Technician Labor Costs
Table of Contents:
Summary
Navigating to Technician Labor Cost
Effective Date
Pay Type
Loaded Cost %
Loaded Rate
Permissions Needed
GP% on Repair Orders
Labor Commission Rate
Simple Labor Sales Report
Summary
This feature will allow shop owners to better calculate profit for a potential job in a simpler way.
To better facilitate this, individual technicians can now be assigned their own labor cost. This will provide much better accuracy in the gross profit (GP) calculations, both when estimating and when analyzing prior data.
To begin taking advantage of this feature, shop managers will first need to assign labor costs to each technician.
Navigating to Technician Labor Costs
Navigate to “Shop Settings”
Choose “Staff”, and then choose a Technician
Scroll Down to the Cost Calculator
Select “Add New Date”
Effective Date
The date on which the pay rate takes effect. This allows you to add new rates as a technician’s pay changes over time, without affecting the labor cost values on previous ROs. The labor cost calculations will use the pay rate which is in effect at the time the service is completed. If the service has not yet been completed, the labor cost calculations will use the pay rate on today’s date.
Pay Type
This refers to the wage calculation, which is currently a Flat Rate. Shop Manager defines “Flat Rate” as wage paid to technicians based on the labor hour billed.
Loaded Cost %
You can use this to include other overhead costs associated with keeping employees such as their health/benefits package, cost of uniforms, etc. The “Loaded Cost” is a percentage of the technician’s hourly rate.
Loaded Rate
The sum of the technician’s Hourly Rate and the Loaded Cost. This is the value that will be used to calculate GP%.
Permissions Needed
Navigate to:
Shop Settings
Staff
Select the Technician you would like to give access to
Permissions
Scroll to Security
Select the checkbox for “View/Edit Payroll Information”
GP% on Repair Orders
When in ‘Edit Mode’, you’ll be able to see the GP % for the overall RO and Service, so that you will have a better understanding of profit margins when building estimates.
These figures disappear in ‘Work Mode’.
If you do not wish to see these values while in ‘Edit Mode’, update user permissions for Financial Data > “Prices but not financial performance”.
Note: **If you wish to NOT show the GP% at all, such as having to make changes to the RO in front of a customer, you can create a staff account without the financial data permission above, or you can scroll to the security section and uncheck the option to View/Edit payroll information.
Labor Commissions Rate
If you pay your technicians commission based on their labor sales before discounts, you can add their commission pay rate in the Technician Cost Calculator, on the User Profile page. The commission percentage is factored into labor costs.
Use this new column to set a tech’s labor commission rate, so that their commission pay is accounted for in the labor cost calculations on the RO and Service Financials, giving your shop a more accurate GP%. If the technician has a Loaded Cost %, that will be included in the labor cost calculations based on their commission.
How to Add the Labor Commission Rate:
Go to a technician's staff profile.
Scroll to the Technician Cost Calculator
Add the commission rate as long as that technician has a pay rate created. Otherwise you can add a pay rate with the “+Add New Date” (note this is the effective date)
This feature will be located directly to the right of the Loaded Rate as shown below:
Simple Labor Sales Report
For shops paying labor commission for techs, we provide a report broken down by labor lines, so shops can easily calculate commissions paid off of labor for techs. We provide the ability to export a report in CSV format which contains information broken down by labor lines within ROs. This saves shop owners time from having to figure out a way to properly calculate labor commissions for their techs.
To locate this report, follow the path below:
Reports > Technician Report > Efficiency > Select 'Broken down by labor line'