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This KPI provides the Service Manager with monthly and year-to-year comparisons of the hours and amounts billed to customers for work performed by the dealership’s technicians. Information can be analyzed at the workshop level and for each technician.

Effective Labor Rate is a calculation that shows what a dealership’s Service Department makes per billed hour. The formula for this KPI is: Total Labor Sales / Total Labor Hours.

This indicator allows for interannual and monthly comparisons of the hours billed and the amounts billed in the workshop. It can be obtained both at the workshop level and for each mechanic.