This week, David Long and the All Things Fixed Ops community took on ELR.
The Effective Labor Rate is a critical metric in the fixed ops business. It is the average price of an hour of service labor. ELR varies on the type of service, technician skill, and task and can be instrumental in measuring a service department's effectiveness and profitability.
The conversation held tips for driven people in any department:
Utilize Effective Labor Rates to Set Goals.
Use ELR improvement as a measurement of team growth. Then, invite your people to celebrate even small victories.
Consistency is Key
Rome was not built in a day, nor is a strong Fixed Ops department. Make a plan and consistently work toward your goal. ELR helps measure the effectiveness daily, weekly, and monthly to see how a consistent push for improvement moves the needle.
Improve MultiPoint Inspections
A well-implemented multi-point inspection program can significantly increase opportunities for service advisors. Moving the effectiveness of this program by even 20% can lead to substantial improvements in revenue. Ensure your team consistently conducts thorough inspections and communicates potential issues to customers.
Utilize All Opportunities to Sell
Consistently capitalizing on opportunities can increase revenue and customer satisfaction. Train your team to recognize these moments and provide them with the tools and knowledge to make the most of each customer interaction.
Seek Feedback and Suggestions from Your Team
Your team members, especially those with diverse experience, may offer valuable insights and suggestions for improvement. Encourage open communication and listen to their ideas, as these contributions could lead to more efficient processes or new avenues for growth.