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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.
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By Joe Marconi
Many shop owners have increased their labor rates in the past year or so. That is great news. Now, what's your next move?
Anyone who knows me knows that, in my opinion, in general, we have been too cheap for too long. But, determining your labor rate is not the only consideration to attaining a profitable business.
What about productivity, efficiency, keeping expenses in line, gross profit, and net profit?
What are you doing to ensure you are meeting the financial needs of your business and also paying your employees the money they desire?
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By carmcapriotto
Celebrating the 800th episode with a personal story of adoption. Ann, my wife, and I are the adoptive parents of Matt and Tracy. Their nationality is South Korean, which makes us an interracial family. I’m telling this story to help others understand our journey of infertility to family. If I could ever help you, maybe just talk about adoption, please reach out to me, [email protected] 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 partners: Set your sights on Las Vegas in 2022. Mark your calendar now … November October 31 - November 2, 2023, AAPEX - Now more than ever. Information at AAPEXSHOW.COM Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Guest host and shop tour with Lee and Kelli Weatherby, Accurate Automotive, Mesa, AZ. Find out how they are expanding their fleet business. Lee and Kelli Weatherby, Accurate Automotive, Mesa. AZ. Previous episodes HERE
Key Talking Points
Started business in 1994 11 lifts, 16 bays R & D- rip off and duplicate ideas Pivot to recruiting fleet business- keep car count steady and allowed them to work as a team with new energy. Who is servicing fleets in their area? Are they just accepting what they are receiving with repair work? Relationships- door to door building connections in person What are you offering that will tip the scale to your favor? Put on their shoes and address their needs. “Friends Serving Friends”
Connect with the Podcast:
Aftermarket Radio Network
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Important Books
Check out today's partner:
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
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