Labor Rate Intelligence best practice
There are Labor Rate Intelligence best practices that once applied you can forever know your rate is full and correct based on YOUR unique Business Model.
Creating a base labor rate to cover basic labor costs in a shop, not just the tech wages, takes deeper, intelligent thought processes. It needs to make sure it covers the three labor types:
Diagnostics / High-Skilled Labor
Preventative Maintenance (PM) Labor
Diagnostics are very expensive on many levels. The most expensive tech, training, tools, equipment, and ongoing updates AND you’re not moving any parts during that Diag time, so you miss parts profits of $75 to $100 per Hour during that Diag hour!
PM Labor is very expensive if you don’t easily find “Who Needs What” and apply PM Intelligent Workflow to ensure you are not missing what the vehicle needs based on each customers driving habits.
Repair Labor is very expensive in that Repair, along with Diag, are the labor hours with the highest liability to cost you if it comes back and you must redo it again! Your labor rate needs to cover your comebacks and still be at your labor Gross Profit, GP% goal.
This training will show you how to build your annual warranties into your labor rate and still be profitable plus ten or more additional labor-related items built into your labor rate.
ultimately Profitable labor rate
2 - Watch the Training
Watch the training to learn everything that needs to go into your labor rate
3 - Labor Rate Tool
Use the labor rate tool to calculate your profitable labor rate
4 - Increase Profits
Watch your profits increase with your new proper labor rate