Increasing the effectiveness and profitability of fixed operations at your auto dealership is a secret weapon for your overall bottom line. While income from variable ops can fluctuate in relation to outside factors, the service department and other fixed ops opportunities are a consistent source of income, and worthy of focus and optimization.
One of the most important steps in boosting your service department's overall profit margin involves establishing the right metrics and key performance indicators. If you're carefully tracking and analyzing the right numbers, you can deliver real, meaningful improvements in the service drive. One such metric is effective labor rate (ELR).