Service and Parts

Fixed Operations hold the Key to sustainable Profitability
A dealer’s service and parts departments — referred to as fixed operations — are historically the less glamorous side of a dealership.
Enlightened and experienced dealer principals and General Managers understand the value of the fixed operations, which, on average, are responsible for at least 50% of a dealership’s gross profit. Establishing and operating finely tuned fixed operations that convert every gross margin opportunity requires adoption of best-practice systems, discipline, and an enduring commitment to delivering consistent and high-quality customer experiences.
Mach10’s expert team excels at assessing a dealer’s fixed operations with the objective of improving the customer experience and maximizing profitability. We can help elevate a dealer’s performance through a variety of initiatives.
Parts Inventory Management
We analyze the parts inventory and turnover to identify “dead” parts that tie up capital, unnecessarily. Are there parts that are not adequately stocked creating bottlenecks in repairs, impairing productivity? Does the dealer benefit from wholesaling parts at the highest level of margin possible? How are parts being managed and dispatched internally when a technician needs them for a repair? There are a sample of the many questions our team asks to drive efficiency.
Margin Erosion
General Managers and Service Directors should assess the true cost for their departments and dealerships when offering discounts or free labor as that will erode margins directly impacting net profit. Are discounts offered at the discretion of the service advisors, or do you how a policy in place that governs that?
Compensation Plans influence Behavior
Technology-based Tools can increase Service Work Volume
Our team can help analyze productivity and create customized plans on how to introduce cutting-edge technology solutions such as texting and the use of video has proven to increase service throughput and customer experience.
Commitment to Training & Development
Prioritize staff training. Every team member interacting with customers should adeptly represent your dealership and uphold brand standards—they are ambassadors. Consistently train and develop service staff to enhance technical skills, customer service, and efficiency. Well-trained technicians complete jobs faster and more accurately, boosting service bay turnover and customer satisfaction.
Having managed and operated leading brands’ service and parts operations, our subject matter expert team members have the experience and expertise to objectively analyze any fixed operations and identify opportunities for improvement. They know intimately how important the fixed operations contribution is and how its performance contributes to the success of the business.
