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Higher Car Counts & Quality Control


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Since our expansion last year, our car counts have increased significantly, possible too quickly. We shot out of the gate like a race horse but stumbled a bit on the turn. Nearly doubling our weekly car counts from 110-120 to over 200 at times can be challenging.

 

Although we had clearly defined processes and policy, nothing is like real-life. We pulled back on the reins and assessed the situation. We learned that we were understaffed in the shop and on the counter. We hired an additional service advisor and tech among other workflow changes.

 

It’s no secret that I am a proponent of healthy car counts; car counts equate to opportunity, opportunity equates to increased profits. My advice to anyone looking to increase car counts: create a systematic plan and implement the process in stages. Attempting to climb a ladder too fast might cause you to miss a rung and fall to the ground.

 

Joe,

 

That's great that you are doing so well. You don't seem to have been impacted by the economy too much. In San Diego (where its only cloudy and overcast when Joe Marconi visits) we all took a huge hit starting in 2008 but especially 2009. I went overboard with specials and advertising to get as many people in the door as I could during that time. Although we ended 2009 down 5% in sales, we were actually up 5% in car counts. This tells you that you average repair order went down, which often happens when car counts are too excessive to handle. There is a positive to high car count and a negative to high car count and it is important as a shop owner to identify this. I found when our car counts were high everyone was getting burned out and overworked. Profitability dropped and customer complaints can start to rise. You can go too fast too soon and destroy your business and reputation if you are not careful.

 

I also know that the effort in 2009 has paid dividends for 2010 as we are up 5% in sales and the profitablity is back. I scaled back on the coupons and advertising and the car count is now a little lower but the average ticket is higher and we are more profitable. The important thing is as a business owner, you need to understand this dynamic and not just from a "feeling" point of view. You should be tracking your daily sales, average repair order, car counts, and use accurate statistical data to make the proper management decisions.

 

So, here is what I've learned going "backwards", (I worked for an auto repair management company for over 5 years then left and bought my own shop. I call this going "backwards" because most auto repair management trainers no longer own shops. They sold them and now do training.)

 

1. Be careful about implementing all the programs, ideas, etc. that the management trainers teach. I implemented many ideas to increase car counts "oil change packages, lifetime oil changes, free oil changes, etc." While these can be good then can also be very destructive if not thought out. If you have a smaller facility you will turn it into a large volume low average repair/profitablity shop and burn everyone out. Many of those customers will not turn into anything because they after the freebie only. You have to kiss a lot of frogs with these programs to get a price and you can be "married" to the frogs if not careful. Again, do not make "emotional" decisions based on ideas from a seminar. Implement these things based on your statistics, management philosophy, business plan, and how they can fit with the ideas you recieved from a seminar.

 

2. Be even more careful about implementing employee management ideas from a seminar. Once you put an plan into place it is very difficult to undo it and will kill employee morale. I found through consulting with auto repair shops and dealing with their employees that the employees hated when the owner went away to a management seminar. This is mainly because the employees felt the owner took a "left turn" on them and became someone different and so the employees entire foundation of their employment is turned upside down. That could be a good thing in some cases but a disaster in most. Your employees choose to work with you in small business based on who you are more than anything. You wouldn't like it if your top employees took a "left turn" on you and the feeling is mutual. So, when before you implement employee management ideas, think through the process. I don't have enough time to tell you my ideas on how to implement these things successfully. I simply want to emphasize knowing your facts carefully before implementing.

 

Keith - Robert's Auto Service

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Keith,

First, let extend my sincere appreciation for your insight and sharing your thoughts with us. I want to emphasize to all ASO readers that Keith's background from the training side of business combined with actual shop ownership experience is a unique situation which we can all learn and benefit from.

 

I agree with your assessment. I warned many of my colleagues not to compromise on price in an effort to maintain car counts. As you have found out, an increase in car counts can decrease your overall profit. Busy does not always equate with profit. There needs to be a delicate balance between being accommodating and profitable. In addition, we must understand who are client base it and continue to market to these people. We have lived through possibly the toughest economic period in recent history. In the 30 years I have been in business, this appears to be the toughest.

 

I think the reason we were up in sales is due to our recent expansion and marketing programs. We did a lot of homework and due diligence finding our target audience and market heavy to this audience. I don't compromise on quality or want to be known as a discounter. And, so far it's working.

The issue with implementing ideas from a management training seminar is a touchy one. Many struggling shop owners, who happen to be great techs, are overwhelmed with new ideas and because of the problems they are having with their business, feel that they need to play catch-up. And, often ends up with a frustrated staff and disappointed results.

 

Keith, it was great hearing from you and please continue to participate in the forums. It's what ASO is all about; the free exchange and sharing of ideas and opinions.

Joe

 

Joe,

 

Thanks for the kind words. I will "come out of hiding" and be more proactive with this website. I really like this website and feel it is the best thing I have seen out there in terms of education and training for our industry. I will respond to more posts using my background of training and my past seven years of business ownership. I hope all is well out there.

