
you're at 85%, what are you doing to reach 95%?
The secret is the culture in your store and the ability to
stay focused on business processes that drive profitability.
Additionally, are you keeping unapplied labor at
a minimum? How often are you reviewing accounting
behaviors? Are you purchasing the latest technology
to cover gaps in basic processes? Your leadership and
decision making can have a significant impact on fixed
coverage. Your vantage point puts you in the best position
to determine what's right for your dealership based
on your market conditions.
RETENTION COMES BEFORE PROFITABILITY
Retaining a client seems like an easy task, or at least
an elementary level activity-especially with the
JANUARY FEBRUARY 2025 || FIXED OPS MAGAZINE
communication tools we have and the level of support
from manufacturers. It's no surprise when a dealer team
with low retention metrics struggles to have acceptable
fixed coverage. In fact, it's striking how closely these
two metrics are intertwined. Both play a crucial role in
assessing the overall health of a dealership.
TECHNOLOGY VS PROCESSES
Let's face it: Technology has a place in fixed operations.
However, it's important to keep in mind that the technology
we adopt must complement our core processes to
increase profitability. The newest shiny gadget doesn't
necessarily add to the bottom line. Sure, a picture or
video can be worth a thousand words, but if they can't
deposit a dollar in the bank, they're not worth a penny.
A basic menu presentation that gives your clients options
has been a tried-and-true method for decades. Whether
you use a digital menu or a laminated paper menu
sitting on the desk, the technology you implement must
increase the adoption and trust in the menu presentation,
ultimately driving more maintenance sales.
MAINTENANCE INCREASES RETENTION
As stated previously, retention comes before profitability.
Like us, our clients want to have a great experience
with the products and brands they purchase. It's easy
49
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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