IDS Recap: Tracking the Right Service Efficiency Metrics – RVBusiness – Breaking RV Industry News
EDITOR’S NOTE: The following is an excerpt of a blog post by IDS recapping its April Dealership Insights Forum, which was titled “Are You Tracking the Right Service Metrics?”. Click here to read the full recap.
Your dealership’s fixed operations are essential for sustaining steady revenue and growth, especially during economic downturns. But are you measuring the right service success metrics?
At the April Dealership Insights Forum, dealers gathered to discuss which fixed ops success metrics every dealership should be tracking, how you can incentivize your team, how you can drive more revenue from unclaimed warranties, and more.
The discussion was led by Don Miller, Senior Data Innovation Manager at IDS, Kevin Gribble, former fixed ops manager at Lazydays RV, and Steven Shackleford, Service Director at The Great Outdoors RV.
Here are the highlights from their discussion:
Seasonal Trends in Service Volume
Don Miller kicked off the discussion with a look at national averages for service volume, labor hours per work order, and revenue trends, using IDS’ industry reports.
Don Miller: “Looking back over the last 6–7 years, historically, shows that service can be very seasonal.”
Volume by Season:
- Winter (Jan, Feb, Dec): <20% of annual volume.
- Summer/Fall: ~28–29% each.
- Spring: ~26%.
- October is the peak service volume month, followed by May and June.
Labor Hours per Work Order
- Average billed hours per work order have remained fairly stable over 6–7 years, at ~4 hours.
- Winter months (December, January and February) show higher average hours, possibly due to larger off-season work orders done during that time.
Revenue Trends
One area that has changed considerably over the last several years is dollars per work order.
- Dollars per work order increased from ~$800 in 2018–2019 to $1,064 recently.
- Again, the winter months have some of the highest dollars per work order, likely due to bigger repair jobs.
Don encouraged dealers to track these trends over time, as these insights can be crucial for planning.
