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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 carmcapriotto
On Record with Greg Buckley. Greg discusses extended car warranties. You must educate your customer!
Greg Buckley, owner of Buckley’s Auto Care in Wilmington, and Millsboro DE. Greg’s previous episodes HERE.
Show Notes:
Extended warranty- used car market has been hot over the last few years. People want a ‘protection’ What types of companies underwrite policies? You must educate the customer on what they already purchased for their vehicle- most contracts are limited Ask for a copy of the contract, review it, look for ‘what’s not covered,’ and explain to customer. Additional testing time? Labor? Rust? “Do your own warranty” before you fall into the marketing funnel of extended warranties Are these customers one and done? Only repairing what is covered and not doing proper maintenance. Better margins with OE for warranty claims You must have oil change records- regular service receipts
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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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By carmcapriotto
On Record with Lauren Fix as she discusses the used car market and the importance of car maintenance.
Lauren Fix, Car Coach Reports, Total Car Score Podcast, is an automotive expert and analyst based in Buffalo, NY. She has written three books on automobiles. She has appeared on CNN, Fox News, Newsmax TV, CNBC, and USA Radio’s Daybreak USA show. Lauren's previous episodes HERE
Show Notes:
Car Coach Reports Prior to covid selling cars: 17.5 million vs 13.7 million now. Average car profit to manufacturer: 10K...4 million sales lost People are buying out their car lease now Dealerships have 30% retention for car repair Repossessions are increasing- people bought cars during COVID, inflation and recession “Doing maintenance now will save you money down the road” Which cars can last 300K miles? Iseecars.com “Never invest more in a car than it’s worth” USAmotorjobs
Connect with the Podcast:
Aftermarket Radio Network
Subscribe on YouTube
Visit us on the Web
Follow on Facebook
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Buy me a coffee
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
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
How do you truly empower your people? What does it take to be a strong leader of your business? How do you motivate and inspire your employees while avoiding burnout? We have an All-Star panel of industry peers willing to share their own experiences and learning curve as business owners.
Brian Sump, Avalon Motor Sports, and Urban Auto Care, CO. Brian's previous episodes HERE
Darrin Barney, VP of Operations, Elite Worldwide. President of Barney Brother’s Off-Road and Repair, Grand Junction, CO. Darrin’s previous episodes HERE
Andy Bizub, Midwest Performance Cars, Chicago and Northbrook, IL. Andy’s previous episodes HERE.
Jerry Kezhaya, The Auto Shop, Plano, TX. Jerry's previous episodes HERE.
AJ Nealey, Nealey Auto Service, Edgewater, MD. AJ’s previous episodes HERE
Show Notes:
They need to feel loved because it's the right thing to do (part of our Noblesse Oblige) - but some won't reciprocate what you pour into them.... why? They need to have autonomy, but with that autonomy must come extreme clarity on what, why, and how They need to be held accountable - mediocrity doesn't help anyone - but you must establish the criteria as to why they are not accomplishing what you require of them; do they know how, can they and do they want to? Trustworthiness - high integrity, truthfulness, transparency, good stewardshipLoyalty - showing up early, staying late, attending company functions, asserting themselves to honor the company and its people, being a brand ambassador, saying, "tell me what needs to be done, and I'll do it" People WANT strong leadership - top-performing companies have strong leaders. Strong leaders help to create more leaders, not followers. One of the dichotomies of leadership Implementing EOS- empower your employees to solve issues on their own People come to work for people, not companies. The 5 Love Languages
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Aftermarket Radio Network
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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 carmcapriotto
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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By Joe Marconi
As we close out 2022, it's time to reflect on the past year. Review your accomplishments, the state of your business, your personal life, and things that could have gone better. The key thing to remember is that it's better to have a plan and goals instead of trying to fly blind.
Establish your goals for 2023 and beyond. Include family time too, and time for yourself. It's not all about business. Having the right balance will actually make your business more successful.
Speak with your employees too. Find out from them what went wrong, what went right, and what they would like to see in the coming year. While you can't always act on what your employees want, getting their perspective will not only help you create the plan moving forward, it will help to build morale, a win/win for all.
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