How to Calculate the GP per productive in your workshop

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.

Dealerfloor (dealerfloor.co.za) and I will be publishing regular articles on dealership efficiency. I am really looking forward to sharing ideas with you. Join the conversation by sending a WhatsApp to 082-776-1887 to be added to our group.

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