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What Does it Actually Take to Close the ELR Gap?

Written by Mentor Mentee | Feb 16, 2026 2:30:01 PM

What if the $150,000 you're leaving on the table isn't about pricing but how long jobs actually take?

Most shops have a 20-30% gap between their door rate and their effective labor rate. That gap exists because jobs run over book time. And every month it stays there costs you $12K-15K in labor gross profit.

The Core Problem

The gap exists because jobs take longer than book time. Brake job books 2 hours, takes 3. You've billed for 2 but consumed 3 hours of labor capacity. That inefficiency is what pulls your ELR down.

The fix: Build proficiency so techs work efficiently.

What Proficiency Actually Does

When techs become proficient, they complete jobs in book time. That brake job that was taking 3 hours? Now it's done in the 2 hours it's estimated for. You're billing 2 and using 2 hours of labor capacity, capturing the full value instead of losing it to inefficiency.

That's how the gap closes: your effective labor rate rises toward your door rate because you're capturing what you're billing.

Proficiency → Efficiency → Jobs in Book Time → Gap Closes

And as a bonus: once techs are consistently proficient, they often work even faster than estimated time, creating additional capacity.

The Two Requirements for Building Proficiency

Closing your ELR gap requires building proficiency systematically. That means two things working together:

1. Structured Pathways

Clear roadmaps showing what skills each tech needs to master to work efficiently.

What this looks like in practice:

  • Defined skills for brake proficiency, suspension proficiency, diagnostic proficiency
  • Clear progression: what C-techs need to reach B-level, what B-techs need to reach A-level
  • Job-type specific skill requirements

Without structured pathways, proficiency development is random. With them, it's intentional.

2. Visibility Into Progress

See where each tech actually stands. How many brake jobs has this tech completed? Where are they in building proficiency on alignments? What should they focus on next?

What this looks like in practice:

  • Tracking reps completed on each job type
  • Knowing who's proficient on what work
  • Seeing what skills each tech needs to build next

Without visibility, you're guessing. With it, you're building proficiency with purpose.

How Mentor Mentee Provides Both

Mentor Mentee is a tech proficiency platform that gives you both: structured pathways and visibility.

Structured pathways show techs exactly what skills to master at each level based on real work coming through the door.

Visibility shows you how many reps each tech has completed on every job type, where they are in building proficiency, and what they should focus on next.

It's investing in the team you already have...building their proficiency to increase efficiency, which closes the gap.

Results: Clients typically see 15-25% ELR improvement within 6-9 months. A shop at $120 effective rate moves to $138-150. That's $75,000-120,000 more in annual labor gross profit.

What's Your Number?

That $12K-15K you're leaving on the table every month adds up to $150,000+ annually.

The fix: structured pathways and visibility into progress. Invest in building proficiency across the team you already have.

The result: 15-25% ELR improvement. Labor gross profit captured instead of lost.

Schedule a demo and we'll run your numbers. See exactly what a 15% effective labor rate improvement would mean for your bottom line.