Joz this is exactly what I was looking for! Thank you for dropping numbers right in the thread, very helpful. I saw the rest of the guys use programs such as Quickbooks, but how did you come up with your margins? To answer your question, I'm looking for profit margins, and labor to product margins, but all are helpful!
What types of numbers are you guys estimating for your own business? Please state if you are mobile/stationary as well!
My margins vary quite a bit depending on the service I am providing. For instance if I am doing a Headlight Resto, I am at roughly 10%-for parts, fuel, 90% obviously is labor. If I do the same job at my shop I am at about 6% parts and 94% labor. Right now I am trying to operate at $60 an hour, and my H/L Resto jobs start at $60. I get the job done in about 20 min in my shop and if I go mobile the job is about an hour usually from port to port.
My margins on my details are about 15%-18% parts and 85% to 82% labor. They vary a little depending on the detail package. I always try to sell my add ons when needed because the margins are greater and help make up for a job that might take a bit longer or if I under bid the job it helps make up for it. Like the previous poster I set up a general ledger in excel. Each type of expense is coded along with sales. My expenses include everthing from products to meals, fuel costs, advertising, IT, ect...I have my shop sales and mobile sales separted into 2 profit centers in order to track margins separatly. I pay myself 60% of the job the other 40% goes back into the business.
I should have asked which margins you were looking for? Product to Labor margins? Product mark up? Efficiency? Productivity?
Hope this helps, I tend to ramble between 2am and 8am...lol.[/QUOTE]
