What Does $1,000 in Service Billing Look Like?

What does $1,000 in service billing look like on the operating statement, in a well run service department vs a "poorly" run service department?

Most service techs think that when they bill out $1,000 in one day, the owner goes home that night with an extra $500 in his pocket. The tech thinks this because no one has ever taken the time to explain to him what actually happens to that $1,000.

This is what I use when I talk to techs:

"Well Run"

"Poorly Run"

In a profitable service department, the labor has to be 25% (or less) of sales and material 10% (or less).

If you are not at these numbers, I need to look at your flat rate pricing, your parts multipliers and your service tickets!

Notice in both cases, win or lose, the tech makes the "lions share" of the money.

Remember, if you want to increase your sales and profits, "Go up on your prices".

If you have any questions, please do not hesitate to call me. Send Bruce your operating statement! brucemartin@virginiaair.com

Thanks for all you do and as always “Expect More From Us”!

Thanks,

Bruce Martin

Dealer Business Consultant

Value Added Distributors

(757) 469-1205