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Ideal Labor Percent of Sales
- Thread starter Al Wash
- Start date
robert roman
Bob Roman
The benchmark is 39 percent of gross sales.
A director of operations for a chain of washes might target “line labor” for stores at 35 percent and hope that G.M.’s and site managers can keep total labor for the system to within 42 percent or so.
Absentee owner is usually around 50 percent.
Full-service total labor cost is most affected by changes in sales volume and average revenue.
Generally speaking, higher the average sales, the less sensitive total labor cost is to changes in sales volume.
Average revenue is a function of price sensitive within the trade area.
For example, a developer might expect above average sales in Naples because the area is about 1/2 as price sensitive as most of Florida.
A director of operations for a chain of washes might target “line labor” for stores at 35 percent and hope that G.M.’s and site managers can keep total labor for the system to within 42 percent or so.
Absentee owner is usually around 50 percent.
Full-service total labor cost is most affected by changes in sales volume and average revenue.
Generally speaking, higher the average sales, the less sensitive total labor cost is to changes in sales volume.
Average revenue is a function of price sensitive within the trade area.
For example, a developer might expect above average sales in Naples because the area is about 1/2 as price sensitive as most of Florida.
robert roman
Bob Roman
Flex-serve labor is function of exterior wash, after-care and management.
For flex conveyor attendant position, I plan for 1.5 FTE’s or $33,600 fully burdened.
After-care labor should be around 35 percent of express detail sales.
If after-care sales revenue is $252,000, labor would be $88,200 or $101,430 fully burdened, excludes health care.
As an owner/operator, I always paid myself every two weeks. For management, plan $52,000 for salary or $65,800 fully burdened including health care.
Here, total labor is $33,600 + $101,430 + $65,800 or $200,800.
If store total revenue is $800,000, labor would be 25 percent.
This is pretty lean. If absentee, figure 30 to 35 percent.
For flex conveyor attendant position, I plan for 1.5 FTE’s or $33,600 fully burdened.
After-care labor should be around 35 percent of express detail sales.
If after-care sales revenue is $252,000, labor would be $88,200 or $101,430 fully burdened, excludes health care.
As an owner/operator, I always paid myself every two weeks. For management, plan $52,000 for salary or $65,800 fully burdened including health care.
Here, total labor is $33,600 + $101,430 + $65,800 or $200,800.
If store total revenue is $800,000, labor would be 25 percent.
This is pretty lean. If absentee, figure 30 to 35 percent.
