Document k9qw0o68y5YjbnrqQBmQmjewO

The machine shop of Standard Auto Parts' main store, located in Dade City, Florida (owned and operated by Freeman Polk and his sons, Fred, Tim and Ray). with a mass merchandiser will position that jobber as the source tor all the parts the mass merchandiser will need to supple ment its own inventory of fast-moving parts. Criteria for "C" and "D" Class Machine Shops What follows is a set of criteria for a "D" and "C" class NAPA machine shop. /. "D" Class Machine Shop Full time machinist Machine shop counterman* Cylinder head reconditioning equip ment (which would typically include a minimum of): Cleaning equipment (spray washer preferred) Spring compressor Valve grinder Coll-O-Crimp I Valve seat & guide machines (not a modified drill press) Magnetic/dye penetrant -- crack detection Glass bead machine Head resurfacer Brake equipment (drum & rotor) Tools and support equipment Micrometers and additional gauges Boring bar or stand Align honing equipment Pressure testing equipment Tools and other support equipment Full set of micrometers Pressure testing equipment (Note: Usually, a "C" class shop has larger capability equipment: for example, seat and guide capability; surfacer large enough for blocks.) Cash-in Potential Now let's look at the cash-in potential for each of these two classes of NAPA machine shops. The following is an example of what could be expected in terms of cash input to the jobber utilizing his machine shop to potential. Note that a labor hourly charge 'When reviewing these criteria, keep in mind that it is not necessary for the machine shop counter man to work in the shop full-time. It is necessary, however, that he is the only counterman to han dle all shop paperwork, orders, parts acquisition and billing. The shop counterman also holds the responsibility of generating sales of related parts. II. "C" Class Machine Shop Two full-time machinists Machine shop counterman Complete cylinder head recon ditioning equipment Flywheel grinding capability Brake equipment Coll-O-Crimp I or II Engine overhaul equipment, in eluding: Larger cleaning equipment for blocks 8 The NAPA Machine Shop Training School has trained more than 600jobber personnel since its opening in 1980. of $22.00 has been used for a "D" shop, and a $25.00 hourly labor charge used for the "C" shop. These are minimum figures. If your shop is not charging at least these figures, then you are probably selling your shop short in the long run. Although you may be making money in the short run by charging less, the figures used here take into consideration raising money for future equipment, paying your machinist(s) a good wage and maintaining good working conditions. "D" MACHINE SHOP Cash-in: Labor $22.00 per hour X 7 hours charged per day $154.00 labor charged per day X 22 working days $3,388.00 Labor charge per month X 12 months per year $40,656.00 labor charged per year Cash-in: Parts $154.00 daily labor charge _____ X 3 parts sales multiplier $462.00 daily parts sales X 22 working days per month $10,164.00 parts sales per month _____ X 12 months per year $121,968.00 parts sales per year "C" MACHINE SHOP Cash-in: Labor $25.00 per hour X 13 hours charged per day $325.00 labor charged per day X 22 working days per month $7,150.00 labor charged per month X 12 months per year $85,800.00 labor charged per year Cash-in: Parts $325.00 daily labor charge _____ X 3 parts sales multiplier $975.00 daily parts sales X 22 working days per month $21,450.00 monthly parts sales X 12 months per year $257,400,00 yearly parts sales As these figures indicate, you can definitely bring in dollars by utilizing the full potential from a good shop. These figures are very realistic. They do not, for exam ple, assume that you can charge out eight hours of labor every day. Additionally, in the "C" class figures, you can see that it is harder to keep two men operating as ef ficiently as one, so the figures show a decreased labor output. The "C" class shop also offers more extensive service, and accordingly, charges more for them. And, as you can see, a machine shop is probably the best way to sell hard parts and, in turn, produce income from related parts such as filters, oil, chemicals and tune-up parts, (continued on bottom ofpage 11)