Just about each one of the 6 different brands in our auto group has a different formula to calculate service absorption. Is there ONE universally accepted formula? If so, please share.
Thanks!
Service Absorption
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Service Absorption
by partking » Thu Dec 15, 2005 7:55 pm
The way NADA does it in the twenty group books should be as close to a standard as anything is in this biz.
That's (Parts GP+ Service GP+ Body Shop GP)
divided by total dealership fixed overhead.
Fixed overhead is defined as all dealership expense EXCEPT variable selling expense for new and used car sales.
That's (Parts GP+ Service GP+ Body Shop GP)
divided by total dealership fixed overhead.
Fixed overhead is defined as all dealership expense EXCEPT variable selling expense for new and used car sales.
- partking
2 posts
• Page 1 of 1
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