When a mistake is different from being wrong
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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 nptrb
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By carmcapriotto
Recorded Live at AAPEX 2023, Bill Hanvey and Paul McCarthy give insights into Right to Repair, what it takes to put on a massive show encompassing 2,600 exhibitors, and 46,000 buyers, and a recap of Magic Johnson's engaging keynote. In a recent study, by 2035 there could be a 54% decline in market share due to repair restrictions, translating to $92 Billion lost by the independent aftermarket. This issue is not just about the industry, but also about the consumers who rely on affordable and accessible auto services. Bill Hanvey, President and CEO of the Auto Care Association. Find Bill’s other episodes HERE. Paul McCarthy, President and CEO of MEMA (Motor & Equipment Manufacturers Association). Find Paul’s other episodes HERE. Show Notes
The impact of Right to Repair (00:02:58) Bill Hanvey and Paul McCarthy discuss a study by Roland Berger that predicts a decline in market share for the independent aftermarket due to repair restrictions. The importance of grassroots efforts in right to repair (00:04:51) The role of grassroots efforts and listener engagement in gaining support for the Right to Repair bill. Exceeding pre-COVID numbers at AAPEX 2023 (00:11:42) Conversation about the number of exhibitors and buyers at AAPEX, and positive feedback received. The technology-driven automotive industry (00:12:46) Exploration of the automotive industry's shift towards technology, the importance of data, and the excitement and opportunities it brings. The breakfast panel for next year (00:19:10) Discussion about planning for the next year's breakfast panel and the constant effort to innovate the show. The larger show for next year (00:19:33) Announcement of a larger show for the next year with more space and exciting new technology and innovations. Magic Johnson's appearance (00:20:22) Conversation about how Magic Johnson was chosen as a speaker and his impressive presence and interactions with the audience. Thanks to our Partner, NAPA Auto Care Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Dan Taylor and Rod Olson discuss leadership principles and creating a culture of recognition in the automotive industry. They emphasize the importance of recognizing and affirming people in the workplace, being sincere and specific in recognition, and creating a psychologically safe environment. They also discuss the impact of positive language, effective communication, and the role of coaches and leaders in helping individuals and teams reach their full potential. Remember, as leaders, our words have the power to inspire, motivate, and shape the culture of our organizations. Let's use them wisely!
Rod Olson is a coach known for his ability to help high-performing leaders see things others don’t see and find their ‘sweet spot’ as they lead and motivate others in the 21st century. He is the founder of the Coaches of Excellence Institute and the Coach O Consulting Group. Rod is also the author of three highly acclaimed leadership fables: The Legacy Builder, Wisdom Lunch Warrior and Greatest Motivational Tool. After nearly 20 years as a college football coach, Rod has spent the last decade-plus, working with elite teams and organizations while teaching, coaching, and mentoring some of our country’s top coaches and leaders. He is a nationally recognized speaker and leadership consultant specializing in high-level leadership coaching and culture development. Rod has clients in the corporate sector, professional and collegiate sports, and our United States military special forces. Rod is a husband, father, and coach. If you want more information on Rod, how to purchase his books, executive coaching & team consulting, or have him speak to your leaders, he can be reached at [email protected] or CoachOConsulting.org, or message him on Twitter https://twitter.com/CoachRodOlson Dan Taylor, Senior Business Advisor, Transformers Institute. Dan’s previous episodes HERE
Show Notes
Creating a Culture of Recognition (00:02:17) Discussion on the importance of recognizing and affirming employees in the workplace. The Importance of Specificity in Recognition (00:03:09) Exploration of the impact of being sincere and specific when recognizing someone's achievements. Using Different Recognition Styles (00:07:57) The significance of understanding individuals' love languages and using a variety of recognition styles to motivate and engage them. Expanding vocabulary and raising leadership level (00:12:40) Exploration of the negative implications of limited vocabulary and the need for leaders to improve their language skills. Destroying complacency without destroying confidence (00:15:30) The challenge of motivating employees to reach higher levels of performance without undermining their self-confidence. The importance of language and feedback (00:16:25) The speaker discusses the impact of language and feedback in coaching and leadership, emphasizing the use of positive language and avoiding negative words like "don't." Self-awareness and situational awareness in leadership (00:22:00) The need for leaders to have self-awareness and situational awareness, including knowing their own emotional state before giving feedback or critique. Leadership Principles and Critiquing (00:24:36) Discussion on the importance of critiquing as a leader and the need to balance encouragement and challenge. Recognizing Peers and Building a Culture (00:25:08) Exploration of how leaders can encourage peers to recognize each other and create a culture of recognition. Speaking Greatness and Coaching (00:29:27) The significance of speaking greatness into people, projecting their potential, and coaching them towards their future success. Teachable moments and timing (00:32:55) The importance of looking for teachable moments and having good timing when teaching and providing feedback. Speaking greatness and changing culture (00:38:02) The effects