- Enter your shop’s hourly customer labor rate.
- Enter the average hourly wage for a technician. It will automatically calculate an additional 25% average to account for benefits, taxes etc.
- At the bottom of the sheet you will see the average “Hourly Total Profit from Service Work.”
Note: There is an assumption that on average, for every hour of labor there is an equal dollar amount for parts. It also assumes that on average, there is a 50% gross profit on all parts (Buy it for $100 and sell it for $200 as an example).
The overall assumption is that on average, a technician can install four tires on a vehicle in an hour.
- The first box asks what the average cost is (acquisition price) of a single tire for your store. It will automatically calculate the cost for four tires.
- Enter the average gross profit percentage you make on a tire.
- Enter in the average installation cost of a tire.
- Add-On Services: The next several boxes are optional services (tire-protection, TPMS rebuilds, nitrogen) so you can get a full picture. If you include these in the installation cost or don’t offer them, just leave them blank and continue down the page.
- Near the bottom, enter in the average hourly wage of a tire technician. It will also automatically calculate an additional 25% average to account for benefits, taxes etc.
Scroll to the bottom and in the green box, it will draw a gross-profit comparison of what your bay will generate on average in one hour, service vs. tires.
Black = tires are more profitable.
Red = service is more profitable.