Fine-Tuning Parts and Service Operations for Profitability
A recent commentary from Sam Abergel of Mach 10 Automotive explores strategies for fine-tuning parts and service operations to drive profitability at dealerships. In the exclusive to Auto Remarketing, Abergel notes that there are other ways to improve profitability than simply discounting service hours and the sale of parts, which can, at times, be a misguided solution.
Abergel noted that while discounting may seem like a good solution for increasing profitability, it can dig into net profit margins, negatively condition customers to expect cheaper rates for service, and lower staff morale by adding pressure on service staff to possibly rush jobs to meet discounted service goals.
Key recommendations pertain to pricing, cost management, the customer experience and more.