of speaking greatness on changing and maturing the culture within an organization or family. Feeling better as a leader (00:39:37) The positive impact of speaking greatness on a leader's inner joy, value, and sense of relevance. The importance of mentoring and building a legacy (00:40:03) The speaker emphasizes the importance of leaders mentoring their employees and building a legacy for the future. Creating a culture of recognition (00:40:38) The benefits of recruiting and hiring individuals who have grown up in a shop and know how to act, emphasizing the importance of creating a culture of recognition. Becoming an encourager and practicing self-awareness (00:41:03) How managers and leaders can celebrate the success of their employees, emphasizing the importance of self-awareness and practicing encouragement rather than criticism. Free Tip of the Day (00:48:07) Rod Olson encourages listeners to follow him on Twitter for a free tip of the day. https://twitter.com/CoachRodOlson
Thanks to our Partner, NAPA Auto Care
Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care
Connect with the Podcast:
-Join our Insider List: https://remarkableresults.biz/insider
-All books mentioned on our podcasts: https://remarkableresults.biz/books
-Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom
-Buy Me a Coffee: https://www.buymeacoffee.com/carm
-The Aftermarket Radio Network: https://aftermarketradionetwork.com
-Special episode collections: https://remarkableresults.biz/collections
Click to go to the Podcast on Remarkable Results Radio
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By Joe Marconi
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By carmcapriotto
Murray Voth discusses the importance of teaching and training employees instead of assuming they have common sense or knowledge. He shares personal anecdotes and observations from the automotive industry to highlight the need for employers to nurture a natural curiosity and desire to learn in their employees. He also discusses effective teaching and training methods, the importance of understanding employee strengths and preferences, and the significance of clear expectations and policies during the onboarding process.
Murray Voth, RPM Training. Listen to Murray’s previous episodes HERE
Show Notes
Importance of Onboarding (00:01:13) Discussion on the significance of proper onboarding and the need to teach employees instead of assuming common sense. Difference between Common Sense and Common Knowledge (00:02:21) Explanation of the distinction between common sense and common knowledge, and the need to teach skills that may not be common knowledge. Teaching and Training Employees (00:03:11) Exploration of the practice of hiring "unicorns" (employees who seem to have innate knowledge) versus hiring good people and teaching them the necessary skills. The importance of teaching and training employees (00:09:01) Discussion on the assumption that employees can improve with proper training and knowledge. Assessing and affirming the fit of new employees (00:09:46) Exploring the need for shop owners to teach and assess new employees to ensure they understand the rules and principles. The effectiveness of visual sharing in coaching (00:13:08) The benefits of using screen sharing during coaching sessions to enhance learning and understanding. The Importance of Teaching and Training (00:17:13) Discussion on the significance of teaching and training employees, using personal experiences and examples. The importance of employment contracts and probationary periods (00:26:44) Explains the need for written acknowledgment of probationary periods to avoid legal issues. Onboarding process and company introduction (00:28:25) Discusses the steps involved in onboarding, including company introductions, purpose, and core values. Creating positional agreements and holding employees accountable (00:29:24) Explains the concept of positional agreements and how they help in setting expectations and holding employees accountable. The importance of employee buy-in (00:35:59) Explains how getting employees to buy into policies and procedures leads to better compliance and teamwork. Using peer pressure in a positive way (00:37:35) Discusses using peer pressure to enforce policies and get employees to understand the impact of their actions on their teammates. The need for structure and rules (00:40:56) Highlights the importance of structure, rules, and societal norms in creating a calm and peaceful environment, both in business and personal life. The best way to look after a vehicle and a client (00:43:49) Discussion on the best practices for maintaining a car and meeting client expectations in car service and repair. The importance of understanding gross profit and running a business (00:44:41) Exploration of the significance of understanding gross profit and having a clear business model for running a successful business. Debunking the notion of incentive-based pay and the responsibility of owners (00:45:34) Challenging the idea of incentive-based pay and discussing the responsibility of business owners in employee performance and financial stability. Reading for fun and retention (00:53:47) The benefits of reading for fun and trusting one's brain to remember key information from books.
Thanks to our Partners, AAPEX and NAPA TRACS.
Set your sights on Las Vegas in 2023. Mark your calendar now … October 31 - Nov 2, 2023, AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at http://AAPEXSHOW.COM/WEBINAR
NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/
Connect with the Podcast:
-Join our Insider List: https://remarkableresults.biz/insider
-All books mentioned on our podcasts: https://remarkableresults.biz/books
-Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom
-Buy Me a Coffee: https://www.buymeacoffee.com/carm
-The Aftermarket Radio Network: https://aftermarketradionetwork.com
-Special episode collections: https://remarkableresults.biz/collections
Click to go to the Podcast on Remarkable Results Radio
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