Three metrics drive auto shop profitability: Effective Labor Rate (actual revenue per hour billed vs. posted rate — should be 85%+ of posted rate), Parts Gross Profit Margin (should be 45-55% gross margin on parts), and Car Count (vehicles repaired per month). A typical independent shop needs 15-25 cars per bay per month to be profitable. Track these weekly; when Car Count drops, accelerate marketing. When Effective Labor Rate drops, investigate technician efficiency or estimate inaccuracy.
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