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Fixed Performance Inc Newsletter
Understanding Your Performance July 2008

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Trend Analysis

Develop Your Action Plan


 

Trend Analysis

Many managers get bogged down in day to day operational issues and don't take the time to review their trends. If Technician hours sold is below last year's performance would you know what labor category was lower? Trends should be tracked for a minimum of 12 months of historical data on all key performance indicators. Repair order count, Technician hours sold, gross profit, effective labor rate, and average hours per repair order should all be tracked for team results. When the team performance is trending down in an area management should go into detail of the indicator in question. An example would be if the effective labor rate is down management should review repair order detail to identify poor performing labor operations. Is the dealership paying to much time to Technicians? Maybe the customer pricing is below standards. Discounting by advisors is another way dealerships lose effective labor rate. Management must identify all issues that are affecting the trend before taking any action towards correcting it.

Find out more......


Greetings!

This month we will take a look at understanding your fixed operations performance by getting into the details of the key performance indicators. Dealerships continue to rely more on fixed operations as a source of increasing revenues and we must all work harder and smarter to increase gross profits.


  • Develop Your Action Plan
  • After identifying and researching in detail in the area of concern it is time to develop your action plan that will correct it. Many people fail to initiate an action plan because they fear change. The only thing in business that is for sure is that change will always occur whether it is desired or not. Effective management understands this truth and desires to master it. Never allow yourself to say that's the way we've always done it so we can't change it. Instead challenge yourself with the question what process or procedure can be developed it would eliminate the issue? As you develop a process to correct your concern include several key employees and discuss with them openly. You will find many refinements to the new process before it is implemented in these open discussions. Be determined never to allow employees not to embrace change and talk you out of your action plan. Any process that is new must be open to adjustments after it is implemented. Management must enforce that the team will comply with the new process and not resort back to the old way. Good management always makes the path of least resistance compliance.

    More Information....
  • Past Newsletters Available on Our Web Site!
  • Soon our past newsletters will be available for viewing on our web site at www.fixedperformance.com! Be sure to check them out.

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