Benchmarks are they Valid??

Benchmarks are they Valid??

Postby sp7128 » Fri Aug 07, 2009 12:20 pm

exactly VTEC...the GM/FOMOCO/MOPAR have totally different outlook on accouting procedures than we do.....the discounts effect the outcome of all sales and GP %...the bottom line remains the same..but we get there a different way than they do....line 2,4,5,6,9,10,12 can be or would be affected by accounting procedure.......Now if you readjusted your gross and sales numbers/discounts to the same formulas the Benchmarks were calculated with, you would have valid numbers to compare. (You have to compare apples to apples and oranges to oranges before you can compare yourself to guidelines or benchmarks or standards.)
sp7128
 

Benchmarks are they Valid??

Postby TheOne » Fri Aug 07, 2009 3:22 pm

If the benchmarks everyone here is refering to are those published by NADA, then they benchmarks are completely valid if your accounting department adheres to the accounting system provided by the manufacturer. In the case of Chrysler this would be the Dealer Uniform Accounting System, commonly refered to as the DUAS manual.

Now I am fully aware that there are many entrenched office managers who think they no everything including how each of you do your jobs improperly, and make no exception in telling the manufacturer that the "how to properly prepare a financial statement" instruction manual is all wrong.

If this is what you are refering to as "subject to accounting practices", not only do I agree with you, I feel for you and the extra effort required to do your jobs properly...
TheOne
 

Benchmarks are they Valid??

Postby KevvyG » Fri Aug 07, 2009 3:34 pm

"Now I am fully aware that there are many entrenched office managers who think they no everything including how each of you do your jobs improperly" - Hey! I have TWO of those!! lol. I strive one day to be as perfect and God-like as they are
KevvyG
 

Benchmarks are they Valid??

Postby bsilcox » Fri Aug 07, 2009 10:29 pm

Updates:
1: Advisors at 12 repair orders MAX

2: Having trouble buying into the Domestics at 120% What do you do with this business climate and Express Lube, Quick Lane, Express Service?

3: Does anybody have 1 tech per bay today?

4: With a veriable pay rate for techs we are at the 75% and higher depending on work mix?

5: Cust Paid Parts Gross is running at 44.7% but tire sales and glass sales bring it down?

6: The small amount of sublet we have we maintain 24.7%?

7: Our Ratio is 1 advisor 3.7 techs with Quick Lane?

8: Support is at 41% of Productive?

9: HPRO Cust Paid @ 1.58 with Quick Lane and 3.1 without Quick Lane any ideas as to how to get it to 2.1 or over with Quick Lane?

10: Policy Adjust .09% of Gross Profit

11: Here's the real questions? Does anybody have 5% or less in one line repair orders?? If you do please share as to how you are driving the additional SOLD lines on the Repair Order? Is 5% the new Benchmark to strive for??

12: Operating Profits at 19.8% of Gross???

Looking for IDEAS to make it BETTER?
Does anybody have any?
Thanks a Bunch for your feedback!!!

------------------
Bob Silcox
bsilcox
 

Benchmarks are they Valid??

Postby PB » Tue Aug 11, 2009 12:29 pm

I agree with everything except your service policy expense. I think a lot of stores have the parts and advisors pay with policy deducted. I want my people to take care of the customers first, and not to base it on there loss of pay. Always try to include management if your decision, but take care of the customer first.
PB
 

Benchmarks are they Valid??

Postby GENE WHITE » Wed Aug 12, 2009 10:21 am

LEAN MANAGEMENT BENCHMARKS FOR YOUR SERVICE DEPARTMENT

1. Service Advisors should write on average 21 to 25 ROs per day - DO THE MATH

2. Yes

3. 1 tp 1.5 service bays per technician - depends on Parts support.

4. Yes including LOFs.

5. This is very hard to do in a competitive market. I would give up a portion of my 45% parts profit to gain more labor sales @ 75% profit.

6. Yes.

7. 5 to 6 technicians.

8. Yes.

9. Customer pay flat rate hours. Very easy if you don't count LOFs which should be counted.

10. 5% of labor sales. No one is perfect.

11. Customer pay repair orders - 10% of total.

12. Operating profit 20% of labor sales as NET profit without Parts profit transfer.

[This message has been edited by GENE WHITE (edited 08-12-2009).]

GENE WHITE
 

Benchmarks are they Valid??

Postby TheOne » Thu Aug 13, 2009 10:24 am

Gene,
Very old school in my opinion.
TheOne
 

Benchmarks are they Valid??

Postby GENE WHITE » Fri Aug 14, 2009 10:55 am

THE ONE,

These are financially sustaniable benchmarks. Dealerships are looking for a profit from the Fixed Departments to carry them through these tough times. These benchmarks are current within the last 12 to 24 months and will not overload your overhead either financially or by head count. Lean management and its benchmarks are not old school and are not easy, but current 2009 thinking.
GENE WHITE
 

Benchmarks are they Valid??

Postby sermgreby » Fri Aug 14, 2009 1:56 pm

THE ONE

Based on four techs per group working eight hours per day at 120% productivity the advisor would need to sell 38.4 hours per day. Divide 38.4 hours by 12 repair orders that would require 3.2 hours per repair order. That is a pretty tall order considering some of those ro's will be warranty, internals and the inevitable one line LOF's.

I have been involved with two different 20 groups and seen the numbers for about 35 different dealers and never saw anybodies RO average that high.
sermgreby
 

Benchmarks are they Valid??

Postby gmservice1 » Fri Aug 14, 2009 3:50 pm

I'm with Gene on this one, I couldn't imagine my writers writing 12-15 RO's/day and making a profit. Mine average 20-30 without a hitch and have for years...
gmservice1
 

PreviousNext

Return to Service & Body Shop Managers

Who is online

Users browsing this forum: No registered users and 7 guests