Average labor hours per RO

[lovemotors]

I am interested to know what the average hours per RO that other dealerships are selling. Please respond with your stores average and if you can tha average dollars per RO.
Thanks everyone

[KEVIN]

1.7 hrs per R.O. average on customer pay.

[jnewlin]

I have two service consultants, last year they averaged 2.3 hours per ro including lof's. So far this year we are average 2.6 hours per ro. (Customer pay)

[robc]

There seems to have been some renewed interest in average hours per R.O. lately. According to NADA statistics for 1998 (1999's numbers aren't out yet) we know the following:

• the average customer paid RO was $174.
• the average CP mech. rate was $55
  
• 55% of a CP ticket is labor
  

From that we can pretty much know 1.75 hours is a close national average.

As a side, personally, I don't think hours per RO is a good statistic to use a primary measurement of comparing one store to the next. But maybe that's the subject for another topic.



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** Rob, Editor WD&S **
Help is only a message post away!
robc@dealersedge.com

[Misky]

We are just starting to track this. Our goal is 2.0 per c/p order. Our goal is to have an effective labor rate of $58.15. We are approx at 1.6 with an effective labor rate of $58.03.
Is this a factor in your consultants pay ?

[lovemotors]

No it's not a factor in the advisor's pay however it is a tracking tool and great for following trend's. It's a good indicator of how proactive the advisor's are.

[Doug]

Are we all comparing "apples to apples" here?
(see my recent new topic on "menu/coupon" pricing)

My current average is about 1.6 hours/ro. But we take all discounts "off the top."
If we charged full retail on labor but charged off the discount to an expense account (advertsing, usually) we would easily be over 2.0 hours/ro !

I would suggest that anyone answering to this topic also include their method of handling discounts !

[rkarlesky]

we are a sizeable metro dealer we average 2.5 h/ro overall

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[LRobinett]

our advisors are averaging 3.0 hrs per ro, cp. we have four advisors who run their own group of 5 techs. We also have one service advisor assistant who handles the quicklube area.