Workshop profit comes down to margin and revenue, with revenue driven by customer count, average order value and orders per customer.
This MSG Equipment article offers a simple framework for estimating a workshop’s earnings. A multi-service shop can earn from maintenance and repair, tuning, extras such as tyre storage, parts and accessory sales, and insurance or financing services.
Profit is treated as margin multiplied by revenue. Margin is the percentage difference between a service’s price and its cost; once rent, taxes and wages are deducted, the real figure is lower.
Revenue depends on three indicators: the number of customers, the average order value and the average number of orders per customer. The article stresses that any rise or fall in these feeds directly into revenue.