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I am currently producing $800.00 per lift per day in labor dollars. This does not include parts sold, and for the purpose of this question I do not want to include any parts revenue nor profits of parts per lift. I am talking about labor dollars produced per lift only. There is one man per 2 lifts side by side. So in this scenario we have 4 lifts 2 techs.

 

Is there anyone out there that is producing more than this and how?

 

The base hourly rate is $125.00 per hour.

The hours are from 8:00 am to 5:00 pm. No overtime worked or calculated in this equation.

 

I am trying to refine my system and I'm wondering if there is something I'm missing or not seeing. I do not want to add a tech necessarily because there is a point of deminishing returns I feel. I like the 1 tech per 2 lifts system because I find it extremely workable and efficient when it comes to payroll.

 

One tech costs $520.00 per day all in after all costs and produces $1600.00 per typical day. I consider it ok but not terrific. How can I improve this scenario?

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Hahaha agreed. Send them my way.

 

I'm confused as to your problem...

What I'm trying to work out is the lapse of lift productivity. IF the lifts are at 100 percent productivity they should be producing $1125.00 per day per base hourly rate, right now they are $800. per day. Which means there is an innefficiency. I need to bridge the gap. If I add another technician to another 2 lifts I still have the same problem multiplied x 3 employees and so on and so forth. So the purpose of the question is a matter of improvement not complaints.

 

And the question is, can this inefficiency be solved and how? The question is not "What is your problem if you are making money?" but rather, "How can I maximize the shops time and space?"

 

Can it be done and if so how? So with 8 lifts I have a deficit. 3 dead hours per lift per day. Which means I have the capacity to deliver 120 more hours per week which would equal $13000.00 more weekly.

Forgetting the extra income or the production value, I am certain no shop owner wants a piece of equipment or employee in there shop that is 2/3 efficient. This is in no way and absolutely NOT a complaint against the employees. They are second to none. This is a matter of equipment potential and possibilities. This is a matter of intelligence and "problem" solving of shop inefficiencies. How do we make things better?

 

Of course one can say raise the price or charge more if you want to make more money but that still doesn't solve the 2/3 efficiency issue. The purpose is to maximize what already exists, not look for excuses or settle for the status quo. It's time to raise the bar.

 

Problem : 2/3 efficient

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I understand your thinking, $/bay or $/lift is a standard used by many, and I see you are not satisfied with $/tech accounting, so adjust your definition of bay. One bay in your situation is 40' wide containing 2 lifts. Its a very efficient system, we run 3 bays/lifts per tech. Cars go in/up/down/out if there's a holdup we move to the next lift. Unless a guy is doing tires he can't get much over 70% per lift. Waiting for parts, waiting for approval, swing and miss takes up time. You've come full circle, guys are doing 140% with 2 lifts. Try giving your best guy 3 lifts you might be getting 210% out of him even though you are "losing" 90% on lift productivity.

 

You might find the less efficient the lift becomes the more efficient the man becomes.

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  • 1 month later...

What I'm trying to work out is the lapse of lift productivity. IF the lifts are at 100 percent productivity they should be producing $1125.00 per day per base hourly rate, right now they are $800. per day. Which means there is an innefficiency. I need to bridge the gap. If I add another technician to another 2 lifts I still have the same problem multiplied x 3 employees and so on and so forth. So the purpose of the question is a matter of improvement not complaints.

 

And the question is, can this inefficiency be solved and how? The question is not "What is your problem if you are making money?" but rather, "How can I maximize the shops time and space?"

 

Can it be done and if so how? So with 8 lifts I have a deficit. 3 dead hours per lift per day. Which means I have the capacity to deliver 120 more hours per week which would equal $13000.00 more weekly.

Forgetting the extra income or the production value, I am certain no shop owner wants a piece of equipment or employee in there shop that is 2/3 efficient. This is in no way and absolutely NOT a complaint against the employees. They are second to none. This is a matter of equipment potential and possibilities. This is a matter of intelligence and "problem" solving of shop inefficiencies. How do we make things better?

 

Of course one can say raise the price or charge more if you want to make more money but that still doesn't solve the 2/3 efficiency issue. The purpose is to maximize what already exists, not look for excuses or settle for the status quo. It's time to raise the bar.

