Quantcast
Jump to content


What do you think the payroll as a percentage of total sales should be?

Cmon
 Share

Recommended Posts

Cmon Rookie

Cmon

Posted
Posted

HI I'M NEW.

 

I KNOW MY PAYROLL IS WAY TOO HIGH WHEN I COMPARE TO INDUSTRY STANDARDS I FIND ONLINE.

 

LAST YEAR I WAS AT 22% SOME INFO I HAVE FOUND HAS SAID 12-14%. IT WOULD TAKE A LOT FOR ME TO GET IT DOWN THAT LOW.

 

READING NUMBERS ONLINE I THINK CAN BE UNREALISTIC SO I STUMBLED ON THIS FORUM WHILE LOOKING AT STUFF ONLINE.

 

I FIGURED I WOULD ASK...

 

THANKS

 

 

 

 

Cmon Rookie

Cmon

Posted
  • Author
Posted

I PAY HOURLY TO MECHANICS I RUN THE OFFICE, BOOKING KEEPING, AND WORK ON CARS I AM A SMALL SHOP ME A FULL TIME GUY AND PART TIME GUY.

 

THANKS

mspecperformance Mentor

mspecperformance

Posted
Posted

If you are paying hourly that means that your payroll is a fixed cost and if it a high percentage of your gross sale then you need to increase sales.

 

Rule of thumb is to not go over 30-35% total payroll from your total sales. If you are at 22% your not in bad shape. Would have to know more about your numbers.

lmcca Collaborator

lmcca

Posted
Posted

Welcome to the forum, one other rule of thumb for forums is to not type in all caps, all caps is like your yelling at us <_<

 

Anyway, welcome!

bstewart Collaborator

bstewart

Posted
Posted

I've seen the 20-20-40-20 rule:

20% cost of goods sold

20% production labour

40% operating expenses including non-production labour

20% profit margin

  • 9 months later...
alfredauto Experienced

alfredauto

Posted
Posted

I'm at 50% cogs, 15% payroll incl taxes, 30% operating expenses. I sold a lot of tires and used cars last year and that brought the cogs way up. 5% net profit isn't my idea of perfect but we did a huge gross sales # to compensate.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing

  • Available Subscriptions

    See all Subscription Plans

  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's Blog
         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

  • Similar Topics

    • Joe Marconi
      Business Slowing Down? Before You Spend More Money On Advertising, do this...
      By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • nptrb
      A Year Of Bookkeeping Gratitude: Client Wins In 2024
      By nptrb

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • carmcapriotto
      Artificial Intelligence: We Have Some Concern! With Dan Vance [E016] - Speak Up!
      By carmcapriotto
      Our world is rushing head first into an A.I. future and we want to encourage our listeners to remain vigilant in these exciting times, as there is some legitimate cause for concern with the changes brought by A.I. Technology.
      Joining us as our guest is Dan Vance from Shop Dog Marketing.
      Craig has known Dan for a few years now and it was at ASTA in 2023 that he first heard Dan Speak Up on the topic of AI to a group of shop-owners on the promise and peril of AI…and he saw Dan deliver a presentation on the topic again at the MARS marketing conference with the Institute for Business Excellence in (beautiful) Ogde, UT earlier this year.
      In this episode Dan acknowledges many of Craig's concerns regarding AI, while they both align on the actual benefits. 
      Craig states regularly that the last skill machines should ever be able to take from us is our ability to communicate interpersonally and … but in some areas - A.I. is far more capable of outperforming certain tasks.  While that is happening - there remains a disconnect between AI’s ability to generate data and present the data in a way that can produce more effective interactions with real people. 
      Our listeners who may share in Craig’s concerns will no doubt appreciate Dan’s calm and reassuring thoughts on the topic.  
      Watch the YouTube Video
      Topics include:  
      Early AI and Machine learning The concept of Human Capital. Authenticity as a new focus Communication tendency becoming less synchronous Efficiency vs. Authenticity and what we lose AI Strengths and practical uses Social Proof - and a word on Reviews and AI Google quality rater guidelines - EAT - Experience Authority and Trust
      Join Our Virtual Toastmasters: https://remarkableresults.biz/toastmasters
      Thank You To Our Partners:
      The Institute at WeAreTheInstitute.com.  "Stop stressing over your business, you deserve a good night's sleep. The Institute’s coaching helps you achieve success and financial peace.
      AutoFlow at AutoFlow.com. Your partner in technology, Autoflow consolidates your client interactions - before, during and after the visit to a single thread. Learn more at Autoflow.com
      AutoLeap at AutoLeap.com. Are you tired of juggling multiple tools to manage your auto repair shop? Say hello to the streamlined efficiency of AutoLeap, the #1 all-in-one Auto Repair Shop Management Software!
      Shop Dog Marketing at Shop Dog Marketing.com. "Want to see your auto repair shop thrive? Let Shop Dog Marketing be your guide. Our customer-first approach, combined with AI-driven creative content, ensures top rankings.
      In-Bound at CallInBound.com. Cover your communication needs and revolutionize your auto repair business with AI-driven call analytics from InBound.
      Contact Information
      Email Craig O'Neill: [email protected] Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/
      The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/
      The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/
      Click to go to the Podcast on Remarkable Results Radio
    • carmcapriotto
      Transforming Phone Calls into Profits: The Five C's Every service Advisor Should Know [FTR 111]
      By carmcapriotto
      Thanks to our Partners, Shop Boss, and 360 Payments Rena Rennebohm from Empowered Advisor introduces the "Five C's of a Phone Call"—Comfort, Customer, Car, Conclusion, and Close—designed to help service advisors optimize phone interactions and increase conversion rates in the automotive service industry. She emphasizes the financial value of effective phone communication, noting that well-handled calls can greatly improve customer engagement and boost shop profitability. Rena Rennebohm, CEO and Creator of Empowered Advisor. Rena’s previous episodes HERE. Show Notes: Watch Full Video Episode Comfort (00:00:26) Customer (00:01:09) Car (00:01:39) Conclusion (00:02:17) Close (00:03:53) Value of a Phone Call (00:04:36) Customer Experience Insights (00:05:50)
      Shop Boss – Shop Management Software built by shop owners for shop owners. It works the way you need it to, right out of the box. Find on the web at https://shopboss.net Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -Special episode collections: https://remarkableresults.biz/collections The Aftermarket Radio Network: https://aftermarketradionetwork.com/ Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/ Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/ Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/ The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/ The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/ Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/             Click to go to the Podcast on Remarkable Results Radio
    • Changing The Industry
      Get Ahead with Honest Feedback and Raise Your Game!
      By Changing The Industry
      Get Ahead with Honest Feedback and Raise Your Game!


  • Similar Tagged Content

  •
    Joe Marconi

    Five Proven Tips to Improve Your Bottom Line

    By Joe Marconi, in Selling Automotive Repair,

    0 comments 112 views
    Joe Marconi

    Isn’t It Time We Rethink What a Master Level Technician Is?

    By Joe Marconi, in Automotive Industry,

    1 comment 128 views
    Joe Marconi

    Money Isn’t The Motivator We Think It Is

    By Joe Marconi, in Automotive Management,

    0 comments 93 views

  • Our Sponsors

Main Sections

More Sections

Discussion Forums

×
×
  • Create New...