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![\"Fixed](\"https:\/\/www.tvi-mp3.com\/blog\/wp-content\/uploads\/2025\/01\/Fixed-Operations-in-2025-1024x683.png\")
<\/figure>\n<\/div>\n\n\n\nOver the last decade, fixed operations have steadily gained prominence, but 2024 marked a turning point. According to TVI MarketPro3 President Will Allen, dealerships have placed an unprecedented focus on their service lanes. \u201cOver the last 15 years, I don’t remember the engagement that we’re having today from general managers, dealer principals\u2026 vertically through the entire dealership organization,\u201d Allen explains.<\/p>\n\n\n\n
This shift reflects a broader understanding of fixed operations as a stable and controllable revenue stream amidst fluctuating vehicle sales. As dealerships navigate tighter budgets and rising operational costs, service drives have become central to maintaining profitability and customer loyalty.<\/p>\n<\/div>\n<\/div>\n\n\n\n
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2. The Challenge of Balancing Profitability and Pricing<\/strong><\/h4>\n\n\n\nDealerships are grappling with how to normalize service pricing without eroding profit margins. As TVI MarketPro3 Corporate Accounts Manager Kurt Hankey highlights, the high-profit margins during the sales downturn forced dealerships to adjust their pricing strategies. The challenge for 2025 is finding the balance between maintaining competitiveness and sustaining profitability.<\/p>\n\n\n\n
Independent shops may appear more flexible, \u201cbut the reality is their pricing often isn\u2019t any cheaper,\u201d Hankey notes. However, he emphasizes that dealerships must communicate the value of their OEM-certified service and robust customer benefits, ensuring they remain the first choice for vehicle owners.<\/p>\n\n\n\n
\n\n\n\n3. Addressing Overhead and Facility Challenges<\/strong><\/h4>\n\n\n\nDealership facilities sustain significant overhead costs, often by upholding manufacturer standards for branding and customer experience. Allen stresses the importance of managing these investments wisely to ensure profitability. Dealers must also contend with environmental responsibilities, such as hazardous waste disposal, which adds complexity and cost.<\/p>\n\n\n\n
For a dealership to stay competitive in the 2025 market, leaders need to find innovative ways to maximize the efficiency of their facilities while maintaining the high standards required by their brands.<\/p>\n\n\n\n
\n\n\n\n4. Preparing for a Slow but Steady Recovery<\/strong><\/h4>\n\n\n\nThe economic uncertainty of 2024 has left many dealership leaders cautious about what lies ahead. TVI MarketPro3 Fixed Operations Specialist Bruce Peters predicts that while 2025 will bring gradual improvement, challenges will persist. \u201cThings are starting to improve. The second half of 2024 has been a lot of ups and downs with the economy and uncertainty,\u201d Peters shares.<\/p>\n\n\n\n
TVI MarketPro3 Regional Sales Manager Tyler Parker agrees, noting that while inventory and customer bases are bouncing back, the recovery remains slow. Dealerships must remain proactive, focusing on re-engaging lost customers and attracting new business to build momentum in the service lanes.<\/p>\n\n\n\n
\n\n\n\n5. Leveraging Technology to Enhance Customer Experience<\/strong><\/h4>\n\n\n\n
Dealership facilities sustain significant overhead costs, often by upholding manufacturer standards for branding and customer experience. Allen stresses the importance of managing these investments wisely to ensure profitability. Dealers must also contend with environmental responsibilities, such as hazardous waste disposal, which adds complexity and cost.<\/p>\n\n\n\n
For a dealership to stay competitive in the 2025 market, leaders need to find innovative ways to maximize the efficiency of their facilities while maintaining the high standards required by their brands.<\/p>\n\n\n\n
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