You should know your shop productivity,do a labor rate analysis by technician-there income+use 11.5% X hour rate [fica,futa,suta]
Workers comp. 6% X hour rate plus other cost. uniforms,vacation pay,holiday pay,training,insurance-health,life.plus any other misc.cost.
Add this together to a hourly amount this is your loaded technician cost per hour. most times it is $12 -$37 per hour
divide 40%=60%gross profit adjust for shop productivity by tech 60% to 100%
This will give you needed labor rate $50.-$90 per hour
This may not be what you need but in these hard times we should be in the 60% PROFIT MARGIN- GROSS PROFIT
Parts and Labor. Shops around mine are down some as low as 35% some have closed the doors. Parts mark-up 2.5% avg. to keep you at that 60%
I hope this helps.
