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