Business By The Numbers

Key KPI: Productivity & Efficiency [E136]


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In this episode of Business by the Numbers, host Hunt Demarest, CPA, dives into the critical role that productivity and efficiency play in the profitability of auto repair shops. Using real-world examples, Hunt explains the differences between these two metrics and how shop owners can leverage them to drive business success

  • Productivity vs. Efficiency: Learn the key differences between productivity (work produced) and efficiency (how well time is used) and why both matter for your shop’s performance.
  • Why Higher Efficiency Doesn’t Always Mean Higher Productivity: Discover why a 100% efficient technician may not always be productive and how to balance these metrics.
  • Flat-Rate vs. Hourly Pay: Hunt explains the pros and cons of each pay structure and how they impact technician performance and shop profitability.
  • Real-Life Example of Pay Impact: See how a shop owner improved profitability by hiring a higher-paid technician who produced more billable hours, leading to a dramatic increase in gross profit.
  • How to Measure Productivity in Your Shop: Practical tips on using your shop management software to track productivity and efficiency and optimize your team’s output.

Thanks to our partner, NAPA TRACS

Did you know that NAPA TRACS has onsite training plus six days a week support?

It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.

Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com

Thanks to our partner, Promotive

It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: [email protected]

Download a Copy of My Books Here:

  • Wrenches to Write-Offs
  • Your Perfect Shop 

The Aftermarket Radio Network: https://aftermarketradionetwork.com/

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion.

Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life.

Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.

The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level.

The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.

Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.

...more
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Business By The NumbersBy LSTN Media LLC

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