Benchmarks are they Valid??

Benchmarks are they Valid??

Postby bsilcox » Wed Aug 05, 2009 2:31 pm

Question Does the Community think that these Benchmarks are VALID???????

Benchmarks for your Fixed Department

1.Service Advisors should write between 12-15 ROs per day in order to maintain a high CSI
and overall customer satisfaction rating.

2.Daily Technician Productivity should remain @ 120% Domestic, 135140 % Import.

3.In the right conditions; 1 service bay per productive technician.

4.Labor gross profit should be @ 75% of sales.

5.Parts gross profit should be @ 45% of sales.

6.Sublet gross profit margin should be @ 20% of sales.

7.Service Tech to Advisor ratio should be between 4-5

8.2 Technicians for every support person in the Service Department.

9.HPRO should never be below 2.0

10.Policy Adjustments dont exceed 2% of the Total labor sales.

11.One Line repair orders do not exceed 5% of the Total repair orders.

12.Operating Profit is at least 20% of gross profit. Withour Parts Gross Transfer?


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Bob Silcox
bsilcox
 

Benchmarks are they Valid??

Postby TheOne » Wed Aug 05, 2009 3:04 pm

1. Service Advisors should write between 10 and 12 total RO's per day to maintain CSI, and more importantly strong sales.

2. Yes

3. 1.5 bays per Tech.

4. Labor gross should be 70% to 73% of sales.

5. Yes

6. Yes

7. Tech to Advisor ratio should be 4 to 1.

8. Yes

9. Yes

10 Yes

11 Yes

12 Yes

TheOne
 

Benchmarks are they Valid??

Postby KevvyG » Wed Aug 05, 2009 3:31 pm

Question: In regards to #5.

Is this for shop sales only? Or the Parts Department as a whole?? Customer pay only?

I run a pretty agressive matrix, if that's for the department as a whole, I'm missing something....

Cheers!!
KevvyG
 

Benchmarks are they Valid??

Postby AKTOYPM » Wed Aug 05, 2009 3:42 pm

Gotta be c-pay gp% on repair order sales only.
No way anybody is going to hit that on a whole.
I dont think any mfg pays that much on warranty.
AKTOYPM
 

Benchmarks are they Valid??

Postby TheOne » Wed Aug 05, 2009 6:45 pm

Customer pay on repair order only
TheOne
 

Benchmarks are they Valid??

Postby btk » Wed Aug 05, 2009 7:21 pm

1- yes,depending on your system-I would agree with that, mine they run 20 but sell no work
2-yes
3-yes to 1.5
4-yes
5-yes-cp
6-yes 10-20 %
7-yes
8-no 3-1 ????
9-yes
10-no , 2 % of gross not sales
11-yes
12-yes at least
btk
 

Benchmarks are they Valid??

Postby sp7128 » Wed Aug 05, 2009 8:03 pm

You have to make sure all business and accounting practices are the same as the benchmark numbers you are comparing to....some of these numbers won't matter but many will be affected greatly...

1) is the SM counted as a SA if he writes tickets?

2)do you close tickets or hold them open for customers to return and have repairs completed...ie diagnose and then order parts for the diagnosis w/o closing original ro

3)

4) accounting practices make huge differences here

5) same as #4

6)depends what factory and extended warranty companies allow/pay

7)once again head count has to be correct

8)same as #7

9) same as #4

10)does policy get marked up or billed at cost?

11)does your state or jursidiction have vehicle inspections req for lisense plates?

12) accounting practices can come into calculation here also...but % should be over 25%
sp7128
 

Benchmarks are they Valid??

Postby TheOne » Thu Aug 06, 2009 7:36 am

I stand corrected by btk on #10 2% of gross.

sp7128, not true on #12, but you should note the net number is after fixed allocation...
TheOne
 

Benchmarks are they Valid??

Postby sp7128 » Thu Aug 06, 2009 3:08 pm

line 12... is affected by accounting practices....depends if some of the income is put above or below "the line"..
sp7128
 

Benchmarks are they Valid??

Postby vtecmanager » Fri Aug 07, 2009 11:24 am

I would figure that line #5 is before discounts?

------------------
Parts Ninja

vtecmanager
 

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