Parts & Service

  • Do You Know Your Carrying Costs?  (Sept. 2017) - As a retailer, you must have inventory. But do you know the costs of holding machines and parts in stock? In my experience, most farm equipment dealers don’t know the hidden costs of carrying inventory — the number can be difficult to determine and most guesses are way too low.

  • Automating the Service Department of the Future (February 2015) - Service is without a doubt the most expensive department to operate. It occupies the most space in the dealership so it has the highest occupancy costs (heat, light, power, rent/amortization, etc.); it also employs the most people, and has the highest operating costs.

  • How Technology Affects Your Parts-to-Labor Ratio (September 2014) - Do you use parts-to-labor ratio as a key benchmark in your operation? This important rule of thumb maintains that for every dollar of labor sales, your dealership should generate one dollar of parts sales. Both parts and service should be your dealership’s most profitable departments and this ratio helps drive profits in both areas..

  • Benchmark Your Service Personnel Costs (March 2011) - The single biggest personnel cost in a farm equipment dealership is in the service department. Of course, most dealerships will have more personnel in service than other departments. But if this cost is more than 20% of your service revenues, you need to closely examine it to determine if some things are out of line.

  • Parts & Service: Where the Profits Are (Feb 2010) - Productivity benchmarks for 5 critical variables - Revenue Growth, Financial Performance, Employee Productivity, Asset Turns and Customer Satisfaction.  Part of Special Issue on Parts and Service.

  • Using Service Scorecards to Improve Absorption (Oct/Nov 2009) - Examples of 5 point scorecard for Technicians.  Also for Service Manager.