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I'll start off admitting I am bald. And stubborn. The other day I wasn't doing so well, spilled my coffee, forgot to charge my phone, forgot my lunch, all the parts ordered arrived either wrong or damaged. I should have taken the day off. It was pretty clear that the moon phase was NOT in my favor. Nope, even after all the gumption drained out I continued on until I wished I could rewind. I was inspecting the rack bushings on a e430 and pressed my head against the catalytic converter. Based on the hole in my head it was over 600 degrees. Doh! Sometimes I just don't get it.

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I'll start off admitting I am bald. And stubborn. The other day I wasn't doing so well, spilled my coffee, forgot to charge my phone, forgot my lunch, all the parts ordered arrived either wrong or damaged. I should have taken the day off. It was pretty clear that the moon phase was NOT in my favor. Nope, even after all the gumption drained out I continued on until I wished I could rewind. I was inspecting the rack bushings on a e430 and pressed my head against the catalytic converter. Based on the hole in my head it was over 600 degrees. Doh! Sometimes I just don't get it.

 

You are not alone...why things fall apart on some days is a mystery!

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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most 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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