Understanding your shop's profitability goes beyond just knowing a single number. To make informed decisions, you need a clear breakdown of your rate, cost, profit, and margin. Tekmetric’s Profit Details Report provides a powerful, line-by-line look at these key metrics.
To get a full breakdown of your profitability, go to the Profit Details Report. This report is the most effective way to analyze every single line item on a repair order, showing you exactly what you charged (rate), what you paid (cost), and your resulting profit and margin for labor, parts, and more.
Step-by-Step Guide to the Profit Details Report
- From the sidebar, click on Reports.
- In the top menu, select Financial Reports.
- From the list of reports, select Profit Details.
Once the report loads, you can use the filters to set a specific date range or search for a particular customer or RO. The report will display a table with the following key columns.
Understanding Your Financial Breakdown
Here is a breakdown of what each key column in the Profit Details Report represents and how it helps you analyze your profitability.
- Rate (Retail)
- What it is: This column shows the retail price you charged the customer for a specific part, labor, or service.
- Why it matters: This is your selling price. To be profitable, your rate must be higher than your cost.
- Cost
- What it is: This is what you paid for the item. For parts, this is the purchase price from your vendor. For labor, this is the cost per hour to your shop (the technician's pay plus other overhead).
- Why it matters: Your cost is the most important factor in determining your profitability. Keeping your costs low directly increases your profit.
- Profit ($)
- What it is: This is the raw dollar amount you made on a single line item. It is calculated as Rate - Cost.
- Why it matters: Profit is the actual money you have left after paying for the goods and services. A positive profit number means you made money on that item.
- Margin (%)
- What it is: This is the percentage of your revenue that is profit. It is calculated as (Rate - Cost) / Rate.
- Why it matters: Margin is a critical indicator of your shop's financial health. It shows how efficiently you are pricing and selling your services. It's a key metric for comparing your profitability on different jobs or over different time periods.
By regularly reviewing your Profit Details Report, you can easily see which line items are the most profitable, identify where you might need to adjust your pricing, and make smarter decisions for your shop.
FAQs About Profitability and the Profit Report
Why does the profitability analysis and the profit details report not match?
Profitability Analysis adds the discount in at the end, whereas the Profit Details report puts the discount in based on the specific item. So for the Profit Details report you see it reflected in the labor profit, whereas on the Profitability Analysis you see it reflected at the bottom in Total Estimate with Discounts Profit. This could cause the margins to be a little bit off if there are labor/parts discounts.