The numbers every tire shop owner should track

Tracking Key Performance Indicators

Tracking key performance indicators allows independent tire shop owners to monitor daily operations, spot issues early, and adjust pricing or staffing without relying on gut feel alone. The six metrics below focus on revenue generation, cost control, and service quality. Each can be calculated from basic bookkeeping records or shop management software, and owners should review them weekly or monthly to stay on track.

Revenue per Job

Calculate this by dividing total revenue from all completed jobs in a period by the number of jobs performed. Include parts, labor, and any shop fees, but exclude sales tax. In the United States, this figure typically falls in the $150 to $300 range for standard tire work, while Canadian shops often see $200 to $400 CAD because of higher average part costs and provincial taxes that can be added back for comparison. Track it separately for tire sales versus alignments or repairs to reveal which services contribute most.

Gross Margin

Start with total revenue, subtract the direct cost of goods sold such as tires, tubes, and supplies, then divide the result by total revenue and multiply by 100 to get the percentage. Healthy operations aim for 35% to 55% overall. Tire sales often land at the lower end of that range, while labor-intensive services push margins higher. In Canada, factor in import duties or currency fluctuations on tire purchases when costs are paid in US dollars, which can compress margins by a few points compared with domestic US sourcing.

Close or Booking Rate

Divide the number of jobs actually booked or completed by the number of estimates or quotes given during the same period. Multiply by 100 for a percentage. A realistic target sits between 60% and 80%. Lower rates may indicate pricing that is out of line with local competitors or unclear communication during the estimate process. Canadian shops sometimes face additional variables from seasonal demand spikes tied to winter tire programs, so segment this metric by season for clearer insight.

Labor Efficiency

Divide total billed labor hours by total paid technician hours, then multiply by 100. This shows how much of the payroll time generates revenue. Targets usually range from 70% to 85%. Anything below 65% suggests too much idle time, poor scheduling, or excessive callbacks eating into productive hours. In both the United States and Canada, track overtime separately because labor laws differ on premium pay thresholds, which can distort the efficiency number if not isolated.

Callback Rate

Count jobs that require a return visit for the same issue within 30 days, divide by total jobs completed, and multiply by 100. Keep this under 5% for most tire and service work. Higher figures point to rushed installations, parts defects, or training gaps. Document each callback with the root cause so patterns become visible over time. Cross-border differences are minor here, though Canadian cold weather can increase tire pressure-related returns in winter months.

Average Ticket

Add up revenue from every completed job over a month and divide by the number of jobs. This overlaps with revenue per job but helps when comparing ticket size across locations or months. Expect $180 to $350 in the United States and $250 to $450 CAD in Canada depending on regional tire prices and service mix. Break it down by customer type, such as retail versus fleet, to identify opportunities for upselling alignments or valve replacements.

Review these numbers together rather than in isolation. A rising average ticket paired with a falling gross margin, for example, may signal that discounted tire packages are hurting profitability. Set calendar reminders to export data from your point of sale system, compare against prior periods, and adjust one variable at a time such as labor rates or parts suppliers. Consistent tracking builds a clearer picture of where the business stands and where small changes can improve cash flow.

General information for tire shop business owners, not legal or financial advice.