Fixed Ops Journal - June 2020 - F6

SERVICE COUNTER
Total parts and service sales in U.S. dealerships reached $120.73 billion last year, up 3.6% from 2018, thanks to
311.6 million repair orders. Here are some other fixed ops figures for 2019 from the annual NADA Data financial profile.

 Parts and labor

 Shop portrait

Dealerships' parts sales,
in $ billions
Wholesale ........................$19.6
Customer mechanical .......$18.6
Warranty ..........................$12.9
Internal .............................$6.4
Customer body ..................$3.8
Counter .............................$3.2
Other ................................$7.1
Total ...............................$71.7
Dealerships' service labor sales,
in $ billions
Customer mechanical .......$20.9
Warranty ..........................$10.8
Internal .............................$8.8
Customer body ...................$4.2
Sublet ...............................$3.9
Other ................................$4.7
Total ...............................$53.2

 Counting
the fixes

Repair orders by type, in millions
Customer mechanical ..........123
Warranty claim ...................68.6
Internal .............................53.3
Express service ..................43.5

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JUNE 2020

Average dealership parts and service performance
Sales ............................................................................$7.2 million
Net profit as a percentage of sales ..........................................16.9%
Gross profit as percentage of sales .........................................46.3%
Number of repair orders written .............................................18,676
Sales per customer repair order ...............................................$312
Sales per warranty repair order .................................................$344
Number of technicians (including body shop) .................................16
Customer mechanical labor rate ...............................................$124
Total parts inventory ........................................................$440,073

 A decline in delays
 Express
plateau

The growth in express
service operations has
leveled off. Percentage of
dealerships with the
feature:
2012 .......................35.2%
2013 .......................36.5%
2014 ..........................40%
2015 .......................42.3%
2016 .......................43.3%
2017 .......................50.1%
2018 .......................49.8%
2019 .......................50.4%

The number of consumers who say they are delaying getting their
vehicle serviced or repaired because of concerns about the
coronavirus continued to fall from a high of 40% in early April,
according to the latest Cox Automotive COVID-19 Consumer Impact
Study. Of those consumers surveyed May 15-16, only 28% said
they were delaying service - a drop of 4 percentage points from
2 weeks earlier. Here's the percentage of respondents who said
specific steps by a dealership would make them more comfortable
with an appointment:
Vehicle being sanitized and disinfected .................................64%
Curbside drop-off/pickup at the dealership ............................45
At-home pickup/delivery for manufacturer recalls ...................38
Special service hours for older/vulnerable customers ............32
Technician sends before/after photos of work ...................... 28
Technician completes work at customer's home ..................27
Fixed Ops Journal - June 2020

Table of Contents for the Digital Edition of Fixed Ops Journal - June 2020
