Today’s dealerships must be completely focused in on fixed operations performance. General Motors going on strike is just one concern of many related to new-car sales. Shrinking new-car margins are here to stay, and so is your dependence on fixed operations.
Everyone must be concerned about expenses and monitor them for results. Today’s topic gets overlooked by most. Team members adjust pricing on repair orders and parts tickets all the time. Some reasons are legitimate yet, many overrides are made for the convenience of staff. Recently I was on a dealer visit that had many overrides. Reviewing the report in detail showed one item was even discounted, below cost! After detailed conversations with everyone involved, none of them knew who performed this task. We implemented a change that price overrides on parts or labor will be reviewed daily.
Management should understand the cause of every override in parts or labor. Every team member must be aware this is an expense that will be monitored closely. Everyone involved needs to be dedicated to reducing price overrides dramatically. Overrides not only reduce gross profit, but they also reduce warranty at retail submissions to manufacturers.
People will always follow the path of least resistance. If they can easily do price overrides without anybody looking at them, count on your opportunity for improvement is dramatic. Make the path of least resistance at your dealership to be compliant with your pricing. Every other retailer does!
Rob Gehring, President
Fixed Performance Inc.
Cell: (419) 282-1351
CDK Certified -Approved Interface
Dealer Track Certified Open Track Partner
Fixed Performance complete fixed operations coaching consulting
Have you filed to receive retail pricing for warranty parts or labor yet? We have helped hundreds of dealership all over the united states improve the quality of life for its employees. We do this by using our proven processes to improve margins and at the same time take your customer pay results to new levels of profitability! When you are ready to get serious about your margins, give us a call at (419) 433-0282, Or click the video above to find out more about Margin Plus.
Bart Barna, National Sales Director
Fixed Performance Inc.
Cell: (419) 503-0508
Office: (419) 433-0282