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  • When do you decide to hire another tech? Here’s the math I’m using

    Posted by peyton leveillee on September 13, 2025 at 7:07 pm

    Every shop owner I talk to wrestles with the same question: Do we need to hire another tech, or can we stretch the team a little longer?

    I’ve been working on a simple framework that uses actual shop data instead of gut feel. It boils down to tracking a few numbers for each tech every month:

    • – Paid Hours (from payroll)
    • – Billed Hours (from POS/DMS)
    • – Efficiency = Billed ÷ Paid
    • – Hours per RO (HPRO) = Billed ÷ RO Count
    • – ARPO = Parts ÷ ROs
    • – Labor Revenue = Billed × ELR

    Industry averages (2025):

    • A Tech: 2.2–2.5 hrs/RO, 70–100% efficiency
    • B Tech: 1.6–2.0 hrs/RO, 50–70% efficiency
    • C Tech: 0.7–1.0 hrs/RO, 40–50% efficiency

    Example scenario (C → B hire):

    • Old C Tech → 139 jobs, 118 billed hrs, ARPO $95 = ~$13.2K parts
    • New B Tech → ~75 jobs, 132 billed hrs, ARPO $240 = ~$18K parts
    • Net impact: +$536 labor GP, +$4,795 parts = +$5,331/month

    My question for the group:

    • What HPRO and efficiency ranges are you seeing for your B and C techs?
    • Have you run into the same situation where your Bs are maxed and you’re forced to decide between hiring another B vs. pushing work back onto As or Cs?

    ? I wrote a longer article breaking this down with tables https://insidetherepairshop.substack.com/p/get-the-tech-mix-right?sort=top

    • This discussion was modified 9 months ago by  peyton leveillee.
    • This discussion was modified 9 months ago by  peyton leveillee.
    • This discussion was modified 8 months, 4 weeks ago by  AMN Admin.
    • This discussion was modified 8 months, 4 weeks ago by  AMN Admin.
    • This discussion was modified 8 months, 4 weeks ago by  AMN Admin.
    peyton leveillee replied 9 months ago 1 Member · 0 Replies
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