Here are five proven strategies to capture that missed revenue and maximize your Fixed Ops performance: 1. ASSESS THE CURRENT SITUATION OF PROFIT LEAKAGE Evaluate Customer Pay (CP) Start by analyzing CP and warranty repair orders to uncover revenue opportunities in warranty labor rates, parts markups and your CP Effective Labor Rate (ELR). Review repair orders from the last 30-90 days to ensure your warranty labor rate aligns with authorized state requirements. Improving documentation and consistent implementation can raise your authorized rate and boost revenue. Address Op-Code Utilization and Compliance Review your op code utilization, CP pricing compliance and CP repair ELR. A lack of pricing compliance is one of the biggest causes of profit loss. Set correct prices, enforce compliance and regularly review op-code usage to prevent price erosion. Well-managed op codes also improve efficiency, allowing advisors to quickly access service history and identify needed maintenance, creating more revenue opportunities. 2. UNDERSTAND THE DOWNFALLS OF YOUR DMS Your Dealer Management System (DMS) should unify operations — but many don’t. Poor DMS integration can lead to miscommunication between departments and gaps in pricing accuracy, pay types or labor-hour tracking. CATA UP TO SPEED 18
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