DealersEdge Professional Forums

What formula does GM use for Service Retention?

I am not sure about GM but NADA says that your owner base is annual new units sold x 5 years. This would represent most of your potential repeat service business. Then they say that these vehicles need 11-12 hours of labor per vehicle per year including warranty repairs. So by that you multiply your owner base x 12 hours x your hourly rate to to determin your annual service potential. Hope this helps.