For a long time, many shops have been able to see what they charge for labor — but not what that labor actually costs them. This made it difficult to truly understand profitability on invoices, work orders, or monthly reports.
To close that gap, we introduced the ability to associate an hourly pay rate with each mechanic. This change brings clearer insight into labor costs and helps paint a more accurate picture of shop performance.
Why Labor Cost Visibility Matters
Labor is one of the largest expenses in any shop. Without seeing labor costs alongside labor charges, profit numbers can look misleading. Invoices may appear profitable on paper, while the true margin remains unclear.
By accounting for mechanic pay at an hourly level, shops can better understand:
How labor costs impact each invoice
Which jobs are more or less profitable
Overall performance across weeks or months
How Labor Cost Is Represented
Each mechanic now has an internal hourly rate associated with their time. When labor hours are logged, the system uses this rate to calculate an approximate labor cost.
For example:
A mechanic works 4 hours at $25 per hour, resulting in a $100 labor cost
The customer is billed 4 hours at $100 per hour, resulting in a $400 labor charge
Seeing both values side by side helps clarify the difference between revenue earned and cost incurred.
A Clearer View of Profitability
With labor costs included:
Invoices show a more realistic margin
Revenue and invoice reports provide deeper insight
Performance reviews become more meaningful and data-driven
Rather than relying solely on billed amounts, shops can now evaluate how labor contributes to overall profitability.
What This Feature Is — and Isn’t
This enhancement is designed to offer high-level visibility, not financial precision.
It is:
A quick, internal profitability reference
A way to better understand labor impact
It is not:
A payroll or compensation tool
A calculation that includes taxes, benefits, overtime, or bonuses
The goal is clarity, not complexity.
The Bigger Picture
By connecting mechanic time to an hourly cost, shops gain insight that was previously hidden. This makes it easier to identify trends, understand margins, and make smarter operational decisions.
It’s another step toward giving shop owners and managers the information they need to run a more informed, efficient business.