What if the way you measure profit is actually holding your business back? In this insightful article, Hunt Demarest challenges the traditional focus on margins and percentages, introducing a more powerful metric that can completely change how you view performance. This article was originally published on Ratchet+Wrench.com and highlights why gross profit per hour (GPH) is a far more accurate way to measure success in your shop.
Rather than chasing higher margins or bigger ticket jobs, Demarest explains how time plays a critical role in profitability. Through simple, real-world examples, he shows how smaller, faster jobs can often generate more profit per hour than larger, time-consuming ones—shifting the focus from “how much” you make to “how efficiently” you make it.
This article is especially valuable for shop owners who feel like they’re working harder without seeing better results. It breaks down how ignoring GPH can lead to missed targets, lower profitability, and wasted effort—even when sales or hours increase.
If you want a smarter, more strategic way to improve your numbers and maximize efficiency, this is a must-read.
👉 Read more on Ratchet+Wrench to rethink how your shop measures success.