 

Keith

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Keith, can you tell us a little about what lost leader programs you are using, if any. You warned about some of the oil change programs that may be destructive; are there any programs that are working for now?

 

Joe,

 

I don't have a quick answer on this one. I have a marketing program that ties everything in together. If you go to my website you will see my specials that I run. We don't have state safety inspections in california, only emissions testing. When I get a minute I will outline what I have been doing the past two years now that is working VERY well!

 

Keith

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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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So,, I give you a hug and a kiss. Take your glasses or put it in the bag and they wheel you out. So if you want to pick it back up from there, then then that would be great. Kimberly Cotton (00:11:49) - So,, right before she says, okay, we're good to go, the surgeon comes in, he's like, okay, there's you know, he marks the spot, literally marks the spot where, you know, things are going to happen. And so then the two little air ladies come in and they wheeled me down the hall. Kimberly Cotton (00:12:08) - We were supposed to have rooms right next to each other, but,, that didn't happen. So as they were wheeling me back to the E.R.,, or the E.R., the operating room,, I saw my. They'd paused at my brother's door, and that's when it got me. I had been fine. I hadn't cried or anything until that point, and I paused and I said, okay, I'll see you on the other side. And he said, thank you again, I love you. And I'm crying as she's willing me back. I'm fine. Nobody else is with me. It's just the poor ladies listening to me cry with me. Back to the operating room. But once I'm through the doors, it was. It happened so fast.. They killed me in. They got the table ready that I was going to be on. They scooted me over. They laid me on my side. They put the oxygen mask on me, and I didn't even count to ten. And I was out. Kimberly Cotton (00:13:14) - I don't remember anything after that. The only the next time I woke up was in the recovery, and I had lots of blankets on me because I think I was shivering because it was cold., and I just remember I had two nurses continuously checking on me. How are you doing? Do you need this? Do you need that? And the only thing I said was, is where's my husband? Can I see my husband? And so I think that's at the point. They went and got you and brought you back. The problem was, is I had to stay in recovery for quite some time. Our surgery was early and so it lasted, what, four hours, I think something like that. Chris Cotton (00:13:56) - Yeah. They, they told they pretty much told us this is a four hour surgery and, and we're going to have you because of the staging and everything. I guess they give you kind of like they give you like an hour headstart and then and then then they start start on, started on your brother and and then they've got your kidney, which they, the doctor said, hey, it looks pink. Chris Cotton (00:14:20) - It's great. We cleaned it up. And so basically they will you out to recovery and then and then clean up the kidney, get it put into your brother and and then he's off and going. But, yeah we had a trouble. We had trouble getting into the actual,, the room that we that not not not I guess ICU or recovery, but your actual room that we stayed in for two nights. Yeah., so you were done by 11, and I think we had you in your room by five. So we kind of sat around for spent more time sitting around trying to get you into another room than than the operation took. Kimberly Cotton (00:14:59) - Yeah., luckily I slept a lot during that time., so it wasn't too bad for me., it was just. I was just down there for a long time, so. Not a big deal. They got me up into a room., and actually, I, I was hungry,, when we finally did make it up to the room,, so I, I think we had tried to order something through the hospital, but they, the time had passed when they were delivering meals and stuff. Kimberly Cotton (00:15:31) - , I did you bring me something or did I? I don't even remember what I had that I. Chris Cotton (00:15:36) - Think I think we, I think I got you, I was able to get you something that you could eat. Kimberly Cotton (00:15:41) - I don't think I was very hungry, but I wanted something small, so. Chris Cotton (00:15:45) - Well. And and to give everybody like the idea of the recovery room you're in, basically, it's just like a long row of beds with like 10 to 15 slots on either side. And when I first went down there, you didn't have anybody next to you. So then we got you some ice water. I think we got you some pudding then or something. Yeah., but because the HIPAA regulations, they were bringing other people down on either side of you, and they had me leave. Yeah., but so we. So we got you to the room and kind of settled in a little bit., and we were trying to manage your pain, and I think, I think one of the important things, if you're listening and you're going to go through this out there, they talk about this. Chris Cotton (00:16:32) - It's not a phantom pain. But what happens is, is where the kidney was. And they insert these robot fingers inside your body and they blow up your abdomen with nitrogen. And and they do this with a robot. And they try to get all the air out, but they can't. And what happens is, is the air or the nitrogen that's left pushes on your diaphragm. And when that happens, your body thinks your shoulder hurts. So it has this like tremendous pain in your shoulder. And I've seen Kimberly,, give birth. I've seen her do all kinds of stuff in 25 plus years that we've been together. And I've never heard her. Yell in pain or anything like that. And oh, maybe that's what had happened. I'd gone and got you something to eat. And then I went and got me something to eat. And when I was coming back, I heard you hollering down the hallway I had. Kimberly Cotton (00:17:30) - Yeah, you hadn't probably been gone 20, 30 minutes maybe. And the pain all of a sudden hit me so hard. Kimberly Cotton (00:17:38) - So I pushed the nurses button and took them, you know, longer than I wanted to them for them to respond. But they finally responded and they said, can we help you? And I said, I need something for the pain. My I'm absolutely excruciating right now. And they said, what on the scale of what to what I'm like, I am above a ten. I mean, this is awful., and so it took them a little bit and then he could hear me moaning and groaning down the hallway, and I think he sprinted to the room after he could hear me., but it just hurts so bad., and it's the strangest thing I don't get it., but it wasn't just one shoulder. It was across my back, right at my clavicle. And it just so hurt, so bad until the pain medication finally kicked in., initially, I had only wanted to stay one night in the hospital, but everybody was like, just see how you feel. See how you're doing. Kimberly Cotton (00:18:41) - Well, the next day, the doctor,, comes. Another one comes in and takes me over, and he looks at me and he's like, yeah, you're spending another night. He could tell the pain on my face. And it wasn't constant, but it was just enough for him to say, yeah, we're going to up the dosage of your pain medication. And you're saying I'm like, okay, so but after they up the dosage, it was much better and much more manageable. Chris Cotton (00:19:07) - So, so out of all the things that they didn't tell us, this was kind of like the big moment or less and not right then. But,, so they wanted me to get her up and have her walking like at 8 p.m. that night. And so that happened. I think we took you for a walk before this happened. Yeah, but but what nobody told us was, was about 30 minutes before you get up to walk, call a nurse, have them give you the pain medication. That way, when you're sore and hurting after the walk, you've already been medicated and you're good to go. Chris Cotton (00:19:44) - So I think I think we walked you that night. I think we walked you a couple times that next day. And then I think the nurse that came in the following night was the one that was like, hey, you guys should be taking pain medication before you walk. And nobody, nobody told us that up until then. And that's,, that's like some Ron White. That's good information to know, right? Like. Yeah. Like,, that would have been handy. That would have been a little handy tidbit for people to tell us., so I, I think... Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
      Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
      Check out their podcast here: https://autorepairmarketing.captivate.fm/
      If you would like to join their private Facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
       
