"We had a BIG Month in Sales!" But we are struggling to pay our bills! Why?

Gross sales only measure the amount of money generated by the business, while net profit measures the amount of money actually kept by the business after expenses have been paid. 

Robert Villanueba recently said at an automotive repair conference in Denver, Colorado, "The cost of goods can have a significant effect on a business. Higher costs can reduce profits, while lower costs can increase profits. It is important for businesses to manage their costs carefully to ensure they are not spending too much money or not taking advantage of potential savings (get multiple quotes from parts competitors, engage in parts sales promotions, stay on top of your core returns). Additionally, the cost of goods can affect a business's pricing strategy and competitive position in the automotive repair market, both independent and franchise shops. For more great coaching visit our website to schedule a coaching session.

A deeper dive article written by Dock Treece outlining in bullet points, additional, valuable information about this subject.