Profit Per Hour is a system for ensuring that every job is profitable. Designed by a Transmission and General Repair shop owner as an alternative to the Gross Profit method that he has been following but had left him broke.

The Basics
Record ALL your costs (including labor)
Add a desired profit (over and above owners wages)
Divide that by hours sold

Example
Expenses are $8,000 a month, you want to make $2,000 a month profit = $10,000
Hours Sold are 100 hours
$10,000/100 = $100
Thus, your PPH number is $100

That $100 Profit Per Hour can (and should) come from labor, parts markup or even sublet markup.

That system is so simple you could follow it in a spreadsheet. Which is how it was calculated originally. ShopBoss have built a system that allows you to follow along with a wizard to fill in the details as you go. Pair that with the in system indicators that show you which jobs are not profitable and allows you to make them profitable at the click of a button.

Click below to watch a 3-minute video showing you the Profit Per Hour system



Reach out to support or the Customer Success Team to have the PPH option turned on for your account (it is included in all levels of Shop Boss)

The video below shows how easy it is to add the information needed to come up with your PPH Number.
You are welcome to reach out to support or customer success, and we can join you for a session and answer any questions.

The PPH system allows your service writers to ensure that EVERY job is a profitable one. 
We suggest you review your numbers every 3 months for example if you add (or lose) an employee you need to change that in the wizard and your PPH target will change.

Feel free to reach out to support with any questions.