Sloppy Work Bay + Sloppy Workflow Process = Sloppy Auto Repairs and Lost Customers
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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 carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
In this captivating episode of "The Weekly Blitz," Coach Chris Cotton and Coach Mike take listeners on a deep dive into the remarkable transformation of a family-owned auto repair shop nestled in the heart of Louisiana. With their wealth of knowledge and expertise, the coaches explore the intricacies of ethical selling strategies, shedding light on the importance of building trust and fostering long-lasting relationships with customers.
Drawing from their own experiences, Coach Chris and Coach Mike delve into the unique dynamics of working with family in a business setting. They discuss the challenges and rewards that come with such a setup, emphasizing the significance of clear communication, mutual respect, and shared goals. Listeners gain valuable insights into how to navigate the complexities of family dynamics while maintaining a thriving and harmonious business environment.
Throughout the episode, the coaches stress the critical role of assembling the right team for success. They emphasize the importance of hiring individuals who align with the company's values and possess the necessary skills to deliver exceptional service. Additionally, they highlight the significance of fostering a culture of accountability, where team members take ownership of their responsibilities and strive for continuous improvement.
Coach Mike shares his personal journey of implementing transformative changes within the family-owned auto repair shop. He discusses the benefits of leveraging modern marketing channels and analytics to reach a wider audience and drive business growth. Listeners gain valuable insights into the power of data-driven decision-making and the impact it can have on the overall success of an auto repair business.
Sponsored by Shop Marketing Pros, this episode aims to equip auto repair business owners with the knowledge and tools needed to thrive in the ever-evolving automotive industry. By providing a comprehensive exploration of ethical selling strategies, the dynamics of working with family, and the importance of building the right team, Coach Chris and Coach Mike empower listeners to overcome challenges and achieve remarkable success in their own ventures.
Ethical versus non-ethical selling strategy [00:02:17] Discussion on the importance of selling services in a fact-based manner, using tests and evidence to inform clients.
Working with family members in the shop [00:05:14] Exploration of the challenges and benefits of having family members as employees, emphasizing the need for honesty and clear communication.
Having the right people [00:06:47] Importance of having team members who are willing to buy into the team culture, and the negative impact of individuals who are not team players.
The impact of negative influences [00:09:41] Discussion on how negative employees can affect the shop and the importance of removing them.
The need for accountability [00:11:47] Importance of having someone in the shop to hold everyone accountable and ensure strategies are implemented effectively.
The process of implementing changes [00:16:55] The ongoing process of implementing and reinforcing changes in the shop, including holding employees accountable and correcting their behavior.
The new software system and marketing channel [00:19:01] Discussion about implementing a new software system and the importance of utilizing a marketing channel for the shop's growth.
Improving the average repair order [00:20:41] Emphasis on the need to increase the average repair order and improve processes to attract more customers and increase revenue.
Coaching accountability and teamwork [00:21:30] The importance of coaching accountability and teamwork in achieving success, with the need for feedback and collaboration between the coach and the team.
Connect with Chris:
[email protected]
Phone: 940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/
AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #autoops #onlinebooking #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Thanks to our partners, NAPA TRACS and Promotive
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.com
It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: [email protected]
Get a copy of my Book: Download Here
Aftermarket Radio Network
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private facebook group go here:https://www.facebook.com/groups/autorepairmarketingmastermind
In this episode of the "Weekly Blitz" podcast, host Coach Chris Cotton discusses the concept of value in the auto repair business. He emphasizes that value goes beyond price, encompassing quality service, skilled labor, genuine parts, and transparency. Cotton debunks the myth that being the cheapest shop guarantees success, instead advocating for a balance between price, quality, and value. He also highlights the link between staff compensation and value, stating that a well-compensated team is more motivated and productive, enhancing the overall customer experience.
The concept of value and self-esteem [00:01:02] Discusses the importance of shop owners valuing themselves and their businesses in order to show value to customers and potential employees.
Defining value from a customer's perspective [00:02:14] Explains how customers perceive value as the total package of quality service, skilled labor, genuine parts, transparency, and other benefits.
The balance of price, quality, and value [00:03:20] Highlights the importance of striking the right balance between price and quality to provide real value to customers, debunking the myth that the cheapest prices are always the best.
Connect with Chris:
[email protected]
Phone: 940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/
AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #autoops #onlinebooking #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private facebook group go here:https://www.facebook.com/groups/autorepairmarketingmastermind
In this podcast episode, Brian Walker and Coach Chris Cotton discuss the importance of marketing in the auto repair business, particularly during slow times. They emphasize the need to address underlying issues in car count, average estimate, and average repair order before implementing marketing strategies. They stress the significance of consistent marketing throughout the year and suggest planning marketing activities on a yearly basis. They also discuss adjusting marketing strategies during peak and valley periods, investing in business growth, and the importance of timely communication with marketing teams. They highlight the benefits of time blocking and prioritizing marketing efforts, as well as the importance of self-care for business success.
Planning Your Marketing Calendar [00:08:46] Discussion on when to start planning your marketing for the following year and adjusting your marketing during peaks and valleys.
Knowing When You're Not Ready for Marketing [00:04:07] The importance of fixing business practices before focusing on marketing and how marketing isn't always the solution to business problems.
Marketing for Slow Times [00:02:30] Introduction to the topic of marketing for slower months and the importance of maximizing car count and repair order before implementing marketing strategies.
The importance of year-round marketing [00:10:51] Discussion on the significance of having a strong marketing strategy throughout the year, rather than relying on holiday marketing or slow times.
Lag time in marketing campaigns [00:13:20] Exploration of the lag time required for marketing efforts to yield results, typically a 60 to 90 day cycle.
Making time for communication with marketers [00:16:22] Emphasis on the need for shop owners to prioritize regular communication with their marketing team for optimal results.
Planning marketing for state fair [00:21:38] Discussion on how the state fair impacts business and the importance of planning marketing strategies around it.
Importance of time blocking and making a marketing plan [00:23:34] Emphasizing the need for shop owners to create a marketing calendar and plan ahead for events like state fair, Halloween, Thanksgiving, etc.
Incorporating workouts into work week [00:30:49] Highlighting the significance of including workouts as part of the workweek and how it can enhance productivity and creativity.
The importance of planning marketing in advance [00:33:31] The speaker emphasizes the need to plan marketing strategies well in advance to avoid being late.
Foundational marketing and business practices [00:35:27] The discussion focuses on the significance of having strong foundational marketing strategies and efficient business practices.
Continued commitment to learning and improvement [00:37:07] The speaker expresses gratitude towards the listeners' commitment to learning and improvement, and encourages them to continue seeking knowledge and growth in the auto repair industry.
Connect with Chris:
[email protected]
Phone: 940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/
AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #autoops #onlinebooking #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix
Click to go to the Podcast on Remarkable Results Radio
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