MWACA eXchange | Vin Waterhouse | "Labor Intensive & Diagnostic Labor Rate"
Labor Intensive & Diagnostic Labor Rate
with Vin Waterhouse
Better vehicle quality means many shops enjoy less profit per vehicle.
We sell less parts per driven mile. Parts last longer than on vehicles
of the past. There was a time when vehicles reached 100,000 miles they
were scrapped. Today, It is not uncommon to work on vehicles with
200,000 miles plus.
Research shows Internal combustion engine vehicles (ICE)
have 28-30,000 parts counting every nut, bolt, rivet etc. The average
electric vehicle ( EV) has about 7-10,000 parts. As our industry morphs
toward electric vehicles shops will sell 2/3rds less parts per vehicle.
Shop expenses continue to rise so the time to act is now. Last year 54%
of vehicles sold in Norway were electric.
Carpenters, electricians, plumbers, accountants and attorneys don't sell
any parts; they make all their profit in labor alone and so can you.
With formula based labor rates you can sell your parts at cost and
make your full average combined gross profit per billed hour. Many
have increased their profit by $3-$4,000 per month using Labor Intensive
and Diagnostic labor Rates.