Guides · KPIs

Is my repair shop's profit normal?

You wonder if other shops are doing better, and why. 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's shop kept about 8% of sales as profit and he didn't know if that was good.

Table of auto repair shop profit parts against goals showing labor rate and payroll as weak spots
Two numbers held it back.
2

The cause

Nolavi broke profit into parts. Parts profit and car count were strong. Labor profit was weak because of a low effective labor rate and high payroll share.

Bar chart of rising net profit percent at an auto repair shop
Climbing month by month.
3

The correction

He focused on just those two numbers: charging diag time, quoting to book time and cutting waiting time for techs.

4

The verification

Net profit rose from 8% to 13% of sales in four months.

Auto repair shop profit results after fixing labor rate and payroll
Normal is now above normal.

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.

What's a normal profit for a repair shop?

It varies a lot. Many owners aim for double digit net profit. Look at the parts that make it up, not just the total.

Which numbers drive repair shop profit?

Effective labor rate, payroll share, parts profit and car count.

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