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Posted

So about 3 weeks ago, I fired my service writer. Shop profitability was suffering due to too much discounting. He would let too much diagnostic time go uncharged. He was also of the mentality "well I wouldn't pay this much for this part" so he would discount the parts to a more "reasonable" level. After stressing the importance of hitting needed margin numbers, they were coming up slowly, but not fast enough. I finally had enough and let him go.

 

I replaced him with a tech I was training. He had most of his previous experience in sales, selling both cars and electronics, so I figured he would be a better fit at the front counter. So far, parts margins are up well over 10% (total, not an increase of), and more hours are on the books.

 

Best decision I've made yet in my business.

 

By the way, the previous service writer was me.

 

Margins still have a bit to go, but part of that is me still interjecting at times. I need to remove myself completely from the RO.

 

Moral of the story: If you're too much of a nice guy to charge what needs to be charged, get the hell off the front counter so you can make some money.

  • Like 8
Posted

Classic story. Good job getting a service advisor. In my experience shop owners are the worst on the counter. It seems like customers try to work the owner for discounts. You will love having that firewall at the front counter.

  • Like 2
Posted

I'm a pretty good Service writer thanks to Mitchell's parts matrix. I'm the owner but I don't give away parts or labor, for free I can do other things that don't involve working. Normally YTD parts margins need to be around 50% after discounts.

 

The best thing I did for my business was set up direct deposit pay for myself, I earn a weekly salary. My wife earns a weekly salary. My savings account gets a weekly contribution. Before doing that I gave a lot of money away and just lived off of what was left, if any. By paying myself and my wife what we would make working for someone else really opened my eyes to the high cost of undercharging.

  • Like 4
  • 2 months later...
Posted

I am working on my service writer. I am going to start a new topic, but I will ask here also.

 

I am working on training a new service writer. He was our shop helper at first, comming in half a day here and there to clean up and help with easy tasks, pick up drop off customers, ect. He was smart and had a good work ethic, so his days got longer and longer and he eventually became a full time assistant. He would do oil changes and tires, write some estimates and still keep things clean ect. He is not perfect, he does sometimes forget things. He is young, he is only 18. I feel like he has a lot of potential, and he enjoys the job. I like his work ethic and the majority of the customers like him.

 

I am looking for advice on how to get him fully trained up. I know that everyone has to start somewhere and I am taking on a big task, but I tried one experienced service writer in the past and did not like how set in his ways he was. My current guy is and open book, and absorbs my policies with out question.

 

What training do you guys suggest. Is there a class I should send him to? Online training courses? A book I can buy for him? Where do I start?

 

I have been training him on the RO software and he is picking that up. He knows how to build the estimates, research parts online, and has sold a few jobs when I was not around.

 

He mentioned that he wants to work on his confidence talking to the customers. When I sell to a customer, I know how to work on cars, and so when they throw me a curve ball I know the answers or know how to find them. How does a service writer with very little tech experience handle techy questions?

 

Thanks in advance for the help guys.

Posted

Great article and so very very true. people that don't really have much to lose seem to not care what the price is and you end up making more in the end. Seems as though owners are so afraid of overcharging/not getting the work they undercharge.

Posted

AVI has some training videos from George Witt that are good. Elite has some inexpensive training on their website. World Pac offer some training classes for SA. RLO'Connor recently did a 2 day SA class in our area.

Posted

I don't write estimates much anymore, but I still look over some of the larger estimates when they ask. Our training begins and ends with the simple truth that no matter how "nice" you want to be to someone, if we don't make a profit (margin) on the work we offer, then we won't be in business long enough to be of service to ANYONE.

 

I set the margins in the beginning, and then as I added service staff, I taught them the process as I had been executing it. The service advisors know how far they can go to be "nice" to someone, but they also know that our first step toward being OF service to others is to OFFER service. We build in value anytime we have a tough estimate that needs to be sold. That way, we protect our margins, and leave the customer skipping away happy because they see first hand how eager we are to offer over-the-top customer service.

  • 1 month later...
Posted

I am still looking for a competent service writer. I interviewed a woman yesterday and hired her on the spot. She did not show up this morning. I called another candidate, he was already hired by an alignment parts sales company. He is getting 50k a year to sell allignment parts!! He would have to increase my sales by 10k a month if I was going to match that paying him 7% of gross sales. I can not find a tech to save my life either. Is there a pay shift going on? do we need to raise prices another 20% to be able to pay peole a competitive salary? The fracking and oil companies take the techs and sales companys are taking the writers. I am getting ready to throw in the towel.

Posted

I started off doing all my own estimates, then we got a service writer who has been there for the last 20 years now. I have noticed that he tends to be a liaison for the customer. He tends not to charge enough for diagnostics and sometimes repairs , such as not adding in the little .2 or .3 where p/s or something may interfere. I noticed that with a/c jobs never seems to put in a diagnostics, same with TPMS sensor diagnostic, replacement, and programming . He was charging the same amount as replacing a old rubber valve stem. When he goes on vacation I do my own sales, I found that most customers don't even question things especially if you include the diagnostics in with the labor they don't know which is diagnostics and which is labor and don't seem to care. I had a customer that I replaced his Tires sensor sold by the service writer, He came back in with another sensor bad about 5 months later our service writer was on vacation so I worked up an estimate and when I called him he asked me why it was 45.00 more than the last one he had installed. I went back in the history and looked and sure enough. So I explained that a mistake was made and the diagnostics and programming was not charged last time. Of course he was not happy. I explained why we need to charge these things and if he was not happy he was welcome to call around and see what others would charge him. He called me back in about 45 minutes and said go ahead and change it we were still far less than the dealer wanted to replace it and less than the surrounding shops. He even offered to pay the difference of the last time the other sensor was replaced (one of my good customers of 24 years) , or course I told him no.Basically what I have found is don't sell your self short on a job, most people will do it don't be scared of numbers you never know what people have to spend and most are willing to pay to know that their car is fixed and fixed correctly. Just be fair and honest !

Posted (edited)

I am still looking for a competent service writer. I interviewed a woman yesterday and hired her on the spot. She did not show up this morning. I called another candidate, he was already hired by an alignment parts sales company. He is getting 50k a year to sell allignment parts!! He would have to increase my sales by 10k a month if I was going to match that paying him 7% of gross sales. I can not find a tech to save my life either. Is there a pay shift going on? do we need to raise prices another 20% to be able to pay peole a competitive salary? The fracking and oil companies take the techs and sales companys are taking the writers. I am getting ready to throw in the towel.

 

 

I believe your problem may not be that everyone else is paying their service advisors more but rather you should be making more to be able to compensate competitively.

 

 

You may find it valuable to seek some business coaching or join a peer group. It did wonders for me.

Edited by mspecperformance

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  • Have you checked out Joe's Latest Blog?

         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.
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