- September 10, 2016 at 10:00 pm#64944AutohausNCMember
Two part question:
When you bill out tires, do you sell the tires as “parts”, then list a separate labor line for the mount and balance ( I currently do).
And if you do split tires & mounting, when you track “tire sales”, do you add total tire sales (parts) or do you include the mount & balance (labor)?
For example, how I invoice:
Continental 255/40ZR17 $132.97
Mount & Balance: $24.00
Is my total tire sales $132.97 or $156.97
Or does anybody invoice like this:
Mount & Balance Continental 255/40ZR17: $156.97September 11, 2016 at 8:05 am#74522Tom HamParticipant
We would track that tire sale as $132.97 and the labor would go in with all other types of labor.September 14, 2016 at 1:00 pm#74526Rick WhiteParticipant
Bernard,I agree with Tom. The reason shops break out tire sales from other part sales is because of the different profit margins associated with tires. By breaking out the tire sales and cost from your other part sales and cost, you’re able to see what your actual profit margin is on each and adjust accordingly against your profit targets.I also agree with you Bernard in breaking out the labor from the tire as it allows you to capture more revenue.Have an AWESOME day!September 14, 2016 at 1:01 pm#74527Sako7mmMember
We track tire as parts. We also track mounting and balance as a seperate labor!September 14, 2016 at 1:08 pm#74528BNC173Member
We agree seperate that way your able to track overall profit for both.September 14, 2016 at 5:38 pm#74529josephautomotiveMember
Same, with the exception of trailer tires, (in which case I figure the installation in the tire price) tires are billed seperately from installation and accounted for seperatelySeptember 22, 2016 at 2:24 pm#74534ccorleeParticipant
Tires under parts, mount and balance is labor.September 22, 2016 at 2:52 pm#74535rzaagmanMember
Tire’s don’t get billed under parts, they are bill separately under Tires so they can be tracked separately since the GP is different than parts.
Labor is listed separately as well so that can be appropriately tracked.
Hope that helps.September 22, 2016 at 3:18 pm#74536JmazurMember
I agree with Dick. Tires are tracked as a part in a different category to be able to monitor tire GP% and also parts GP% (if they were all together, tires would skew the parts GP), and then labor is billed out as labor, the same as any other job.September 22, 2016 at 3:54 pm#74537MAS_MOR1Member
We operate w three separate profit centers — parts, tires and labor — separating parts and tires allows us a more accurate assessment of marginsMark Smith — OwnerMidas of RichmondSeptember 22, 2016 at 3:55 pm#74538Randy LucykMember
We are the same as Dick and Mark for the same reasonsSeptember 22, 2016 at 3:59 pm#74539rlikisMember
At Car Clinic Service / PreRepair, we separate tire sales and mount & balance labor. We also break out tire sales on our ROWriter balance sheet due to the lower GM, with a targeted GM goal of 25% GM for tire sales. Tire sales is currently not a large part of our business.
Bobby Likis, Owner
Car Clinic Service / PreRepairSeptember 22, 2016 at 3:59 pm#74540advancedauto616Member
We break tires out as parts and labor also. Our reasons are for profit calculations and ALSO because Massachusetts only has sales tax on parts and not labor.September 22, 2016 at 4:01 pm#74541davewoodfordMember
We bill tires as parts and track as tire category. Labor is billed as mount & balance.September 22, 2016 at 4:02 pm#74542CKautoproParticipant
We track Tires as separate revenue category with its own matrixed gp% (as we do with Sublet, Enviro/Supplies, Batteries, & Emission testing)- not Parts per se. Installation & balancing labour is included with total labour revenue. Ultimately you make what you make but separating categories helps keep our eye on Profit.Dave MackoArmstrong-Macko AutoproChatham, On CanadaSeptember 22, 2016 at 4:10 pm#74544stevebflMember
We bill tires just as we do any part, and labor similar to other labor. As was mentioned this skews the GP% on parts sales, but since it doesn’t change the money in the bank, that has never bothered me. We work to move the GP% up continuously and whether tires are in it or not makes no difference to our internal goals. If I am talking with other shop owners (which I am no longer) I am at a disadvantage for bragging rights. That doesn’t bother me. I do believe tire sales are tracked separately as I can do with any part in our Fastrack software.
SteveSeptember 22, 2016 at 4:12 pm#74545MikeKMember
We have a separate Chart of Account code for Tires, not only the part but the labor. It allows us to keep the general repair side of the business seperated for the low profit margin of tire salesSeptember 22, 2016 at 4:16 pm#74546vdepotParticipant
We track it as parts/tires and labor separately.
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