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The
Waterhouse Financial Health Check
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Yes |
No |
Huh? |
| 1. Can you take
a vacation and have your shop run smoothly without you? |
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| 2. Do all parts
get billed on every job without exception? |
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| 3. Do you know
the min & max dollars of inventory you should stock? |
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| 4. Do you know
the sales per repair order a tech should generate? |
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| 5. Is
motivating technicians not a problem for you? |
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| 6. Do you
know the maximum hours a tech should be scheduled for
per day? |
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| 7. Do you
use Standard, Labor Intensive & Diagnostic Rates &
Factors/ |
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| 8. Do you
make all needed repairs on a vehicle without having to
reschedule? |
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| 9. Do you
bill and get paid for every hour legitimately worked on
all vehicles? |
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| 10. Is it
easy to keep customers happy who can buy parts cheaper
at a parts store? |
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| 11. Do you
get paid for every hour spent performing diagnostics? |
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| 12. Does
cash flow allow you to buy all equipment as you need it? |
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| 13. Is there
only one person responsible for ordering parts? |
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| 14. Did you
measure accountability & offer incentives for office &
shop employees? |
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| 15. Will you
double your net profit in the next 12 months? |
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| 16. Can your
arrive late or leave early without worry? |
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| 17. Do you
stock the right inventory for your sales and proximity
to a store? |
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| 18. Do you have
written job descriptions for employees? |
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| 19. Do you
know your office efficiency percentage is? |
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| 20. Do you know
your "Factory Efficiency"
™
percentage is? |
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| 21. Do you know
& track your individual technicians' efficiency
percentage? |
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| 22. Is your
labor rate established from cost up & not just what the
market bears? |
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| 23. Do you hold
regular employee meetings? |
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| 24. Do you
offer employee incentives and evaluations? |
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| 25. Do you
have and enforce an employee image code? |
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| 26. Does your
financial statement show parts, labor & sublet profit
separately? |
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| 27. Do you know
what your minimum & maximum inventory turns should be? |
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| 28. Do you
know what your avg. labor sales per work order should be
& track it? |
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| 29. Do you know
what your gross profit % on labor should be & track it? |
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| 30. Do you
have and utilize a shop management software program? |
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| 31. Do you know
your monthly/daily breakeven to pay all bills plus
profit? |
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| 32. Do you
know the minimum monthly labor sales your techs need to
generate? |
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| 33. Do you
pay all parts suppliers on time and take discounts for
early payment? |
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| 34. Do you know
what your payroll as a percent of sales/GP should be? |
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| 35. Do you know
the breakeven when hiring support staff or technicians? |
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| 36. Do you know
what your sales breakeven point to hire a service
manager? |
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| 37. Do you know
the correct support staff to technician ratio? |
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| 38. Does
your business meet or exceed AutoCare Financial Profile
benchmarks? |
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| 39. Do you receive
and understand a monthly P&L and balance sheet? |
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| 40. Do you
know the sales breakeven point required to pay for
equipment? |
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| 41. Do you
know when it is better to buy versus lease? |
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| 42. Would you
invest two days away from work to learn the above? |
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Count Your Yes Answers! |
A = 31- 42
B = 26
- 30
C = 22 - 25
D = 16 - 21
F = 00
- 15 |
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If you would like to attend
a two-day Financial Management for the Auto Repair Business
workshop at essentially no charge, call
your nearest NAPA store and ask about the $440.00 Scholarship.
You do not
have to be a NAPA customer to receive this scholarship and
there is no obligation to buy NAPA parts.
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