Shop proficiency is a measure of how effectively the shop is utilizing the pool of labor hours available. This can be thought of as looking at the time a technician spends waiting to begin work and what is causing the wait time. Improving shop proficiency can be viewed as an increase in capacity and thus […]
Efficiency increases can be viewed as either a reduction in cost or an increase in capacity. When viewed as an increase in capacity the result is that more labor hours are available for sale. From this perspective for every 1,000 hours of labor a 1% increase in efficiency equates to 10 additional hours of labor
The percentage of existing customers that purchased services during a period is the measurement of retained customers. This performance indicator is a measurement of how well the shop is doing at keeping customers. Many factors can contribute to customer retention but most factors are relationship oriented and a lot have to do with communication. Developing
Measuring the percentage of recommendations that become sold services is an important measure of sales success. The sales of recommended services that are generated as a result of inspections or diagnoses can be a significant portion of overall revenue. Thus a small increase in the recommendation capture rate can equate to an impactful sales increase.
An existing customer may ask for pricing on a service for different reasons. It may be that they want to determine if the service is affordable. Or it may be that they’re comparison shopping. In this scenario the loss of the quote may equate to a lost customer. When providing a quote for an existing
The customer acquisition rate is a measure of the rate at which new customers are added. The rate is determined by taking the number of customers at a given starting date and taking a count of the new customers added over a period of time (usually a year). The ratio of new customers added versus
Increasing the new business quote capture rate can have a huge impact on growth and profits as each quote that turns into a repair order results in a new customer being acquired. Qualification of prospects to eliminate wasted time will improve the acquisition rate without adding new customers but the time saved can be used
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