|
Parts Department Asset Traps
The parts department should not be allowed to have
open counter tickets for any reason. I have seen a
dealership that had an open counter ticket on an
engine for an employee five months old! Aged
inventory should be monitored on a monthly basis to
determine the investment viability. No more than 10%
of inventory value should be aged over 12 months
without a sale. Take actions to discount aged
inventory instead of paying property taxes year after
year. Dirty core investment can mount up to thousands
of dollars quickly due to employees not processing
returns to the manufacturer. Special order parts are
another area that improper processes will allow
thousands in lost revenue to collect dust.
Find out more.....
|
|
| |
Greetings!
Today's dealerships must take extra care in
managing the assets of the company. This month we
will look at several areas many dealerships have
unreported losses in dealership assets. Let's see
how your dealership measures up in asset
management.
|
| |
| |
| |
| Service Department Asset Traps |
| |
The service department has many areas that need
management to protect the dealerships investments.
Open repair orders are commonly discussed with
service managers having varying excuses why so
many orders are open. A good guide to follow is that
open repair orders should not exceed 7% of the
monthly repair order count. No repair orders should
remain open longer than seven business days after
being opened. One open repair order might be
thousands of dollars of lost revenue for your
dealership. Warranty receivables are another
common area of concern for dealerships. Does your
dealership have a process in place to monitor aged
warranty receivables? Customer accounts
receivables is another area many dealerships lose
money. Your service department might be showing
wonderful results however not collecting money that is
owed them on charge accounts by your customers.
|
| |
More information.... |
| |
| Now Is The Time! |
| |
|
There is never a better time then now to invest in your
fixed operations! Fixed Performance will coach your
team to improved profits and customer satisfaction.
Your reasonable investment will take your staff to the
next level and pay dividends far into the future. You
have my word on it! Call Teresa now at 419-433-8219
to set up a free phone consultation about how we can
help you sleep better!
Learn More
|
|
| |
|
