A 1% INCREASE in paint & materials sales
(as a percentage of total sales)
can increase your shop’s total paint & materials margin dollars by UP TO 30%!
Collision repair centers understand paint and materials sales as a percentage of total sales since most insurance Direct Repair Programs use this to grade a shop’s efficiency. DRPs often shoot for this key performance indicator to be below 10%.
While shops are familiar with the 10% target, very few shops know the impact that 1% can have on paint & materials gross margin. An increase of just 1% can raise total margin dollars for the month by 30%!
Understanding Your Key Performance Indicators is NOT Difficult
There is no rocket science involved in understanding the key performance indicators (KPIs) that impact body shop profitability. Shops who invest a modest amount of time reviewing KPIs will see the impact that small, often incremental changes can make to their bottom line.
Operational efficiency is a crucial element of business growth and greater profits.
WANT TO LEARN MORE? LET’S GET STARTED.
There are a lot of consultants with a multitude of tools designed to help body shops measure their KPIs. Unfortunately, many of these programs overlook the fundamental understanding of how these KPIs are affected by changes a shop owner may implement. They rarely offer practical suggestions for improvement.
BEGIN WITH THE BASICS
Industrial Finishes & Systems has written a free e-book to help you start with a solid understanding of body shop KPIs and why they are important. This brief introduction to the basics is essential reading for any body shop owner or manager.
Of course, Industrial Finishes & Systems is available and ready to assist. We’ve helped hundreds of body shops grow their businesses profitably. Contact Industrial Finishes to discover the importance of working with a distributor who truly cares about your success.