Chris CollinsHelping Struggling Dealerships Build Profitable, High-Performing Service Departments | Automotive Coaching Expert | CEO

High Performers Understand Profitability

2 Jun 2023 · 0 min

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0:16

Short spoken segment by Chris Collins contrasting low-performing and high-performing managers. Low-performing managers focus on RO (repair order) count, customer volume, gross and hours per RO and equate being busy with success. High-performing managers focus on profitability-related metrics: net-to-gross, effective labor rate, technician staffing, and production hours per RO; they recognize that lower volume can still be profitable.

A low performing manager would mostly probably focus on RO count. They'd be like, we need more customers, we need more customers. We need more customers. And they would be focused on maybe gross and hours per ro.
High performing manager would be focused on net to gross effective labor rate and how many techs they have in the shop, probably production hours per ro. They would equate RO count to profitability. Even though they don't understand profitability. They feel like if we're busy, we're successful. Busy, busy, busy means we're doing something. We're successful when we know that you can be slow and be very successful.