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Key Numbers 101 Series – Key # 3 Expenses
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 # 3 ExpensesFor this key number we want to know what percent of total sales is spent on expenses.Last month Acme Auto had total sales of $50,000Total spending for expenses was $14,000$14,000 ÷ $50,000 = 0.28So 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%.There is a fill in the blank form for this number in our Business Calculators area available to Premium Members.DefinitionsExpenses: All spending of all types except payroll, parts, sublet and tires.Total sales: Includes all parts, shop supplies, labor, sublet and tires.#autoshopexpensesCopyright © 2016 Automotive Management Network -
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