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NET PROFITS
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How
much money are you leaving on the table?
This
Left On The Table calculation is designed to give you insight into
the power of consistent small improvements, and how they can roll
up into long term Net Profit Improvements for your Service Department.
A
Common Standard
Flat
Rate Hours per Customer Pay Repair Order is a commonly used indicator
by most dealerships to determine overall health of the Service Department.
While we acknowledge this as a trackable data point, we caution
that it can be subjective and potentially misleading regarding what
you really want to know - your profitability.
Are
you open to a new standard?
There
is another calculation, based on a concept that you currently use
with car sales. You already know how to calculate gross profit per
car sale, using Gross PNVR or Gross PUVR (Gross Profit Per New Vehicle
Retail or Gross Profit Per Used Vehicle Retail), and probably refer
to it as a key performance indicator with sales.
What
if you applied that same general business logic to your existing
Customer Pay Repair Orders? We've found it to be a more reliable
indicator, less fluctuating than Flat Rate Hours per CPRO. Using
the following table, we help you run the Gross Profit per Customer
Pay Repair Order calculation, applying your current numbers, for
what your profits could be after using the KEEPS process. The numbers
we use are conservative based on past results we've produced for
our clients, and even if these numbers were all we ever achieved
for you…well, you decide if it's worth a second look.
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NET PROFITS
