“Even though service continued to be above Top Gun at $679 in revenue per vehicle sold (PVS), it is a great concern that has shown up in our daily performance tracking that we review in our weekly manager meetings,” Shenk notes.
The big drop was in customer pay labor sales, and that makes the situation even more concerning. “I think the increases we were getting caused us to relax and begin to run the service department more as a support department that administers quality, courteous, prompt service, and not as an independent sales department continually looking for more customer revenue opportunity,” Shenk says.
The Dealer Lab project is a joint effort between Dealernews and PowerHouse Dealer Services, a consulting firm run by dealer Bill Shenk. Financial information in this report is taken from the dealership’s Composite Report supplied by Shenk and is prepared as part of the dealership’s participation in the PowerHouse Dealer 20-Group. The Composite Report is produced from the store’s monthly financial report. In preparing these Dealer Lab reports, Dealernews reviews the dealership’s unaudited P&L statement and Balance Sheet and its Composite Report.
Shenk is owner of PowerHouse Dealer Services, a 20 Group provider and consulting/training company. He has worked in the industry since 1976 and purchased his first dealership in 1987.
The Dealer LAB is sponsored by Manheim.