June 8, 2017 at 9:44 am #26357
Site Administrator / Forum ModeratorKeymaster
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 # 20 – Sales Per Production Employee
For key number 20 we want to know the average amount of total sales that a production employee generates per month.
Acme Auto has 3 production employees.
Total sales last month were $50,000
$50,000 ÷ 3 = $16,667
So, our key number is $16,667
When looking at this number for a typical independent shop which is solidly profitable, this number will normally run between $16,000 and $19,000.
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.
This is a great learning and working tool for anyone in your shop who should know what the key numbers need to be.
Total sales: All sales of all kinds – parts, labor, tires, and anything else that is sold.
Production employee: An employee who spends most or all their time directly involved in the process of servicing vehicles. This includes technicians and service advisors of all experience levels.
Note: Most of the numbers in this series are percentages which generally remain the same regardless of area or when they are calculated. For Sales Per Production Employee the Key Number is a dollar amount. This should be considered relative to location and time. In our example, the amount was for 2017 in the US Midwest.
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