Reynolds Explores How Urban Classification and Business Volume Affect Fixed Operations Metrics

The company's new benchmark report shows improving operational efficiency and engaging technicians in the selling process maximize profitability, even in the busiest service departments

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

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

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

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

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

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

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

• Class 1: < 300
• Class 2: 301-499
• Class 3: 500-849
• Class 4: 850-1,199
• Class 5: > 1,200

The report also examines technicians' impact on these metrics through using tools designed to increase efficiency and participating in the selling process. Ultimately, the report finds that impact significant.

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

A full copy of the report can be found here.

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