Numbers: Track Your Margins
Shop location, time of year, and countless other factors affect how much business you’ll see each quarter, but it’s on you as an owner to understand the underlying numbers. The 2025 Ratchet+Wrench Industry Survey revealed that nearly 40% of shop owners report a gross profit margin between 50-59%, while 19% report a margin of 60% or higher. If you’re part of the 7% that aren’t tracking your margins, you’re missing out on the most surefire way to find out where you’re making money and where you’re losing it.
Overall Gross Profit Margin
|
Less than 30% |
9% |
|
30-39% |
11% |
|
40-49% |
16% |
|
50-59% |
38% |
|
60% or more |
19% |
|
Does not track |
7% |