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By Joe Marconi in Joe's Blog0 commentsAuto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.
As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.
But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.
Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit.
Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good.
Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership.
The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production.
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By Joe Marconi
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By carmcapriotto
Shame vs. Guilt: Margaret Light explains the difference between these two often confused emotions. Guilt is about feeling bad for doing something wrong, while shame is about feeling like a bad person. Guilt can motivate change, but shame can lead to negative self-critical thoughts and harm relationships.
Show Notes
The difference between shame and guilt (00:01:30) Personal experience with shame (00:03:28) Challenging negative beliefs (00:06:22) Shame and Guilt (00:08:18) Discussion on the difference between shame and guilt, and how shame affects individuals in their day-to-day lives. Childhood Experiences of Shame (00:09:23) Sharing and Naming Shame (00:12:15) Recognizing and Understanding Shame (00:15:34) Dealing with Shame and Self-Compassion (00:18:38) Leaning into Shame and Seeking External Validation (00:21:31) The impact of shame on individuals (00:25:55) Creating a shame-filled environment (00:26:16) The connection between self-talk and how we treat others (00:27:30) Shame and Substance Use (00:31:00) The Shame Spiral (00:32:22) Window of Tolerance and Coping Strategies (00:34:19) Regulating Your System (00:38:45) Regulating Others (00:40:55) Guilt vs. Shame (00:44:27) Recognizing and not internalizing feedback (00:48:14) Healthy guilt vs shame in a professional setting (00:51:07) The importance of relationships with clients (00:53:57) The fascination with understanding human behavior (00:55:00)
Thanks to our Partner, NAPA Autotech napaautotech.com
Email Matt: [email protected]
Diagnosing the Aftermarket A - Z YouTube Channel HERE
Aftermarket Radio Network: https://aftermarketradionetwork.com/
Click to go to the Podcast on Remarkable Results Radio
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By Changing The Industry
Episode 131 - How Owners and Technicians Can Reshape the Industry's Reputation With Chris Enright
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