DealersEdge Professional Forums

I have heard of the phrase "per man hour invested" as a way of measuring gross profit instead of a percentage. I do not really understand this. Can anybody giv eme a good explanation of this? How do you measure it? Thanks for any help on this.

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Per man hour invested to me means actual time. Not sold time but actual time.
One man hour= One hour actual time. I hope this helps

I'm not sure how accurate this method would be....

Consider this...it takes a flat rate tech 3 hrs. to complete a job that only pays 2 hrs. Cost to the store is only 2 hrs so gross profit is not really affected unless all of your techs suck and can't beat (or at least match) the flat rate time, which would back up your appointments & lead to low CSI numbers not to mention angry customers.

All bets are off if your techs are salaried or hourly. Which they shouldn't be, of course.

Per man hour invested, I recommend getting the multi page document from Atcon. It is great reading material,and worth the $25. If you have ever had your general manager on your case about percent of gross profit this will give you the tools to make your life easier.