Connecticut Seminar Teaches Shop Owners True Cost of Labor
Dec. 14, 2015—On Dec. 5, shop owners learned how to calculate true cost of a labor hour at the Running a More Profitable Body Shop seminar, hosted by Superare Advertising + Marketing Agency, in cooperation with the Auto Body Association of Connecticut (ABAC).
Tony Lombardozzi and Peter Abdelmaseh, co-owners of Suparare, presented shop owners with reasons why they should focus on their true costs, and not estimates or allowed amounts, when it comes to determining their selling price for labor.
Excel spreadsheets were used to display financial models.
“You’re most likely working for half-price. Today’s auto body shops make up the only 70 billion dollar industry in America that sells its goods and services for 35 billion dollars. No other industry would do that,” said Abdelmaseh.
Another item introduced at the seminar was a detailed spreadsheet used to determine a usage charge for each piece of major equipment in a shop. The seminar taught owners that by charging a usage fee when the equipment is used, a shop may reduce the proportion of overhead in its labor rate.
“If equipment is part of overhead, each customers pays for all equipment in every job. Charging only when a certain piece is used solves that inequity,” said Lombardozzi.