6 Steps to Increase Service Department Profits

Don’t underestimate what good processes, flat rating and efficiency incentives can mean for service department revenues.

Your service department is one of the simplest and most profitable departments to run in your dealership — if you follow a program that defines expectations, supports an efficient workflow and recognizes the extra efforts of your service technicians. To start the discussion, let’s set a baseline for revenues across your dealership. I recommend that 60% of your revenues should come from wholegoods sales, with a profit margin of 15%. Parts should account for 25% of revenues, with a margin of 40% and service should account for 15% of revenues. Since the service department is also the largest customer of the parts department, it has the potential to produce more profitability per person than any other department in your dealership. READ FULL ARTICLE>>