Posted by jm. on December 26, 2020 at 09:49:32 from (161.82.107.93):
In Reply to: Shop Rates posted by K-Mo on December 26, 2020 at 07:28:01:
I can tell you this for fact, 2019 three Kubota dealerships, profit % on new unit sales was right at 13% , profit from shop operations less that 4%. That was with shop rates of $90.00 actual time not flat rate. As David says getting the 40 hours billed is impossible , very good to get 85% billed the all the overhead associated with a shop is what kills it. One other factor call good will or the old lady brings here mower in you service it an charge her $90.00 then Tuesday morning she brings it back right front wheel fell off. Now you did not touch the wheel but by dang she expects you to fix it , so many of those kind of things that really eat at profit. I always took it that to stay in business one just had to eat it and go on. All the schools we attend will tell you as a dealership you want repeat business but there is actually about 3% of you customers that you would be better off to loose, those that always want something for nothing. LOL
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