Mike Melton tells tire shop owners that high sales don't mean your business is healthy. You need to know three numbers: total sales, gross profit, and net profit. A billion-dollar business can still lose money if you don't watch your margins and labor costs.
You can sell a shitload of tires and you could still go broke. I watch owners all the time brag about how much tire— how many tires they sell. They don't even know their own damn margins, their labor costs, or even what they actually made on a damn set of tires most of the time. See, right? See, let me tell you something about business. Revenue don't mean shit unless there's something left at the end, okay? You can do a billion dollars a year and still lose $200,000. I want you to go pull your last 30 days, okay? I want you to look at 3 different numbers. Number 1 is gonna be your sales. Number 2 is gonna be your gross profit. Number 3 is gonna be your net profit. That's what's left after everything. And if you don't know your numbers, you don't know your damn business.
