In this month’s Collision Solutions, we will describe what goes into a break-even point calculation and provide a simple tool to enable a you to create your very own profit-volume chart. Many collision centers have suffered business downturns due to the impact of Covid-19 on the economy. Others are adversely affected by industry consolidation, changing insurer relationships, the challenge of attracting employees, etc…. When volume drops, profitability is threatened. In extreme instances, it may force an owner to sell or simply close shop. Every collision center owner or manager should have a good understanding of how monthly volume fluctuations affect the bottom line and to know the shop’s “Break-Even Point.”
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