Business Calculators
The Basics You Need to Always be Profitable
This series includes 24 key numbers. If you work on getting all of them in the ranges mentioned, your shop should be solidly profitable. There is a fill-in-the-blank form where you can automatically calculate many of these numbers for your shop in our Business Calculators area available to Premium Members.
This is a great learning and working tool for anyone in your shop who should know what the key numbers need to be.
Twenty-three different forms where you enter numbers from your shop. Key management numbers are then automatically calculated, including Gross Profits, Effective Labor Rate, and Average RO. These are excellent tools for service advisors to use when creating estimates, and monitoring shop and individual goals progress.
Key #8 Labor Gross Profit
For this key number, we want to know what percent of labor sales was profit. That is, the total sale price of labor sold minus the cost of that labor expressed as a percent of the total labor sales price. This is like parts gross profit except that instead of subtracting the cost of a part you are subtracting the cost of a technician to perform the repair.
Key #11 – Oil Change Percentage
For this key number, we want to know what percent of RO’s included an oil change. These are RO’s of any size or any amount that include an oil change as one of the services performed. The RO may or may not have services other than the oil change. This should not be confused with RO’s that contain only an oil change and no other service.
Key #12 Gross Profit Dollars per Sold Hour
For this key number, we want to know how many gross profit dollars are being generated during an average sold hour over a certain period. It can also calculate the gross profit per sold hour on individual operations and estimates.
Key #13, 14, 15 Labor Sales vs. Parts Sales
For key number 13, we want to know what percent of total sales is labor sales.
For key number 14, we want to know what percent of total sales is part sales.
For key number 15, we want to know the difference between 13 and 14.