Key #3 Expenses

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

Last month Acme Auto had total sales of $50,000.
Total spending for expenses was $14,000.
$14,000 ÷ $50,000 = 0.28

So, our key number is 28%

When looking at this number for a typical independent shop which is solidly profitable, this number will normally run between 24% and 30%.

Expenses:
All spending of all types except payroll, parts, sublet and tires.

Total sales:
Includes sales of all parts, shop supplies, labor, sublet, and tires.