• Expense Control & Financial

  Key Numbers 101 Series – Key # 13, 14, 15 – Labor Sales vs. Parts Sales

  Posted by Site Administrator on March 4, 2017 at 4:49 pm

  This series includes 24 Key Numbers. If you work on getting all of them in the ranges mentioned, your shop should be solidly profitable.

  Key Numbers 101 Series – Key # 13-15 Labor vs. Parts Sales

  For key number 13, we want to know what percent of total sales is labor sales.

  For key number 14, we want to know what percent of total sales is part sales.

  For key number 15, we want to know the difference between 13 and 14.

  Last month Acme Auto had total sales of $50,000, labor sales of $25,000 and part sales of $23,000.

  $25,000 ÷ $50,000 = .50
  So, key number 13 is 50%

  $23,000 ÷ 50,000 = .46
  So, key number 14 is 46%

  50 minus 46 = 4
  So, key number 15 is 4%

  When looking at this number for a typical independent shop which is solidly profitable, this number will normally run between 3% and 7%.

  There is a fill in the blank form where you can automatically calculate this number for your shop in our Business Calculators area available to Premium Members.

  https://www.automotivemanagementnetwork.com/business-calculators/

  This is a great learning and working tool for anyone in your shop who should know what the key numbers need to be.

  #autoshopgrosssales

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  Site Administrator replied 9 years, 4 months ago 1 Member · 0 Replies

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