Chris Collins emphasizes that understanding service-department financial statements is essential to designing the customer experience and correct pricing. Without knowing effective labor rates and the financials, shops cannot set proper prices, choose the right work mix, or afford necessary technicians/technology; a clear financial view also eliminates the need for discounting.
If we don't understand the financial statements, we don't understand how to create a customer experience. And what happens is we don't know how to price things. We don't know how to price things. So then we can have the right mix of text in the shop, because the text are an outcome of what we're charging. So if we don't have the effective labor rate, we can't afford the tech. So our work mix and how we price everything is, is at play. And then the other thing is like one of the outcomes of understanding the financial statement is discounting goes away immediately.
