Active vs. Inactive vs. Lost: Definitions Matter
Dealership Parts Matrix Pricing Strategies
Dealership Parts Obsolescence 12-Month Audit
Dealership Service Response Times: Why Every Minute Costs Revenue and Retention
Fixed Ops Retention Strategy Beyond 50K Miles
Google Reviews in Fixed Ops: Turning 3-Star Stores Into 4.6+ Machines
Prepaid Maintenance Plans: Revenue Protection or Margin Erosion?
Try Pulling the Right DMS Reports
The Online Service Scheduling Impact
Why Some Service Departments Resist Video MPI
12 KPIs for Fixed Ops Directors
The Overlooked Service-to-Sales Handoff
Internal and Counter Parts Sales
Dealership Service Response Times: Why Every Minute Costs Revenue and Retention
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LinkedInIn fixed operations, speed isn’t just a customer experience metric anymore—it directly influences trust, appointment conversions, retention, and long-term profitability.
Today’s customers expect responses with the same immediacy they experience from retailers, food delivery apps, and online banking. Yet many dealership service departments still rely on overloaded advisors, manual follow-up processes, fragmented communication tools, and inconsistent ownership of customer interactions.
The result? Delayed responses become lost opportunities.
Whether it’s a missed service call, online appointment request, declined repair recommendation, recall notification, or text asking for a vehicle status update, the timing of your first response shapes how customers perceive your dealership.
And increasingly, perception becomes retention.

Dealership customers have become less tolerant of friction in service experiences. Research from Cox Automotive found customer satisfaction drops significantly as inconvenience and delays increase, with longer wait times directly affecting whether customers return for future service visits. Consumers who spent 2.5 hours or less at the dealership reported the highest satisfaction, while extended delays pushed customers toward alternative providers (Cox Automotive Inc.).
The expectation extends beyond time spent in the service lane. Customers increasingly expect:
According to CDK’s 2026 Service Shopper findings, convenience and existing relationships now outweigh price as major drivers of service loyalty. Younger generations in particular prefer digital-first interactions, with 40% of Gen Z scheduling service online instead of calling. If a dealership’s communication process doesn’t match customer expectations, independent shops often become the easier alternative.
Slow response times affect more than customer satisfaction scores. They also influence:
Each unanswered inquiry introduces friction, and friction compounds.
A customer who submits an online appointment request at 7 PM and receives no acknowledgment until the next afternoon may:
These outcomes rarely appear as a single KPI, but collectively they erode long-term profitability.
The importance of retention cannot be overstated. Research consistently shows that fixed operations drive a substantial portion of dealership profitability. NADA statistics cited by industry sources indicate that fixed ops contributes more than half of many dealerships’ gross profit.
Meanwhile, as Chris Collins discusses in a January 2026 article entitled “Fixed Ops Metrics Your Dealership Needs for 2026,” customer satisfaction and retention directly influence future service visits and eventual vehicle purchases.
The math is straightforward:
Faster responses → Better experience → Stronger trust → Higher retention → More future ROs
Service loyalty is built one interaction at a time.
Check out TVI MarketPro3 for more fixed ops expert insights.
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Dealership Information
Closing Service Approvals Faster: Texting vs. Calling
There’s a time and place for a phone call, but today's customers don't always answer. Service departments often lose time waiting for callbacks before repairs can begin, and sometimes customers ignore the call if they don’t recognize the number. The question isn't whether dealerships should stop calling customers. The real question is: Which communication channel delivers the information customers need when they need it? It’s imperative for today’s fixed ops leaders to use both texting and calling strategically. According to a 2026 Missive article, open rates for text messages exceed 90% across most industries, with a generally faster response time than waiting for a callback. Customers increasingly prefer text communication, and faster response times reduce repair delays and improve the customer experience. The Hidden Cost of Waiting for a Callback Let’s consider the cycle of phone call communications. The advisor leaves a detailed voicemail, but the vehicle often sits waiting for authorization. Even if the customer calls back promptly, there’s still a good chance they won’t be able to reach their busy service advisor. Let the annoying and inefficient game of phone tag begin. The trickle-down impact includes delays in parts ordering, technicians waiting to work, and increased repair cycle times. A recent TVI MarketPro3 article stresses the impact of dealership service response times and their impact on customer retention. The same can be true of slow customer response times. Delayed responses on either end of the line affect repair approvals, customer satisfaction, repair order (RO) throughput, and retention. Simply put, slow communication creates friction. Why Customers Are Responding to Text Messages If you think about a day in the life of a busy customer, it’s easy to see why answering a phone call isn’t always an option. Customers are working, perhaps in a meeting. They may not be near their phone when it rings, or have it on silent. Busy parents are chasing after their kids and balancing household tasks. A text allows them to review and digest information at their convenience, perhaps more easily than during a phone call. They can then follow up with a more decisive response than a call, which can leave them with more questions than answers. TVI Unotifi Automated Text Message Marketing Customers increasingly expect multiple communication channels rather than relying solely on phone calls. Unotifi specializes in giving customers multiple ways to connect with the dealership, and the platform centers on texting to bring customers into the service drive and retain them through efficient communication. Texting Doesn't Replace Trust—It Supports It Texting alone doesn't sell repairs. Personal communication still matters, especially for bringing customers back time and again. They need compassion, understanding, and connections, not just notifications. Texting is also most effective when it complements other forms of technical communication; for example, video with text creates transparency. Texts deliver information quickly, while video helps establish credibility, and the advisors are available to provide context and explanation. The Most Effective Approach Isn't Texting OR Calling There’s a time and place for each means of communication, and knowing the difference sets top-performing dealerships apart from average stores. Texting works best with: Status updatesMPI deliveryRepair approvalsParts updatesAppointment confirmations Calling still matters with: Large repair estimatesComplex repairsDeclined recommendationsUpset customersRelationship-building opportunities Technology Should Support the Conversation, Not Replace It The most successful service departments don't force customers into a single communication channel—they meet customers where they're most comfortable. Some customers prefer the convenience of a quick text, while others still want the reassurance of a personal phone conversation before making a decision. This is where solutions like Unotifi help dealerships create a more flexible customer experience. Rather than treating texting and calling as competing strategies, Unotifi allows dealerships to integrate both into a cohesive communication process. Advisors can use text messaging to deliver updates, photos, videos, and repair recommendations quickly, while still being able to pick up the phone when a situation requires additional explanation, empathy, or trust-building. The goal isn't to replace human interaction with automation. It's to remove communication barriers so advisors can spend less time chasing customers and more time helping them make informed decisions. When customers can communicate on their terms—and advisors have the tools to respond appropriately—dealerships create a more convenient, transparent, and customer-friendly service experience that drives both approvals and long-term retention. Conclusion In today's service environment, speed and convenience matter, but so does the human connection that builds trust and loyalty. The dealerships seeing the strongest results aren't choosing between texting and calling—they're using both strategically. By leveraging text messaging for quick updates and approvals while reserving phone conversations for more complex or relationship-driven interactions, service departments can reduce delays, improve the customer experience, and keep repair orders moving. The goal isn't simply better communication—it's creating a seamless experience that earns customer confidence and keeps them coming back.
