CHICAGO — Sell more on the front end while containing costs on the back end to get the most profit out of your shop.
Measuring and benchmarking material profitability is the first step in better understanding profits, Ross said. He and Rhoades discussed how to calculate paint material profitability, accounting for sales and costs properly and identifying key performance indicators for paint materials.
Ross and Rhoades also addressed containing paint materials costs through technical standards and training, a stringent inventory management process, waste reduction and safety and mixing room efficiency.
Shops were encouraged to follow the “you have to spend money to make money” adage, but only when they were able to truly understand what they are spending and if they are, in fact, optimizing their profit on paint materials.
“Your business will benefit when you have sufficient paint material inventory to repair vehicles in a timely manner while optimizing paint material profitability,” Rhoades said.
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