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Podcast Preview (Episode 19): Building a Foundation for your Shop Finances (Part 2)

The Shop Management Show, AutoLeap’s new podcast, is back with part two of a recent shop finance discussion.

What shop margins and KPIs should you focus on? How can you proactively analyze your shop finances to improve performance?

We discussed these topics in detail with an industry expert. 

Experience the AutoLeap Effect

Recap from episode nineteen

In episode 19 of The Shop Management Show, I was thrilled to be joined again by Chris Cotton, Owner of AutoFix Auto Shop Coaching. 

Chris and I discussed: 

  • Managing Cost of Goods Sold (COGS) and your income statement 
  • Establishing benchmarks for your key KPIs and shop margins 
  • Improving shop performance through finance analysis

Let’s cover some key takeaways! 

Healthy benchmarks for your shop margins

Regarding your shop’s margins, Chris recommends tracking and measuring everything. Consider the big picture and how every aspect of your shop’s operations influence these margins, from writing up tickets to estimates. Monitor these details proactively and adjust your shop processes as needed.

Specifically, Chris recommends the following benchmarks for your shop’s margins: 

Healthy benchmarks for your shop margins

Getting your shop finances on track

Chris hears some push back on the suggestion of raising labor rates and increasing parts margins. But that advice will often benefit shops the most and deliver the strongest return on investment. 

If your shop is struggling in this area, Chris outlines several ways you can adjust. Take a low parts margin. If your parts margin isn’t correct, plug a parts matrix into your shop management software. Stop ordering parts you don’t need. Return unused parts you already received. 

Ultimately, it all boils down to optimizing the processes and procedures in your business. 

Quote from industry expert Chris Cotton on getting your shop finances on track.

Closing thoughts

Download this episode today for more expert insights to optimize your shop finances. 

Subscribe to the Shop Management Show today! The podcast is available on Apple Podcasts, Spotify and most popular streaming services.

Auto Repair Shop Management Software

AutoLeap is a powerful all-in-one auto repair shop software that helps to keep complete track of your business – from scheduling appointments to managing technicians and generating invoices.

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