The full cost, not just parts
Labour, consumables and tool wear rarely make it into the calculation, although they genuinely reduce the result of every job.
The job cost covers parts, labour hours at the set rate, materials and tools.
The value of invoices issued does not tell you how much the garage has earned. The result depends on the purchase prices of parts, labour rates, discounts given and rework done at no charge.
COSTMARGINDECISION
Labour, consumables and tool wear rarely make it into the calculation, although they genuinely reduce the result of every job.
The job cost covers parts, labour hours at the set rate, materials and tools.A discount given at collection and rework done under a complaint do not show up in turnover, but they reduce profit.
Discounts and the cost of rework are shown separately and are charged against the job's result.Overdue receivables, jobs held up by parts, or work with no hours entered usually only come to light at settlement.
The Owner centre points these out as they happen.Hours, parts and materials are posted to jobs as the work is done. The reports need no separate preparation or retyping of data.
RESULTSTRUCTURETEAMDECISIONS
The profitability summary shows revenue from jobs, the cost of materials, the cost of actual working time and the margin. Each value is compared with the previous period, so the direction of change is clear at once.
The chart shows the share of parts and materials, labour and margin in revenue. Beside it, the garage's workload by rate band: how many hours went on basic, specialist and expert work, and what they cost.
The system compares planned working hours with hours actually worked and shows the cost of labour in the period. It also lists jobs with no hours entered: those whose margin is overstated because it leaves labour out.
The Owner centre gathers the matters that need a decision: overdue receivables, jobs held up by parts, cars ready for handover taking up yard space, stock below minimum, open complaints and jobs with no hours entered.
Enter a few completed jobs with the purchase prices of parts and hours worked. The system will calculate their margin and show which gave the result you expected.
Start with a job you think is profitable.