Jeffersonville, OH | redoak - 5/17/2024 17:37
Just the way things are anymore .
Chris way back in the 70 s there was a study of shop rates and profits for major equipment dealers ...Short story , so many unbillable hours that many were losing money on shop side. Now profit was in parts ,especially harvesters and planters...Everything is expensive for everybody today
I am 100% sure my shop is not profitable, likely due to our book keeping, but our main goal again is to provide value to our customers. Sure, I want to make money, but there are a lot of ways to do that. My shop, shop equipment, and service trucks are a necessary expense that pay back in multiple ways, even if I don't do the paperwork to make it stand on it's own.
We do not bill ourselves internally for labor and shop work...meaning, if my Sales guys take a trade, and we have to do something to it, we track the parts, but I don't bill the sales department for the labor. I know what it cost me, and so does my brother...so why pay our people to track it in the middle. Now, that only works because we are both here and able to keep up with things...if a time comes we can't, and need to put in more people to do so, then we will have to change our practices to make sure we are covering what we need to cover.
For us, tracking things like bigger/corporate store is taking money from our left pocket, paying someone to count it and track it, and putting it in our right pocket.
Chris |
Dealer Shop Labor Rates - Birkey's
