Understanding Profit in our Business
"Gross profit is the difference between revenue and the cost of making a product or providing a service, before deducting overhead, payroll, taxation, and interest payments."
What is a reasonable Gross Profit?
Industry standard on PARTS is 45% to 55%
Shops that are doing very well will be in the 55% to 65% range
Net Profit defined:
Gross profit dollars minus all other expenses
Taxes, payroll for everyone, building & equipment costs and everything with the exception of your parts
Net Profit is often described as Operating Income
For the next several months, I will talk about Understanding Profit & give examples how to increase profit in your shop
If you are interested in consulting services for your Auto Repair shop give me a call / Don 412-874-1873
Do you need a Web Page for your shop
We can create your Web Page & Photograph your shop & employees
Only $1499.00
From the moment your customer drives up, to the final invoice and beyond, Mitchell 1’s industry-leading software is hard at work helping you create an exceptional repair experience and more satisfied customers. You’ll fix cars faster, streamline shop workflow, and launch effective marketing strategies to build your business — now and for the future.
Give us a call
Don Scandinaro 412-874-1873
Thad Mitchell 570-765-4401
Brandon Naillieux 412-728-0856
Credits:
Created with images by tpsdave - "daimler car automobile" • Capri23auto - "lotus formula 1 auto" • pedrosimoes7 - "Red Jaguar XK140" • Capri23auto - "bmw formula 1 ralf schumacher" • DariuszSankowski - "car mercedes slk" • DariuszSankowski - "car mercedes slk"