Is My Labor Rate Too Low? [E171]

Thanks to our partner Promotive

Are you charging enough for labor at your shop? In this week’s Business by the Numbers, Hunt Demarest of Paar Melis and Associates tackles one of the most misunderstood metrics in autorepair profitability—your labor rate. Spoiler alert: it’s not always about charging more.

​This week, you'll learn:

• Why labor rate isn't the ultimate driver of shop profit
• The difference between your door rate and effective labor rate
• What real benchmarking data says about high vs. low labor rates
• The one metric that actually correlates with profitability
• How technician productivity impacts your labor cost and bottom line
• The market analysis trap shop owners fall into (and how to avoid it)
• Effective Labor Rate Episode [E128]: https://huntdemarest.captivate.fm/episode/128

Thanks to our partner, Promotive

It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: [e-mail]

Text Paar Melis @ 301-307-5413

Download a Copy of My Books Here:

• Wrenches to Write-Offs
• Your Perfect Shop 

The Aftermarket Radio Network: https://aftermarketradionetwork.com/

Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/

Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/

Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/

The Auto Repair Marketing Podcast with Kim and Brian Walker