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Service Department: Priced Right and Managed Well ... but Still Not Profitable?

A well run service department should produce a 15-20% net profit. In fact, your service department should be the most profitable department within your company … but it's usually not. There are two reasons most companies find service unprofitable.

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Don't Let Pride Destroy Your Business

Thursday, February 26, 2015

You're on a road trip with the family. It seems like you should have arrived at your destination by now. The kids are asking, "Are we there yet?" and your wife gently suggests that you might be lost. What's your reaction? "I'm not lost, we will arrive soon." Twenty minutes later your wife asks you to pull into the next service station to ask for directions. You become a bit irritated, and continue driving. Another 30 minutes pass and the kids are getting impatient while your wife is getting angrier and angrier. With tempers getting shorter as the road trip gets longer, you finally pull over and ask for directions. Ten minutes later you arrive at your destination … late and frustrated.

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