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What's a service advisor worth?

November 24, 2010
A service advisor often is the chief influence on the public's image of a dealership. The position critically affects both dealership and departmental customer retention and profit goals, leading some authorities to label the service advisor as a dealership's single most important employee. A formula devised by the National Automobile Dealers Association can help identify the value of a service advisor. Using financial statement figures, calculate the gross profit that is generated by each service advisor. The findings should indicate they become more valuable as their sales increase. The formula was excerpted from "The Three Ps of Effective Service Management: Profit, Productivity, Personnel," an NADA management guide. Order the guide from the National Automobile Dealers Association at 800-252-6232, ext. 2. Copies cost $25 for NADA members, $50 for nonmembers, plus shipping.