Service Department

We enable our clients to reduce costs, improve performance, and boost operational efficiency! Let’s mention a few departmental issues here:

Profitability – This could be your most robust department for profitability. In many industries and with many dealerships, we see dealers able to achieve 65% gross profits and holding expenses in control to actually drive 30% or more to the bottom line as net profit.

Productivity – If you pay for 2,080 hours a year from a technician/mechanic, how many of those hours are billable? We generally work to achieve 85% billable time from each technician. Sometimes the issue is how much you track their time and billing. We have created many procedures and reports to work on driving productivity higher in the distributorship.

Billing Multiple and Productivity – The relationship between the average technician wage and the effective billing rate is called the “Billing Multiple.” Achieving a 3.5 to 4.5 billing multiple puts you on track to more robust profitability. When you factor that with steady productivity, you get substantial gross profit in your department.

Vehicle Recovery – When you can create a regular process of billing your service vehicles’ expense, you can get recovery 100% of your costs. Therefore, when those costs are not stealing your gross profit, that profit goes directly to the bottom line.

Travel Time – Your billing procedures for travel time will improve your productivity and your profits. Consider talking to us about what you could be getting from that time you are already paying for.

These are some of the subjects we could be helping you with, in your service department.

Contacting Us: If you would like to discuss how we can help, we will be pleased to talk to you, please call the number below, send us an email at george@wisewolfconsulting.com or use our Contact Form.