60% of Your Profit Depends on Your Performance Here
While Variable Operations is widely known for being the basis of a dealership’s operation, Fixed Ops produces more than 60 percent of a dealership’s net profit. This department is the key to customer retention and provides a dealer’s most significant potential for growth. Because customers have so many options for auto service, improving the service lane is a critical element in any successful business plan, and you must use innovative tools and techniques to get customers coming in and coming back. Women make the decisions in most automotive purchase decisions, including maintenance and repair, so they are especially important to your service strategy.
Build your winning service department with these Women’s Retail Network resources:
Annual face-to-face meeting and quarterly WebEx training sessions on a variety of Variable & Fixed Ops topics deliver immediate benefits, such as:
- Profit Opportunities of Service Leads — a business imperative that can drive high customer retention and revenue.
- Inventory Balancing – a competitive asset that keeps dealers current on their sales performance and product availability against other dealers in a selected area.
- Check out meeting dates and watch for e-mail notices and signup information.
- Join the WRN Fixed Ops Network — contact Nicole Mitchell: email@example.com for more information. The WRN Variable & Fixed Ops Network is developing tools to exploit every opportunity to drive customer satisfaction at the dealership. And we’re extending a special invitation to every female working at a General Motors dealerships both in and out of the Women’s Retail Network to come join us. You are guaranteed to develop meaningful relationships with other women working in automotive retail that will help in with your business knowledge and professional development.
The WRN is the only organization to develop a support system exclusively for women in automotive retail service positions. Our goal is to increase the number of women in all aspects of service (and sales) as well as help service professionals run more profitable operations.
Why is Fixed Ops so important to us?
Sales and the Other Sales
A dealership’s service department is often called both the “backend” and the “backbone” of the business. While Fixed and Variable Operations are located under the same roof, they are often viewed as worlds apart. NADA management instructor Bob Atwood urges owners to stop thinking of their dealerships as divided into a “sales department” and a “service department.” Atwood says the more accurate terms are a “sales department” (Variable Ops) and “another sales department” (Fixed Ops). Here’s why:
While Fixed Operations account for 12 percent of a dealership’s total revenue, it produces more than 60 percent of the business’ net profit
Dealerships typically gross 5 percent on new cars, 12 percent on used cars, 38 percent on parts and 70 percent in the service department