ServiceShop Profit Calculators

Profit Calculators

Throughout the system there are profit calculators at each step to insure that every invoice and estimates are calculated with the proper levels of profitability.

The standard method of tracking profit in the automotive industry has been flawed for years. That is why 9 out of 10 shops fold during the first 10 years.

This is why GenesisFour has upgraded their Totals Box or “CalcBox” as changes have happened in the industry.

The latest upgrade (dubbed 018) starts with the Service Order/Invoice CalcBox.

The standard CalcBox starts by showing the amount of hours billed on the ticket along with the Credited Hours. It also calculates the actual time spent on the ticket by all technicians. To the left side of the spreadsheet list the actual invoice totals. Next to that is the cost of each respective area. Here theupgraded CalcBox has been modified to calculate the Fees, Freight and Supplies to not show profit as most Fees, Freight and Supplies are ‘pass through”. The next 2 columns track gross profit dollars and gross profit percentage respectively.

The lower half of the CalcBox allows us to see management prescribed numbers including the Parts/Labor Ratio, Tech Efficiency, Average Labor Rate and the Revenue per Hour.

While the MPG/h is the goal for each ticket, The Gross Profit per Actual Hour is the results from the ticket. If this number is greater than the goal the Invoice Adjustment line will have a blue $0.00, if the ticket is below your profit goals you will see the amount in the Invoice Adjustment field.

This upgrade shows the current Minimum Profit Goal (MPG/h) in the lower right hand corner.

The Estimate CalcBox comes in 3 flavors. The standard Flat Rate Box, the Hourly Box and for the shops that pay tech both ways, the combination box. The description will do for all.

After completing an estimate you always need to determine if it matches your management goals for profitability. After opening the CalcBox you will see Billed Hours and Credit Hours but there will be a yellow box labeled Estimated Actual Hours. This is where your Service Writer will use his/her judgment. How much time do you believe it will take this tech to do these jobs? Put that number in the yellow box. The Average Labor Cost will be automatically filled in from your Database but can be overwritten at this point. Much in the same way that you use the SO CalcBox you use this one. Guessing to make money now has only 1 variable, how much time the tech will spend. Before speaking to the customer you will now know if your estimate actually makes money.

The changes made to the Parts Invoice CalcBox start with making sure the Fees and the Freight do not add to the profits of the ticket. We have also added a subtotal before discount as well as calculated the percentage of discount.

The final 2 CalcBox were cosmetically changed in order to look the same.