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Are Your Using a Labor Matrix?

Joe Marconi
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  • 3 weeks later...
southendautocare Rookie

southendautocare

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We have about 8 different labor matrix's.  We are more and more introducing previously unthinkable labor rates, mixed with little to no parts mark up (that's our "matrix!") . Sometimes we charge a little below our cost on parts, and adjust the labor rate accordingly!  We arrive at the same profit dollars per job, and it is more of a challenge. We do this mainly to avoid the parts "mark up" challenge with extended warranties, as well as customers.  I think a more important number than "gross profit" for the job, is having a gross dollar profit goal per technician hour spent on job.  Hard to achieve on oil changes, and certain jobs, but can make a drastic improvement in bottom line on "no or few parts" jobs, long diagnostic jobs, etc.  Hardest challenge is changing the thinking with service advisors to implement this.  Change is usually hard, but can help alot. 

 

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southendautocare Rookie

southendautocare

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Been using it 2-3 years, most commonly on jobs we know might be challenge with the owner or insurance company. Many don't come in as a result of the quote. The ones that do, approximately 50% more gross profit dollars on those jobs. 

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Gary Childs Explorer

Gary Childs

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Yes we use a strong labor matrix manly being in a salt belt state the labor guides do not compensate for the rust problems around here. Times should not be the same in per say Arizona versa upstate NY. Many techs I know when I lived in Arizona would quite on the spot then work on a upstate NY car or truck. They would run away screaming. :) 

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