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Dollars Per RO

Dollars Per RO (Repair Order) is a significant performance metric in fixed operations that measures the average revenue a dealership generates per repair order. This figure provides insight into service department efficiency, upselling effectiveness, and overall profitability. Monitoring and improving dollars per RO helps dealerships strike a balance between customer satisfaction and financial performance.c

What is Dollars Per RO? 

Every repair order represents a transaction between the service department and a customer. Dollars per RO calculates the average ticket size by dividing total service department revenue by the number of repair orders processed in a specific timeframe. The metric applies to both customer-pay work and warranty/insurance claims.

Dollars Per RO = Total Service Revenue ÷ Total Number of Repair Orders

This metric is essential because it not only shows the number of cars coming through the service lane, but also how much revenue each one generates.

For example, if a dealership earns $250,000 in service revenue across 2,000 repair orders in a month, the average dollars per RO would be $125. This baseline allows dealerships to track performance, compare it to industry benchmarks, and identify opportunities for improvement.

Why Dollars Per RO Matters

Dealerships often rely heavily on fixed ops for long-term profitability. While vehicle sales can fluctuate seasonally, service operations generate consistent revenue. Dollars per RO is critical because it reflects:

  • Service Advisor Effectiveness: The ability of advisors to recommend additional services or packages that add value.
  • Customer Retention: High satisfaction leads to repeat service visits, increasing total revenue per customer.
  • Operational Efficiency: Balanced scheduling and technician productivity have a direct impact on repair order totals.
  • Profitability: Even small increases in average RO value can make a significant impact on annual gross profit. 

Factors That Influence Dollars Per RO

Customer Demographics

Different customer groups bring varying service needs. For example, owners of older vehicles may require higher-cost repairs, while new car owners often focus on basic maintenance. Understanding the customer base helps predict and manage average RO values.

Service Mix

The blend of repair types, like routine oil changes, tire services, warranty work, or significant repairs, affects average revenue per RO. Dealerships that emphasize multi-point inspections can uncover additional service opportunities, boosting totals.

Advisor Skills

Service advisors act as the bridge between customers and technicians. Advisors trained in communication, trust-building, and upselling often increase customer acceptance of recommended services, improving dollars per RO without sacrificing satisfaction.

Pricing and Packages

Competitive pricing strategies, bundled service packages, and loyalty discounts all influence average repair order value. Dealerships must strike a balance between affordability and profitability to maintain customer trust and drive financial growth.

Technology and Tools

Modern service departments using digital vehicle inspections (DVI) and CRM tools often see higher average RO values. Visual reports and transparent communication help customers understand the need for additional services.

Best Practices to Improve Dollars Per RO

Perform Thorough Multi-Point Inspections

Consistent inspections reveal maintenance needs that customers may not be aware of. Presenting findings with transparency builds trust and increases approval rates. For example, photos of worn brake pads or tire tread encourage timely service decisions.

Train Advisors in Consultative Selling

Advisors should shift away from a purely transactional approach and focus on customer education. Explaining the benefits of preventative maintenance often results in higher acceptance of additional services, driving up the average RO value.

Implement Digital Vehicle Inspections

DVIs allow dealerships to present findings through photos and videos. Customers are more likely to approve repairs when they can see the issue themselves. This boosts service trust and raises average RO totals.

Use Effective Menu Selling

Service menus with clear options, such as basic, recommended, and premium packages, help customers choose services that best fit their needs and budgets. This structured approach often increases average RO compared to piecemeal recommendations.

Dollars Per RO and Customer Experience

It’s essential to strike a balance between profitability and customer trust. Pushing unnecessary services may create short-term revenue but can harm long-term loyalty. Dealerships that educate customers, offer transparency, and prioritize value tend to see higher lifetime revenue and stronger retention. Improving dollars per RO should always align with enhancing customer satisfaction.

Role of Training and Leadership

Dealerships that invest in training see significant improvements in service performance metrics. Training programs for service advisors, technicians, and fixed ops leaders strengthen communication, sales techniques, and operational efficiency. Consistent coaching ensures that improvements in dollars per RO are sustainable and customer-focused.

Automotive Training Network (ATN) helps dealerships improve fixed operations by focusing on proven strategies that increase dollars per RO. Elevate your dealership’s fixed ops performance with ATN’s training solutions. From service advisors to fixed ops managers, we provide the tools and strategies to increase dollars per RO and improve customer satisfaction. Contact ATN today to boost your dealership’s profitability.