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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 #1 Payroll Cost

For this key number, we want to know what percent of total sales is spent on gross payroll for all employees of every type except the business owner.

Category
Costs

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Key #2 Parts Cost

For this key number, we want to know what percent of total sales is spent on parts.

Category
Costs

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Key #3 Expenses

For this key number, we want to know what percent of total sales is spent on expenses.

Category
Costs

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Key #5 Marketing Expense

For this key number, we want to know what percent of total sales is spent on marketing – including discounts that are directly related to marketing (advertised specials, etc.)

Category
Costs

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