In this episode, Lucas Underwood and David Roman continue their series on repair shop basics with Cecil Bullard, industry expert and CEO of the Institute for Automotive Business Excellence. They discuss the importance of maintaining appropriate parts margins, highlighting how a low margin on parts can impact the overall profitability of a business. He also delves into the fear that often prevents shop owners and technicians from addressing productivity issues within their operations.

00:00 Effective labor rate affects charging and parts undercharging.
05:55 Discussing percentages and their actual dollar value.
10:23 Underestimating costs leads to financial hardship.
11:39 Marking up parts and labor essential. Be profitable.
16:49 The Car has multiple issues, and the diagnostic time is underestimated.
19:35 Selling tires brings in more profit than brakes.
21:16 Comparing hourly profit for motor and brake.