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I love Tires Calculator Instructions

INSTRUCTIONS
Service Calculations

  1. Enter your shop’s hourly customer labor rate.
  2. Enter the average hourly wage for a technician. It will automatically calculate an additional 25% average to account for benefits, taxes etc.
  3. 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).

Tire Calculations
The overall assumption is that on average, a technician can install four tires on a vehicle in an hour.

  1. 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.
  2. Enter the average gross profit percentage you make on a tire.
  3. Enter in the average installation cost of a tire.
  4. 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.
  5. 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.

RESULTS
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.

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