Vin Waterhouse Financial Health Check

1. Can you take a vacation, not call in & have your shop run smoothly without you?
2. Sales are growing,you’re not discounting,money is tight. Would you know why?
3. Do you know the min monthly total sales per employee your shop should generate?
4. Do you know the total gross profit dollars each employee should generate per month?
5. Do you know what your parts gross profit % should be with shop supplies included?
6. Do you know how what technician wages should be per $100.00 in total sales?
7. Do you know the breakeven point to hire a service manager or technician?
8. Do you know what percent of total sales should be spent on advertising?
9. If labor and part gross profit is high, expenses are low but cash is tight; Know why?
10. Do you know what your gross profit per hour between parts and labor is?
11. Do you know how much the average and high profit shops pay their technicians?
12. Do you have a monthly dollar budget for every expense category in your business?
13. Does every part you install always get billed at the correct price?
14. Can you arrive late and leave early without worry or problems?
15. If total sales are $400,000, do you know how much of that should be labor sales?
16. Your 15 most repetitive repairs = 70% of activity; do you have a procedure for them?
17. Is your labor rate calculated from cost up versus what others charge in your area?
18. Do you have written job descriptions for every employee?
19. Do you lose more than 6 minutes per hour that techs aren’t working on vehicles?
20. Do you know how many labor hours per repair order your techs should generate ?
21. Do you know & track your individual technician’s efficiency percent ?
22. Can you pay cash for all equipment costing $1,500 or less as you need it?
23. Do you know how much your expenses should not exceed per $100,000 in sales?
24. Do you know what the service manager to technician ratio should be?
25. Do you have a standard, labor intensive and diagnostic labor rate?
26. Does your financial statement show parts, labor & sublet profit separately?
27. Do you know what your minimum & maximum inventory on hand should be?
28. Do you know what your avg. labor sales per work order should be & track it?
29. Do you know what your gross profit % on labor should be?
30. Do you know what your total gross profit should be per $100,000 in total sales?
31. Every business has two daily break even points. Do you know what yours are?
32. Do you know the minimum monthly labor sales your techs need to generate?
33. Do you pay all parts suppliers on time and take discounts for early payment?
34. Do you know why measuring tech wages to sales and GP is no longer essential?
35. Do you have an employee incentive program where employees improve your business?
36. Do you know the maximum hours a tech should be scheduled for per day?
37. Do you know what percent of sales should be spent on equipment?
38. Do you know the average sales per repair order high profit shops generate?
39. Do you receive and understand a monthly P&L and balance sheet?
40. Do you know the sales breakeven point required to pay for equipment?
41. Do you know when it is better to buy versus lease?
42. Are the above questions important enought for you to attend a class to learn them?

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