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Have you checked out Joe's Latest Blog?
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By Joe Marconi in Joe's Blog13 commentsMost 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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Upcoming Events
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March 24, 2023 01:00 PM Until 09:00 PM
0Hi all,
AutoLeap is hosting Amplify 2023, a virtual auto repair conference for shop owners, on March 24. We have 22 incredible speakers, and 13 industry associations and training institutes participating in this virtual event. The conference is free of cost.
You can book your complimentary, virtual seat today using this link: https://bit.ly/3EXvfWY
Amplify 2023 speakers include: Joe Marconi, Co-Owner AutoShopOwner and Elite Business Coach @Joe Marconi Aaron Stokes, ShopFix Academy Cecil Bullard, The Institute for Automotive Business Excellence Chris Cotton, AutoFix Auto Shop Coaching Darrin Barney, Elite “G” Jerry Truglia, Automotive Technician Training Services Greg Bunch, Transformers Institute Jeremy O'Neal, AdvisorFix The conference will cover essential topics such as:
Navigating through the current industry challenges Tackling the technician shortage through employee retention Creating memorable customer experiences Growing & expanding your business in 2023 Financial planning & KPIs to measure And that’s not all.
The interactive, dynamic conference also offers live networking opportunities, and fun games and prizes.
You can book your complimentary, virtual seat today using this link: https://bit.ly/3EXvfWY
#AutoLeapAmplify23
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Similar Topics
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By carmcapriotto
Will diagnostic work overtake remove and replace work? How will you position and present your shop as a technologically advanced repair center? What training will our employees need? How will artificial intelligence impact our industry? Will we be prepared? Join Jake Sorensen, Chris Chesney and Derek Kaufman as they discuss the shop of the future. Jake Sorensen, 2019 NAPA ASE Technician of the Year and 2019 Ratchet + Wrench All-Star technician of the year. Shop manager and diagnostic technician at McNeil’s Auto Care in Sandy, UT Listen to Jake’s previous episodes HERE
Chris Chesney, Training and Organizational Development, Repairify. Chris’ previous episodes HERE
Derek Kaufman, Managing Partner, Schwartz Advisors, President of C3 Network. Listen to Derek’s previous episodes HERE
Show Notes:
Looking up and reading service procedures is already a must, but even more so as technology advances. Example: ADAS systems now require calibrations when performing repairs like an alignment or bumper cover removal. If you change a headlight assembly that requires bumper R&R, you may need to perform a radar calibration. The only way to know for sure is to read service information. Reading technical information/technical reading skills- much different than reading newspaper or Facebook posts, a book etc. Evelyn Wood speed reading course- reading with purpose An explosion of information- computing power for all industries 2022 captures over a trillion data points that will be aggregated to provide insights AI- mining data for trends Diffusion of innovation curve- 17+ years for EV’s We have expected Technicians to be masters of everything. Many better diagnostic technicians are inefficient at R&R and do not enjoy it. Shift mindset to a technology industry Even today, electric vehicles account for 18% of new vehicles sold, and those won't be in our bays tomorrow. By 2030 the population of vehicles in operations, over 300 million, and only 8% will be electrified. Get ready, or some other service industry will beat you to the punch How are you presenting your shop to the public?
Thanks to our Partners Shop-Ware and Delphi Technologies Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com
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Important Books
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Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
On Record with Tom Ham from the Automotive Management Network. Tom discusses a recent survey from his website about the stress level at work, reasons why someone would reject a technician application, health insurance and more! These results may surprise you!
Tom Ham, Automotive Management Network. Tom’s previous episodes HERE. Show Notes:
AMNSHOP.com laborratetracker.com - lowest labor rate so far is $50 and highest is $297 Management Help Polls: 130 types Why techs avoid working at some shops- low pay, dark/lack of lighting, dirty, disorganized Job applicants for possible reasons they might be rejected: 70% driver license issues, 68% frequent job changes, 66% negative comments about past employers, 64% know it all, 60% questionable attitude, 60% excessive demands. 59% inconsistent information, 58% late for interview, 55% listens poorly, 53% sloppy appearance, 53$ incomplete application, 51% lack of manners Pay portion of health insurance- 35% pay nothing, 19% pay full health insurance. Stress level at your shop ranked 1 to 10, 10 is maximum stress level- 40% rank their stress level at 8+, 81% say their stress level is average or above average, only 19% say their stress level is ranked 4 or less. “What do we do here that is not as clear as it could be, a bit confusing?” Service advisor responsibilities (are these regular tasks of your service advisor)- estimating, collect vehicle information, parts ordering and returns, labor claims, operation/management, quality control, assist technicians, pickup/deliver customer or parts (porter). None of these should be the service advisor responsibilities! Consider hiring an estimator/parts person Service Advisor Overload [THA 305] Service Advisor Overload: Part 2 [THA 312]
Thanks to our Partner, Dorman Products. Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
Connect with the Podcast:
Aftermarket Radio Network
Subscribe on YouTube
Visit us on the Web
Follow on Facebook
Become an Insider
Buy me a coffee
Important Books
Check out today's partner:
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Thanks to our partner, RepairPal. Visit the Web HERE
Mac Akram is the owner of Mac’s Complete Auto Repair in Chandler Arizona. Mac’s story is an amazing story of perseverance and making things happen. As a young child and teenager, Mac and his family lived in war-torn Baghdad, Iraq. Listen in on this episode to hear the inspiring story of Mac moving to America, learning to be an auto tech, and eventually opening a state-of-the-art shop in Chandler, Arizona.
How To Get In Touch with Mac
Website - https://www.macsautorepairs.com/
Facebook - https://www.facebook.com/macscompleteauto
How To Get In Touch
Group - Auto Repair Marketing Mastermind
Website - shopmarketingpros.com
Facebook - facebook.com/shopmarketingpros
Get the Book - shopmarketingpros.com/book
Instagram - @shopmarketingpros
Questions/Ideas - [email protected]
Click to go to the Podcast on Remarkable Results Radio
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By Joe Marconi
There are many benefits to growing a company so that it runs smoothly and efficiently without the shop owner. Building systems and procedures to get the entire team on the same page is essential to any successful business. In addition, an auto repair shop will grow more successful, and worth more if the shop owner, is not needed in the day-to day operations.
However, the question is: Should you become an absentee owner? This is not an easy question to answer, since it really depends on the size of your shop, your role in the business and how you feel about your business. For example, if you run a 4-bay shop, with four employees, that is vastly different from a company that has three locations with 25 employees. And also, you may really enjoy going to work and being involved.
The bottom line is this: Build your company so that it can run without you, but know when to step back in when needed. Great leaders know when to get out of the way, and when to step back in and make course corrections. Ultimately, your business is your business, and the responsibility for its success rests largely on your shoulders.
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By Joe Marconi
For all the veteran shop owners who have been around the block a few times, and have experienced the roller-coasted rides of being an auto repair shop owner, what advice could you give those shop owners just starting out or planning to go into their own business?
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