Once upon a time, I worked at a Chevrolet dealership. I was surprised to learn that they made more money selling parts and service than selling cars. I thought it was the other way around, but it’s not. In the dealership world, parts and service are called fixed operations, or “Fixed Ops” for short. Fixed Ops pays all the bills, car sales (both new and used) provide the profit.
A shop would do well to do what dealerships do to generate parts and labor sales. For that reason, I subscribe to Automotive News which is the leading trade magazine for new car dealers. I just finished reading a killer article that I thought I would pass along because there are some great tips and lessons we could all apply to our respective businesses. Here’s the link to the article: