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Hours Per RO and Sales Performance: A Flawed Metric

Les Silver provides insights into hours per RO in his Fixed Ops Roundtable presentation.

Hours per RO is generally looked at as being an accurate measurement of Sales Performance in a service department. If it’s high, it means that on each RO there are many jobs or are more complex jobs being performed. If it’s low, it means there are fewer jobs or more simple ones. 

Does this truly indicate a better sales performance? Maybe they are only servicing customers who have higher mileage vehicles and require more service, as opposed to lower mileage vehicles that require less service or more simple jobs. Without further analysis, you don’t know the real situation. 

Hear Les Silver’s very relevant insights into Hours per RO – A Flawed Metric, from Ted Ings’ Fixed Ops Roundtable: The Matrix.