ROI: Brake Service - Brake Lathes

Oct. 1, 2006
Brake Lathes
Price to machine 1 rotor: $20.00  
Overhead Costs: $2.00 Includes cutting tips and general shop operating costs
Labor Costs:
(Based on a $25/hr. national average)

$6.25
$4.10

Bench-style lathe.
On-the-car lathe.
Profit per rotor: $11.75
$13.90
Bench-style lathe.
On-the-car lathe.
Frequency: 32 rotors/month  
Total profit/month: $376.00
$444.80
Bench-style lathe.
On-the-car lathe.

Cost of unit: (Bench-style)
(On-the-car)

 

$6,000.00
$9,000.00


Composite average taken from all makes and models, although the difference in price will vary based on specific features.

ROI timeframe: (Bench-style)
(On-the-car)
15.9 months
20.2 months
 
Average lifespan: 15 years
 
Profits over the unit's lifespan
(not adjusted for inflation):

$61,680.00
$71,064.00

Bench-style lathe.
On-the-car lathe.
NOW FILL OUT YOUR OWN RETURN ON INVESTMENT WORKSHEET
Price per service:    
Overhead Costs:   What are your associated costs?
Labor Costs:    
Profit per service:   Subtract overhead and labor costs from the price you charge.
Frequency: jobs/month  
Total profit/month:   Profit per service multiplied by frequency.
Cost of unit:    
ROI timeframe:   Cost of unit divided by profit/month.

Sponsored Recommendations

ADAS Case Study: From 10 Calibrations a Month to Over 10 A Day

Originally published by Vehicle Service Pros, March 26, 2024

Snap-on Training: Approach to Intermittent Problems

Snap-on's live training sessions can help you develop your own strategy for approaching vehicle repair.

Snap-on Training: ADAS Level 2 - Component Testing

The second video for Snap-on's comprehensive overview of Advanced Driver Assistance Systems (ADAS), covering the fundamental concepts and functionalities essential for automotive...

Snap-on Training: Intro to ADAS

Snap-on's training video provides a comprehensive overview of Advanced Driver Assistance Systems (ADAS), covering the fundamental concepts and functionalities essential for automotive...

Voice Your Opinion!

To join the conversation, and become an exclusive member of Vehicle Service Pros, create an account today!