Are you charging enough for labor at your shop? In this week’s Business by the Numbers, Hunt Demarest of Paar Melis and Associates tackles one of the most misunderstood metrics in autorepair profitability—your labor rate. Spoiler alert: it’s not always about charging more.
This week, you'll learn:
Why labor rate isn't the ultimate driver of shop profit
The difference between your door rate and effective labor rate
What real benchmarking data says about high vs. low labor rates
The one metric that actually correlates with profitability
How technician productivity impacts your labor cost and bottom line
The market analysis trap shop owners fall into (and how to avoid it)
It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair