Are You Losing Money to the Effective Labor Rate Problem
Service departments work hard, customers fill the bays, but profits don’t always reflect that effort. What a tough pill to swallow, isn’t it? The effective labor rate problem often hides in plain sight, quietly draining revenue through unseen variables. When labor rates don’t align with technician wages and local market conditions, or when discounts flow […]
How to Calculate Effective Labor Rate (ELR)
Effective Labor Rate Calculator: Quick Answer Effective Labor Rate (ELR) is the real labor rate your service department collects for each flagged technician hour. To calculate ELR, divide total labor dollars by total flagged technician hours. ELR formula: Total labor dollars / total flagged technician hours = effective labor rate. Example: If a dealership sells […]
Dave Cissi
Net/Gross went from -19.46% to 36.01% Effective Labor Rate (ELR) increase of $26 CSI rise from 93 to 94
Damon Egan
CSI rise from 63 to 74 Net/Gross went from -7% to 31% Effective Labor Rate (ELR) increase of $18
Ben Cooper
Net/Gross went from -4% to 13% Effective Labor Rate (ELR) increased $21 CSI rose from 93 to 94
SERVICE MANAGER SUCCESS STORIES: DON VOLK
These are the results Dave’s seen with the Chris Collins Signature Coaching Program: Effective Labor Rate (ELR) increase of $29 CSI rise from 87.4 to 94.4 It’s taken some work, but you can’t argue with these results… and he is just getting started. Read Don’s success story below… Kudos to Don Volk and his team […]