Jul 13, 2026 | 4 minute read
Advisor Pay Plans That Drive Sales Without Creating Toxic Pressure
Service advisor compensation may be one of the most debated topics in fixed operations. Ask ten operators how advisors should be paid, and you’ll likely get ten different answers. Flat commission. Salary plus bonus. Gross profit. CSI. Hours per RO. Team incentives. Retention bonuses. Every pay plan is designed to motivate performance. The problem? Poorly designed compensation structures can unintentionally reward the wrong behaviors. Overselling. Burnout. Internal competition. High turnover. Damaged customer trust. In an industry already facing pressure to grow customer-pay business, compete with independents, retain talent, and improve profitability, dealerships can’t afford compensation systems that create short-term gains at the expense of long-term health. The question isn’t whether advisor pay matters. The question is: How do you build advisor compensation plans that increase performance while encouraging trust, retention, and sustainable growth? The Hidden Cost of Incentivizing the Wrong Behaviors Service advisors sit at one of the hardest intersections in a dealership. They’re expected to: Deliver excellent customer experiencesSell needed maintenance and repair workManage upset customersCoordinate with techniciansHandle warranty complexitiesMaintain CSIDrive profitability Nick Shaffer, TVI MarketPro3’s Vice President of Sales, notes in his recent interview with Bruce Daugherty, Owner and President of ADO Consulting: “Being a service advisor… is one of the most valuable and also one of the most difficult jobs in the car dealership… [they] play a huge role in the customer experience, the client retention, the store profitability… and the technician retention.” When compensation only rewards dollars sold, predictable problems emerge: Advisors focus on immediate sales over educationCustomers feel pressured instead of informedCSI suffersTrust declinesAdvisors burn outTurnover rises Bruce Daugherty puts it bluntly: “It’s the most important, hardest job in the store, and we’re trying to work people for three to five grand… No wonder you can’t get great advisors.” Underpaying advisors while expecting world-class performance creates a cycle: Stress → Turnover → Emergency Hiring → Inconsistent Customer Experience → Reduced Retention Common Advisor Pay Structures: What Works—and What Can Go Wrong There’s no universal advisor pay plan. The “right” structure depends on factors such as franchise requirements, state labor laws, manufacturer incentives, and dealership goals. However, after decades of leading high-performing service operations, Bruce Daugherty argues that how compensation is designed matters far more than simply choosing a category. Salary Only Bruce’s take: Strongly against it. “Salary only is a big no, regardless of the store, brand, franchise, location, state, or anything. I would never do only a salary.” His concern is simple: Without performance incentives, there’s little motivation to maximize customer experience, efficiency, or sales performance. As Bruce explains: “The problem with that is there's no incentives. There's no reason to… kill a bear every day…” Potential downside: Reduced motivationLimited performance differentiationDifficulty attracting high performers Salary + Commission Bruce’s take: Potentially strong—but design matters. “A salary plus commission… as a base concept is great, but then how do you design the commission is the big question.” The real issue becomes: What behaviors are being rewarded? Compensation tied only to sales volume can unintentionally encourage: OversellingDiscounting to close workShort-term thinking Bruce’s philosophy focuses on rewarding multiple performance dimensions, not just one. Flat Commission / Commission-Only Plans Bruce’s take: Requires caution—and legal awareness. State laws may require minimum salary or hourly components. For example: “In California, the average hourly component equates to almost $36,000 a year in base pay just to show up and do nothing.” His broader concern: Commission structures become problematic when incentives only reward volume. Gross Profit–Based Compensation Bruce’s take: Dangerous if used alone. He warns against pure gross-based systems: “I would not ever just say gross only or sales only, either one…” Why? Because compensation based solely on gross can create what Bruce calls “Repair order hustlers.” These advisors may: Cherry-pick lucrative repair ordersAvoid difficult customersCreate internal competitionPrioritize paycheck over consistency Bruce explains: “You can just write up a bunch of repair orders… maybe write 30–40% more than everybody else… or cherry pick the right cars, and all of a sudden, you've got a great paycheck…” The result: High production on paper, but potentially weaker culture and inconsistent customer experiences. Hours per RO Incentives Bruce’s take: Essential. Unlike gross-only systems, Bruce strongly supports hours per RO (HPRO) as one component of advisor compensation. “[You] absolutely have to pay on hours per RO, no matter what the brand, no matter where you are.” However, he recommends tiered structures, typically with three levels. Example: Tier 1: 2.6–2.8 HPROTier 2: 2.81–3.0 HPROTier 3: 3.1+ HPRO These benchmarks should vary by brand and store type. His reasoning: Hours per RO helps measure whether advisors maximize opportunities with the traffic the dealership already has. Team-Based Incentives Bruce’s take: Only for CSI. Bruce supports team incentives selectively: “The only thing I've ever agreed on with team-based incentives is around CSI.” Why? Because CSI reflects shared effort. When someone is out sick or on vacation: “…everybody else is willing to pick up the phones, answer, follow up [on] his work…” However, Bruce avoids applying team incentives to: SalesHours per ROEffective labor rateGross profit CSI-Based Bonuses Bruce’s take: Mandatory. His position is clear: “You gotta have it.” Why? “If we want happy customers to keep coming back… we have to have some way to measure.” However, CSI compensation requires careful oversight. Potential pitfalls: Survey manipulationUnfair penalties for technician issuesManufacturer scoring complexity Bruce notes: “You gotta be careful how you manage it…” He often prefers monthly measurement with leadership discretion to adjust for unusual situations. Retention / Repeat Visit Bonuses Bruce’s take: Usually redundant. Rather than paying separately for customer retention, Bruce often incorporates loyalty into CSI. “I think that kind of goes with CSI already… I just prefer the overall CSI score…” Manufacturer programs may require loyalty metrics, but his preference is simplicity where possible. Bruce Daugherty’s Preferred Advisor Pay Philosophy Rather than rewarding one metric, Bruce builds compensation around multiple controllable outcomes: Typically including: Customer-pay RO average (CPRO)Effective labor rate (ELR)Hours per RO (HPRO)CSICustomer-pay growth His goal: “You want a guy that's not discounting work… You want the best of both worlds.” And ultimately: “That’s a guy that’s selling everything, and he’s selling it for top dollar…” Not through pressure, but through consistency, customer experience, and disciplined execution. Why Some of the Best Pay Plans Reward More Than Sales Bruce describes one of the most successful compensation structures he implemented: “I finally migrated… to what I called a 50-50 pay program. Half of it was CSI, and the other half was customer-pay averages.” Notably: “I did not pay a percentage of the warranty write-up at all.” And: “What I want [advisors] to do is give the client a world-class experience, and I want them to sell the maintenance and the customer-pay work…” His philosophy? Reward advisors for: Taking care of customersSelling needed work ethically Not simply maximizing transactions. The results? “We went to 4.2 hours an RO… and then we finished first in the nation… with CSI.” His conclusion: “You want to be highly focused and take care of customers and selling work. The only two things that really matter. We built a pay program around that.” Education Sells Better Than Pressure High-performing advisors don’t simply quote prices. They educate. Bruce explains: “90% of the time, it’s advisors. 90% of the time, it’s poor communication.” Industry studies reinforce this. Effective advisor communication strongly influences customer satisfaction, loyalty, and repeat business. Training and advisor development improve both profitability and retention. Similarly, industry data shows customers increasingly trust advisors who explain repairs clearly and communicate proactively. In one large customer study, 80% of customers said their service advisor earned their trust by the end of the visit. Trust is not a soft metric. Trust drives retention. The Best Pay Plans Don’t Just Drive Revenue Dealerships face growing pressure: Customer-pay growthStaffing shortagesCompetition from independentsRising operational costsIncreasing customer expectations Compensation matters more than ever. The strongest advisor pay plans don’t merely reward sales. They create: ✔ Consistency✔ Customer trust✔ Retention✔ Sustainable performance✔ Stronger teams✔ Healthier culture Because the highest-performing advisors aren’t simply the ones who sell the most; they’re the ones customers trust enough to come back to. Check out TVI MarketPro3 for more fixed ops expert insights.
Jun 9, 2026 | 6 minute read
Idle Bay Syndrome
How to Spot It Before Payroll Eats You Alive Your Shop Isn’t Full—Even If Your Schedule Is At a glance, everything looks healthy: the schedule is booked, advisors are moving, and cars are coming in. Take a walk through the shop, though, and you’ll see it—empty bays, technicians waiting, work stalled. Your shop isn’t full—even if your schedule is. Industry experts often discuss the issue of “Idle Bay Syndrome,” and it’s one of the greatest profit killers in fixed operations. In a recent interview with Nick Shaffer, Bruce Daugherty, President of A.D.O. Consulting Group, stresses, “Every empty stall you have is roughly $30,000 to $40,000.” What Is Idle Bay Syndrome? Idle Bay Syndrome happens when you have the capacity to produce, but you’re not producing. Your bays are open with technicians clocked in, but you’re not generating billable hours. This showcases the most important distinction in your service department: busy does not mean productive. You can have a full calendar and still leave hours on the table every single day. The Hidden Causes of Idle Bays Idle bays don’t happen because of one big issue—they’re the result of breakdowns across your entire operation. Inconsistent Car Count When your car flow is unpredictable, your shop becomes reactive. One day, you’re overloaded. The next day, you’re scrambling to fill the board. This usually traces back to: Poor marketing alignmentWeak customer retentionLack of consistent outreach Without a steady pipeline, your bays will never run at full capacity. Bottlenecks in Your Process Even when cars are in the building, work doesn’t always move. Idle time in most shops isn’t a labor issue—it’s a workflow issue. Technicians get stuck waiting on: Advisor approvalsParts availabilityDispatch direction These small delays stack up fast. And every minute spent waiting is a minute not producing. Low MPI Completion Every vehicle that comes through your shop is an opportunity. But when multi-point inspections (MPIs) aren’t completed consistently—or aren’t communicated effectively—you miss work that’s already in front of you. That means: Fewer approved servicesLower hours per ROMore unused capacity You don’t always need more cars—you need to do more with the ones you already have. Inefficient Scheduling Too many service departments operate in peaks and valleys. Mornings are slammed. Afternoons slow down. Certain days are overloaded, while others are wide open. Without intentional scheduling, you create: Technician downtimeDispatch bottlenecksUneven workload distribution Consistency—not volume—is what drives productivity. A Winning Strategy Idle Bay Syndrome doesn’t start in the shop—it starts with how you generate and manage demand. With the right strategy in place, you can stabilize your workflow and eliminate the peaks and valleys that create downtime. Database segmentation ensures you’re reaching the right customers at the right time.Campaign timing helps fill slow days before they happen.Recall and reactivation efforts create predictable, consistent demand. When your inflow is controlled, your shop becomes efficient. Visit TVI MarketPro3 for more expert insights.
