Labor GP is 72% versus parts GP of 28%. A 5% shift of total sales from parts into legitimate labor capture would improve gross profit by roughly $53,900, assuming total sales stay flat and the category margins are accurate. This is a sensitivity estimate, not a promise.
Your labor margin is at or above the 60% target.
Your parts margin is below the 30% target.
P&M is at or above the 45% target.
Your sublet margin is below the 25% target.
Overhead is running heavy compared with sales.
When two numbers tell a related story, they're worth reading together. Accounting truth comes before assuming an operational problem.
Your labor GP is unusually strong (72%) while overhead is high (40%). Before treating these as two separate issues, verify where labor-related payroll costs are being posted. If PTO, payroll taxes, workers comp, or benefits are sitting in operating expenses, correcting the classification would lower reported labor GP and overhead at the same time.
A P&L is an income statement. These decide whether a shop actually survives, and they live on the balance sheet and cash-flow statement. This is exactly what a Crunchit Discovery call covers.
Whether profit actually reached the bank after debt principal, owner distributions, taxes and equipment purchases.
How much insurers and customers still owe you, and how old it is.
Whether costs and revenue are landing in the same month.
Whether advance payments sit correctly as liabilities until the repair is earned.
Whether your shop management system and your books reconcile logically after supplements, credits, returns and closeout timing.
The systems and partners we see working in shops that run clean books. Worth a look as you tighten things up.
Not ready to hand over your books? Let's make the ones you have more useful. Sit down with a collision financial expert to review your P&L, identify tracking gaps and margin opportunities, and build a practical roadmap you and your current bookkeeper can execute.
Book your financial review →Want us to own the process? We manage your collision bookkeeping daily, from CCC through your accounting system, so your financials are accurate, timely and built to help you run the business. Less chasing numbers. More confidence in them.
Book a discovery call →Sponsored placements. Crunchit may earn a referral fee, which never changes your read.
A fresh Blueprint every month, your margins and net trended over time, and your fix list kept current.
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