Key KPI: Productivity & Efficiency [E136]
In this episode of Business by the Numbers, host Hunt Demarest, CPA, dives into the critical role that productivity and efficiency play in the profitability of auto repair shops. Using real-world examples, Hunt explains the differences between these two metrics and how shop owners can leverage them to drive business success
- Productivity vs. Efficiency: Learn the key differences between productivity (work produced) and efficiency (how well time is used) and why both matter for your shop’s performance.
- Why Higher Efficiency Doesn’t Always Mean Higher Productivity: Discover why a 100% efficient technician may not always be productive and how to balance these metrics.
- Flat-Rate vs. Hourly Pay: Hunt explains the pros and cons of each pay structure and how they impact technician performance and shop profitability.
- Real-Life Example of Pay Impact: See how a shop owner improved profitability by hiring a higher-paid technician who produced more billable hours, leading to a dramatic increase in gross profit.
- How to Measure Productivity in Your Shop: Practical tips on using your shop management software to track productivity and efficiency and optimize your team’s output.
Thanks to our partner, NAPA TRACS
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it. After all, it’s your shop, so it’s your choice.
Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.com
Thanks to our partner, Promotive
It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: podcast@paarmelis.com
Download a Copy of My Books Here:
The Aftermarket Radio Network: https://aftermarketradionetwork.com/
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About the author, Carman
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