DealersEdge Professional Forums

Man I hate asking this, but I am under the gun at a new store and have brain fade!

How do I figure my effective labor rate? I know there is more than one way of doing it, and surely with the available reports in R&R I should be able to do it, however, I am feeling a bit stupid right now....

Total labor dollars divided by total labor hours.

Duh...

Thanks for kick starting my brain!

You're getting far off my real strength here. I usually do it by advisor which I believe is under the Advisor Performance screen (3611). I usually do summary by advisor, on CP work or I think if you hit enter you'll get all tickets.

For ADP (I know, not what you asked, but maybe for others) it is under the RAP (Report Service Profitability) menu. There you'll find eight service reports, including the three big ones: Gross Profit, Effective Labor Rate, and Hours per RO.


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** Rob, Editor Dealersedge/WD&S **
Help is only a message post away!
robc@dealersedge.com

It sounds like you are on a Reynolds system so use the 3606 detail screen for your effective labor rate. Check customer pay as warranty and internal rates are known. While in the 3606 detail report it will show effective labor rate by repair order. Just scan the low rates and review the repair orders that are low. Take action by adjusting poor labor operations and watch your effective rate soar.

I have a spread sheet I use that tracks , each advisor, the nubmer of menus they sell, number of oil changes, efective labor rate, parts sells, gross on everything. Every store I go into the first thing I concentrate on is effective labor rate and hours per ro. My store at this time has risen from 62.00 to 83.00 per hour and much net ahs went to the bottom line. After installing my spreadsheet - I give the advisors a copy of it and use it to keep attention on thre goals which is efective labor rate and ro average.