I have an idea of a software that can be used to charge a customer a monthly fee.
For example, you could have different tiers:
Maintenance Lite - 15$ a month: low monthly payment for all of the conventional oil changes required by the average driver each year.
Maintenance Basic - 20$ a month: Maintenance Basic includes everything you'll find in Lite, but adds... Unlimited Synthetic Oil Changes (as needed), On Rim (Seasonal) Tire Rotations (as needed), Complimentary Re-Torquing after changeover.
Maintenance Plus - 40$ a month: includes all services from Ultimate Maintenance Basic, plus the following...
- Off Rim Seasonal Tire Rotations (as needed)
- Seasonal Tire Storage
- Flat-Tire Repair (excluding roadside assistance)
- Up to four General Service Calls (diagnoses, bulb replacements, filters, etc...)
- Battery Boost/Replacement (excluding roadside assistance)
- Priority Scheduling Service (For seasonal tire changeover)
What do you think about it?
Brittany Schindler, GM of her father’s shop in Rod’s Japanese Auto Care in Bellingham, WA for over 10 years. She loves working at the shop and being able to help people every day. Brittany has learned so much over the years by going to classes with great trainers and having a great business coach. One of her main focuses is to raise the standard of the automotive service and repair industry.
Listen to Brittany's previous episodes HERE
Key Talking Points
No prices over the phone- This can be challenging at first. Giving prices can be wrong or misleading depending on the vehicle. Instead explain why prices can vary, ask them to come in first, explain warranty, DVI’s, rental cars, etc. Vet the customer- are they looking for the cheapest price? Not every customer is right for your business. Performing the best digital inspections so your customers don't have to google anything and be consistent. Continue to simplify the writing so someone who doesn’t know anything about cars can understand and learn about their vehicle. Add “what happens if you don’t do XYZ” Write and edit inspections/customer reviews with your whole team for team buy-in. Getting customers to fix their "old" cars- list pros and cons of getting new/used cars. Make the investment and let them know the vehicle will be maintained properly, the laundry list won’t grow and be behind. Selling Maintenance- oil changes, fluid changes etc. It is an easy win once everyone has to buy in for selling maintenance. Educate customers on why fluid changes are important. Cheaper to change fluid than change apart Making customers feel confident about repairs- texting DVI, lifetime warranty, “what to expect” card at dropoffs Connect with the show:
Subscribe on YouTube
Visit us on the Web
Follow on Facebook
Become an Insider
Buy me a coffee
Aftermarket Radio Network
Check out today's partners:
This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion global automotive aftermarket industry and has everything you need to stay ahead of the curve. The Virtual AAPEX Experience 2020 is in the record books. Virtual AAPEX lived up to presenting leading-technical and business management training from some of the industry’s best and brightest. Now set your sights on the homecoming in Las Vegas in 2021. Mark your calendar now … November 2-4, 2021, AAPEX // Now more than ever.
This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com/carm
Click to go to the Podcast on Remarkable Results Radio
Started a new thread based on a comment from: Are you paying your employees what they deserve?
Thanks to CTC who warned that we need to be Compliant in our pay plans, I called the Dallas Office of the Dept of Labor Wage and Hour Division to check on my compliance. Very friendly and knowledgeable. Didn't even ask who I was. I encourage you to call. However, what she said was super-complicated if it's the first time that you've heard it. It still hurt my head on today's call. The goal of this message is to explain OT calculations and then to explain the flat rate pay as related to OT. I'm only presenting this to give you background before you call W&H yourself. I'm not an expert on W&H.
This focuses on non-salaried employees who are eligible for OT payments.
In general, OT pay is more complicated if you have variable pay plans (bonuses or extra payments). Regular hourly folks working OT get 1.5 times their "regular rate" (which is the same as their hourly rate). If they don't get any extra pay, this is easily computed.
When variable pay is involved, we need to know how much the employee is really making this week. That is, we must calculate their "Regular Rate" because the variable pay (bonuses) increases their normal hourly rate. When we pay OT, we must pay 1.5 times their "Regular Rate". This is a protection for the employees to ensure that they are being fairly paid even though their pay rate varies week to week.
Regular Rate Computation:
Figure out the employee's total compensation for this week (we are ignoring OT for this calculation). Divide this by the total hours worked this week. This is their regular rate for THIS week. For example: Joe makes $10/hr and earned $100 bonus this week while working 50 hours. His total pay for the week is $10 * 50 hours + $100 bonus = $500 + $100 = $600. His Regular Rate is $600/50 hours = $12/hr. When you pay him OT, you will be paying him 10 hours * 12 Regular Rate/hr * 1.5 = $180. This is added to his base rate of 40 hours * $10/hr, so this week, he makes $400 + 180 = $580 + $100 bonus = $680 total pay.
There is a shortcut to computing regular rate that I find faster to compute. Just take the variable pay (bonus) and divide it by the hours worked. $100 bonus/50 hours = $2/hr Joe's Regular Rate is $10+$2=$12/hr. His overtime rate is $12 * 1.5 = $18 (instead of $15).
