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Hours per ticket and A R O


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We do have an inspection check list which we made up and have edited many times to help streamline the process and make it more complete. Would you be willing to fax me a copy of your's in order to improve ours?

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We do have an inspection check list which we made up and have edited many times to help streamline the process and make it more complete. Would you be willing to fax me a copy of your's in order to improve ours?

 

 

I would love to however we use a digital inspection process by bolt on. Previous to bolt on our inspection process was informal and I have never used a paper inspection. Essentially we went from 0 to 100.

 

How is your sales process? Sales staff? Have you guys had any formal sales training?

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As for sales training goes,I have been enrolled with ATI for 13 months and have attended 3 owners classes which always have some sales training aspect associated with them. I have watched every instructional video teleseminar they offer many times over. I have purchased and read many books about sales and utilize many of the concepts. I've been in a position of ownership for 6 years and do all of the selling. Previous to that i worked for a 6 bay shop in Rochester NY for 20 years holding positions of technician/service Mgr and also sold work.

 

I currently sell all of the work at our shop.

 

As for sales process, I start with the original concern, next i discuss recommended repairs that we noticed during the inspection and finally discuss maintenance needs based on our inspection and have been making a greater effort to look up factory scheduled maintenance as well.

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shouldnt ati be monitoring and helping you with this? not trying to be offensive but your paying them for that, they should help.

 

but

 

there is so much ground to cover on this and data that needs to be looked at but start with your techs, inspections and your profit percentages, what are those btw?

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As for sales training goes,I have been enrolled with ATI for 13 months and have attended 3 owners classes which always have some sales training aspect associated with them. I have watched every instructional video teleseminar they offer many times over. I have purchased and read many books about sales and utilize many of the concepts. I've been in a position of ownership for 6 years and do all of the selling. Previous to that i worked for a 6 bay shop in Rochester NY for 20 years holding positions of technician/service Mgr and also sold work.

 

I currently sell all of the work at our shop.

 

As for sales process, I start with the original concern, next i discuss recommended repairs that we noticed during the inspection and finally discuss maintenance needs based on our inspection and have been making a greater effort to look up factory scheduled maintenance as well.

 

 

I just want to first mention that all my comments are meant to be constructive. I know sometimes text can be misconstrued. With that being said with a HPRO at 1.1 and a ARO 226 something has to be broken somewhere. Without being there with you I have to assume your inspection process is flawed somewhere. Maybe the techs are not discovering the work. Maybe they don't care enough to notate the correct items. Maybe they see it as a waste of time. Secondly I am curious as to how you are estimating your repairs. Do you use a labor guide? is it integrated with your shop management software? Do you use a labor matrix or a labor multiplier?

 

In my experience with what we do (German makes) there is always, always, always tons of possible recommendations to be made on every car we see. I can't see this being very different for general repair.

 

I would start by analyzing your inspection process. Add up all the recommended items and find out what your average dollars in discovered work are. This will help you narrow down where the problem is. For instance if you track how many hours/dollars your techs are discovering per car for a week (lets say an average for $1000 and 5 hours) and you are only able to sell 1.1 hours and an ARO of $226 then the problem is more in the sales side. If your discovered work dollar amount is very low on average then that is where your problem may be.

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As for sales training goes,I have been enrolled with ATI for 13 months and have attended 3 owners classes which always have some sales training aspect associated with them. I have watched every instructional video teleseminar they offer many times over. I have purchased and read many books about sales and utilize many of the concepts. I've been in a position of ownership for 6 years and do all of the selling. Previous to that i worked for a 6 bay shop in Rochester NY for 20 years holding positions of technician/service Mgr and also sold work.

 

I currently sell all of the work at our shop.

 

As for sales process, I start with the original concern, next i discuss recommended repairs that we noticed during the inspection and finally discuss maintenance needs based on our inspection and have been making a greater effort to look up factory scheduled maintenance as well.

 

 

I just want to first mention that all my comments are meant to be constructive. I know sometimes text can be misconstrued. With that being said with a HPRO at 1.1 and a ARO 226 something has to be broken somewhere. Without being there with you I have to assume your inspection process is flawed somewhere. Maybe the techs are not discovering the work. Maybe they don't care enough to notate the correct items. Maybe they see it as a waste of time. Secondly I am curious as to how you are estimating your repairs. Do you use a labor guide? is it integrated with your shop management software? Do you use a labor matrix or a labor multiplier?

