IDS to Dealers: Road to Fixed Absorption Leads to Success – RVBusiness – Breaking RV Industry News
EDITOR’S NOTE: The following was written by Matt Richards, an account executive at IDS, which also produced the infographic below.
Having spent many years in dealership operations, I’ve learned that stability doesn’t come from unit sales alone. Fixed absorption — the ability of your service and parts departments to cover all your dealership expenses minus the cost of sales — is the real key to consistent success.
It’s not just about surviving market fluctuations. It’s about thriving despite them.
If your dealership isn’t actively working toward achieving fixed absorption, now is the time to start. It’s one of the best ways to build a resilient, recession-proof business. While fixed absorption has long been a benchmark in the auto industry, the RV industry still has a lot of ground to cover. With margins tightening, dealerships must focus on delivering exceptional service to stay competitive.
Over the years, we’ve seen how service demand rises during economic downturns, and service and parts margins are far more stable than unit sales. With most dealerships already facing a year-long service backlog, there’s an untapped opportunity to generate reliable revenue. By improving customer appointment management, limiting repair events per work order, and minimizing technician downtime, your dealership can overcome these challenges and deliver exceptional service while building a more substantial, more resilient business.
This infographic outlines the steps to help your dealership achieve fixed absorption and secure long-term success. Take a look — it’s worth your time.
About the Author
Matt Richards has worked in the retail side of the RV industry for 25+ years and has done almost every job in a dealership setting. He’s owned his own dealership. He sold that dealership. He remained a partner and worked as a GM of the original location, fixed-ops director of multiple locations as they grew, and eventually chief of operations for the organization of nine locations. During that time, he leveraged IDS to run the organization, and now he’s trying to help other dealers do the same.
