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I am wondering what everyone is looking for on their ARO. We use a gross and net ARO, and a net is just the price of parts used deducted, but we do use both figures. We take out the price of the parts and tires for net. What is everyone looking for on this subject?

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We just use the number that comes from Mitchell, which is total RO count/total sales including sales tax. It's really a management tool that is tracked so as long as we do it the same we can use the number for managing. It only makes a difference when comparing ourselves to each other. :)

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  • Have you checked out Joe's Latest Blog?

      My son is not in the automotive industry. He is in the commercial real estate business. However, the workplace problems are the same. Recently, his frustration with the heads of the company reached an all-time high. When I asked him why he doesn’t speak up and let the leadership know how he is feeling, he responded, “Anyone who has voiced concerns or issues has been viewed as weak and incapable of doing their job. I don’t want to be viewed like that.” This is an example of a toxic work environment.
      If you are a shop owner, you are a leader. And leaders must be approachable. That means that you are willing to hear the concerns of others and have them express themselves. It also means that while you may not agree with someone’s perspective on an issue, it is their perspective, and that viewpoint needs to be recognized and respected.
      Make it known that you want to hear the opinions of others. Literally, ask for input from others. And thank those that speak up. Now, I am not saying that you need to act on every concern or opinion. That would not be realistic. But just listening may be enough. And you never know, someone in your company may have an idea that you never thought about and even improve your business.
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