Auto wreckers don’t have a revenue problem, they have a vehicle economics problem
Most wreckers chase volume. More cars. Bigger yard. Longer days.
Top-20% wreckers focus on profit per vehicle.
Here’s what the data shows.
Top-20% Auto Wreckers
- Revenue: $1.1m – $1.4m
- COGS: 30% – 35%
- Wages: 20% – 30%
- Net profit: 15% – 20%
- Parts sales: 75% – 85% of revenue
- Inventory turnover: 2.5x – 4x
- Quote conversion: 50% – 65%
Same industry. Same cars. Very different outcomes.
The gap isn’t tax. It’s operations, pricing and inventory discipline.
What top performers do differently:
- Track profit per dismantled vehicle
- Know which vehicles to buy — and which to walk away from
- Turn parts inventory faster using proper systems
- Push online parts sales deliberately
- Monetise scrap, catalytic converters and batteries
- Control labour output per vehicle
- Make capex decisions based on ROI, not convenience
This is where real advisory work starts. Not averages. Not “last year plus a bit”. One page. One benchmark. One commercial conversation.
That’s TaxFitness. Get a demo now!
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