Costs per flat rate hour

[CaryC]

Does anyone know of "guide" figures for service dept. operating costs per flat rate hour sold?

[robc]

It varies by franchise, but here are my very loose global guidelines. I'll use a $50 labor rate and percentages;

Technician $15 (30%)
Other Personnel $16 (32%)
Semi-fixed $ 7 (14%)
Fixed $ 5 (10%)
Profit $ 7 (14%)

If I added right that should total $50 and 100%.

Semi-fixed are the phones, supplies, advertising, policy work, and training.

Fixed are rent, heat, light, power, water, etc.

Other personnel costs is obviously the main one. So let me break that down a little more with even rougher numbers:

Owner - Salary 1.00 (2.0%)
Supervision 4.35 (8.7%)
Clerical 1.25 (2.5%)
Writers, other 5.10 (10.2%)
Absentee 1.00 (2.0%)
Payroll Taxes 2.10 (4.2%)
Benefits 1.20 (2.4%)

Let me know if these figures don't make sense.

------------------
** Rob, Editor WD&S **
Help is only a message post away!
robc@dealersedge.com

[This message has been edited by robc (edited 04-08-2002).]