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By Joe Marconi in Joe's Blog13 commentsMost shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.
Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
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By Joe Marconi
When I was in business, each year for 41 years, we experienced a slow down in February. The reasons are many, but by the second week of March, things went back to normal.
However, from what I am hearing from some shop owners, they are concerned. They point to riding this wave of business since coming out of COVID, and fear that the wave may become a trickle.
What is your opinion? Good times are still here? Should we be concerned?
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By Joe Marconi
A recent Auto Leap Survey revealed that 64% of shop owners are looking to retire in the next 10 years. (Link below to survey)
So, I want to take an informal survey of our ASO members:
How long have you been a Shop Owner? When do plan on retiring?
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By carmcapriotto
Dive into the minds of three incredible industry trainers in the studio of the 2022 Vision KC Hi Tech Training & Expo. We had no agenda, just some friends chatting with a special dynamic and their passion for the advancement of the aftermarket. Some of what we covered: what are their perspectives on electrical theory, becoming a trainer, and training in general, you’ll also hear talk about business culture, mentoring and so much more. Profound fun awaits you.
Gary Smith, DiagNation. Listen to Gary’s previous episodes HERE Eric Ziegler, EZ Diagnostic Solutions. Eric’s previous episodes HERE. Scott Shotton, The Driveability Guys. Scott’s previous episodes HERE.
Key Talking Points
“Coming to Vision was life-altering” Eric Ziegler Electrical theory- 85% of high tech deep study cases have simple fixes routed in basic electricity. High resistance in the wire, missing fuse, broken wire, band ground. Don’t ‘out tech’ yourself. Becoming a trainer makes you better- when you teach you learn, and it forces you to research. Get what you give. Be humble and be present in the moment and be engaged. Using case studies and processes to train. “Automotive Elmers” Installing a culture of learning in your business- continuous training (with a blend of in-person and online/remote connect). Tech mentoring/group of local shops hiring training together- the same top shops that want to train continue to train, where are the other shops? Is it just a job? Or is it your career and passion? Reaching the ‘master craftsman’’ in any position takes 68,000 hours, it's a journey We Are Signal Intelligence Specialists with Gary Smith [RR 685] Eric Ziegler EZ Diagnostic Solutions and Trainer [RR 192] The Story of Stormi
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Aftermarket Radio Network
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Important Books
Check out today's partner:
Learn more about NAPA AutoCare and the benefits of being part of the NAPA family by visiting www.NAPAAutoCare.com
Click to go to the Podcast on Remarkable Results Radio
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By MINI4U
We are in desperate need of techs. I tried Indeed and was very dissatisfied with the "talent" they sent us. I am considering Find A Wrench they post on Indeed as well as Zip Recruiter and some 90 other companies as well as social media. Has anyone tried them or ACT Auto Staffing?
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By carmcapriotto
Key Talking Points
Ashlan Kaplan, Cannon Auto Repair, Cannon Falls, MN
Taking over the shop from dad Must have solid team behind you to rely on- if you’re not there one day it will continue to run properly? Husband is a financial advisor and is the team player at home Ashlan started working at shop once a week as trial to see if she would want to work in business Earning respect from others as a female “Your never making changes, you’re making improvements” Business mindset- growth Has business coach and leadership coach Biggest learning curve- learning how all the numbers work and understanding financials Short term plan- find 3rd technician in order to grow
Connect with the show:
Aftermarket Radio Network
Subscribe on YouTube
Visit us on the Web
Follow on Facebook
Become an Insider
Buy me a coffee
Important Books
Check out today's partner:
Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. By always innovating, Dorman has led the way in growing the aftermarket. Here you will see a few examples of a Dorman OE Fix. An OE FIX is a Dorman repair solution you can’t get from the original equipment manufacturer. It means they found a situation where they believe the OEM wasn’t giving repair professionals what they wanted, so we fixed it. Everything Dorman does is centered around providing customer value, both in the quality of products, and the creativity of solutions. Our engineers and designers go out of their way to save repair technicians time and save vehicle owners money. Want to really go under the hood? Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
Click to go to the Podcast on Remarkable Results Radio
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