It is in this light that we must consider adding capacity to our service operations as a marketing opportunity. Adding billable technicians, expanding hours, servicing related products and instituting full-time road service have been successful strategies for many dealers. In addition, servicing mass merchant units might be useful in increasing service capacity and helping address problems with service department seasonally. In any instance, trying to increase a reliable flow of service work is an important part of a long-term strategy of increased service department contribution to dealership operations. The problem is that you cannot see, touch, feel or smell them.
Billable hours are every bit as valuable as parts in a bin or karts on the floor.
The challenge to recovering as many billable hours as possible is not unlike that faced by physicians, attorneys or CPAs. There is not doubt that billable hours are one of a dealership s most important assets. One of the unique aspects of labor hour inventory is that it has already been paid for. Wages and benefits are paid, the lights are on, and the tools are ready to be used. It stands to reason that increasing sales through improved recovery will translate directly into bottom line profits.