Guides · Theft

Are parts leaving my shop without being billed?

You buy a lot of parts. You're not sure they all end up on a ticket. Here's how it played out at our sample shop, the way a mechanic works a car: concern, cause, correction, verification.

1

The concern

Nate's parts profit was 38% when it should have been about 45%.

Nolavi red alert that 41 parts were bought by an auto repair shop but never billed on a repair order
Lost profit, found automatically.
2

The cause

Nolavi matched every part bought to a repair order. 41 parts in two months, worth $2,870, were never billed to anyone. Most were brake parts picked up by the same tech.

Table of unbilled auto repair parts grouped by who ordered them
One pattern stood out.
3

The correction

Nate set a rule that every parts order needs a repair order number, and Nolavi flags any part that isn't billed within 3 days.

4

The verification

Unbilled parts dropped to 2 the next month, both caught and billed, and parts profit is back to 45%.

Auto repair parts profit results after matching every part to a repair order
Every part has a job now.

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.

How do I know if parts are being billed?

Match each part on your vendor invoices to a repair order. Anything left over needs a reason.

What should parts profit be at a repair shop?

Many shops aim for 40% to 50% gross profit on parts. A drop is often unbilled or misused parts.

Keep reading

See it on a sample shop.

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