Stop Guessing & Start Controlling: Budget vs P & L

About this episode

In this episode of Repair Shop Reckoning, Kevin takes the conversation beyond just understanding your numbers and gets into what actually separates profitable shops from the ones constantly feeling the squeeze.Most shop owners look at their P&L like it’s the finish line. It’s not. It’s the scoreboard of what already happened. By the time you’re looking at it, the money’s already been made or lost.This episode is about what happens before that.Kevin breaks down the real difference between a P&L and a budget, and why the budget is the tool that actually gives you control. If you’re not actively watching your costs, adjusting your pricing, and managing your numbers week to week, your profit isn’t slipping because of one big mistake… it’s getting eaten alive by a hundred small ones.Parts creep up. Labor gets inefficient. Overtime stacks. Sublet gets easier than doing it right. Advisors miss markups. Discounts get handed out. Subscriptions, insurance, and utilities quietly climb. None of it feels like a big deal in the moment, but together, they will wreck your bottom line.Kevin walks through exactly how that happens using simple, real-world numbers and shows how fast a healthy shop can turn into a struggling one without anyone realizing it.He also gets into why your front counter is the real control center of your business. If your service advisors aren’t pricing correctly, using your system properly, and understanding what the numbers need to be, your budget doesn’t stand a chance. The software won’t save you. The systems only work if your people are trained to use them.You’ll hear why:The P&L is the past and the budget is the futureSmall leaks in parts, labor, and expenses will destroy your profit faster than one big problemOvertime, discounting, and missed markups are silent killers in most shopsWhy your shop management system is either a weapon or a liability depending on how it’s usedAnd why “we’ll see how the year goes” is one of the most dangerous mindsets a shop owner can haveAt the end of the day, this isn’t about spreadsheets. It’s about control.A profitable shop isn’t built by accident. It’s built by knowing your numbers, watching them in real time, and making decisions before the P&L tells you it’s too late. If you’re still guessing, still reacting, or still hoping it all works out… this is the episode that should snap you out of it.Become a supporter of this podcast: https://www.spreaker.com/podcast/repair-shop-reckoning--6688688/support.