Tom’s Trends – Margin & Inflation [CC 104]

Watch on Youtube https://youtu.be/LCo1KaJIx70 (HERE) Price increases (inflation) are currently running about 7% year to year with no signs of letting up and plenty of reasons why it could go higher. So, what. What does that mean for shops? It will kill some shops and damage others, some seriously. 70s average 7%, peaked at 14% 1980 Like the frog in the pot of boiling water, it can go unnoticed when not monitored carefully. Shop A is on top of it, making sure to stay ever or slightly ahead as there seems to be no let-up in sight. Total GP for 2022 61% Shop B is kinda sorta aware but not watching the numbers as they should. Total GP for 2022 56% Shop C is oblivious. Not into numbers - not watching the news. Total GP for 2022 51% These shops all do about $1M in sales At the end of the year, shop A has $50,000 more than shop B and $100,000 more than shop C. Trailing the inflation curve can be damaging or deadly to any business. Monitor GP daily on every RO. Your software should make that a quick and easy process. If not, it may be time to go software shopping. When an RO is below your goal line (typically in the 60% area), why? Find the answer. Does something need adjusting? In an inflationary environment, checking numbers weekly or monthly is not enough. Set time aside every day to check every RO. Then at the end of the month, look over your expenses thoroughly. Make sure they are separated into many lines so you can quickly see changes in individual items. Put all your key numbers on a three-month rolling average – that is called TRENDING. It can save you a lot of money.   Connect with the show: http://aftermarketradionetwork.com (Aftermarket Radio Network) http://youtube.com/carmcapriotto (Subscribe on YouTube) https://remarkableresults.biz/episodes (Visit us on the Web) https://www.facebook.com/RemarkableResultsPodcast (Follow on Facebook) https://remarkableresults.biz/insider/ (Become an Insider) https://