If you take your total service billings for the year and divide by the total number of tickets, you'll find that the average ticket is about $160.00. That's counting all cash calls, warranty calls, call backs, maintenance calls, etc., every ticket!
Let's say your service department makes 10% net profit at the end of the year. That means on the average ticket of $160.00, you make $16.00.
$160.00 Ticket less $16.00 is $144.00 = Your cost per ticket
$144.00 is your cost for a call back
When you have one call back, it takes the next 9 tickets at $16.00 each to pay for that call back!
9 x $16.00 = $144.00
Suppose every 10th call was a call back!
Thanks for all you do and as always “Expect More From Us”!
Thanks,
Bruce Martin
Dealer Business Consultant
Value Added Distributors
(757) 469-1205