It sound like you have estimated the equipment a little high. That may work in you favor. Pay more for the equipment and less for the business. Remember, any equipment that you purchase you will be able to depreciate. I know a guy that bought a shop and way inflated the equipment and reduced what he paid for the goodwill (business). Tax advantage later on.
You need to look at the sales numbers. What is happening on a weekly basis?
2 Techs should produce 80 hours chargeable per week
parts sales is usually 50% of gross sales
80 hrs X shop labor rate + parts sales, less parts cost, less loaded cost of Technicians will give you Gross Profit for the week. Gross profit should be above 50%
Good luck
Mike
It sound like you have estimated the equipment a little high. That may work in you favor. Pay more for the equipment and less for the business. Remember, any equipment that you purchase you will be able to depreciate. I know a guy that bought a shop and way inflated the equipment and reduced what he paid for the goodwill (business). Tax advantage later on. You need to look at the sales numbers. What is happening on a weekly basis? 2 Techs should produce 80 hours chargeable per week parts sales is usually 50% of gross sales 80 hrs X shop labor rate + parts sales, less parts cost, less loaded cost of Technicians will give you Gross Profit for the week. Gross profit should be above 50% Good luck Mike
