Labor Matrix
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Labor Matrix
by PARTS1 » Mon Apr 27, 2009 4:40 pm
Does anyone have a good labor matrix they use to achieve a higher effective labor rate?
- PARTS1
Labor Matrix
by Tyler Robbins » Tue Apr 28, 2009 7:51 am
To truly make a great labor matrix, following the traditional "Escalating Up" or "Bell Curve" matrix simply wont get you more than a couple of bucks and will likely discourage your Advisors.
A FRH Frequency driven matrix allows you to get all the bang for your buck.
Although each dealers Repair FRH Frequency is unique to their operation, there are a few assumptions I will make.
Chances are very good that youre most frequently used Repair FRH's are 0.5 and 0.5 multiples. By that I mean, you use 0.5, 1.0, 1.5 and 2.0 dramatically more than any other FRH's, therefore, by "matrixing" those intervals alone (obviously not the 1.0) you will DRAMATICALLY increase your ELR.
Example: Assuming a posted rate of $90 per hour, then a no-matrix half hour is $45. Adjust the 0.5 from $45 to, lets say, $49.95. This $4.95 increase shouldnt have any negative effects with respect to your competitiveness in your market, but you gain $9.90 ELR per hour every time you use this 0.5 interval. Because you use the 0.5 interval so often, you will likely keep most of that $9.90 on your overall ELR too!
If you want more details, just contact me.
Tyler Robbins
Tyler@ATi360.com
A FRH Frequency driven matrix allows you to get all the bang for your buck.
Although each dealers Repair FRH Frequency is unique to their operation, there are a few assumptions I will make.
Chances are very good that youre most frequently used Repair FRH's are 0.5 and 0.5 multiples. By that I mean, you use 0.5, 1.0, 1.5 and 2.0 dramatically more than any other FRH's, therefore, by "matrixing" those intervals alone (obviously not the 1.0) you will DRAMATICALLY increase your ELR.
Example: Assuming a posted rate of $90 per hour, then a no-matrix half hour is $45. Adjust the 0.5 from $45 to, lets say, $49.95. This $4.95 increase shouldnt have any negative effects with respect to your competitiveness in your market, but you gain $9.90 ELR per hour every time you use this 0.5 interval. Because you use the 0.5 interval so often, you will likely keep most of that $9.90 on your overall ELR too!
If you want more details, just contact me.
Tyler Robbins
Tyler@ATi360.com
- Tyler Robbins
Labor Matrix
by westover6 » Wed Apr 29, 2009 11:33 am
Darn that answer looks exactly like the one you wrote in the March Fixed Ops magazine!!!
- westover6
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