Good questions. Straight answers.
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What is loaded labor cost?
Loaded labor cost is what a technician actually costs your shop per hour, not just their wage. It includes payroll taxes, health insurance, and any other benefits you provide. Most shops price off the wage alone, which understates the real cost.
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Why does loaded cost per hour vary between techs?
Productivity is part of the calculation. A tech who clocks 40 hours but only produces 30 billable hours spreads the same total cost over fewer hours, which raises their loaded cost per hour. Two techs earning the same wage can have very different loaded costs depending on how they produce.
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Does this work for flat-rate techs?
Yes. You enter flat-rate earnings and billed hours the same way you would for hourly techs. The tool calculates from whatever wage and hour figures you provide.
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What's a healthy labor gross profit percentage?
Most well-run shops target 58% or better. The tool shows you where each tech lands and flags results that need attention.
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What should I do with my loaded cost numbers?
Enter them into your shop management system per technician. When your service advisors build estimates, they'll be working from true labor costs rather than wages, which means your labor gross profit will reflect what's actually happening in the shop.