By Denise Caspersen
Turning a profit is a good thing. Maximizing your profit and proficiency is even better. Having the knowledge of your business's proficiency is key. By measuring technician proficiency, business owners can get a better hand on the profitability of their business.
To determine technician proficiency, divide the number of flat rate or billable hours completed by the number of clock hours available and multiply by 100. For example, if one technician bills 11 hours in an eight-hour workday, then the technician's proficiency is 137.5 percent. If technician proficiency is less than 100 percent, it may be time to initiate changes in time management, efficiency and task assignments.
Once you have determined technician proficiency, you are able to build a stronger financial plan by multiplying labor rate and average number of repair orders per week or month.
According to the 2000 “How's Your Business?” survey, ASA mechanical repair businesses generate an average of 65 repair orders per week among four technicians and an average ticket price of $318. With all of these elements, business owners can compare their sales against a national average and determine just how profitable they are and would like to become.
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Stat Corner is written by Denise Caspersen, ASA's research management specialist. She can be reached at (800) 272-7467, ext. 236.
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