Breaking Down The Cost Of Doing Business
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Breaking Down The Cost Of Doing Business
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In this episode, Kevin breaks down what actually happens to every dollar that comes into a shop and why so many owners are busy, working nonstop, and still wondering where the money went. Because the truth is, you can be doing millions in sales and still be losing money if you don’t understand your numbers.
Kevin walks through a simple breakdown of a $100 repair order to show exactly where the money goes from the true cost of doing the work to the overhead that eats away at your margins every single month. Payroll, insurance, subscriptions, fuel, taxes… it all adds up faster than most owners realize.
This isn’t theory. This is real shop math and real-world patterns that show up every single day. In this episode, we get into:
• The difference between gross and net—and why most people get it wrong
• Why being busy doesn’t mean you’re profitable
• How overhead creep quietly destroys your margins
• Fixed vs variable pay—and who’s actually carrying the risk
• Why discounting jobs to make payroll is a losing game
• How bad pricing decisions start before the job is ever sold
• Why QuickBooks and a real shop management system are non-negotiable
At the core of this episode is a hard truth too many shop owners are guessing. Guessing on pricing, guessing on margins, and guessing on what it actually costs to run their business. And when you guess long enough, it catches up to you.
If you don’t know your numbers, you don’t have control. And if you don’t have control, you don’t have a business.
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