Bob Greenwood on Billed Hours Per RO [FTR 085]
Bob Greenwood, AMAM (Accredited Master Automotive Manager) is President and C.E.O. of Automotive Aftermarket E-Learning Centre Ltd. (AAEC). AAEC is a company focused on providing Business Management Resources and Development for the Independent Sector of the aftermarket industry. AAEC content and technology is recognized as part of the curriculum of the Fixed Operations Diploma and the Aftermarket Degree courses taken at the Automotive Business School of Canada at Georgian College located in Barrie Ontario Canada. This school is the leader and only college in Canada that offers an automotive business education. AAEC is also recognized by the Automotive Management Institute (AMI), located in North Richland Hills, Texas USA, allowing 80 credits for successful completion of the AAEC E-Learning portion of the site towards the 120 credits required to obtain the reputable Accredited Automotive Manager (AAM) designation.
Bob has over 40 years of Business Management experience within the Independent sector of the automotive aftermarket industry in North America, consulting Independent retail shops on all facets of their business operations. His 18 years of running his own local consulting and accounting firm in Ottawa, Ontario Canada created some of the most productive and financially successful entrepreneurs within the Independent sector today.
Bob is one of 150 Worldwide AMI approved instructors. He has created Business Management development courses for aftermarket shop employers/managers, Jobbers and Jobber Sales representatives which are recognized as being the most comprehensive, industry-specific courses of their kind in North America. His courses address the creation of measurable bottom-line profitability and not just developing activity to keep busy, by covering the very detailed nuts and bolts issues that are required to be clearly understood by every level of the industry if an independent shop is going to financially prosper and enjoy a professional future. Bob’s previous episodes are HERE.
Link to Automotive Aftermarket E-Learning Centre Ltd. (AAEC) HERE.
Key Talking Points:
- We are in a knowledge-based business
- Your billed hours are a productivity measurement
- Sales is an activity measure
- Net profit is created by being productive
- What is your productivity level/measure in your shop
- Average needs to be 2.5 hours per RO
- The industry is coming in at 1.4 and 1.7 per RO
- What is your business mix?Commercial / Consumer
- Take the total labor revenue you billed last year divide by your labor rateYou get the number of billed hours you sold
- Take the number of RO and divide by that number (billed hours sold)
- Improved average hours of billed labor will build your net profit.
- Productivity creates net profit
- Activity just keeps you busy
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