Gross profit by category against the Crunchit reference targets. Your shop's true targets depend on its pay plans.
Share of sales by category.
You brought in $117,696 and kept $8,329, about 7.1 cents on the dollar. Gross profit at 61.2% looks great, but paint and materials is nearly wiped out at 2.4% GP against a 45% target, and that gap is eating almost all your net profit. Before you touch labor or overhead, get the paint and materials accounting validated. That's where this month's story is really being written.
Overall you're keeping 61 cents of every dollar before overhead, which is strong. Labor is running hot at 77.7% GP and parts are healthy at 31.5%. But paint and materials is basically flat at 2.4%, and sublet came back negative at -0.4%. Those two departments are dragging net profit down from a healthy 12%+ to 7.1%. The P&L can't tell you if that cash actually landed in the bank, what insurers still owe you, or whether WIP and deposits are clean. That's a different conversation.
Before we grade the shop, these need a look. They distort the numbers underneath, so treat the departmental and location figures as directional until they're cleared.
Late fees aren't overhead, they're a cash-pressure symptom - weak cash management or A/P discipline. Worth a cash-flow conversation.
What this means. Any department showing a near-zero or negative margin, like paint and materials at 2.4% and sublet at -0.4%, needs to be checked against your shop management system exports, vendor credits, and month-end WIP before you use these numbers to judge techs, estimators, or growth plans.
Labor sitting at 37.3% against a ~47% balanced mix isn't automatically a red flag. It can reflect severity mix, DRP pressure, or a lighter repair month just as easily as missed labor capture, so don't read the mix alone as a performance grade. Combine it with what you see on the shop floor before drawing conclusions.
Labor GP is 77.7% versus parts GP of 31.5%. A 5% shift of total sales from parts into legitimate labor capture would improve gross profit by roughly $2,719, assuming total sales stay flat and the category margins are accurate. This is a sensitivity estimate, not a promise.
Paint & materials is where shops leak the most. You're keeping 2.4% on it today (a F on the collision margin scale); a healthy shop keeps 45%. Closing that gap drops straight to your bottom line.
Each line is money already inside your business, ranked by what it's costing you — not by how hard it is to fix.
P&M revenue of $10,480.83 is only generating $250.19 in gross profit, a 2.4% margin against a 45% target. Check how your shop management system exports paint materials, whether vendor credits are posting, and whether WIP is adjusted before you assume the paint department is the problem.
Sublet gross profit is -0.4% against a 25% target, meaning sublet costs slightly exceed what you're billing for it. Check pre/post scan and towing pass-through pricing and whether COGS entries are matched to the right billed jobs.
Net profit landed at 7.1% versus a 12-18% practical target. Most of that gap traces straight back to paint and materials and sublet margins, not labor or parts, which are both healthy.
Bank fees, interest, and a late fee totaled $1,006.12 (0.9% of sales) this month. The $15 late fee is small, but it's usually a sign of cash timing pressure worth watching, not an overhead line to cut.
Database Subscription of $2,725.33 posted this month. If this is a yearly charge landing all at once, it's about $227/month on a run-rate basis, and this month's overhead percentage should be read with that in mind.
Labor sales are 37.3% of total mix versus a ~47% balanced reference. Labor GP itself is strong at 77.7%, so this looks like a mix or severity story, not a labor capture problem, but worth confirming sold vs paid hours for the month.
Your labor margin is at or above the 60% target.
Your parts margin is at or above the 30% target.
Your P&M margin is below the 45% target.
Sublet is losing money on the work you're billing.
Overhead is running heavy compared with sales.
When two numbers tell a related story, they're worth reading together. Accounting truth comes before assuming an operational problem.
Your labor GP is unusually strong (78%) while overhead is high (53%). Before treating these as two separate issues, verify where labor-related payroll costs are being posted. If PTO, payroll taxes, workers comp, or benefits are sitting in operating expenses, correcting the classification would lower reported labor GP and overhead at the same time.
P&M GP is 2%, below the 45% target. This isn't always a material usage problem. Look at non-included material capture, DRP reimbursement or formula caps, material consumption, and accounting mapping before deciding where the leak is.
A P&L is an income statement. These decide whether a shop actually survives, and they live on the balance sheet and cash-flow statement. This is exactly what a Crunchit Discovery call covers.
Whether profit actually reached the bank after debt principal, owner distributions, taxes and equipment purchases.
How much insurers and customers still owe you, and how old it is.
Whether costs and revenue are landing in the same month.
Whether advance payments sit correctly as liabilities until the repair is earned.
Whether your shop management system and your books reconcile logically after supplements, credits, returns and closeout timing.
Reconcile the P&L to your shop management system sales journals and closed ROs for June, especially paint and materials and sublet lines, before drawing conclusions from the margins.
Validate paint and materials sales and costs specifically: confirm vendor credits are posting, check for formula caps, and see if WIP was adjusted at month-end. This is the single biggest lever this month.
Check sublet billing against sublet cost for pre/post scans and towing to see if pass-through pricing is set up correctly or if costs are landing in the wrong month.
Confirm whether the Database Subscription charge is annual; if so, note the monthly-equivalent so overhead percentage isn't judged off one inflated month.
Once paint, materials and sublet accounting are confirmed accurate, build a 90-day plan targeting net profit back toward the 12-18% range, using labor and parts, which are already performing well, as your stable base.
Before you make any calls about painters, estimators, or pricing, get the paint and materials and sublet numbers validated against your shop management system and vendor credits. There's a real $4,466 a month sitting in that P&M gap alone if the accounting confirms it's real. That's exactly the kind of thing a Crunchit Discovery call sorts out: establish what's actually true in the numbers first, then build the operating plan on top of it instead of guessing.
The systems and partners we see working in shops that run clean books. Worth a look as you tighten things up.
Not ready to hand over your books? Let's make the ones you have more useful. Sit down with a collision financial expert to review your P&L, identify tracking gaps and margin opportunities, and build a practical roadmap you and your current bookkeeper can execute.
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