My repair shop is busy. Why am I not making money?
The shop's packed every day, and there's still nothing left at the end of the month. Here's how it played out at our sample shop, the way a mechanic works a car: concern, cause, correction, verification.
Nate's shop ran 104 cars a week, but the owner's pay was the first thing to go every month.
Three leaks, found at once.
2
The cause
Nolavi looked across everything at once. Labor was priced below his cost on 3 common jobs, parts profit was down to 38% from unbilled parts, and $1,250 a month went to ads that brought nothing.
About $7,800 a month leaking out.
3
The correction
He raised the price on the 3 jobs to match his labor cost, started billing every part, and cut the ads that didn't work, each one approved from the What needs you list.
4
The verification
Same 104 cars a week, and monthly profit went up by about $9,400.
Same cars. Real profit.
Example shop. Nate's Auto Repair is Nolavi's sample shop with made up numbers. The steps are exactly how Nolavi works on a real shop's data.
Questions
Quick answers.
Why is my busy shop not profitable?
Common causes are underpriced labor, unbilled parts, high payroll for billed hours and wasted marketing.
Should I raise my labor rate?
Check your effective labor rate and your cost per hour first. Many shops find a few jobs priced below cost.
Open the demo and find this kind of problem yourself in a minute. Or book your 14 day free trial: it starts with a quick call, and we set it all up and fit it to your shop.