variable rates

[Sedanman]

You must have variable rates to set competitive light repair and maint pricing.
Decide on where you need your overall effective rate to be. I take my average cost of CP-labor per hour and back into 75% gross profit to get my ELR target rate. For example avg cost of 25.00 @ 75% = $100.00 target rate. Now get your current maint eff rate and what percentage of your total CP sales that is. Multiply that rate times the percent of total it is, that gives you your maint contibution to the total. Next take your target rate, subtract the maint contribution total, this give you your repair contribution total. Take this figure divide it by repair contribution total and it will give you what your target repair rate should be. Dont be surprised when you see how high your repair rate number comes out to be, especially if your maint/light repair mix is high.