Fixed Ops Journal - August 2017 - 6

FIXED OPS JOURNAL

SERVICE COUNTER
Our statistical snapshot
of the fixed ops world

 Comparing
labor rates

 City rankings

A comparison of labor costs for
fixing problems when a vehicle's
"check engine" light comes on
shows notable differences by state.
Here are the 10 states with the
highest hourly labor costs, and the
10 with the lowest, for that work.

Highest
LABOR COSTS

1. Mississippi
2. Alabama
3. Wyoming
4. Alaska
5. Colorado
6. Oklahoma
7. Tennessee
8. Georgia
9. Idaho
10. Montana

$174.61
$171.23
$170.69
$169.45
$169.20
$168.76
$168.67
$168.56
$168.30
$167.90

Lowest
LABOR COSTS

42. Rhode Island
43. California
44. New York
45. Ohio
46. Massachusetts
47. New Hampshire
48. Wisconsin
49. Maine
50. Hawaii
51. Vermont

$159.39
$158.74
$157.51
$156.93
$156.91
$156.09
$155.56
$152.24
$148.11
$141.13

Note: The ranking included Washington, D.C.
Source: CarMD.com Corp.

PAGE 6

AUGUST 2017

A study ranked 100 U.S. markets in terms of best and worst cities to drive a car. Taken from that,
here are the top 5 and bottom 5 cities in fixed ops-related metrics.

Repair shops
per capita

Average cost of tire balancing*

1.
2.
3.
4.
5.

1.
2.
3.
4.
5.

COST

Las Vegas
Orlando
New York
Miami
Houston

96. New Orleans
97. Gilbert, Ariz.
98. Laredo, Texas
99. Irvine, Calif.
100. Boston

Portland, Ore.
Laredo, Texas
Greensboro, N.C.
San Antonio
Buffalo, N.Y.

$26.80
$30.39
$34.44
$36.22
$37.55

96. Seattle
97. Boston
98. New Orleans
99. Honolulu
100. New York

* Used as a proxy for average car-maintenance costs

$61.99
$62.45
$64.02
$65.52
$74.69
Source: WalletHub, "Best & Worst Cities to Drive In"

 Higher and higher

 Diagnosing profits

Here's how the 6 publicly traded dealership
groups' 2nd-quarter fixed ops results stack up, on
a same-store basis.

Asbury Automotive broke down its
2nd-quarter fixed ops results as follows.

Lithia
Asbury
Group 1*
AutoNation
Sonic
Penske
*-U.S. stores only

REVENUE
CHANGE

GROSS PROFIT
CHANGE

7.1%
6.2%
5.6%
3.3%
1.5%
0.2%

9.3%
5.6%
5.0%
5.1%
1.8%
1.8%

Source: Companies

GROSS PROFIT
MARGIN

49.8%
47.4%
53.8%
44.0%
48.0%
59.1%

WORK

Customer pay
Warranty work
Wholesale parts
Reconditioning and
preparation

GROSS PROFIT

CHANGE

$67.9 million
$20.4 million
$5.2 million

4.3%
23%
8.3%

$28.5 million

-1.7%

Source: Asbury Automotive Group


http://www.CarMD.com

Table of Contents for the Digital Edition of Fixed Ops Journal - August 2017

Fixed Ops Journal - August 2017
Contents
Need a lift
Tire track
Mobility devices
Times to recall
Slick trick
Fatal fire
Players club
Online parts
Lean inventory
Loyalty test
Patent pending
Open minded
Editor’s Letter
Service Counter
Legal Lane
Richard Truett
Feedback
Five Minutes With
Letters
Fixed in Time
Fixed Ops Journal - August 2017 - Intro
Fixed Ops Journal - August 2017 - Fixed Ops Journal - August 2017
Fixed Ops Journal - August 2017 - Cover2
Fixed Ops Journal - August 2017 - Contents
Fixed Ops Journal - August 2017 - Editor’s Letter
Fixed Ops Journal - August 2017 - 5
Fixed Ops Journal - August 2017 - Service Counter
Fixed Ops Journal - August 2017 - 7
Fixed Ops Journal - August 2017 - Legal Lane
Fixed Ops Journal - August 2017 - 9
Fixed Ops Journal - August 2017 - 10
Fixed Ops Journal - August 2017 - Need a lift
Fixed Ops Journal - August 2017 - Tire track
Fixed Ops Journal - August 2017 - 13
Fixed Ops Journal - August 2017 - 14
Fixed Ops Journal - August 2017 - 15
Fixed Ops Journal - August 2017 - 16
Fixed Ops Journal - August 2017 - 17
Fixed Ops Journal - August 2017 - Mobility devices
Fixed Ops Journal - August 2017 - 19
Fixed Ops Journal - August 2017 - 20
Fixed Ops Journal - August 2017 - 21
Fixed Ops Journal - August 2017 - 22
Fixed Ops Journal - August 2017 - 23
Fixed Ops Journal - August 2017 - Times to recall
Fixed Ops Journal - August 2017 - 25
Fixed Ops Journal - August 2017 - 26
Fixed Ops Journal - August 2017 - 27
Fixed Ops Journal - August 2017 - Slick trick
Fixed Ops Journal - August 2017 - 29
Fixed Ops Journal - August 2017 - Fatal fire
Fixed Ops Journal - August 2017 - Richard Truett
Fixed Ops Journal - August 2017 - Players club
Fixed Ops Journal - August 2017 - 33
Fixed Ops Journal - August 2017 - Online parts
Fixed Ops Journal - August 2017 - 35
Fixed Ops Journal - August 2017 - Lean inventory
Fixed Ops Journal - August 2017 - 37
Fixed Ops Journal - August 2017 - Loyalty test
Fixed Ops Journal - August 2017 - 39
Fixed Ops Journal - August 2017 - Patent pending
Fixed Ops Journal - August 2017 - 41
Fixed Ops Journal - August 2017 - Feedback
Fixed Ops Journal - August 2017 - Open minded
Fixed Ops Journal - August 2017 - Five Minutes With
Fixed Ops Journal - August 2017 - Letters
Fixed Ops Journal - August 2017 - Fixed in Time
Fixed Ops Journal - August 2017 - Cover3
Fixed Ops Journal - August 2017 - Cover4
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