May 6, 2026 | 3 minute read
OEM Warranty Expiration: The Window You’re Probably Missing
Most dealerships obsess over client acquisition. Unfortunately, many fail to master retention, and very few are fully capitalizing on one of the most predictable, high-value opportunity windows in fixed operations: the 90 days before and after OEM warranty expiration. This is the moment your customer decides whether they’re staying with you—or leaving for good. Why the Warranty Expiration Moment Matters The data is clear: dealership retention is slipping, and the warranty milestone is a major inflection point. In 2025, a Cox Automotive Study found: * Only 54% of customers with vehicles 2 years old or newer returned to the selling dealership for service, down sharply from 72% just two years prior* Dealerships now handle 12% fewer service visits than in 2018, with many customers shifting to independent garages* Customers who do stay in the service lane are 74% more likely to buy their next vehicle from that dealership That last statistic is the kicker. Losing a service customer isn’t just losing maintenance revenue. It’s losing your next vehicle sale, and warranty expiration is when that loss often happens. The Behavioral Shift at Warranty Expiration During the OEM warranty period, customers are conditioned to return: * Repairs are covered (or perceived to be)* Trust is anchored in the manufacturer* Risk feels low However, the moment that warranty expires, the psychology flips: * “Now I have to pay for everything.”* “Maybe I should shop around.”* “The dealership is probably more expensive.” This is exactly when independent shops step in—and win. In fact, many customers leave dealerships specifically after their warranty ends, contributing to already low retention rates across the industry The Window Most Dealers Miss Here’s where the opportunity lives. The decision to stay or leave doesn’t happen at expiration. It happens in the months surrounding it. The Timeline That Matters 2-3 months before expiration, the customer is still * Engaged* Returning for service* Trusting your process At expiration * Uncertainty peaks* Price sensitivity increases* Competitors begin targeting aggressively 2-3 months after expiration * New habits form* If they try an independent shop once… you’ve likely lost them This is the window where retention is either secured—or permanently broken. Why Most Dealerships Lose This Moment It’s not due to a lack of data. OEMs regularly provide warranty timelines and retention reporting. The breakdown is operational: No Proactive Communication: Customers aren’t told what happens after the warranty ends, so they assume the relationship is over. No Transition Strategy: Some dealerships treat warranty and customer-pay repairs as two separate worlds—when they should be one continuous experience. No Value Reframing: When coverage disappears, value must increase. Many stores never reposition themselves beyond “we fix cars.” A Different Approach Rather than waiting for the warranty to expire, dealerships must guide the customer through the transition. Start Before Expiration Communicate early and clearly: * What’s changing* What’s not changing* Why staying with the dealership still makes sense This reduces the fear of the unknown—a big driver of defection. Reframe Value (Not Price) Customers leave because of perceived cost, not actual cost. The same Cox Automotive study shows dealership repairs can actually be less expensive than the average independent shop, yet customers still defect due to perception and communication gaps A winning strategy focuses on: * Transparency* Inspection documentation* Advisor communication Building customer trust drives retention over discounts. Use the MPI as a Retention Tool A strong multi-point inspection does more than identify work: * It shows the vehicle’s condition* It builds credibility* It creates continuity post-warranty When customers see what’s needed, they’re far less likely to shop for it. Lock in the Next Visit Retention isn’t about this visit—it’s about the next one. Be sure to: * Pre-schedule future maintenance* Set expectations for upcoming needs* Create a service roadmap beyond warranty This prevents the “I’ll figure it out later” moment… where competitors often have a leg up. The Financial Impact of Getting This Right Retention isn’t just a KPI. It’s a profit engine. * Service drives up to 49% of dealership gross profit despite a smaller share of revenue* Increasing retention by just 5% can boost profits significantly* Retained customers generate predictable revenue and lower acquisition costs And it all compounds. Every retained service customer increases: * Lifetime value* Future vehicle sales* Referral opportunities The Bottom Line The warranty expiration point isn’t just a milestone. It’s a decision point. A winning strategy is one that controls the transition from warranty to customer-pay, and if you don’t catch the out-of-warranty vehicles, someone else will. Check out TVI MarketPro3 for more expert insights.
Apr 3, 2026 | 4 minute read
Multi-Point Inspection Completion Rates
Every vehicle that enters your service lane represents more than the work written on the RO. It represents potential: safety issues, maintenance needs, and future service opportunities. Yet many dealerships fail to consistently capture that opportunity because they don’t aggressively manage one critical metric: multipoint inspection completion rate. Car count and gross get attention. Inspection discipline often doesn’t. What Multi-Point Inspection Completion Rate Actually Measures Multi-point inspection (MPI) completion rate measures the percentage of repair orders that receive a full inspection. Not a quick glance. Not a partial checklist. A documented, consistent inspection. If your shop writes 1,000 repair orders in a month and only 650 receive a completed MPI, your completion rate is 65%. That means 35% of vehicles are left without a proper inspection to identify additional needs. In fixed ops, that’s not just a process gap. It’s a revenue gap. Why MPI Completion Matters More Than Most Leaders Realize Every vehicle that enters your service drive has: Wear componentsMaintenance needsFuture service requirementsSafety considerations Without a consistent inspection process, those needs go unidentified or even undocumented altogether. The MPI is not about selling harder. It’s about identifying legitimate needs and communicating them clearly. When inspections are consistent: Advisors have documented talking points.Customers see transparency.Trust increases.Approval rates improve. When inspections are inconsistent, advisors are forced to rely on memory or guesswork. Why Most Stores Fail MPI Completion Many service departments don’t perform complete inspections on every vehicle that comes through the door, even though a robust MPI process can uncover more revenue and trust opportunities. In fact, some industry commentators note that about 80% of service departments only provide thorough inspections on some vehicles—far from the ideal of near-100% coverage. Here’s why: 1. Technician Resistance Flat-rate environments create time pressure. If inspections aren’t built into the workflow and compensation structure, technicians may see them as unpaid labor. Without leadership reinforcement, completion slips. 2. No Real-Time Accountability Many stores only review inspection performance monthly—if at all. But the completion rate should be reviewed: Daily by advisorsWeekly by techniciansMonthly by departments What gets reviewed consistently improves. What doesn’t tends to decline. 3. Weak Advisor Reinforcement Even when inspections are completed, they are not always: Properly documentedClearly presentedAccompanied by photos or video If advisors aren’t consistently presenting MPI results to customers, technicians lose motivation to complete them thoroughly. The process breaks down. The Financial Impact of Missed Inspections Let’s run conservative numbers: 1,000 ROs per month30% not inspectedAverage additional recommended work per inspected RO: $250 That’s 300 vehicles per month leaving without a documented opportunity for additional service. 300 × $250 = $75,000 in potential recommended work per month. Even if only a portion would convert, the profit potential is too substantial to ignore. And that doesn’t account for the impact on long-term retention: inspections don’t just drive revenue today. They drive future appointments. Final Thought While more cars would be helpful, they aren’t necessary to grow service revenue. Multi-point inspection completion is not glamorous. It’s not flashy. It doesn’t generate headlines. But it quietly determines how much opportunity your service department captures—or misses. Visit TVI MarketPro3 for more expert insights on fixed ops.
