Guides · Profit

How much should I pay myself as a shop owner?

You pay everyone else first, and whatever's left is your paycheck. Here's how Nolavi works through it, the same way a good mechanic works on a car: find the concern, the cause, the correction, then verify the fix.

1

The concern

Nate took whatever was left at month end. Some months it was $9,000, some months nothing.

Bar chart of irregular owner pay at an auto repair shop before setting a salary
Feast or famine.
2

The cause

He had no plan, so every unexpected bill came out of his pay. Nolavi showed the shop could support a steady salary plus a profit share each quarter.

Nolavi owner pay plan for an auto repair shop with weekly salary and profit share
Paid like the owner you are.
3

The correction

Nolavi set a fixed weekly owner pay, built into payroll, and a quarterly profit share when the shop beats its goal.

4

The verification

Nate has been paid every week for five months, plus a $6,800 profit share in September.

Results of a steady owner pay plan at an auto repair shop
Paid every week.

How we work. We make changes like this for shops all the time, using each shop's own data. The numbers shown are examples.

Questions

Quick answers.

How much should a repair shop owner pay themselves?

A steady salary for the job you do, plus a share of profit. Set it from your numbers, not from what's left.

Why pay myself every week?

It forces the shop to plan for it, and it stops every surprise bill from coming out of your pocket.

Keep reading

See it for yourself.

Open the demo and find this kind of problem 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.

Try the live demo