Don Tipton - DealersEdge
Don Tipton - DealersEdge Don Tipton - DealersEdge
Take a look at how your department is currently structured ◦ Number of front line personnel versus behind the scenes personnel ◦ Ratio of 2-productive for every 1-support ◦ 1-Service Advisor for every 4-Technicians ◦ Total Service Advisor income budget < 15% of department gross profit ◦ Total personnel expense < 45% of department gross profit ◦ Plan to grow “laterally” with more front-line personnel that the customer can see & interact with don@dtcretailconsulting.com 10
Set a net profit objective ◦ Breakeven or 20% net to sales as an example ◦ Formula & Example: Average month expense – divided by total labor gross profit margin (%) less desired net to sales $125,000 / 65.9% - 20.0 (net to sales) $125,000 divided by 45.9% = $272,331 labor goal Production required to hit that objective Formula & Example: Labor sales required divided by overall effective rate $272,331 divided by $82.69 = 3,293.4 flat rate hours don@dtcretailconsulting.com 11
- Page 1 and 2: A Business Plan For Your Service De
- Page 3 and 4: Don Tipton Don is a Speaker, Traine
- Page 5 and 6: Priorities were Minimize the damag
- Page 7 and 8: The competition was paying attentio
- Page 9: Structure ◦ What it takes to get
- Page 13 and 14: Do you need more customers or can y
- Page 15 and 16: Quick Service ◦ To be competitive
- Page 17 and 18: Set a “drop-down” rate to kick
- Page 19 and 20: Within Your Data Base - determine h
- Page 21 and 22: ◦ Market that you service most ma
- Page 23 and 24: “If your customer repair order co
- Page 25 and 26: “Wishing you a safe and successfu
Set a net profit objective<br />
◦ Breakeven or 20% net to sales as an example<br />
◦ Formula & Example:<br />
Average month expense – divided by total labor gross<br />
profit margin (%) less desired net to sales<br />
$125,000 / 65.9% - 20.0 (net to sales)<br />
$125,000 divided by 45.9% = $272,331 labor goal<br />
Production required to hit that objective<br />
Formula & Example:<br />
Labor sales required divided by overall effective rate<br />
$272,331 divided by $82.69 = 3,293.4 flat rate hours<br />
don@dtcretailconsulting.com 11
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