The 12 months prior to installation C.P. Labor was averaging 1.8 @ 80.00 or $128.00 per ticket averaging around 600 CPRO's per month. After the installation the CP hours per RO increased to 2.2 @ 80.00 or $176.00 per ticket in CP Labor. This only lasted for "Two Months" after the installation and so called training they provided and went back even below the average or 1.6 @ $80.00.
The next step was to find out how long it was going to take to break even and make a profit. The following formula is what I used:
- $40,000.00 Initial Install Fee
- $7500.00 per Month User Fee X 12 months ($90,000.00)
- Look at a 12 Month Period First
- $10,833.00 Monthly Expense
- Divided by a Gross Profit Percentage of 70%
- Equals $15,476.00 in Additional C.P. Labor Sales
The other thing to remember is I want a Return on my Investment not just break even! The basic assumption that technology is the answer is really flawed! Remember that the best tools or technology will never substitute for Leadership and Management.
The Truth is if you are unable to get your Technicians to perform a "Paper Multi-Point Inspection Form" with every customer, Technology will only add to your expenses! I always ask a Dealer how well they are doing since installing "New Technology" and I get a "Don't Ask" 90% of the time and that's why your here!
That's not to say that it can really enhance a Service Operation that has Great Leadership and Management in place who believe in "Mastering the Basic Fundamentals" first before ever installing a program like this. I believe in three things that always work:
- Master The Basic Fundamentals
- The Right People for the Right Job
How well is your Multi-Point Inspection Process working? Are my customers being advised on the condition of there vehicle every time they visit?
Want more information on our Multi-Point Inspection Process?
Guy Salkeld is the President and Head Performance Coach of Automotive Consultants Group Inc. The only Low Risk High Return Training, Coaching, and Consulting company in the world! To learn more go to www.smartservicetraining.com Have a question? E-Mail Guy directly at firstname.lastname@example.org or Call me direct at: 305-331-3373 https://twitter.com/smartserviceguy