Management Software, Web Sites & Internet
Discussions about automotive shop management systems, software, websites, the internet, online purchasing, how-to, etc.
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By carmcapriotto · Posted
Thanks to our Partners, NAPA TRACS, Today's Class, KUKUI, and Pit Crew Loyalty Watch Full Video Episode Your posted labor rate may not be the labor rate you're actually collecting, and that gap could be costing your shop thousands of dollars every month. In this episode, Carm Capriotto is joined by Andy Adams, a shop owner and business coach, and Rob Sperring, a service manager, to explain why the Effective Labor Rate (ELR) is one of the most overlooked yet impactful performance metrics in the auto repair industry. They break down why ELR falls short, how it affects profitability, and the practical steps every shop owner can take to close the gap. What You'll Learn What Effective Labor Rate (ELR) is and why it matters more than your posted door rate. Why healthy shops should collect at least 90 percent of their posted labor rate. How unbilled diagnostic time, underpriced canned jobs, and complimentary inspections reduce profitability. Why excessive discounting, even with good intentions, can quietly erode your bottom line. How shifting consumer buying habits make labor profitability more important than ever. Why improving ELR creates opportunities to increase technician compensation and strengthen your business. How auditing repair orders can uncover missed labor opportunities and unnecessary discounts. Why updating your labor matrix and canned jobs can immediately improve financial performance. How sharing KPI's (key performance indicators) with your team builds ownership and accountability throughout the shop. Effective Labor Rate is more than a financial matrix; it's a direct measure of how well your shop captures the value of the work it performs. By understanding where labor revenue is being lost and making intentional operational improvements, shop owners can increase profitability, invest in their teams, and build a stronger, more sustainable business. Rob Sperring, Grand Rapids Motorcar, Grand Rapids, MI Andy Adams, Adams Garage, Terre Haute, IN. Coach at Repair Shop of Tomorrow Thanks to our Partner, NAPA TRACS NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Thanks to our Partner, Today's Class Optimize training with Today's Class: In just 5 minutes daily, boost knowledge retention and improve team performance. Find Today's Class on the web at https://www.todaysclass.com/ Thanks to our Partner, KUKUI Stop juggling multiple marketing tools. KUKUI’s integrated platform delivers 4x better website conversions, automated follow-up, and real-time ROI tracking. Get industry-leading customer support with KUKUI at https://www.kukui.com/ Thanks to our Partner, Pit Crew Loyalty You’re probably tired of chasing new customers who never return. We understand. Pit Crew Loyalty ends the one-and-done cycle, turning first visits into lasting, reliable revenue at https://www.pitcrewloyalty.com/ Connect with the Podcast: Visit the Website:https://remarkableresults.biz/ Subscribe on YouTube:https://www.youtube.com/carmcapriotto Follow on Facebook:https://www.facebook.com/RemarkableResultsRadioPodcast/ Follow on LinkedIn:https://www.linkedin.com/in/carmcapriotto/ Follow on Instagram:https://www.instagram.com/remarkableresultsradiopodcast/ Join Our Virtual Toastmasters Club:https://remarkableresults.biz/toastmasters Join Our Private Facebook Community:https://www.facebook.com/groups/1734687266778976 Join our Insider List:https://remarkableresults.biz/insider All books mentioned on our podcasts:https://remarkableresults.biz/books Our Classroom page for personal or team learning:https://remarkableresults.biz/classroom Buy Me a Coffee:https://www.buymeacoffee.com/carm Special episode collections:https://remarkableresults.biz/collections The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/ Remarkable Results Radio Podcast with Carm Capriotto: Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/ Diagnosing the Aftermarket A to Z: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/ Business by the Numbers: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/ The Auto Repair Marketing Podcast: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/ The Weekly Blitz: Weekly Inspiration with Business Coach Chris Cotton from AutoFix – Auto Shop Coaching. https://chriscotton.captivate.fm/ Speak Up! Effective Communication: Develop Interpersonal and Professional Communication Skills with Craig O’Neill. https://craigoneill.captivate.fm Click to go to the Podcast on Remarkable Results Radio -
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