Using ADP (and other payroll systems):
For employees that are getting OT with variable pay, I create a separate pay line in my payroll. Line 1 is 40 hours at their normal hourly rate. Line 2 is OT hours at Regular rate. The payroll software multiplies the regular rate * 1.5 to calculate their OT pay.
Regular Pay Line: 40 Hours @ $10/hr OT Pay Line: 10 Hours @ $12/hr Flat Rate:
Per W&H, Flat Rate still requires OT pay if more than 40 hours are worked. Therefore, we are required to compute a "Regular Rate" to pay OT. This means we need time clock records. W&H suggested a few different ways of computing it for Flat Rate employees (one was a weighted average, but I didn't dig into this). Also, minimum wage must be adhered to as well.
I threw a few examples of pay (flag bonuses, incentives, make-up hours, etc) at W&H and in the end, it didn't matter what the mix of payments were. All payments are combined to compute a Regular Rate. This can be bonuses for flagged hours or bonuses for sales or it could be 20 hours of flag and 20 hours of guaranteed pay (to equal 40 hours). What mattered was how many hours did the non-salaried worker work? What is their regular rate? Pay OT using the Regular Rate.
By Joe Marconi
I was attending a recent TECH NET council meeting a few weeks back and one of the topics discussed was Exit Strategies. One of the members spoke about finding a key person in your company, if there is no one in your family to consider.
There are many shop owners out there that are near retirement. It would be a good idea to share a few ideas. I know many shop owners may not even have a plan. My lawyer approached me about a year ago and insisted that I sit down with him to plan out my future. I am 59, been in business for 34 years and been in the auto repair business since high school. If your story is similar to mine, it's something we need to start planning.
Dave Giles has been involved with the automotive, truck and transport and collision industries for over 30 years. He currently holds a Red Seal AST certification in Canada and is also certified HRAI instructor for the delivery and certification for controlled substances in several provinces as week as several other certifications and certificates in each trade involving advance vehicle technology and systems. He is often a guest speaker at several automotive conferences that involve battery electric vehicles and advance vehicle systems such as ADAS and automatous vehicles. His passion is to continue to learn and help find solutions for exciting and sustainable transportation for the future. Dave started ALL EV Canada In 2019 with his partner Jeff Farwell. Their goal was to put affordable electric vehicles on Atlantic Canada roadways. During that time they acquired Pure EV another dealer in PEI. From there they built an incredible growing business with sales and service on electric vehicles. Just recently in July 2021, Steele Auto Group bought out ALL EV adding two more dealers to the 55 family of dealers they already own. In less than a month they have opened 3 more dealer locations for ALL EV by Steele. This was all done during the pandemic of Covid-19. Key Talking Points
Hedgehog concept- good at one thing and excel at it. Made the transition to only EV’s and hybrids- also sell EV’s at auction and take in EV’s on trade. 2 locations and 2 dealer lots. Inventory of over 60 EV’s and about 15 Teslas are at 1 location. 6 bays shop for all EV repairs. Customers can shop for vehicles online. Tesla- service and repair vehicles, purchase parts (VIN number is recorded and the customer will also get a copy of the invoice that part has been purchased for the vehicle, the customer is aware the parts have a markup. Parts are made by others, the aftermarket will get smarter on bringing parts to market. Cross-referencing will slowly start to show Tesla availability), restricted on scan tools access for diagnostics. Not as difficult as people think. EV educators, not salespeople- more education involved with EV’s with charging, range (buy as much as you can afford), how they work in winter/summer Charging- 98% EV owners have their own homes to charge. Nova Scotia power program- install charger and $250 for next two years credit on account, allows control of charge rates during the night instead of overloading the grid. Fast chargers: 350-400 chargers in NS. One Tesla supercharger with 8 stations. Level 1- outlet charger, slower charge. Level 2 charger around $1000, Level 3- DCFC (direct current fast charging, booster). Truck towing capacity- nothing beats torc of electric motor, the truck platform for EV- bigger and stores more batteries Website: Allev.ca Thanks to Dave Giles for his contribution to the aftermarket’s premier podcast. Link to the ‘BOOKS‘ page, highlighting all books discussed in the podcast library HERE. Leaders are readers. Listen for free on Apple Podcasts, Google Podcasts, Spreaker, iHeart Radio, Spotify, Podchaser, and many more. Mobile Listening APP’s HERE Find every podcast episode HERE. Every episode is segmented by Series HERE. Key Word Search HERE. Be socially involved and in touch with the show: Facebook Twitter Linked In Email Join the Ecosystem – Subscribe to the INSIDER NEWSLETTER HERE. Buy me a coffee This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion global automotive aftermarket industry and has everything you need to stay ahead of the curve. The Virtual AAPEX Experience 2020 is in the record books. Virtual AAPEX lived up to presenting leading-technical and business management training from some of the industry’s best and brightest. Now set your sights on the homecoming in Las Vegas in 2021. Mark your calendar now … November 2-4, 2021, AAPEX // Now more than ever. This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com/carm
Click to go to the Podcast on Remarkable Results Radio