Your ticket to boosting profitability and increase earnings for your repair shop.
HHP did the research. In a recent survey of repair shop owners nationwide, Highway and Heavy Parts discovered the following:
- 70% of repair shop owners believe they should be making more money than they currently are.
- 36% of repair shop owners listed Profit Margins as a top area of concern.
- 79.8% of repair shops surveyed were startups.
- 23.3% or repair shop owners didn’t know what the gross profit of their repair shop was.
- 53% of repair shop owners didn’t know what their average repair shop conversion rate was.
- 42.5% of repair shop owners plan on transferring or selling the business.
What do all these statistics mean? If you are left scratching your head as to why you aren’t making more money, you’re not alone. In fact, the vast majority of hardworking repair shop owners nationwide are in the same boat.
The fact is, profitability is critical to the long-term survival of a repair shop. If you’d like to sell your repair shop, leverage it to finance your retirement, or simply want to use your shop for a stable financial future while you work, you must understand the basic metrics that determine the overall “health” of your repair shop. Understanding these metrics are your key to increasing profitability as well as the likelihood of long-term success of your business.
HHP is here to help. We’ve developed the “HHP Profit Boosting Boot Camp” designed to help you understand the current state of your repair shop, and determine how you can tweak your repair shop to boost overall profitability. This 13-part series will include blogs and videos released on a weekly basis, all created for you to consume in 13-minutes or less, and will wrap-up into an e-book for you to download 100% free of charge.
HHP’s “Profit-Boosting Boot Camp” will include the following topics:
- 10 Metrics Proven to Boost Diesel Engine repair shop Profitability
- Closing Ratio
- Average Repair Order
- Gross Profit Margin
- Gross Profit Margin on Parts
- Gross Profit Margin on Labor
- Net Profit Margin
- Posted Labor Rate
- Effective Labor Rate
- Productivity
- Efficiency
