Ep #73: You're Losing Money on Your Labor Rates with John Shoemaker

Body Bangin'

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"Reverend" John Shoemaker of BASF is what I like to call him! John always has great input and today he's talking about charging for the proper labor rates with proper labor times.
What's the difference? Labor types depict the labor rates!
Why do we not talk about that more often?
Most shops are using body and refinish as a labor type and we need to identify the skills the techs are using to perform the repairs. This is beyond "structural" and "non-structural". Shops are currently paying out more than they are receiving due to this labor type and rate!

• Listen in as John gives the formulas on how to figure out what your labor rate is and how to adjust that.
• John recommends starting with your accountant and figure out what it costs to have an employee and you can go from there.
• Quick check to see if you're making money on your labor : Look at your net profit = 2-3% of your parts gross profit. If it is then most money is being made by parts and not labor!

Reach out to John Shoemaker directly:
Email: [e-mail]
LinkedIn: https://www.linkedin.com/in/john-shoemaker-amam-a0800020/
Website: https://www.basf.com/us/en.html

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