Fixed operations (fixed ops)
The service, parts and body shop side of a dealership, as distinct from vehicle sales.
Fixed ops generates a large share of dealership gross profit and is where the service BDC lives. Fixed ops KPIs include hours per RO, dollars per RO, effective labor rate and appointment set and show rates.
In practice
Fixed operations covers the service drive, the shop, parts and often the body shop. It is called fixed because its revenue is steadier than vehicle sales, which swing with the market. Fixed ops directors watch hours per RO, dollars per RO, effective labor rate, technician efficiency and appointment set and show rates, because a shop with open bays is losing money by the hour.
Why fixed ops depends on the phone
Most service appointments still begin with a phone call, and most declined and recall revenue is recovered by outbound contact. A service BDC or AI answering and booking every call is therefore a fixed ops lever, not only a customer-service one.
Also called: fixed operations.
Read the chapter: Service BDC →
Related terms
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