Fixed Ops Journal - May 2016 - (Page 6)

FIXED OPS JOURNAL SERVICE COUNTER Our quarterly statistical snapshot of the fixed ops world $24,314,131 Average 2015 parts and service revenue per dealership at Sam Pack Auto Group's 4 stores, the highest of any group on Automotive News' list of the top 150 dealership groups based in the U.S. Sonic's service-profit profile Tracking ROs AVERAGE U.S. DEALERSHIP Total number of repair orders written Total service, parts sales/customer r.o. Total service, parts sales/warranty r.o. 2015 2014 CHANGE 15,621 $257 $239 17,070 $255 $230 -8.5% +0.8% +3.9% Source: NADA Data Sales up; profit share shifts AVERAGE U.S. DEALERSHIP 2015 Total service and parts sales Total gross profit as a percent of service and parts sales Total net profit as a percent of service and parts sales 2014 $5,873,901 $5,594,388 46.5% 46.1% 6.2% 6.4% CHANGE +5% Same-store service and parts first-quarter revenue and gross profit at Sonic Automotive CATEGORY CHANGE GROSS FROM Q1 PROFIT 2015 IN MILLIONS REVENUE IN MILLIONS Customer pay Internal, sublet and other Warranty Wholesale parts Total $147.4 $95.8 $57.6 $45.3 $346.1 +9.5% CHANGE FROM Q1 2015 $80.4 +8.5% +11.7% $46.1 +9.2% $31.3 +2.5% $7.9 +9.1% $165.6 +9.3% +6.8% -0.6% +7.9% Source: Sonic Automotive Source: NADA Data U.S. dealerships' total service and parts sales In billions 2015 2014 Service labor sales Customer mechanical Customer body Warranty Sublet Internal Other Total service labor $16.62 $4.20 $9.65 $3.38 $7.94 $1.67 $43.47 $16.17 $4.19 $8.45 $3.23 $7.40 $1.60 $41.03 Parts sales Customer mechanical Customer body Wholesale Counter Warranty Internal Other Total parts Total service and parts ▲ ▲ $14.20 $3.42 $13.63 $2.77 $10.28 $5.24 $4.16 $53.72 $97.18 $13.79 $3.34 $13.35 $2.69 $8.69 $4.92 $3.90 $50.69 $91.73 ▲ ▲ Source: NADA Data Top 10 'check engine' repairs Here are the most common check-engine repairs performed in 2015. RANK REPAIR TOTAL AVERAGE REPAIR COST (PARTS & LABOR) 1. Replace oxygen sensor(s) $249.92 2. Replace catalytic converter $1,153.49 3. Replace ignition coil(s) and spark plugs $390.67 4. Inspect for loose fuel cap; tighten or replace $15.31 5. Replace thermostat $210.81 6. Replace ignition coil(s) $236.32 7. Replace mass air flow sensor $382.36 8. Replace spark plug wires and spark plugs $331.13 9. Replace evaporative emissions purge control valve $168.11 10. Replace evaporative emissions purge solenoid $184.66 Source: 2016 CarMD Vehicle Health Index PAGE 6 MAY 2016 % OF 2015 CHECK-ENGINE REPAIRS 2014 RANK 7.01% 6.97% 1 2 6.19% 4 3.84% 3.70% 3.69% 3 8 5 3.49% 6 3.42% 7 2.83% 14 2.27% 15

Table of Contents for the Digital Edition of Fixed Ops Journal - May 2016

Fixed Ops Journal - May 2016
Contents
Editor’s Letter
Service Counter
Legal Lane
Profit Builder
‘Grease monkey’?
Hail
Photo story
Richard Truett
High light
Service satisfaction
Certification
Tsunami
Recalls
90-second oil change
Financing fixes
Supreme Court
Tech trends
Top 50
5 Minutes With
Shop Talk
Fixed in Time

Fixed Ops Journal - May 2016