Client Results — TractionOps Fixed Ops Consulting

Representative Engagement · Mid-Size Dealer Group

How a 12-Bay Service Department Added $85K/Month Without Adding Staff

Based on our experience with dealerships of this size: a franchise dealer with 12 bays, 9 technicians, and monthly service revenue around $210K. ELR was $94. Hours per RO sat at 1.38. The service manager had been there four years and knew the numbers were off — but couldn't see where the leak was.

Phase 1 — Challenge

The department was busy but not profitable.

Technicians were clocked in 8-9 hours a day. The schedule showed appointments booked 5 days out. Revenue looked acceptable until you ran it against capacity: 9 technicians at 8 hours each is 72 available hours a day. Actual billed labor hours were 38. That's 47% utilization.

The advisors weren't upselling because the inspection process didn't give them anything to sell from. Parts delays were creating idle time that nobody was tracking. And the labor rate matrix hadn't been updated in 3 years — they were charging 2022 prices on 2026 work.

ELR at $94 against a market rate closer to $135
Billed hours running 1.38 per RO — industry average is 1.8, top performers hit 2.5+
No parts staging process: technicians averaging 6 counter trips per day
Multi-point inspection form hadn't changed since 2019; advisors skipping most items
No customer follow-up system — 34% first-visit return rate

Phase 2 — Approach

We mapped the real workflow before recommending anything.

The first two weeks are always the same: we don't recommend, we observe. We ride along with advisors, watch the dispatch board, time the parts counter, and talk to the technicians. That's where the real bottlenecks are — not in the reports.

What we found here:

Dispatch was assigning jobs by whoever was closest, not by skill match or current workload — high-skill technicians were doing oil changes while entry-level techs were stuck on jobs they needed help with
The parts manager was placing stock orders weekly based on what ran out, not on repair history data — resulting in chronic shortages on the top 20 repair types
Service advisors had no scripted presentation for deferred service items — they were improvising, which meant low presentation rates and lower acceptance rates
The labor rate schedule used a flat $94 rate across almost all job types — a blended rate that was losing money on complex repairs and leaving it on the table for quick services

We built a 90-day execution plan around four levers: dispatch optimization, parts process redesign, advisor training and inspection workflow, and a tiered labor rate restructure aligned to the market. No new software required. No additional headcount.

Before Engagement

After 90 Days

Effective Labor Rate $94/hr — flat rate, all jobs

Effective Labor Rate $136/hr — tiered by job complexity

Hours per Repair Order 1.38 hrs/RO

Hours per Repair Order 2.14 hrs/RO

Monthly Labor Revenue ~$210,000

Monthly Labor Revenue ~$295,000 (+$85K)

Technician Utilization 47% (38 of 72 available hours billed)

Technician Utilization 71% (51 of 72 hours billed)

First-Visit Return Rate 34%

First-Visit Return Rate 58%

Parts Counter Trips / Tech / Day 6.2 avg

Parts Counter Trips / Tech / Day 1.8 avg

How the 90 days unfolded

Weeks 1–2 — Diagnostic

On-site workflow observation, technician and advisor interviews, RO data pull for the prior 6 months. No recommendations yet — just mapping what's actually happening versus what the manager thinks is happening.

Weeks 3–4 — Labor Rate Restructure

Rebuilt the labor matrix to reflect job complexity and market rates. Implemented tiered pricing: maintenance tier at $115, standard repair at $130, complex/diagnostic at $149. Trained advisors on presenting the rate change to customers without losing the relationship.

Weeks 5–7 — Dispatch + Parts Process

Redesigned the dispatch board to match technician skill levels to job complexity. Built a parts staging process: parts ordered at write-up, staged at the bay before the vehicle enters. Eliminated counter trips for any job with a pre-scheduled appointment.

Weeks 8–10 — Inspection Workflow + Advisor Training

Rebuilt the multi-point inspection form around the department's actual top-20 deferred items. Trained advisors on a structured presentation sequence: lead with safety, follow with maintenance, close with convenience. Ran weekly role-play sessions for four weeks.

Weeks 11–13 — Retention System + Measurement

Implemented a 48-hour post-service follow-up process, a 90-day service reminder workflow, and weekly reporting for the service manager covering the metrics that actually matter: ELR, hours/RO, utilization, and first-visit return rate.

90-Day Results

$85K in additional monthly revenue. Achieved with the same staff, same bays, same customer base.

$85K

Additional revenue per month

55%

ELR improvement ($94 → $136)

71%

Technician utilization (up from 47%)

The service manager said it best: "We weren't losing because we had bad technicians or bad advisors. We were losing because nobody had ever mapped the actual workflow and fixed the gaps."

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