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I Found This to Be Quite Interesting


CarER

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So, earlier today I was on Ratchet and Wrench Magazine and I ran across this article which I found to be very interesting. (or maybe a mistake?)

 

http://www.ratchetandwrench.com/RatchetWrench/September-2015/My-Auto-Service/

 

What I"m talking about is this: The article states that the shop does 700 vehicles a month with a annual revenue of $550,000. That brings the ARO to about $65.48. Is it a completely different business model than what I'm (or most of us) are striving for? I mean, it doesn't look like a quick lube, but it's the home of the $10 oil change. And in my experience (and I believe in all of yours) doing something like a $10 oil change only brings in the "bottom feeders."

 

Now please don't get me wrong - I am by no means dissing this shop, I do not know them or their business.

 

But it seems that everything that I've ever learned on ASO goes against how this guy is surviving?

 

I just found this article interesting and thought it would start a good discussion.

 

Hope you all are having a great day!

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  • Have you checked out Joe's Latest Blog?

         0 comments
      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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