Mar 10, 2026 | 3 minute read
NADA Show 2026: What Fixed Ops Leaders Must Prioritize in the Year Ahead
NADA Show 2026 was packed with technology, bold claims, and the loudest buzzword in automotive right now: AI. But when you step back and listen carefully to the conversations happening between dealer leaders, OEM executives, trainers, digital strategists, and fixed operations specialists, an even clearer theme emerges: 2026 will reward precision, process, and customer experience—not just new tools. Across our interviews with industry leaders, six dominant fixed ops themes stood out. 1. Retention Is the Growth Strategy For years, fixed ops growth rode the wave of strong vehicle sales. That cushion is gone. Fewer new vehicles means fewer natural service opportunities. Every retained customer matters more. As David Willard explained, “The new cars sold in America have gone down for the last five years… so you have less at-bats. Each individual retained customer is more important to you now than ever before.” Corey Smith from EasyCare elaborated further: “Everyone’s talking about a 70% retention rate. But is that because they have to come to you… or because they want to?” That distinction matters. True retention isn’t warranty-driven. It’s relationship-driven. TVI MarketPro3’s Scott Kelford summarized the biggest retention killers simply: -Time-Price perception-Treatment Willard added that price often isn’t the real issue. “Since COVID, I don’t think independents give you a price advantage at all… It’s the perception.” Retention in 2026 isn’t about discounts. It’s about consistency, communication, and experience. 2. The 12-Year Opportunity: Aging Vehicles Are the Revenue Engine The average vehicle on the road is now nearly 12–13 years old, yet many dealerships still focus their marketing energy on 7- to 10-year-old vehicles, depending on the focus parameters of their OEM performance metrics. TVI Unotifi’s Lauren Marzella pointed out that the average age of cars on the road is higher now than at any other time in history. TVI MarketPro3’s Steve Coad shared real-world examples of targeting 7+ year-old trucks and SUVs during specific seasons—leading to differential service, brake work, suspension repairs, and strong customer pay. Across the industry, the results extend even further. Dealers are seeing 15- and 20-year-old vehicles returning for $2,000–$3,000 repairs when engaged correctly. Ketan Bhatia, Lincoln Regional Manager for Ford Motor Company, emphasized, “The biggest Rolodex is right there at the dealer’s hands… It’s their DMS.” Instead of blanket campaigns, dealers are now using: -Mileage segmentation-Recall reactivation-Declined service follow-up-Ownership verification Marzella summed it up: “Intelligent marketing isn’t one-size-fits-all… it evolves as we learn customer behavior.” The opportunity lies in how well you communicate with the customers you already have. 3. AI Is Everywhere—But It’s Not the Easy Button AI dominated this year’s NADA conversations, but the most grounded discussions were about balance. TVI Unotifi’s Michael Lopez warned, “AI definitely [shouldn’t become a crutch.” Dealers are exploring: -AI phone answering-AI text automation-AI scheduling-AI-driven marketing optimization However, without process oversight, AI won’t fix broken systems. It will automate them. Michael Waltrip, Vice President of Fixed Operations with Auto Services Unlimited, put it bluntly: “Every customer just wants someone to answer the phone.” He also acknowledged that advisors are busy, “They’ve got a guest in front of them.” AI can help fill those gaps—especially after hours—but Waltrip also offered a critical perspective: “AI is only what you put into it… There is no easy button.” The most productive AI application emerging from NADA? Freeing up BDC teams. Lopez explained, “If they’re trying to develop business, they can’t do that if they’re taking inbound phone calls all day.” AI handling overflow scheduling allows BDC agents to focus on: -Recalls-Declined services-Maintenance follow-up-Lost customer reactivation AI works when it enhances the human experience—not replaces it. 4. Digital Marketing Must Drive Revenue, Not Just Clicks Fixed ops digital marketing has historically been an afterthought. Ian Favre, Digital Marketing Director with TVI MarketPro3, challenged that model: “Fixed operations digital marketing spend is usually the afterthought from most big box agencies.” Instead of generic service ads, granular campaigns are outperforming: -Toyota transmission repair-Brake service near me-Model-specific service queries More importantly, dealers are demanding true ROI tracking. Favre says, “Impressions and clicks don’t matter if they don’t turn into money.” The shift is toward tying:Keyword → Click → Phone Call → Closed RO → Revenue Meta advertising (Facebook and Instagram) is also becoming more precise. Instead of spraying broad audiences, campaigns are built directly from DMS data—active, inactive, or lost customers—eliminating waste. In 2026, digital advertising isn’t about visibility. It’s about measurable service revenue. 5. Process and Experience Win the Retention Game If there was one consistent undercurrent in every conversation, it was process discipline. Easy Care’s National Fixed Operations Training Director, Corey Smith, emphasized, “If you don’t have a playbook in service, you’re not going to win this retention game.” He described the difference between transactional service and experience-driven service: “If they feel good at the end, no matter how much they spent, they’re going to come back.” He also introduced a powerful mindset shift: Instead of asking, “When do you want to pick it up?” Ask, “What does your day look like today?” That subtle change reframes expectations and builds trust, along with a few other built-in procedures: Scheduling pickups, walking customers to their vehicle, setting next appointments, and treating oil change customers like engine replacement customers. Smith noted, “If I’m dropping off my $50,000 baby and I don’t hear from you, I feel like you’ve forgotten about me.” Ford Motor Company’s Lincoln Regional Manager, Ketan Bhatia, echoed the same principle from an OEM luxury perspective, “The basics of any business is communication.” Whether it’s Lincoln-level pickup and delivery or a high-volume Toyota store, the core differentiator remains consistent communication and convenience. 6. Creative Thinking Will Separate Winners Tyler Parker, TVI MarketPro3 Regional Sales Manager, and Joe Castellino, Vice President of Fixed Operations at American Motors Group, highlighted something deeper: the definition of successful service departments. Castellino says it’s all in “how we’re thinking.” Every aspect of customer outreach matters: -Converting orphan customers.-Targeting underserved markets.-Leveraging mobile service.-Reactivating lapsed owners. Growth in 2026 requires a proactive strategy, not passive reliance on legacy traffic. The Big Takeaway from NADA 2026 When you combine every interview, one truth becomes clear: The future of fixed ops is not about chasing trends. It’s about executing fundamentals with precision. -Retention over reaction-Segmentation over saturation-Efficiency over hype-Revenue over vanity metrics-Process over chaos-Experience over transactions AI will evolve. Digital tools will improve. Marketing channels will shift. But dealerships that build disciplined processes, prioritize communication, and treat every customer like they have a choice—because they do—will protect and grow fixed ops profitability in 2026 and beyond. Hear more from the experts at TVI MarketPro3.com
Feb 16, 2026 | 5 minute read
Creating a Friction-Free Fixed Ops Experience
Nobody wakes up intending to lose service customers due to a poor fixed ops experience. But every day, minor process breakdowns quietly do the damage—missed calls, slow responses, unclear handoffs, disconnected systems. Not dramatic failures, just enough friction to make customers hesitate, delay, or disappear. Across fixed operations, the message from the experts is consistent: friction is where profit leaks out. It Starts Before the Car Ever Arrives Nick Shaffer, Vice President of Sales for TVI MarketPro3, doesn’t talk about friction in abstract terms. He points to where it first appears: in the data. “Show rates and appointment lead time… are really good indicators to identify what your friction points are and improve your customer satisfaction.” In other words, friction isn’t theoretical. It’s measurable. Longer lead times. Lower show rates. Cancellations that never rebook. These aren’t customer behavior problems—they’re signals that something in the process is getting in the way. And often, that “something” has nothing to do with price. When Friction Hides Inside the BDC Lauren Marzella, VP of Growth & Client Success with TVI-Unotifi, sees friction most clearly when dealerships lack visibility into how work is actually being done. “Having a software tool that allows you the ability to look at really specific KPIs is something that is invaluable.” Without that visibility, friction hides in plain sight: Calls answered too lateTexts responded to inconsistentlyAppointments set, but never shown Lauren points out that modern systems make it possible to see exactly where breakdowns occur—down to individual performance. “And we, with our Unotifi software, are able to actually look at each of the agents' productivity… what the show rate is for those appointments, and then subsequently what the dollar amounts are that are associated with those repair orders.” Friction thrives when no one can identify it. Measurement exposes it. Busy Stores Create Invisible Barriers Tyler Parker, Regional Sales Manager with TVI MarketPro3, describes a reality every service department recognizes: stores get busy, and customers feel it. That busyness becomes friction the moment a customer can’t get addressed quickly. Missed calls. Delayed callbacks. Appointments that should have been scheduled—but weren’t. That’s why Tyler consistently comes back to immediacy and a great use of AI tools: “Sometimes it’s just easier for a text-messaged AI system to be able to answer all their questions and actually push them through to get an appointment.” Speed isn’t about rushing—it’s about removing obstacles. The longer a customer waits, the easier it becomes for them to choose an alternative option. Friction Lives in the Handoffs One of the most costly forms of friction doesn’t happen in a single department—it happens between them. Marketing generates interest. BDC engages the customer. Advisors are supposed to close the loop. When those handoffs aren’t clean, customers fall into gaps that no report can fully capture because friction hides where no one is fully accountable. Remove Friction, and the Rest Follows Nick returns to fundamentals—not technology, not tactics, but how the customer is treated. “Profits rise when we protect our hours and remove friction points. So I think that you can improve the customer experience and preserve profitability if you focus on investing in either people or technology or both that are intended to remove friction points for the customer or for inefficiencies in your own internal processes.” It’s a simple recipe of consistency, speed, clarity, and follow-through. When systems support the team instead of slowing them down, customers feel it immediately. That’s not a slogan. It’s the opposite of friction. The Quiet Truth About Profit Pricing gets attention. Technology gets headlines. However, friction is what determines whether customers ever return in the first place. When friction goes down: Show rates improveResponse times shrinkAppointments stickCustomers return Remove friction, and profit follows—not because you charged more, but because you made it easier to say yes. Explore these solutions to reduce fixed ops friction.
