Productivity Watchwords For Today’s Business World - Engine Builder Magazine
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Productivity Watchwords For Today’s Business World

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Any company with a service department is selling labor. If you have a repair facility and work on cars or trucks, or have a machine shop providing machine work on engines or transmissions, you are selling labor. If you rebuild components for the engine or transmission, you are selling labor.

In more accurate terms you are selling time. Knowing the cost of labor is probably the largest variable your company has. You do have selling cost for the parts department, but they are typically less variable. A part, such as a starter, may cost $50 today and six months from today may still cost $50.

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There are many factors that go into determining your labor cost including paying overtime, but also your cost if that employee comes in late, or worse, if they do not show up at all. Because the cost of doing business is still there when a labor revenue producer doesn

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