Category: Gross Profit
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.
Last month at Acme Auto the techs produced 275 total sold hours. Last month’s gross profit was $30,250 (to calculate this number, see Key # 9). $30,250 ÷ 275 hours = $110 So, our key number is $110 When looking at this number for a typical independent shop that is solidly profitable, this number will normally run between $115 and $145.
Gross profit: The total profit on selling something before any expenses or other costs are deducted.