Gross Profit - DealersEdge

Plan Like a Pro
If Body Shop Expenses High:
Thought Starters
Confirm expenses are posted to the correct department.
Body Shop Direct Personnel Expenses (without allocations or benefits) should be 30% or
less.
Are employee bonuses calculated correctly?
Are pay plans based on productivity? Estimators pay plans should not be paid on Sales,
as labor rates and parts prices increase the Estimators get automatic pay raises.
Estimators should be paid the same time as Productive Staff—not a draw, but the commission
earned.
Use sub-accounts to track expenses like advertising or policy. Ex: Policy, shortages,
comebacks, shortages
If Gross Profit Retention Percentages are Low:
Not filing for supplements when warranted.
Paying Productive staff more time than the estimate allotted.
Department paying for helpers instead of the Body Men or Painters.
Any hourly or salaried Productive staff? How much are they really costing per flag hour?
Using the sublet and materials accounts for paying the Productive Staff more without having
to file a supplement.
Materials—painter over mixing, reconcile the mixing machine reports to the estimates
If Technician Productivity is Low:
Are we doing a good job with DRPs?
Do the Estimators do a GOOD job at writing the estimate?
Is there a quality control process that each step is signed off on, which includes date and
time?
Are productivity goals set and monitored for Productive Staff and Estimators (daily,
weekly, monthly)?
Do we confirm Customer reservations, that the necessary parts are here, and they are the
correct parts?
Are special tools and the necessary equipment up-to-date and easily accessible by the
Productive Staff ?
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