A short YouTube clip from Chris Collins' Service Driving Revolution discussing how long repair orders (ROs) and receivables should remain open in a dealership. Speakers explain that open ROs older than about 30 days are a red flag (cars as long as months/years is incorrect), role-play a service-manager conversation about a 10-month-old RO, and note receivables (warranty/fleet) should similarly not age past ~30 days. The clip ends with Chris Collins asking viewers to subscribe and offering contact/offers information.
Chapters
Then the next two things I. I probably want to know is open Ros. That tells me a lot about what's going on. And so.
I'll just ask, you know, random. Hey, can I see an open repair order list? And then usually it's sorted by the date of the oldest one. And so.
I'm gonna say the many times I've seen Ros open over a couple years.
Which is. Which is odd. But that right there kind of tells you what's going on. And it really is a good indicator of the leadership and the manager.
Yeah.
So foreign. Let's say. Let's say that I look at the open ros. And there's one that's 10 months old. Let's just be nice. There's a couple that are 10 months old or whatever. So then I will say, like, you pretend you're the service manager, and I'm gonna pretend I'm Chris Collins.
All right.
Unless you want to flip.
No, you be Chris Collins.
Okay. So.
This. This RO from.
June of last year, Thompson, what's going on with that?
Yeah, so that is. We're waiting on.
Just say you don't know.
Yeah, so. So he went.
My favorite one there. My favorite answer there is, oh, that was the previous manager.
Oh, that's a good one, too. I wish I would have thought of that. Dang it.
That was the previous manager. Like, well, it's not going to go away.
I would have been like, thompson. Who's Thompson?
Okay, now, how. How long should our OS be open?
I feel like as long as the car's here and then it goes. So, realistically, anything over, bro?
No. I've been in dealerships where the. The cars were there two years, too.
Yeah, that's just not right. Like, at a week, it's crazy. At a week, I get nervous.
Yeah. So I don't. 30 days is kind of like. Alarm should be going off at 30 days.
Yeah.
But nothing. It's not. It's not like wine. It's not aging that every day past 30 days, the chances of us collecting all the money just go down.
Yeah, we were saying that for a while, weren't we saying, like, milk, not wine.
Yeah, milk. It's spoiled, turning into curds. Stinky milk. It's not. It's not getting better, then. It's not some rare parmesan. Yeah.
It's funny that you say that. It's definitely an indicator of how tight the ship is run. That one report, the openro report, tells you so much now.
Because I'm a glutton. For punishment. At this point, I still ask for this next thing, but I can tell by the open ros what the next thing I ask for is going to be.
Like. I know. I have a sense. It's funny how these things like, are very, you know.
Can I guess what the next thing is or do you.
Sure.
Special order parts.
No, but that's not. That would go hand in hand too. So that's a good guess.
Okay.
Receivables.
Yep.
And so I'm looking at the warranty, receivables, fleet receivables, whatever, whatever.
The receivables are bob on a handshake.
Now, in some situations, the ros are pretty clean, but the receivables are a disaster. So a manager has learned how to close things out to an account, but nobody's collecting on that account.
Yeah.
And I've. So I've seen that where there's an account of over a million dollars that will never collect ever. But the manager is really good at closing things to that at the end of the month.
Oh, that hurts.
So receivables tell you a lot too. So same sort of thing. You go to the receivables, you know, nothing should be over 30 days there. A lot of manufacturers pay warranty pretty quick.
That's gotten a lot better over the years for sure.
Thanks so much for watching this clip.
Of service driving revolution.
We're uploading new stuff every day, so make sure you subscribe and click the bell icon so you don't miss out. If you have a question you'd like us to answer on the show, call 8333-ASK SDR and we'll answer your question on the show. That's 8333 Ask SDR. For special deals on our books and training, head over to offers.chriscollinsinc.com now that's offers.chriscollinsInc.com I'm Chris Collins and I'll see you in the next video.
