Effective Labor rate

The Focus number here is to know the actual labor rate – For Example, Your posted shop rate may be $100 per hour but what are you really getting?

 Last month Your Shop had total labor sales of $22,000 and their two techs produced 240 hours.

1st Number $22,000 – Total Labor Sales

2nd Number – 240 – Hours Produced by Techs

Your Focus Number is $91.67  (While your door rate is $100.00, your actual door rate is $8.33 less)

1st Number -$100.00 – Posted Shop Rate

2nd Number – $91 – Actual Shop Rate

Your 2nd Focus Number is 9 % (Typically 5% to 15% less than posted door rate because of labor Discounts/Sales or done at no charge for whatever reasons

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