25% Of Your Labor Rate – UnderhoodService

25% Of Your Labor Rate

How much in monthly sales should you be able to generate per square foot of your auto repair shop? We've found that a good rule of thumb is 25% of your labor rate.

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By Bob Cooper

How much in monthly sales should you be able to generate per square foot of your auto repair shop? We’ve found that a good rule of thumb is 25% of your labor rate. For example, if you have a 4,000 square foot shop and your labor rate is $100 per hour, you should be able to produce approximately $100,000 in monthly sales ($25.00 X 4,000 = $100,000). We know there are many things that can impact this formula, but the most successful shops do 25% or better!

For help increasing your shop’s sales and CSI scores, learn more about the Elite Masters Service Advisor Training Program.

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