How Do I Know Which Jobs Actually Make Money in My Diesel Shop?
Profit per job needs real tech pay, actual clocked hours, and true part cost on every repair order. How to calculate it, what it often reveals, and what software must show.
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Take what you billed on the job, then subtract the true part cost and the labor cost of the hours actually clocked to it. You need time tied to jobs and real part costs to do this, which is why most shops only find out at tax time.
How do I calculate it?
Here is an example with made-up numbers. You bill 6 hours at $150, which is $900, plus parts at $700 that cost you $450. A tech paid $35 an hour including payroll costs spent 8 clocked hours on it.
| Item | Amount |
|---|---|
| Labor billed | $900 |
| Labor cost (8 × $35) | $280 |
| Parts sold | $700 |
| Parts cost | $450 |
| Gross profit | $870 |
This is gross profit. Rent, insurance, the service writer, and your own pay still come out of it, so a job can look fine here and still lose money overall.
What do shops tend to find?
- Certain job types run over their billed hours every time
- Diagnostic time goes unbilled
- Fleet discounts leave less than the owner assumed
- Shop supplies and freight never reach the invoice
- Comebacks are hiding inside "normal" jobs
What must the software do?
It has to record a technician's actual time on each job, carry the true part cost, and know what each tech costs you. In WrenchPilot, time attaches to the job when techs clock on, and each job shows labor cost, parts margin, and profit as the work goes. You can hide these numbers from people who should not see them.
What is the catch?
The number is only as good as the input. If techs forget to clock on, or a part cost is wrong, the profit figure is wrong. Check a few jobs by hand during your first month. Your accountant should still do the full picture of overhead.
Next, see how to set your labor rate.
Want to see it on your own work?
Bring a real repair order to a WrenchPilot demo, and check current pricing first. Lite is $100 per month for one user. Pro is $300 per month with up to 10 technicians, no per-user fees, and no contract.