Going from strength to strength with new dealerships
Stephan Venter is making waves. Most recently with Changan Pretoria.
- Dealer News
- 24 October 2025
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 |
Stephan Venter is making waves. Most recently with Changan Pretoria.
Volvo is continuing its legacy as a leader in safety innovations for vehicles with is new multi-adaptive safety belt, which was also recognised by TIME magazine as one of the Best Inventions of 2025
BYD (Build Your Dreams) is rapidly expanding its footprint in South Africa with a series of major investments aimed at accelerating the country’s transition to electric mobility.
Advertisement
Advertisement
Have you ever noticed that anybody driving slower than you is an idiot, and anyone going faster than you is a maniac?
George Carlin
Stephan Venter is making waves. Most recently with Changan Pretoria.
Volvo Car South Africa (VCSA) has opened two new facilities after the restructuring process of its dealer network.
Stellantis is in the process of appointing dealerships within the group, which will also have the Leapmotor brand from China as part of the existing brands already in its network across South Africa