Urban Classification, Business Volume's Affect on Fixed Ops Shown

The Reynolds and Reynolds Co. released a new report focusing on several key fixed-operations metrics that drive decision-making at dealerships. It details both expected and unexpected data trends and provides insight into how dealerships can improve results. For the first time, Reynolds examines this data through the lens of urban classification and volume of business.

“When outcome sources become too diverse, benchmarks end up overly generic and applicable to very few actual cases,” said Jason Sideris, Reynolds vice president of Fixed Operations Product Management. “This report is a unique opportunity to provide dealers with a sharper image than the benchmark data the industry has previously supplied.

“We all know there are differences between service departments in major urban versus rural settings and between high-volume and low-volume departments. By segmenting the data, we can all compare and understand outcomes more accurately.”

Urban classification of the data is tied to the dealership’s ZIP code. To determine the classifications, Reynolds considered several factors, including:

• The U.S. Census Bureau’s metropolitan statistical areas
• A list of the most populated cities as estimated by the U.S. Census Bureau
• ZIP code population
• ZIP code population density per square mile

Each ZIP code, and by extension each dealership, is assigned one of four classifications: Major Urban, Metro, Community and Rural.

For volume, Reynolds referenced the number of customer pay repair orders a service department saw each month and assigned it a classification between 1 and 5.

• Class 1: Fewer than 300
• Class 2: 301 to 499
• Class 3: 500 to 849
• Class 4: 850 to 1,199
• Class 5: 1,200 and up

The report also examines technicians’ impact on the metrics by their use of tools designed to increase efficiency and participation in the selling process. Ultimately, the report finds that impact is significant.

The release coincides with the start of the Reynolds Retail Summit: Amplify 2024. The event is designed to be a networking and educational experience for dealerships, regardless of dealer management system provider, to examine, explore and develop best practices and innovations that push the industry forward.

A full copy of the report can be found here.