 

Problem : 2/3 efficient

I appreciate your mindset of "how good can it be" as apposed to "good enough".

 

Sent from my SM-N900P using Tapatalk

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I would agree that you might be measuring incorrectly. If you are measuring bay productivity you should be measuring per bay/per tech. You would be asking your techs to be minimally be 200% efficient it seems. Your cost average however leaves you below the desired 70% Gross Profit on Labor. You would have to be at around $480 for a loaded cost of tech to meet that benchmark.

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What I'm trying to work out is the lapse of lift productivity. IF the lifts are at 100 percent productivity they should be producing $1125.00 per day per base hourly rate, right now they are $800. per day. Which means there is an innefficiency. I need to bridge the gap. If I add another technician to another 2 lifts I still have the same problem multiplied x 3 employees and so on and so forth. So the purpose of the question is a matter of improvement not complaints.

 

And the question is, can this inefficiency be solved and how? The question is not "What is your problem if you are making money?" but rather, "How can I maximize the shops time and space?"

 

Can it be done and if so how? So with 8 lifts I have a deficit. 3 dead hours per lift per day. Which means I have the capacity to deliver 120 more hours per week which would equal $13000.00 more weekly.

Forgetting the extra income or the production value, I am certain no shop owner wants a piece of equipment or employee in there shop that is 2/3 efficient. This is in no way and absolutely NOT a complaint against the employees. They are second to none. This is a matter of equipment potential and possibilities. This is a matter of intelligence and "problem" solving of shop inefficiencies. How do we make things better?

 

Of course one can say raise the price or charge more if you want to make more money but that still doesn't solve the 2/3 efficiency issue. The purpose is to maximize what already exists, not look for excuses or settle for the status quo. It's time to raise the bar.

 

Problem : 2/3 efficient

 

You become a banker, change your business model. Put your money out on interest to accrue 24 hours a day, and let someone else worry about efficiency use. :)

Edited by HarrytheCarGeek
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So your trying to get your guys to flag 200% of book time is what it sounds like. Is there always a car on every lift? Maybe you need 3 techs to 5 bays to hit 100% on every lift. Your guys are getting it done maybe you just need more.

 

This was my first thought as well. If you want to increase lift productivity try 3 tech to 5 lifts.

However, if you track tech efficiency you might see a slight drop in their overall numbers, but a corresponding increase in lift productivity.

It's a trade off, and you'll have to run your own numbers to see if your business would be better off with:

- 5 lifts at 90+% productivity and 3 techs at 120% efficiency OR

- 4 lifts at 70% productivity and 2 techs at 140% efficiency

Obviously with a 3rd tech you'd make more money, but would the productivity gains outweigh the loss in tech efficiency or not?

 

Second, you sound like you've probably got this covered already, but make sure that your shop is 100% laid out to not reduce tech efficiency at all.

Lastly, make sure that you invest in the best shop tools you can afford to enhance tech efficiency.

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I am currently producing $800.00 per lift per day in labor dollars. This does not include parts sold, and for the purpose of this question I do not want to include any parts revenue nor profits of parts per lift. I am talking about labor dollars produced per lift only. There is one man per 2 lifts side by side. So in this scenario we have 4 lifts 2 techs.

 

Is there anyone out there that is producing more than this and how?

 

The base hourly rate is $125.00 per hour.

The hours are from 8:00 am to 5:00 pm. No overtime worked or calculated in this equation.

 

I am trying to refine my system and I'm wondering if there is something I'm missing or not seeing. I do not want to add a tech necessarily because there is a point of deminishing returns I feel. I like the 1 tech per 2 lifts system because I find it extremely workable and efficient when it comes to payroll.

 

One tech costs $520.00 per day all in after all costs and produces $1600.00 per typical day. I consider it ok but not terrific. How can I improve this scenario?

$520 per day, I'm assuming that's after tax, insurance, benefits.. Breaking things? Can I ask, how does it add up to that? I'm trying to really organize our p&l.

 

Sent from my SM-N900P using Tapatalk

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  • Have you checked out Joe's Latest Blog?

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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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