Service Price Guides from Reynolds and Reynolds Delivers Profits for Dealerships
Service Departments with Highest Utilization of Reynolds’ Service Price Guides (SPG)
Achieve Higher Measures of Profitability over Non-Users
DAYTON, OHIO - FEBRUARY 12, 2010 - The Reynolds and Reynolds Company today announced the results of a study that showed dealerships with the highest utilization of the Reynolds Service Price Guides (SPG) tool are achieving significantly better business results than dealers who do not use SPG from Reynolds.
SPG from Reynolds is a proven tool for helping dealers provide customers with quick, accurate, and consistent pricing estimates for service repairs. Dealerships with the highest utilization of SPG from Reynolds are more consistently using the tool in every point of the service process: estimating, appointments, reception, dispatching, and invoicing.
“Even as the economy begins to show signs of rebounding, we know that consumers will continue to keep their cars for longer and longer periods of time,” said Jon Strawsburg, vice president of Product Planning for Reynolds. “For dealers who are successful in attracting those consumers to their dealerships for service work, Reynolds’ SPG can be the most important tool in helping provide pricing estimates efficiently and accurately, which can lead to improved customer satisfaction and increased profitability for the dealership.”
Specifically, when compared to dealers without SPG, dealers with the highest Reynolds’ SPG utilization achieved an average of:
- More than a half hour (.5) additional billable time per repair order.
- More than $55 higher labor gross profit per repair order.
- More than $21 higher parts gross profit per repair order.
- An effective labor rate increase of $9.50.
The same study also indicated that even low to moderate users of Reynolds’ SPG received a financial benefit from using the tool over those who do not use it.
SPG Factory Style Maintenance Menus Study
Reynolds also recently conducted a similar study for Reynolds’ SPG Factory Style Maintenance Menus
(SPG Menus), a customizable, menu-based tool that helps dealerships more easily and professionally present manufacturer-recommended maintenance services to their customers. That study found a strong correlation between using Reynolds’ SPG Menus and overall business results. Moreover, dealerships with SPG and SPG Menus from Reynolds demonstrated further increases in average hours billed, labor gross profit, parts gross profit, and their effective labor rate.
The Reynolds SPG and SPG Menus studies analyzed data from more than 6,000 ERA® dealership management system (DMS) customers during a 30-day period. Utilization was calculated based on average number of uses per repair order, which helped reduce the influence of sheer dealership size as a factor of SPG success.
Increasing SPG Utilization
For dealers who wish to further improve their utilization of SPG, Reynolds Consulting Services
offers the SPG Optimization Package
to help dealerships maximize their use of the tool by implementing consistent appointment, reception, and parts fulfillment processes.
Reynolds and Reynolds is the automotive industry’s leading provider of automobile dealership software, services, and forms to help dealerships improve business results. The company is headquartered in Dayton, Ohio, with major operations in Houston and College Station, Texas, and Celina, Ohio. (www.reyrey.com)