Labor Gross Profit

Labour Gross Profit

The Focus number here is to know what percent of labor sales were profit. That is the total sale price of labor sold minus the cost of that labor expressed as a percent of the total labor sales price.

Last month Your Shop had total labor sales of $35,000. The cost of labor was $9500. That was the amount of gross payroll for all technicians last month.

Definitions:

Total labor sales : Includes labor only. It does not include any parts or fees or other sales of any kind.

Gross profit : The total profit on the sale before any expenses or other costs of any kind is deducted.

1st – Number – $35,000 (Total Labor Sales)

2nd Number – $9,500 (Cost of Labor)

Your Focus number is 72%

The Goal here is between 70% and 74%

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