Billing out tires

[Tom]

We would track that tire sale as $132.97 and the labor would go in with all other types of labor.

[Rick White]

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!

[sako7mm]

We track tire as parts. We also track mounting and balance as a seperate labor!

[bnc173]

We agree seperate that way your able to track overall profit for both.

[Joseph Van syoc]

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 seperately

[Chris Corlee]

Tires under parts, mount and balance is labor.

[Richard Zaagman]

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.

[Unknown Member]

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.

[mas-mor1]

We operate w three separate profit centers — parts, tires and labor — separating parts and tires allows us a more accurate assessment of margins

Mark Smith — Owner 

Midas of Richmond 

[Randy Lucyk]

We are the same as Dick and Mark for the same reasons

[Bobby Likis]

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 / PreRepair

[advancedauto616]

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.

[davewoodford]

We bill tires as parts and track as tire category. Labor is billed as mount & balance.

[Dave Macko]

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 Macko

Armstrong-Macko Autopro

Chatham, On Canada

[andre remillard]

We do it the same way you do Tom.

[stevebfl]

Hi Bernard,

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.

Steve

[mikek]

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 sales

[Alan Ollie]

We track it as parts/tires and labor separately.

[Curt]

We brake out the tires and labor separately . Also track tires separate with parts.

Curt

[Phil Hostetter]

We separate the charges, tires as parts and m&b as labor. As others have noted, because of lower GP on tires, it’s good to track them separately. While there is a lower gross profit on the tires themselves, there is good gross profit per hour on tire sales if they are priced right and a fast and accurate installer is doing the work.

[Linc]

We account for tires a part as well as the weights and stems required. These ” parts ” are accounted for separately because the GP% benchmarks we use as goals are different for tires, parts and labor.

[rods2105]

We dont sell tires but use Discount Tire. We bill out normally with tires as parts and balance on labor. (and we dont track tire sales!!)  

More of a convenience for customer.

[Joe Fordyce]

We bill out separately, tires are the parts, and M/B is the labor.  I have raised the dollar amount on tire markup to cover us on the cost of wheel weights.  All other pieces like TPMS rubber valve stems and regular valve stems still get added as needed.  Tire disposal is a separate line item also.

[John]

We bill the tire out as a part and track sales info. on the part and separate from all other parts. and bill Labor on its own and tracked with all labor

[eeeautoservice]

At EEE (Our Auto Shop in Tracy CA ) we sell tires as parts as well. We list these items separately from labor services such as mounting, balancing, alignments, etc. If we sell used tires, we just bill the customer as labor.