Shop charges are necessary in most cases. If you are not charging shop charges you are probably losing jobs or losing profit.
What are Shop Charges for?
- There are many small expenses that are difficult to account for on a ticket. These include silicone, wd40, brake clean, uniforms, software, diagnostic equipment, shop tools, etc.
- Shop charges allow you to add a fixed amount or percentage of parts/labor to every ticket. Many of the shops that use ShopController charge 4% of parts & labor.
- This can be an additional 4% profit on every work order.
How do I lose jobs by not charging shop charges?
- You are not providing an apples to apples quote. Many shops quote customers and send out coupons on jobs without including shop charges. This means they have an additional 4% margin on every work order. Most customers don’t know who charges shop charges and who doesn’t so it is not part of their buying decision.
In some areas, such as California, Shop Charges must be itemized. Verify any laws/guidelines in your area before implementing this feature.