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Anonymous
OEM - Support
September 9, 2026 - 12:50

Fixed operations has become one of the most important profit centers in the dealership.

Effective labor rates continue to rise, and technology is helping shops quote more work, improve parts pricing and increase customer-pay revenue per repair order.

That is good business—until customers decide the dealership has simply become too expensive.

There has to be a ceiling somewhere.

A store can continue increasing labor rates and improving dollars per RO while appearing financially stronger, even as more customers begin taking routine maintenance and non-warranty repairs to independent shops.

That makes the long-term KPI more complicated than revenue per repair order.

Should dealers be measuring how much service business they lose after the warranty period with the same intensity they measure effective labor rate?

The most profitable repair order today may not be the best decision if it costs the dealership the customer for the next five years.

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Comments

Anonymous
Role
Dealership - Service / Parts
September 11, 2026 - 01:54

The shrinking supply of six- to twelve-year-old vehicles creates an interesting fixed-ops angle. Experian says that age group still represents more than a third of vehicles in operation, but the pool declined from roughly 104.8 million to 103.5 million in the past year. Those are exactly the vehicles most likely to be outside factory warranty and require significant repair work. If that population continues shrinking, could independent-shop competition for those customers become even more aggressive—and make dealership retention strategy more important?

Anonymous
September 12, 2026 - 13:01

Dealership labor rates are out of control, especially in metro markets. State laws allowing dealers to bump these rate against the OEM's wishes are not helping the dealership model in the long run.

Anonymous
September 27, 2026 - 01:15

The real issue is the talent gap. If I’m paying top-tier invoices, I want a master technician, not an entry-level kid learning on my dime. Quality and precision are the only things that justify the bill; without them, those hefty totals are impossible to swallow.

Anonymous
September 29, 2026 - 07:20

Most owners would stay if dealerships offered better loaner car availability. I shouldn't have to Uber home or wait in a lobby for hours. The entire experience needs to feel like a concierge service to justify why I’m using their facility at all.

Anonymous
September 29, 2026 - 07:40

The markup on brand-specific components is the real dealbreaker. If facilities offered a choice between authorized units and reliable aftermarket alternatives, I’d stay. Currently, the "all or nothing" approach to costs forces me to find a local garage that offers more flexible options.

Anonymous
October 15, 2026 - 03:50

Mandatory diagnostic fees for simple computer scans are driving a wedge between dealers and owners. Charging hundreds just to plug in a tablet is an insult. Until dealerships stop gatekeeping vehicle data behind exorbitant “hook-up” charges, customers will keep seeking independent shops with more reasonable entry costs.

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