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So after a long story I won't bore you with we have our current financial information in hand for the last 6 months. Previous information is so incorrect its not even useful.

 

There's a very disturbing trend that may break me if I don't handle things correctly, hence why I'm asking the most experienced folks I know.

 

Our labor sales are low low low. We hadn't been charging for diag, just a base rate of one hour, likewise we had been using the labor guide and not billing a second more regardless of condition bit its still to low to be resolved with these fixes. Many weeks I could sell more labor but shop space and the fact I'm the only true technician limits our ability to sell more when figured with slow weeks it really throws the daily labor sold to a disgusting 2 hours. With high expenses that's even more disheartening because we're surviving on the cogs profits. No chance for real profit in the big picture. Some weeks we could sell 4 a day but it concerns me that we would loose our quality and workflow procedures that I've worked so hard to implement. Between answering the phone and doing the paperwork.

 

 

Currently I need 3.7 hours a day at $65 to cover codb. I see the options below as viable solutions.

 

1: wait 6 months and re-evaluate the data with the implemented changes before price increase or drastic changes.

 

2: increase labor from 65 to 75 or 80 per hour at the end of the month and re-evaluate in 6 months.

 

3: try and increase sales with advertising and push much harder and work more hours (major concern here is customer satisfaction and quality control)

 

4: throw in the towel and go work elsewhere.

 

5: make dramatic cuts in expenses and eliminate some key business needs and bring them back after long term liabilities have been reduced.

 

From my experience reacting to negative situations often results in over reacting I've considered raising prices, focusing on selling what hours I could and trying to be more efficient and let profit from cogs carry us until we have better data and we're more financially stable. I've got my helper calling shops and pricing labor and odd jobs to give me an idea of the market around us and I'll post with this later.

Thanks in advance for the advice. Don't worry about me being offended. I'd rather hear I'm up the creek, near the dam and no paddle in sight if that's the case. For years everyone told me what I wanted to hear including my accountant.

Sent from my DROID RAZR using Tapatalk 2

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Edited by Jeff

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