      In this podcast episode, Chris Cotton from Auto Fix Auto Shop Coaching examines the JD Power 2024 US Customer Service Index Study. He offers strategies for auto repair shops to outperform dealerships by focusing on immediate service, convenience, and the smart use of technology. Cotton emphasizes the need for shops to educate customers and offer value through quality service rather than just competing on price. He advises shops to enhance their online presence and local advertising to attract customers. The episode is a guide for auto repair businesses to improve service and capitalize on dealership shortcomings to gain customer loyalty.
      The JD Power 2024 US Customer Service Index Study (00:01:10) Insights from the study on dealership customer service, wait times, and technician retention.
      Dealership Wait Times and Technician Retention (00:02:14) Discussion on the impact of wait times, technician retention, and the influence on customer satisfaction.
      Customer Preferences and Technology (00:06:25) Customer preferences for immediate service, convenience, and the importance of technology in service updates.
      Rising Costs and Customer Satisfaction (00:09:02) Increase in the average amount spent on dealer visits, the impact of inflation, and customer satisfaction.
      Adapting to Market Landscape (00:13:18) The need to embrace technology, improve communication, and address wait times and cost concerns.
      Advertising Strategies for Auto Repair Shops (00:14:22) Tactical approaches to leverage speed, convenience, technology, cost-effectiveness, education, and tailored promotions in advertising.
      Implementing the Marketing Strategy (00:19:05) Guidance on assessing current advertising channels, revamping content, and staying responsive to market changes.
      Connect with Chris:
       
      [email protected]
      Phone: 940.400.1008
      www.autoshopcoaching.com
      Facebook: https://www.facebook.com/
      AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
       
      #autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros #autofixautoshopcoachingbook
      Click to go to the Podcast on Remarkable Results Radio
    • By Changing The Industry
      Today is the last day for registration - Send us a message on HOW to register for this show.
    • By carmcapriotto
      The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
      Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
      Check out their podcast here: https://autorepairmarketing.captivate.fm/
      If you would like to join their private Facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
      Setting up the story (00:01:07) Chris explains a shocking letter received from a potential client and the emotional impact it had on him.
      Discovery of theft (00:02:13) Chris recounts how he discovered theft in the client's business through inspection tickets and the importance of monitoring business activities.
      Theft details revealed (00:05:20) The client's email reveals elaborate theft involving stealing money, parts, and unauthorized vendor orders, leading to a shocking discovery.
      Impact and response (00:08:09) Chris reflects on the magnitude of the theft and emphasizes the importance of monitoring business activities and taking necessary actions.
      Connect with Chris:
      [email protected]
      Phone: 940.400.1008
      www.autoshopcoaching.com
      Facebook: https://www.facebook.com/
      AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
       
      #autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros #autofixautoshopcoachingbook
      Click to go to the Podcast on Remarkable Results Radio


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