Running a Shop Operations Shop Production Cycle Time Management

The Keys to Improved Labor Sales Gross Profits

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In FenderBender’s May issue, owner Jim Smiciklas boasted a net profit margin above 20 percent and a gross profit margin above 60 percent. One reason he achieved those stellar numbers was a focus on cutting down labor costs in terms of productivity and efficiency, which allows his gross profit on labor sales to soar above 50 percent.

The 2017 FenderBender KPI Survey found that, while improving how quickly your shop gets the vehicle out the door doesn’t necessarily improve labor profits, a focus on efficiency and productivity does—immensely.

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