 

In my experience with what we do (German makes) there is always, always, always tons of possible recommendations to be made on every car we see. I can't see this being very different for general repair.

 

I would start by analyzing your inspection process. Add up all the recommended items and find out what your average dollars in discovered work are. This will help you narrow down where the problem is. For instance if you track how many hours/dollars your techs are discovering per car for a week (lets say an average for $1000 and 5 hours) and you are only able to sell 1.1 hours and an ARO of $226 then the problem is more in the sales side. If your discovered work dollar amount is very low on average then that is where your problem may be.

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I could really use some tried and true tips on how to increase my hours per ticket and aro. Current hrs per ticket is 1.1 and aro 226.

 

Hi Bob,

 

Digital multi-point inspections are probably your greatest asset in increasing ARO and hours per ticket. Right off the bat you’ll increase efficiency, accuracy, sold services, ARO and customer trust. You’ll also eliminate sloppy handwriting and entering customer/vehicle data multiple times to keep your records accurate.

 

I can actually show you better than I can tell you. Here are a couple of references:

 

 

If you’re interested in seeing this live in action, give us a call at 610-400-1019.

 

Hope this helps.

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I'll input my $.02. We don't use any formal inspection procedures (except state inspections), no aggressive selling, no gimmicks. What we do is consistently treat every customer like they are a cherished family member and give them more than they expect, every time. My prices are fair. We check what they ask us to. There's no shopping a car and cold selling. By gaining customer trust we are booked solid with work most of the time. We let the customers tell us what to look for, its far easier. "My brakes are squeaking, can you guys look at it?" It makes selling the job pretty simple.

 

Of course when we check out a brake job we inspect the front end, tires, and hydraulics. We don't check the spark plugs when their problem lies in the wheels. Inspecting cars on loss leader oil changes leads to distrust if you ask me. Fix what they want fixed and they will call you when something else breaks down the road. Just look at the customer turnover at the chain wallet flush outfits, its disgraceful.

 

So in a nutshell if you can get more good customers with broken cars through your doors the hours per ro will be up, the $/ro will be up, and you will be better off.

 

If you are undercharging for labor or parts all bets are off. I don't know any specifics about your garage so I'm sorry if I'm too general here. But look at the jobs your doing and see what's going on. If your techs or sales guys are lazy you will suffer.

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Thanks M spec. I appreciate your input as well as everyone elses. I definitely take advice constructively. I do use a parts and labor matrix supplied by ATI. Our inspection sheet went through a major overhaul today in a way that the techs will be less likely to pencil whip it if they're having an off day or just being lazy. Also my coach told me today that I'm not being firm enough with the techs when discussing the problems I've been having with them. Don't get me wrong, I have made my expectations clear but haven't punished anyone to the degree that it's taken seriously enough for lasting change. That will happen beginning now.

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I sense some reluctance to take advantage of the whole ATI program. I was the same way initially, but my family and I have swallowed the program hook line and sinker with results that surprise me. First, I couldn't believe I needed a service writer in a three bay service station, but I made the plunge and now have four service writers in two productive shops. There's always room for improvement. My advice is take full advantage of the ATI program. If your coach isn't motivating you ask for a new one.

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I sense some reluctance to take advantage of the whole ATI program. I was the same way initially, but my family and I have swallowed the program hook line and sinker with results that surprise me. First, I couldn't believe I needed a service writer in a three bay service station, but I made the plunge and now have four service writers in two productive shops. There's always room for improvement. My advice is take full advantage of the ATI program. If your coach isn't motivating you ask for a new one.

 

 

+1 on getting dedicated front end people.

 

As an owner you give a lot of work away for free and you also burn yourself out trying to wear all the hats in the business. I am assuming you don't feel that you can afford to hire a service adviser/writer which I understand. You have to get yourself to a position where you can hire someone up front and you'll see your business blossom.

 

This is also contingent upon hiring the right people and getting them training.

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  • Have you checked out Joe's Latest Blog?

         3 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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