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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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Managing Your Service Department: Take Inventory of Your Customers' Needs

If you are a company owner, inventory is important to you. If you don't have the right parts in stock the result is an inefficient service call that often results in a callback. What's the solution? You put an inventory system in place. Someone records what's needed, and the order is placed. Knowing what you need, and when you need it, is important. To remember what needs to be ordered requires making a physical list, if you are a small business. If you are a larger business you might have inventory software, but the principle is the same. A list of what needs to be ordered has to be kept in some form or fashion.

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