Jan 5, 2026 | 3 minute read
Fixed Ops Marketing That Works
As dealerships head into a more competitive and operationally demanding 2026, one thing is clear: a service department’s success no longer depends on a single marketing channel or technology. It depends on balance. It depends on consistency. And more than ever, it depends on human connection supported by smart automation. To understand fixed ops marketing that works, we spoke with Steve Coad and Tyler Parker, two industry experts and Regional Sales Managers at TVI MarketPro3, whose daily work with top-performing service departments provides a unique, ground-level view of what truly drives results. Their message? High-performing fixed ops marketing strategies blend traditional outreach, digital channels, and innovative AI tools, all while maintaining the human touch. A True Multichannel Foundation: Mail + Email (Yes, Both Still Matter) For years, many dealers assumed direct mail was fading as digital options rose. Even Steve Coad once thought so, until real dealership outcomes proved otherwise. “I used to think mail was something we really didn’t need,” Steve shared. “I said to [TVI President] Will Allen that I wanted to start selling email only because mail was unimportant. He told me I was an idiot, and he was right.” He even tested an email-only strategy with a Hendrick Automotive Group store: “What I learned was that, no, we were both wrong… You have to have both to make it work.” Industry data backs this up: Direct mail has an open rate of 80-90% compared to 20-30% for email, according to the United States Postal Service.Integrated marketing campaigns that combine print and digital channels generate a 39% increase in store traffic, according to the USPS Future of Direct Mail study. In fixed ops, where customers must be reminded when and why to return, both channels reinforce each other. Email delivers convenience and immediacy; physical mail delivers authority, legitimacy, and retention-boosting reminders customers actually keep. Dealership-Driven Digital Strategy (Not “Set It and Forget It”) The market has undergone significant evolution since 2020. Digital channels aren’t optional, but they also aren’t self-driving. “We still need to have that base of core, but we also need to have digital marketing that goes along with it,” Steve explains. “And… the dealership has to be involved with it. They can’t just hire us and think they’re going to check back in… They have to talk to us regularly about it.” This is a critical shift happening across the industry: Digital ads and social outreach generate strong engagement, but their success depends on local relevance, timely communication, and consistent oversight.Stores that treat digital as “auto-pilot marketing” are susceptible to steadily declining results over time. High-performing service departments meet routinely with their marketing partners, review KPIs, adjust offers, monitor recall data, and update audiences dynamically. Digital evolves fast—and so must your strategy. Strong BDC and Human Support (AI Helps, But Can’t Replace Humans) AI has become a powerful tool in fixed ops marketing—especially for handling inbound questions, appointment coordination, and recall outreach. But both Steve and Tyler warn against fully replacing humans: Steve advises: “AI is great… but sometimes the most important thing you can do is have the person on the phone to talk to that client… to believe that [BDCs] don’t need people… is a recipe for failure.” A high-performing service lane has: AI tools to manage volume and efficiency.A real BDC or service coordinator to provide empathy, reassurance, and problem-solving. The winning strategy: AI first, humans always available. Balanced Outreach Across Old-School and New-School Channels Tyler Parker drives the point home: “You have to tap people with multiple channels… You can’t think that some of the old-school ways are dead… You can’t think that the new-school AI ways are going to do everything for you.” Customers don’t behave uniformly. Some respond to texts.Some rely on email.Some only respond to physical reminders.Some love quick digital scheduling.Some call in and want reassurance from a person. A high-performing strategy satisfies all of them—repeatedly, consistently, and through the channels they prefer. The takeaway: no single channel wins; everything wins together. A Partner Who Handles the Back-Channel Work You Can’t One of Tyler’s most important insights: “We can go in and help [dealerships] spread out those channels… Even if they have another person… or an AI thing they believe in, we can come in and do some of that back-channel stuff that gets other people.” But each service department should be working to ensure it is: Engaging lost customers.Connecting with recall-affected households.Re-engaging customers lost to independents.Utilizing trigger-based outreach (declined services, mileage bands, warranty expirations).Layering campaigns to maximize effective frequency. Dealers rarely have time to execute this level of segmentation. This is where a partner like TVI MarketPro3 can be of assistance. Final Fixed Ops Marketing Takeaway Going into 2026, the highest-performing service departments won’t be the ones that chase trends or abandon proven methods. They’ll be the ones that build a multichannel, human-powered strategy and execute it consistently. Visit TVI MarketPro3 for more insights into fixed ops marketing.
Dec 4, 2025 | 4 minute read
Game-Changing Technology for Fixed Ops in 2025
Technology continues to redefine how dealerships engage with their customers, manage communication, and increase profitability. Two industry experts—Michael Lopez, Sales Director at UNOTIFI, and Don Shaffer, Fixed Operations Specialist with TVI MarketPro3—recently shared their insights on how integrated platforms and AI-driven tools are transforming the fixed ops landscape as we wrap up 2025. From Fragmented Tools to Unified Platforms According to Michael Lopez, the most revolutionary shift isn’t just a single tool—it’s the emergence of complete platforms that unify communication, marketing, and service coordination under one metaphorical roof. “Some technologies that are proving to be real game changers within the fixed ops world at dealerships are really just complete platforms,” Lopez explained. “A platform that can manage the communications to a customer, the lifecycle marketing that can manage what the BDC is doing—who they need to reach out to, why they need to reach out to them—as well as some artificial intelligence baked in.” In the past, dealerships relied on a mix of disjointed tools—CRM systems, email marketing software, and call scheduling apps—to connect with customers. Today, the industry is seeing a shift toward all-in-one ecosystems that streamline operations and reduce friction. “We know everyone gets busy,” Lopez added. “So, are their tools baked into that one platform that have some AI that’s helping the chat with the customers, with the ultimate goal of scheduling that appointment?” These innovative systems don’t just save time—they enhance the customer experience by ensuring consistent, relevant communication at every touchpoint. AI: The Answer to Missed Calls and Missed Opportunities While unified platforms are critical, artificial intelligence is emerging as the key driver of efficiency—especially in the BDC (Business Development Center) and service lane. Don Shaffer sees AI as a vital solution to one of the most persistent challenges in fixed ops: unanswered calls and missed service appointments. “We can’t get new customers in the door if people aren’t answering [their] phones,” Shaffer said. “A lot of times in the service departments, the advisor’s role is also to answer the phone and schedule the service appointment.” For many mid-size or smaller dealerships, building a fully staffed BDC isn’t feasible. AI fills that gap by ensuring responsiveness without overburdening the service team. “When a dealership group isn’t big enough to really have a full-functioning BDC,” Shaffer continued, “they need someone that’s going to make sure that that phone is answered on the first, second, third ring at the most and be there and to be listening.” AI-powered tools—such as intelligent voice assistants and chatbots—can now handle much of the initial communication: answering common questions, routing calls, and even scheduling appointments automatically. “I think AI really has that ability to make a huge impact in the service department’s ability to answer that phone, answer questions, and really get an appointment scheduled,” Shaffer emphasized. “I really see that in 2026 being a huge help.” The Road Ahead As we look toward 2026, dealerships that embrace integrated technology platforms and AI solutions will gain a distinct competitive edge. The budding relationship between automation and human expertise is reshaping how fixed ops teams manage their daily operations—improving efficiency, boosting retention, and ultimately driving profitability. The takeaway? Technology isn’t replacing people—it’s empowering them. And as Lopez and Shaffer both suggest, the dealerships that learn to leverage these innovations today will be the ones leading the service lanes of tomorrow.
