Motor Retail Terminology and Concepts

Hours Bought (Bodyshop)

Total Number of Hours Paid to Productive Personnel

Guideline: See Hours Attended

Description:

This term represents the total number of hours that you pay your Productives, or in other words it represents the total Productives salary for the specified period.

It includes time spent at the dealership, time spent on training courses, sickness and holiday pay.

For statistical purposes, and the calculation of key performance indicators, Hours Bought is never considered in any equation. For the most part, it is usually seen in business plans and annual budgets so that an accurate forecast of cost can be attained.

For instance, there are fifty-two weeks in the year of which four weeks could be allocated to holiday, two weeks allocated to training, and one week could be allocated for sickness.

Example:

A) Training = 80 hours (2 weeks)
B) Holiday = 160 hours (4 weeks)
C) Sickness = 40 hours (1 week)
D) Attended Hours = 1800 (45 weeks)
E) Total Hours Bought = 2080 (52 weeks)

Discussion:

Simply by multiplying the hourly rate that you pay to your Productives you are able to calculate a reasonably accurate forecast in each sector listed.

Related Terminology: