Chemical Expense as a % of Gross Sales

[Waxman]

My chemical expense is running at 5.5%-7.00% of total annual sales for my 2/1 Carwash and 4 bay detail shop.

How does your chem expense compare?

 

[TheChemicalGuy1]

My chemical expense is running at 5.5%-7.00% of total annual sales for my 2/1 Carwash and 4 bay detail shop.

How does your chem expense compare?

I can't say how it compares to me per say, but I can compare to the national average which is 8-11%. So with that said, seems you're doing just fine.

 

[rph9168]

I can't say how it compares to me per say, but I can compare to the national average which is 8-11%. So with that said, seems you're doing just fine.

If your chemical costs are over 8% of gross sales you are probably paying too much for your chemicals or are using more than needed. Costs should be closer to 6% than 8%.

 

[Waxman]

Problem is my bookkeeping lumps some but not all detail and carwash chemicals together.

Some same chems are used in both carwash and detail.

So my method of determining % of gross combines gross for both and chems for both carwash and detail.

 

[jfmoran]

I can't speak for your auto, but in my detail shops we aim to keep chemical, shop supplies and equipment repair/replace between 5-7% of gross sales.

John