You picked a number years ago, and you haven't really looked at it since. 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.
Nate's posted labor rate was $115 an hour. That felt right when he set it. Then diesel prices, insurance and parts costs all went up, and nobody updated the rate to keep up.
Nolavi logged every bill and every payroll run. When it worked out what each billed hour actually needed to earn, the number came out to $128. Nate was charging $13 less than he had to.
Nolavi's labor rate health check shows the shop's real overhead per billed hour, what the rate needs to be to hit the profit goal, and exactly how far the posted rate is from that number. Nate raised his rate to $128 and the health check moved from red to green.
Six weeks later, Nolavi's true profit screen showed gross profit up from 58% to 63% on the same car count. The labor rate health check stays green as long as bills and payroll stay where they are. When they change, Nolavi recalculates and alerts him.
How we work. We make changes like this for shops all the time, using each shop's own data. The numbers shown are examples.
Every time your overhead changes: a rent increase, a new hire, an insurance renewal. Nolavi checks it automatically every week against your real bills and payroll.
Add up all your overhead for the month, divide by your billed hours, then add your profit goal per hour. Nolavi does that math continuously from your actual numbers.
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.
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