Below you will see 2 graphs. One (red) represents Service, the other (blue) represents Parts. We polled 81 dealerships in the US across 23 different states, from coast to coast and port to port. The simple metric we are looking at is Volume. Repair Orders opened, and Parts Invoices opened during each of the 21 weeks of this year.

There are multiple influencing factors to what is happening in our business right now and below are a few notes we’ve taken from recent conversations with Dealerships.

 

  • Market. If you are in a Market that is full of fleet trucks working to catch up our supply chain, business has stayed steady, or even increased. If you are in a market full of vocational or local trucks, you may have been the first to feel a decline in business.

  • Chaos and Fear. Without transparency and direction from leadership, Dealerships performance can slip, leading to negative cultural impacts and decreased productivity from your team.

  • Staffing structure. In an effort to protect the of employees and customers, many Dealerships have split their employees into multiple “teams” and alternate which team works in the dealership at any one time.

  • Staffing volume. In times of uncertainty, some dealerships have chosen to decrease their headcounts in anticipation of decreasing volumes

 

For Week 21, we continue to see more leveling of volume in Service Repair Orders, with the last 6 weeks showing a steady trend with an average at 4900, which is an 18% decline in volume since the week 10 highs. Parts Volumes, while dropping 15% between weeks 9 and 16, are showing a slow but steady increase of close to 5% between week 16 and week 21.

Do you know what the trend in your Volume Indicators currently is? Which Influencing factors are you seeing and feeling within your dealership? Look at the areas of your Dealership that are seeing volume growth, and ask if you’re staffed correctly, or if there is a way to repurpose your staff to drive your business and profitability forward. Know where you’re going and communicate to your team with confidence and transparency so they can do their part to move the Dealership forward.

 

Contact KEA Advisors today, let’s have a conversation. We have the experience and resources to support you as you put together the right Business plan and sustainable ways to impact your Total Absorption even during these challenging times.

Service Volume Indicators 5/23/2020
*Due to Repair Orders that are open, Labor Sales are not fully accounted for in the most recent weeks.

Parts Volume Indicators 5/23/2020

Address. 3320 Mesa Way, Ste D Lawrence, KS 66049

Tel. 785.842.6498

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