Triton brings the challenge to competitors
The bakkie war has intensified with the local launch of Mitsubishi’s next-generation Triton, an evolution in the iconic bakkie’s 46-year legacy.
- Product News
- 21 November 2024
Something that seems to be a point of uncertainty when chatting to DPs is how to determine the Gross Profit (GP) on productive workshop staff.
I have included a basic calculation principle that I have used over the years. It has proven to be pretty accurate from a budgeting and performance management perspective.
The “factor” that I have used is how efficient a tech should be in terms of hours sold versus hours worked. Your factor may be different depending on your franchise.
Working days exclude SA public holidays and weekends.
All the items in yellow are inputs and the items in blue are calculations.
As you can see, the effect on your bottom line is massive if you have vacancies for productive staff, inefficient productive staff and labour rates that are below what the market will accept.
If you want the excel template spreadsheet so that you can insert the inputs that are relevant to your dealership, then please send me your email address via WhatsApp on 0827761887 and I will send it to you.
|
GP per Workshop Productive |
|||
|
Technician |
Technician |
Apprentice |
|
|
Labour Rate |
R1,000 |
R850 |
R850 |
|
Factor |
1.2 |
1.2 |
0.5 |
|
Hours per day |
8.4 |
8.4 |
8.4 |
|
Factored Hours Per Day |
10.08 |
10.08 |
4.2 |
|
Ave Annual Working Days |
248 |
248 |
248 |
|
Annual Training Days |
10 |
10 |
40 |
|
Annual Sick Leave Days |
8 |
8 |
8 |
|
Annual Leave Days |
15 |
15 |
15 |
|
Net Working days |
215 |
215 |
185 |
|
Labour Sales Per Day |
R10,080 |
R8,568 |
R3,570 |
|
Labour Sales Per Annum |
R2,167,200 |
R1,842,120 |
R660,450 |
|
Salary |
R480,000 |
R360,000 |
R96,000 |
|
Benefits % |
30% |
30% |
30% |
|
Benefits |
R144,000 |
R108,000 |
R28,800 |
|
Incentive % |
10% |
10% |
10% |
|
Incentive |
R48,000 |
R36,000 |
R9,600 |
|
Total Cost to Company |
R672,000 |
R504,000 |
R134,400 |
|
Annual Workshop GP Per Productive |
R1,495,200 |
R1,338,120 |
R526,050 |
|
GP% |
69% |
73% |
80% |
|
Parts to Labour Ratio |
50% |
50% |
50% |
|
Parts Revenue |
R1,083,600 |
R921,060 |
R330,225 |
|
Parts Margin |
30% |
30% |
30% |
|
Parts GP |
R325,080 |
R276,318 |
R99,068 |
|
Total GP |
R1,820,280 |
R1,614,438 |
R625,118 |
|
Total GP per Day |
R8,466 |
R7,509 |
R3,379 |
The bakkie war has intensified with the local launch of Mitsubishi’s next-generation Triton, an evolution in the iconic bakkie’s 46-year legacy.
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Unlike in the past, when dealerships primarily waited for customers to come to them, we now take a more proactive approach, bringing our vehicles directly to places where people gather, allowing them to experience the product first-hand, including offering test drives,” says Gerrie van der Kaay, Dealer Principal at Supergroup Dealerships Jetour Midrand.
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