Nov 4, 2025 | 3 minute read
Service Department Dispatching Models
How Workflow Control Impacts Productivity and Profitability Your Dispatch Strategy Is Either Feeding Productivity—Or Starving It Walk into any service department, and you’ll see it: the board. Names, ROs, jobs, technicians. It looks operational. It feels routine. But here’s the truth: your dispatch strategy is either feeding productivity—or starving it. The board isn’t just a tool for organizing work. It’s one of the most underestimated profit levers in fixed operations. And how it’s controlled can determine whether your shop runs efficiently—or steadily bleeds hours every day. Why Dispatching Matters More Than You Think Dispatching sits at the center of everything that drives service lane performance. It directly impacts: Technician efficiencyCycle timeHours per RO When dispatching is done well, technicians stay productive, workflows move consistently, and the shop operates at capacity. When it’s done poorly, technicians wait, jobs stall, and the entire system moves in slow motion, or even no motion. And here’s the key connection most dealers miss: idle time = lost billable hours and reduced overall production. While dispatching doesn’t directly change your effective labor rate, it limits the number of billable hours your shop produces—ultimately capping your total labor revenue regardless of your pricing strategy. Every minute a technician isn’t turning hours is a minute you can’t recover. Technician efficiency doesn’t just affect productivity—it directly impacts revenue per labor hour, making dispatching a critical driver of overall profitability. Signs Your Dispatch System Is Broken You don’t need a report to know when your dispatching isn’t working—you can see it in the day-to-day operation. Technicians are waiting around for work. Hours are uneven across the team. Advisors feel overwhelmed. Jobs sit idle, waiting for approvals or parts. These aren’t isolated issues—they’re symptoms of a broken system. Waiting, whether for approvals, parts, or direction, kills productivity and drags down overall labor performance. Small delays stack up quickly, turning into lost hours that can’t be recovered. How Shops Are Actually Dispatching Today There’s no one-size-fits-all approach to dispatching, but in today’s service departments, most operations are trending toward two primary models, with some variation depending on shop size, technician skill level, and overall workflow. As TVI’s Eric Hawkes explains, the goal isn’t to find the “perfect” system—it’s to find the one that best fits your operation. 1. Lateral Support (Team-Based Dispatching) In this model, the advisor writes the RO and hands it off to a Team Leader (TL)—typically an “A” technician responsible for a small group of technicians (usually 3–6). From there, the Team Leader: Assesses the remaining scheduleConsiders the promised delivery timeMatches the job to the appropriate skill level Based on those factors, the TL either: Keeps the jobOr dispatches it to a technician on their team If the TL performs the work, they’re paid for the hours spent on the RO. If they dispatch it, they receive a small override—typically $0.50–$2.00 per hour put in by the technician. But the role goes beyond dispatching. The TL is also responsible for: Supporting diagnosticsAnswering technician questionsKeeping workflow moving Why it works:It creates accountability within the shop and leverages your strongest technicians to manage workflow in real time. Where it can break down:Without strong leadership at the TL level, it can lead to inconsistency or internal imbalance. 2. Manager-Controlled Dispatch (Centralized in the Shop) A growing trend—especially in high-performing stores—is for the Service Manager or Service Director to take direct control of dispatching. In many cases, leaders are physically moving their offices closer to—or into—the shop, shifting their focus toward: Maximizing technician efficiencyMonitoring workflow in real timeEliminating delays as they happen Why it works: Reduces favoritismMinimizes “shop politics.”Creates a more balanced, objective distribution of work The trade-off:This approach requires significant time and attention from leadership. It can “tie down” the Service Manager or Director, pulling them deeper into daily operations. What About Hybrid or Digital Dispatching? Many shops layer in: Hybrid approaches (blending team-based and centralized control)Computerized dispatching systems But even with technology, the same truth applies: The system only works if the process behind it is strong. The Real Takeaway As Eric Hawkes puts it: There is no single “best” dispatching method. The right system varies depending on: Shop sizeTechnician skill levelsWorkload consistencyLeadership structure Like so many things in fixed ops, success doesn’t come from the model—it comes from how well it’s executed. What the Best Shops Actually Do High-performing service departments don’t get stuck debating who controls the board. They focus on something more important: ConsistencyVisibilityAccountability Because the real issue isn’t control—it’s execution. It’s best to remove variability from the process. Everyone knows how work is assigned, what the priorities are, and how decisions are made. When dispatching becomes predictable, productivity becomes scalable. The Profit Impact You Can’t See on Paper Poor dispatching doesn’t always show up clearly on a report—but it shows up in your numbers. It leads to lower total hours produced, reduced technician efficiency, and increased payroll waste. Why? Because you’re still paying technicians for their time—whether that time is productive or not. In fact, technician productivity is defined as the percentage of time spent on active, billable work. When technicians are waiting on work, parts, or approvals, those hours aren’t producing revenue—reducing total billable output for the shop. In hourly or guaranteed-pay environments, this also creates direct payroll inefficiency, as the dealership is paying for time that isn’t generating income. In flat-rate environments, the cost shifts to lost production opportunity—fewer hours turned and lower overall shop output. Workflow delays—such as poor communication, missing parts, or disorganized job flow—have been shown to directly reduce shop profitability by limiting billable output. Because labor costs are partially fixed—and often difficult to flex in real time—every unproductive minute compounds into lost revenue that can’t be recovered later. Which leads to one unavoidable reality: Every idle minute is unrecoverable revenue. Conclusion Dispatching isn’t just about assigning work—it’s about controlling productivity. The model you choose matters. But how consistently you execute it matters more. Because when the board is managed well, everything improves—efficiency, output, and profitability. Control the board, control the outcome. Check out TVI MarketPro3 for more Fixed Ops Insights
Effective Labor Rate vs. Door Rate
The Truth Behind the Gap Your Labor Rate Isn’t What You Think It Is Ask most dealers what their labor rate is, and they’ll reference a standard door rate—$150, $165, maybe even $180. But that number isn’t what you’re actually collecting. Profit doesn’t live in your posted rate—it lives in your effective labor rate (ELR). If your door rate is $150 and you’re only collecting $105, the real question becomes: where’s the other $45 going? In some cases, that difference is intentional—driven by pricing strategy, technician compensation structure, or work mix. But without visibility into it, you can’t tell whether it’s by design or by default. Understanding the Gap Between Posted Rate and ELR At its core, the difference is simple but critical: your posted rate is what you intend to charge, while your effective labor rate is what you actually collect per billed hour. As defined by Brady Ware & Company, ELR represents “the actual revenue earned per billed hour.” The formula is straightforward—total labor sales divided by total billed hours—a standard echoed by Chris Collins Inc. However, the simplicity of the formula is what makes the gap so dangerous. A shop with a $120 posted rate collecting just $85 isn’t slightly off—it’s losing nearly 30% of its potential revenue on every hour sold. Same technicians, same hours—completely different financial outcome. Where the Revenue Leakage Happens When unmanaged, this gap often comes from small, consistent breakdowns across the operation. Discounting is often the first culprit. Well-meaning advisors, trying to build trust or close the sale, shave dollars off here and there. Individually, it feels insignificant. Collectively, it drags your entire rate down. Factor in warranty and internal work—both necessary but reimbursed at lower rates—and your average drops even further. Then there’s menu pricing that doesn’t accurately reflect technician time, inconsistent pricing across advisors, and an imbalanced work mix that relies too heavily on low-margin maintenance rather than higher-value customer-pay repairs. As noted by ASE Automotive Academy, ELR erosion is driven by “discounts, promotions, and warranty/internal pricing differences.” In other words, it’s built into the system unless you actively control it. It’s also important to evaluate this alongside technician gross profit. A lower effective labor rate doesn’t always mean poor performance—if technician gross profit remains strong, that ‘gap’ may be part of a deliberate pricing model. The real issue isn’t just the difference between posted rate and ELR—it’s whether each hour sold is producing the profit your operation is designed to generate. The Most Misunderstood KPI in Fixed Ops What makes ELR especially dangerous is how often it’s overlooked. Dealers tend to focus on visible metrics—RO count, traffic, appointment volume—because they’re easy to measure and feel like progress. However, those metrics don’t tell you how efficiently your shop is generating revenue—ELR does. You can be fully booked, have a packed drive, and still be underperforming financially. because the issue isn’t always volume—it’s yield. You don’t have a car count problem—you have a yield problem. According to Best Auto Pros, ELR is one of the clearest indicators of both profitability and operational health, yet it’s rarely given the attention it deserves. On its own, ELR is powerful—but only when viewed in context alongside technician productivity, labor mix, and gross profit. The Hidden Cost of Ignoring ELR The cost of ignoring ELR isn’t theoretical—it’s measurable and significant. Small gaps in ELR compound across every technician, every bay, every day. What looks like a minor shortfall per hour can add up to tens of thousands of dollars over the course of a year. And because the shop still feels busy, the problem often goes unnoticed. Advisors are working, cars are moving, the schedule is full—but the margins are quietly eroding. In fact, Brady Ware & Company estimates that poor ELR management can cost more than $20,000 per bay annually. That’s not a pricing issue—that’s a system issue. How Top Dealers Close the Gap Top-performing dealerships understand that closing the gap isn’t about working harder—it’s about controlling the variables. They implement strict discounting guidelines so pricing decisions are intentional, not emotional. They hold advisors accountable to menu pricing and consistency. They adopt segmented pricing strategies that reflect the type of work, the customer, and the vehicle. Most importantly, they track ELR in detail—not just as a single number, but broken down by customer-pay, warranty, and internal work. That’s where real insight—and real opportunity—lives. Where Strategy Comes Into Play While much of ELR is managed inside the service lane, the foundation is built long before the customer arrives. With the right database targeting, dealers can prioritize out-of-warranty vehicles, declined services, and lapsed customers—shifting the work mix toward higher-value customer-pay repairs. Campaign alignment ensures you’re not just driving traffic, but driving the right traffic. And when messaging clearly communicates value, price sensitivity decreases, reducing the need for discounting in the first place. The Bottom Line At the end of the day, your posted rate is just a number—it’s what you hope to earn. Your effective labor rate is the truth. It reflects your processes, your discipline, and your ability to convert time into revenue. Your posted rate is marketing. Your ELR is reality. Ready to Close the Gap? If your service department is busy but not producing the profit it should, the issue may not be your pricing, but your strategy. At TVI, we help dealers do more than drive traffic—we help you drive the right traffic. Through advanced database targeting, strategic campaign alignment, and messaging that builds value before the customer ever walks in, we help diversify your work mix opportunities. Improving your ELR isn’t about working harder—it’s about using an effective strategy that builds consistent customer pay. Let’s turn your posted rate into real revenue.
