This report may also tell you the effectiveness of your Customer Retention Management Program (CRM). However, most CRM programs used nowadays, such as Demand Force, have their own dashboards for this information. Parental discretion advised in reading them!
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Sales by category
This tells you what kind of work you perform the most, i.e. brake work, diagnostics, electrical, engine, transmission, etc.
Sales by service writer
This tells you who is selling what, total dollars, and most importantly, at what GPM percent
From your Bookkeeper
A Current P&L
Remember the date range should match any other reports you pull
· Gross sales, the costs associated with producing those sales (COGS), Total Operating Expenses, Technician load/costs, Service Consultant costs, etc. In our experience, most CPA-generated P & L statements do NOT conform to this format. They normally lump all sales in as one number. The fact that your business has multiple profit centers, which carry their own individual GPM, mandates that they be split out and tracked separately.
· Advertising and Marketing expenses
· Other major expenses, such as a shop remodel, or the purchase of new capital equipment, should be noted separately.
Cash Flow Statement/Balance Sheet
· Tax liabilities, equipment depreciation, long-term liabilities, etc.
· Lost sales opportunities, also known as “Declined Sales”. Some SMS systems provides this, but many do not.
· Coupon sales or specials may or may not have to be tracked manually. (Discounts should be picked up by your Business Summary Report)
|What a million-dollar shop looks like|
$1,000,000 in annual sales is:
Find your value
Next, you need to figure out the value of one billable hour in your shop. Use this formula:
Your Hourly Rate X (1 + P/L RATIO) Note: P = parts, L =labor
= 92 X (1 + 40/60) (assuming a shop labor rate of $92/hr., with a parts/labor make up of $.40 parts, $.60 labor, for every dollar you sell)
= 92 x (1 + .66)
= 92 X 1.66
= 152.72/hr. (value of one billable hour)
= $2.55 per minute Tech time (BTW)
$3846 sales needed daily, divided by $152.72
= 25.18 billable hrs./day needed
NOW THEN –
ARO* Cars per Day Dollars Per RO
@ 1.4 ARO 18 = $213.81
@ 2.0 ARO 12.6 = $305.44
@ 2.6 ARO 9.7 = $397.07
@ 3.0 ARO 8.4 = $458.16
*ARO = Average Repair Order
Results would look like:
3 techs @ 8.41 hrs. each (105% productivity)
Tech production goal is $1282/day