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By Joe Marconi in Joe's BlogTypically, when productivity suffers, the shop owner or manager directs their attention to the technicians. Are they doing all they can do to maintain high billable hours? Are they as efficient as they can be? Is there time being wasted throughout the technician’s day?
All these reasons factor into production problems, but before we point fingers at the technicians, let’s consider a few other factors.
Are estimates being written properly? Are labor testing and inspections being billed out correctly? Are you charging enough for testing and inspecting, especially for highly specialized electrical, on-board computer issues, and other complex drivability work? Is there a clear workflow process everyone follows that details every step from the write-up to vehicle delivery? Do you track comebacks, and is that affecting production? Is the shop layout not conducive to high production? For example, is it unorganized, where shop tools, technical information, and equipment are not easily accessible to every technician? Are you charging the correct labor rate and allowing for variables such as rust, vehicle age, and the fact that most labor guides are wrong? Also, is there effective communication between the tech and the service advisor to ensure that extra labor time is accounted for and billed to the customer? These are a few of the top reasons for low productivity problems. There are others, but the main point is to look at the entire operation. Productivity is a team effort. Blaming the techs or other staff members does not get to the root cause in most cases.
Maintaining adequate production levels is the responsibility of management to create the processes that will lead to high production while holding everyone accountable.
Join 3 shop owners as they share some great stories and wisdom about what works and what doesn't when talking about pay. Can you show how to earn the pay they want? How can you bring the team together when there are earning discrepancies?
Chris Lawson, TechnicianFind.Com. Chris' previous episodes HERE Mehrdad Avar, Haven Auto Repair, Rancho Cucamonga, CA Shawn Gilfillan, Automotive Magic, Kenvil and Lake Hopatcong, NJ. Shawn’s previous episodes HERE
When in doubt about what to list as pay in an ad, look at your top compensated tech and use that as a benchmark. Commitment to training- investment, not a liability, not a cost. It’s always best to put your best foot forward with respect to salary in an ad. “What’s the highest pay level you feel comfortable having a conversation about?” In other words, “If you were sitting across your desk from a tech and they asked for that salary/compensation, do you feel comfortable having a conversation where you show them how they can earn that level of income?” (production and efficiency levels needed + salary, bonuses, profit sharing, etc.) Changing the perception of your technicians not wanting to hire another. Asked, “Did your income get better or worse?” Sharing profit and loss, where and how the shop will continue to grow. Make sure your salaries and job titles match up and are in alignment with market rates.(you can verify this on Indeed Hiring Insights) As the owner- look at yourself from the inside out. Make yourself worthy of the top employees. What is the perception of your business from the outside? Your business is a reflection of yourself. Interviewing technicians- you will spend more time at work than at home. Is 1-hour interview worthy of a ‘marriage?’ Listen closely to the interviewee’s questions. Get your team involved in the process, and consider a trial period. Comebacks- learning experiences with the whole team, quality control employee Zero sum decision making- knowing what you know now, would you make the investment in XYZ, if you wouldn't make that decision again, move on.
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Check out today's partners:
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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By Joe Marconi
AUTOMOTIVE BUSINESS OWNERS! Want to experience the most powerful Shop Management Course on the planet? Join Kevin Vaught and me, Joe Marconi, in San Diego as we present the Elite Fly with the Eagles!
The course will be held Feb 7th to 9th, and you have our promise; you will come back reenergized and ready to take your business to another level!
Improve your skills in time management, leadership, and goal setting
· Fully understand your shop's financials and key performance indicators
· Find and hire superstar service advisors and technicians
· Turn your existing employees into self-motivated superstars
· Fill your bays with the right kind of customers through new marketing programs
· Utilize your step-by-step Action Plan to ensure your ongoing success
Elite clients can attend at no charge. To enroll and to get more information:
By ASOG Podcast
Getting Older As A Business Owner Makes You Realize This One Thing
Live from the 2022 Transformer's Summit, keynote speaker John Dijulius categorizes the automotive industry as a 'grudge buy' for customers when they are at their most vulnerable. How is this an opportunity for your business to be the 'hero?' How do you make price irrelevant? John Dijulius, John Robert’s Spa, The DiJulius Group. John's had the privilege of working with world class companies like the Ritz-Carlton, Lexus, Starbucks, Nordstrom, Nestle, Marriott Hotel, Pricewaterhouse Coopers, Cheesecake Factory, Bausch & Lomb, Progressive Insurance, Harley Davidson, State Farm, Chick-fil-A, Entrepreneurs Organization, YPO, Aveda, and many more. Listen to John's previous episodes HERE Show Notes
Drove for UPS- his wife was a hairdresser, and they opened a salon. John started getting involved in the business. “We aren’t going to be the best salon, we will be the best experience of your day.” Chambers of commerce businesses started asking John for business consulting. 20 years ago John’s first book came out and took him to the next level Business and Artistry Pengeleum Making price irrelevant- based on the experience your brand consistently delivers, your customers shouldn't have an idea what your competitors charge because they aren’t window shoppers. Who is more expensive? Why are they? “We do $10 haircuts” vs “We fix $10 haircuts.” Give the experience before you charge for it and justify it -“What does a $1,000 haircut look like? What is that greeting like? How is the massage during shampoo? What does a $1,000,000 keynote speech look and sound like?” Grudge buy and losing time- automotive repairs. When you can come to the rescue when a customer is at their most vulnerable, there is an emotional connection and memory made. Customers asking about price- opportunity The biggest cause of anxiety is uncertainty- no update update for customers Level 1 through 10 hairdressers based on expertise “Discounting is the tax you pay for being average.” Things that make a brand something customers can’t live without- the quality of work, consistency, employee evangelism (educate vs sell), how do you make me feel, Capitalize the ‘C’ in Customer to show the emphasis in your policies and procedures Building relationships with FORD- family, occupation, recreation, dreams Disney- know your role and be ‘on’ when you’re on, leave your problems at the door The Customer Service Revolution: Overthrow Conventional Business, Inspire Employees, and Change the World- John Djulius The Relationship Economy: Building Stronger Customer Connections in the Digital Age - John Dijulius
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: Learn more about NAPA AutoCare and the benefits of being part of the NAPA family by visiting www.NAPAAutoCare.com
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