Service Lane Mistakes That Destroy Trust
In fixed operations, trust isn’t lost all at once—it erodes moment by moment, interaction by interaction. And sometimes, it only takes a few poorly handled visits to lose a customer for good. That’s exactly what TVI MarketPro3 Fixed Operations Specialist Elizabeth Dera uncovered during a recent dealership visit. What she heard wasn’t just a one-off misstep—it was a breakdown in process, communication, and customer-first thinking that ultimately cost the dealership far more than a single repair order. A Missed Opportunity from Day One The customer’s journey began with a simple expectation: a routine 5,000-mile service under their brand-new vehicle’s ToyotaCare policy. Instead, Elizabeth explains, they were immediately met with an upsell that made no sense. “The service advisor tried to actually sell tires to the customer… 5K, brand-new… and the advisor is like, well, you know, sometimes the tires on these new vehicles are pretty soft.” For a customer expecting a complimentary service, this interaction didn’t feel helpful—it felt opportunistic, and it set the tone for everything that followed. When Recommendations Stop Making Sense At the 10,000-mile visit, things escalated. The customer received a multi-point inspection (MPI) report showing no urgent issues—but was presented with a list of over $350 in recommended services, including multiple fuel system treatments, A/C cleaning, and filter replacements—for a 10,000-mile vehicle. Elizabeth was shocked at this encounter, to say the least. “[There are] no red items, but there are three yellow items on a vehicle with 10,000 miles, which is kinda ridiculous, right?” Even more concerning? These recommendations weren’t explained. The customer received a digital report with no conversation, no context, and no guidance. Just a list of charges. The Breaking Point: Contradictions Kill Credibility By the time of the 15,000-mile visit, the customer was already skeptical—but still open. They expected to possibly need filters this time, especially after prior recommendations. Instead, they got something far worse: inconsistency. * Previously recommended services disappeared* New or repeated chemical services reappeared* Most damaging of all—a clearly inaccurate alignment recommendation The dealership’s own alignment scanner showed the vehicle was perfectly aligned, but the MPI said otherwise. “When the customer pulled in, the alignment [report] was completely green… But when they got their inspection report back, [the advisors] are now recommending an alignment.” That moment didn’t just create doubt—it destroyed trust. Where the Process Broke Down According to Elizabeth, the issue wasn’t just bad recommendations—it was a systemic failure. No Communication with the Customer “They send you the inspection… but nobody comes to talk to the customer,” she emphasizes. The customer was expected to approve or decline services without any explanation of: * Why the service was needed* What value it provided* Whether it was urgent or preventative Lack of Consistency Across Visits Each visit told a different story: * Services recommended → then removed later* New services introduced without context* No reference to prior deferrals or service history Possible Overemphasis on Product Sales In this customer’s account, Elizabeth noticed the effort put into selling a particular brand of products: “I think there is a huge incentive to sell chemical products at this store.” Whether intentional or not, the recommendations appeared more sales-driven than need-based—especially for a vehicle with such low mileage. What High-Performing Stores Do Differently Elizabeth didn’t just identify the problem—she pointed to the solution. Top-performing service departments take a completely different approach: They Communicate—In Person “You walk to that lounge, you explain the MPI to the customer… You have those interactions.” They Educate, Not Just Sell Customers understand: * What’s needed now vs. later* Why a service matters* What to expect from the next visit They Build Continuity * Deploying the same advisor whenever possible* Reviewing prior recommendations* Creating a consistent ownership experience They Use MPI as a Trust Tool. Not a sales tool. The Real Cost: More Than a Declined RO This customer declined every recommendation. But the bigger loss? “The customer’s lost faith in this dealership and won’t be back.” That means: * No future service visits* No long-term retention* No future vehicle purchase What could have been a lifetime customer was lost in three visits, and a customer that might have raved about their service is now more likely to steer their friends and family away from this dealership. The Fix: Where Dealerships Should Start If this scenario feels uncomfortably familiar, the solution starts with two critical areas: Training on Process & Integrity * Align advisors and technicians on what should be recommended—and when* Reinforce that credibility matters more than short-term sales Prioritize Communication “That was one of the biggest issues… communication and validation of what really needed to be done,” Elizabeth stresses. Every MPI should include: * A conversation* A clear explanation* A reason the customer should trust the dealership Final Thought: Every Interaction Either Builds or Breaks Trust Dealerships don’t lose customers because of one bad recommendation. They lose them because the experience stops making sense. When recommendations feel inconsistent, unclear, or excessive, customers don’t just decline the service; they decline the relationship. Once that trust is gone, it’s almost impossible to win back. Go to TVI MarketPro3 for more fixed ops success strategies.
Winning Back Lost Service Customers
Every dealership has them: customers who used to frequent the service drive… then quietly disappeared. No complaint. No confrontation. Just gone. While most stores try to win these customers back with a quick campaign or a discount, the reality is this: Reactivating lost customers isn’t a marketing tactic—it’s a system. To understand what actually works, we brought together two perspectives from the front lines: Joe Pistilli, Customer Success Director at TVI Unotifi, and Scott Kelford, Regional Sales Manager at TVI MarketPro3. Their insights reveal where dealerships fall short and what it really takes to bring customers back. Where Reactivation Breaks Down: No Process, No Priority Ask most dealerships about their reactivation strategy, and you’ll get the same responses: “We send reminders.”“We run campaigns.” According to Scott, that’s exactly the problem. “The main theme across the country is that there are no processes in place to really impact these lost customers in a positive fashion. Therefore, it does not yield subsequent service visits.” In other words, it’s not that dealerships aren’t trying—it’s that they’re not structured. Scott explains that without clear visibility and prioritization, lost customers remain exactly that—lost: “At MarketPro3, we provide identifiers with intelligent mail and email that show the dealer’s employees how long it has been since the customer last visited the dealership for service. The dealer must put high priority on these lost customers and give them more reasons to come back.” Joe reinforces that even with the right tools, results depend on what happens inside the dealership: “A Unotifi store that treats [its] customers well… will have a much better response rate [from] the same communication. I have high-retention stores that will get 40% [response]… compared to a bad-retention store that will get 8% with the same text [campaign].” Takeaway:If there’s no process—or priority—within a service drive, reactivation efforts will always underperform. What Actually Brings Customers Back: Relevance Over Reminders One of the biggest misconceptions in fixed ops marketing? That frequency equals effectiveness. However, both Joe and Scott point to the same truth: Relevance beats repetition. “Sending the right message to the right customer at the right time gives them a reason to come in as they see value in the timing of their service,” Scott shares. That “right time” isn’t random—it’s driven by real data. Joe explains how TVI builds messaging around actual service needs: “The biggest difference between us and everyone else is that we use time, mileage, and opcodes to market [to] people.” Instead of generic “you’re due” messaging, this allows dealerships to communicate: What service is neededWhy it mattersExactly when it’s relevant Even more powerful? Following up on what the customer already declined: “Being able to follow up with a customer due to a decline and give them informational videos… is key. We can bring 10% of the customers back that decline originally with a good informational video.” Takeaway:Customers don’t respond to reminders—they respond to well-timed messages that make sense. The Missing Link: Marketing + Service Lane Alignment Even when dealerships get the messaging right, many still struggle to convert that into actual service visits. Why? Because marketing and the service lane aren’t aligned. “Giving a customer access to a good service offer at their time of service is key,” Scott highlights. However, it doesn’t stop at the message. The real impact happens when the in-store experience matches the promise: “When the dealer aligns their process… with the customer’s reactivation visit and exceeding their expectation is [when] it all really starts.” Joe echoes this from a lifecycle communication perspective: “If a customer does not make an appointment… we will continue to communicate by text several more times and then give it to the BDC to call the customer if that is what the dealer wants for their process.” This creates a seamless pipeline: Marketing identifies the opportunityAutomation maintains consistent communicationThe BDC engages directlyThe service lane delivers the experience Takeaway:Reactivation fails when marketing and operations are disconnected—and thrives when they work as one system. Precision Targeting: Why VIN-Level Strategy Wins Another major gap in most dealership reactivation efforts? They target customers too broadly. Scott explains how MarketPro3 flips that model with game-changing precision: “Targeting customers by individual vehicle identification numbers versus targeting them [only] as a household is what drives the message home.” MarketPro3 targets by both household and VIN and will not send multiple marketing pieces to the same household if they have several target VINs in the driveway. Scott adds another layer that strengthens follow-up and accountability: “Providing each individual customer with their own customer website is what separates MarketPro3 from other marketing providers.” This gives dealerships: Clear visibility into customer engagementBetter tracking of response behaviorStronger BDC follow-up opportunities Joe’s lifecycle approach complements this perfectly: “This is a continuous market plan for the customer’s service life… No one else does this automatically for the life of the customer.” Takeaway:The more precise your targeting, the more powerful your message, and the stronger your results. Consistency Wins: The Power of Follow-Up Most dealerships stop communication too quickly: One message, maybe two, then nothing. But Joe shares a critical statistic that stores can use to market strategically: “We make more appointments off of the third text than the first two combined.” Unotifi builds persistence into the process: Ongoing communicationStructured cadenceEscalation to human follow-up Combined with MarketPro3’s targeting and visibility, this creates a system that doesn’t rely on chance. Takeaway:The fortune isn’t just in the follow-up—it’s in consistent follow-up. Final Thought: Reactivation Isn’t a Campaign—It’s a Commitment Lost customers aren’t gone forever. They’re still driving, maintaining, and spending money on their vehicle. The question is whether they’re doing it with you or someone else. As both Scott and Joe make clear, winning customers back requires more than effort. It requires alignment: Process that prioritizes lost customersData that drives precise timing and messagingTechnology that sustains communicationPeople who deliver an experience worth returning to The question isn’t whether lost customers will come back. It’s whether you’re giving them a reason to. Check out TVI MarketPro3 for more fixed ops marketing insights.
