Questions & Answers!!
This section may help to clarify some questions related to the type of operation of your business. It can serve to help you better understand how we proceed with our customers, better understand our resources and services, certain terms and / or specific or characteristic aspects of our industry, and to identify possible needs in your company.
05 What is the Service "absorption rate"?
The Service Absorption Rate is the ability and capacity of a Parts and Service department to cover the fixed costs of the concessionaire. It’s said that if fixed operations (parts and service) are responsible for paying all still accounts dealership, then this department absorbed 100% of the costs.
So, what would be a good number?
A 100% would be spectacular!! But depending on some economic and regional factors, 65% to 75% could be an acceptable rate.
Do you know what the rate of absorption of your parts and service operation?
Download the calculation form (XLS) attached at the right side so that
can give you an idea of what is the contribution of your service department.
These and many other benefits are what TSSPR can offer you to bring your company to maximum efficiency and performance.
Don’t wait more! What you have not achieved today only represents an excessive cost to your company. Every day that passes You lose the opportunity to win a lot money.