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Business By The Numbers

Is My Labor Rate Too Low? [E171]

22 May 2025

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Thanks to our partner PromotiveAre you charging enough for labor at your shop? In this week’s Business by the Numbers, Hunt Demarest of Paar Melis and Associates tackles one of the most misunderstood metrics in autorepair profitability—your labor rate. Spoiler alert: it’s not always about charging more.​This week, you'll learn:Why labor rate isn't the ultimate driver of shop profitThe difference between your door rate and effective labor rateWhat real benchmarking data says about high vs. low labor ratesThe one metric that actually correlates with profitabilityHow technician productivity impacts your labor cost and bottom lineThe market analysis trap shop owners fall into (and how to avoid it)Effective Labor Rate Episode [E128]: https://huntdemarest.captivate.fm/episode/128Thanks to our partner, PromotiveIt’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 RepairVisit us Online: www.paarmelis.comEmail Hunt: [email protected] Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop The Aftermarket Radio Network: https://aftermarketradionetwork.com/Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/The Auto Repair Marketing Podcast with Kim and Brian Walker 

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