Service Menu Pricing Strategy
If your service department is busy but gross profit feels flat, your pricing structure may be the problem. Not your advisors. Not your technicians. Not your car count. Your service menu pricing strategy. Many dealerships unintentionally suppress profitability with outdated, defensive, or inconsistent pricing models. The issue isn’t volume; it’s structure, and structure determines margin. The Illusion of “Competitive Pricing” Most dealerships price reactively. They look at: Independent repair shopsQuick lube chainsCompetitor mailersOnline oil change pricing Then they decrease their prices to stay “competitive.” However, competitive pricing without a strategic structure creates three problems: It reduces the dealership’s profit on each repair order, and those losses add up over time.It trains customers to expect discounts.It creates inconsistencies among advisors. In fixed operations, pricing should not be a defensive tactic—it should be a lever for controlled growth. What a Service Menu Is Actually Supposed to Do A well-designed service menu should: Standardize how services are presentedProtect the effective labor rateAnchor perceived valueCreate bundled service opportunitiesReduce advisor pricing variance When menus are structured correctly, they increase consistency across advisors and reduce the need for discounting. When they’re not, they slowly reduce your profit. The Four Most Common Pricing Mistakes 1. Flat Pricing Across All Models Many dealerships price oil changes, brake services, and interval packages at one flat rate across all vehicle types. But labor times, parts costs, and complexity all vary. If your pricing doesn’t reflect the actual labor and parts structure by VIN, you are either underpricing complex jobs or overpricing simple ones and losing volume Both scenarios hurt long-term performance. It’s more effective to adjust pricing by vehicle type so you don’t lose money on more complex jobs. 2. No Tiered Service Options Consumers respond to choice, yet many menus only offer one price per service. A strategic menu should use a Good / Better / Best model: Value option (meets minimum need)Recommended option (balanced value)Premium option (maximum protection) Without a tiered structure, advisors are forced into price-based conversations rather than value-based ones. And price-based conversations lead to discounts. 3. Outdated Labor Time Calculations Some menus are built on labor times set years ago. However, in recent years, we’ve seen: Technician efficiency changesOEM procedures evolvingTechnology leading to increased complexity If your menu pricing doesn’t reflect current labor realities, your effective labor rate will erode over time. This is not a technician problem. It is a leadership review issue. 4. Discount Dependency If every service requires a coupon to close, your pricing is not structured correctly. Discounting masks weak pricing models. When you build discounts into culture, advisors begin leading with price instead of value. Over time, this reduces the perceived worth of your service department. Gross profit disappears slowly—not dramatically, and that’s what makes it dangerous. Conclusion: Busy Isn’t the Same as Profitable If your service drive is full but your gross isn’t growing, the problem likely isn’t effort—it’s structure. Car count can’t fix weak pricing, technicians can’t out-produce poor margins, and advisors can’t consistently sell from an inconsistent menu. Your service menu isn’t just a price sheet. It’s a profitability system. Visit TVI MarketPro3 for more fixed ops solutions.
Increase Shop Hours Without Hiring More Technicians
In many service departments, the conversation around growth often centers on one question: Do we need to hire more technicians? But what if the real opportunity is process, not staffing? Across the industry, dealerships with similar technician counts often maintain dramatically different labor hours per repair order (RO). Some stores average around 1.4 hours per RO, while others consistently achieve 1.8 hours or higher with the same staffing levels. The difference rarely comes down to culture alone. More often, it’s the result of operational discipline, training, and communication inside the service process. According to Ken Pletcher, a Fixed Operations Specialist at TVI MarketPro3, the root cause usually reveals itself quickly. Where the Breakdown Typically Starts When hours per RO are low, the issue often surfaces before a technician ever turns a wrench. When Ken walks into a dealership and sees low labor hours per RO, the first thing he usually finds is “untrained service advisors and/or technicians, or a busy shop.” Training and workflow management play a significant role in whether service opportunities are discovered and communicated—or missed entirely. Untrained advisors may struggle to ask the right diagnostic questions during the write-up. Technicians may rush inspections in high-volume environments. And when the shop becomes overwhelmed, the inspection process often becomes the first casualty. The result: vehicles leave the dealership with unresolved needs that could have been identified and addressed. What High-Performing Stores Do Differently Operationally, the difference between a 1.4-hour store and a 1.8-hour store often comes down to how the service process is executed. Ken notes that higher-performing stores tend to have advisors who understand both the customer and the vehicle. “A 1.8 [hour] store may have properly trained service advisors that listen to the customer’s needs, understand why the vehicle is being serviced at that location, and the maintenance needs of the vehicle,” Ken says. But the advisor conversation is only one piece of the equation; the technician inspection process is equally critical. “The technicians would be [recording] a thorough MPI video explaining items that need attention and applauding items that are being maintained properly,” Ken explains. Importantly, the inspection should occur before the technician begins the requested repair. “This inspection should be completed first, then perform the other items the guest brought the vehicle in for,” he adds. This sequence ensures the advisor has a complete picture of the vehicle’s condition before discussing recommendations with the customer. The Operational Details That Quietly Drive Hours Beyond advisor training and inspection quality, many of the biggest contributors to higher hours per RO are operational efficiencies inside the shop. Ken highlights several workflow factors that directly influence technician productivity and inspection consistency: Technician efficiencyWhether a porter moves vehicles to the bayParts delivered directly to the technicianOrganization and variety of shop toolsCommunication between technicians, advisors, and parts “How is communication happening in the shop?” Ken asks. “Does the technician stay in their work bay, or do they visit the parts department or service advisors?” Every unnecessary trip across the shop floor reduces productive time. When technicians remain focused on diagnostics and repair—and the rest of the system supports them—hours per RO naturally rise because inspections are more thorough and opportunities are discovered earlier. The Biggest Misconception About Increasing Hours One of the most common mistakes fixed ops leaders make is assuming the answer is simply to sell more services. Ken cautions against this mindset. “The biggest misconception is to sell more ‘stuff’ that may not be needed or benefit the guest,” he says. Examples often include blanket recommendations like: Annual wheel alignmentsEngine oil treatmentsFuel system treatmentsTransmission fluid additives While these services may have legitimate use cases, recommending them without proper inspection or context can erode customer trust. Another tactic Ken sometimes sees is artificially inflating labor hours on common jobs to raise the hours-per-RO metric. “A fixed operations leader may also increase hours sold for common jobs to inflate hours per RO without monetary gain,” Ken explains. “This could add technician cost to inflate an hours-per-RO measurement.” In other words, the metric improves—but profitability and customer value do not. Understanding the Customer’s Situation Instead of focusing solely on selling more services, Ken emphasizes understanding the customer’s relationship with the vehicle. “Understanding if a guest purchased the vehicle, leased it, or is the second or third owner will help determine which path makes the most sense,” he explains. Maintenance recommendations should reflect how the customer uses the vehicle and their long-term ownership goals. Ignoring those factors can have lasting consequences. “Service retention is a great indicator if a guest’s needs are not being considered during a service visit,” Ken says. When customers feel recommendations are relevant and transparent, they return. When they feel pressured into unnecessary services, they don’t. The Real Path to Higher Hours Per RO Increasing hours per RO without adding technicians isn’t about selling harder. It’s about discovering legitimate service opportunities through better processes. Dealerships that consistently outperform in this metric tend to focus on: Advisor training and discovery conversationsThorough technician MPI videosEfficient shop workflowStrong communication between the service and parts departmentsCustomer-focused maintenance recommendations When these operational fundamentals are in place, the hours-per-RO rate naturally increases because more of the vehicle’s real needs are identified and addressed. That means better profitability for the dealership, better efficiency for the technicians, and better transparency for the customer, which is the goal of every high-performing service department. Visit TVI MarketPro3 for more expert insights on fixed ops.
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