Cost of sales %
Posted: Fri Aug 18, 2000 1:47 amOur body shop direct cost of sales - tech pay - ran at 35% of sales. Are there any industry guidelines to help us?
Although the NCM benchmarks move a bit between domestic, highlines, and imports here were their percentages for a domestic franchise:
Customer Labor Gross Profit % 61.90%
Warranty Gross Profit % 74.20%
Internal Labor Gross Profit % 59.60%
Total Body Shop Labor Gross Profit % 62.20%
For your import store they'd all be about 1% less. So it would seem that you are slightly above norm. I assume by customer labor, they are talking about insurance work, and of course your work mix might not be the same to end up with the same total gross percentage.
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** Rob, Editor WD&S **
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robc@dealersedge.com