Fixed Absorption-I know what it is-Do You?

[bsilcox]

I know what it is, do you?
I Think 2009 is going to be a great time to kick off discussions about this TOPIC, Service Absorption? Fixed Absorption? I have had many discussions with many of my peers over the years about Service and/or Fixed Absorption? Is there a Published definition as to what it is? How, is this number figured? And what can I do with that number to drive me and my TEAM?

Other questions concerning Expense Control and any feedback?

Equipment and Vehicle Expense: Departmental do you charge day to day Operations about the line on in Fixed?

Tools and Supplies: Departmental do you charge against the amount collected from the repair orders or charge to fixed?

Service Loaners: Is the Service Dept. completely responsible for the cost? Should it be shared with the Parts Dept. or should the entire dealership help with the cost?

Policy Adjustments: How do you control your Service Policy? If a Tech breaks something do you charge them or cover the cost?

Lot Damage: How do you control Lot Damage? Do you charge the employee a portion or 100% of the cost, or do you cover the cost?

Do you still believe that the calculation of HPRO customer pay is the mark or should it be Dollars Collected per repair order??

Some of your GREAT Feedback would be appreciated.

Thanks;

Bob S


------------------
Fixed Ops Rhino



------------------
Fixed Ops Rhino