Dealer Login

Revisiting Your Fixed Operations Can Grow Dollars Per Repair Order by 60.3%

Jun 12, 2024

Last updated on Jun 17, 2024

The Client

South Texas Dealer (Virtual Consulting)

Your Fixed Operations department is like the engine that keeps everything running smoothly and profitably. It's where customer retention thrives, and revenue is generated.

Getting Fixed Operations right means having the right people, processes, and technology in place.

In a specific case, a car dealership in South Texas faced difficulties due to their limited understanding of efficient management and optimization strategies for their service drive. As a result, they had a hard time maximizing profitability and customer satisfaction. Below, we’ll see how our Fixed Ops consulting team stepped in to assist the dealer, resulting in three record gross profit months.

Enhance Your Service Drive - Talk to our Experts Today!

The Challenge

While the dealership had mastered front-end car sales, they did not have a thorough understanding of how to leverage their fixed operations to make more revenue. Specifically, they struggled with managing and optimizing their service drive, ensuring that advisors capitalized on every potential upsell opportunity and having a structured process in place for managing their service efficiently, which resulted in monthly losses.

The Solution

This dealership tapped into JM&A Group’s Fixed Ops Consulting team to develop and implement a process (through virtual consulting) to meet this dealership’s specific needs and goals. By working closely with the service drive staff and leadership through hour-long virtual sessions and follow-up meetings, this dealership's success story serves as a testament to the impact of JM&A’s Fixed Ops Consulting expertise and the value of optimizing processes.

By leveraging their people, and improving their processes, a partnership with JM&A Group allowed the dealership to overcome its challenges and become stronger and more profitable.

Enhance Your Service Drive - Talk to our Experts Today!

The Outcome

As a result, the dealership saw improvements in Customer Service Index (CSI), gross profit, net profit, and retention of high-performing fixed ops team members.

  • The dollar R/O increased from $157.09 in 2020 to $292.98 in 2023.
  • Had 3 record gross profit months in 2023
  • Effective Labor Rate has surged over $135.89

It’s clear that this dealership gained the tools that allowed them to consistently outperform and turn around a crucial revenue generating department.

New call-to-action