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Posts posted by Robert Ohlmann
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. Reluctant to say. Don’t want to jinx myself, but business was up and has been up for the year. I like to think it’s the hard work being put in and with a great coach at Elite and not a fluke. I have heard on a weekly basis from parts reps and have noticed doing drive by surveys that most shops are slow. Car count is up for the year. I need two more tech’s. That’s been a major challenge !
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I think it will be interesting to get a few more ideas on this. If Jay Huh's philosphy works for him more power to him. My experience was I was working on more cars, had 35% parts profit and a labor rate at the lower end of the market average. We got by, but not at an exceptable rate for how hard we were working. I then raised my labor to the higher side of the market average, I have 55% parts profit and we are working on less cars. But, now there is considerable more money in the bank. And contrary to the Sam Walton philosophy I have found people will travel further and pay more for a job done right the first time, quality work, quality parts, good warranty and great customer service.
Its possible that different markets and smaller shops cant follow my line of thinking but again, I'm interested in hearing more thoughts.
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hourly rate , not enough?
in Pricing, Discounts, Labor Rate
Posted
$105 is where I'm at. Gives me a 70.7% labor GP. I call around every year and check labor rates, just to make sure I'm not the cheapest or most expensive.