Labor rate from $115 to $150 car count down 1/3 revenue up 6%.
Going on the third month that we raised our rates. Our best customers have stayed, trouble nickle and dime customers seem to have disappeared. ARO from 380 to 628.
We now have a nice tool available to all premium and platinum members under the tools menu, where you can view labor rates entered by our members on an easy to use map, similar to our member map. This is designed to give you an idea of where you are vs the market in your area. As you zoom in, the circle averages open up to more specific areas.
If you aren't currently a subscribed premium or platinum member, you can upgrade here.
By Ron Ipach
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Could Auto Repair Flat Rate Be Dead?
TECHNICIAN shortage today is real. Last study that I saw said, for every eight shops that’s looking for a technician, there’s only one tech available so I know many of you watching this are experiencing that same thing. And I’ll also say one thing that I found: most technicians, when I mention flat rate, their cheeks kind of pucker up. They hate it. Why? There’s risk. They’ve been burned before. So often in the technicians starved market, what’s a shop owner left to do but put technicians on hourly or even maybe salary? And what that leads to is, really what I’m going to call an “uninspired performance.” Why? They get comfortable, they’re able to pay their bills without exerting a ton of effort.
So what’s a shop owner to do? The answer I’ve uncovered recently in my shop is to have a Win Number. For every single employee. See one of the truths I discovered in my 30 plus years of being a shop owner is that often we don’t get the most out of our employees because we never really sat down and told them what we expect. I know that’s been one of my mistakes.
So one of the things that I’ve done recently is I’ve given each employee a weekly Win Number, and that’s why it’s so important. For example, I recently sat down with each of my technicians and shared with them their Win Number. What do I mean by win number? What I expect out of them in parts and labor production for each employee. The numbers are based on my desired technician cost as a percentage of sales. It’s worked so well with my technicians that I now sent it out and established that win number with both my CSR and my service advisor.
I’ve got to tell you the results have been incredible. Not only are my sales and profits up through the roof lately, it’s led to believe it or not, happier employees. Why? They drive home at the end of the day or at the end of the week knowing that they hit their goals. Knowing that they’ve contributed to a successful week for the shop and that certainly led to a happier shop owner!
So, let me leave you with a question. Does each and every one of your employees on your team clearly know what you expect of them?
If your answer is not a resounding YES, it’s time to put a pencil to paper and figure out each team employee or each team members weekly and daily Win.
By Joe Marconi
There has been a lot of controversy recently with flat rate pay plans. Below is a link to an article about a technician's strike that was held in Chicago. Although the strike and issues in the article centered around dealerships, the article brought up good points about flat rate pay, and the low hourly pay many techs receive. It points to reasons why many techs are unhappy, leaving the industry and why we have issues attracting quality people to our industry.
I don't want to start a firestorm, and there are many forms of flat rate pay...but, is it time to rethink flat rate pay plans? And also, we really need to compensate our employees at a standard that is in line with the training, the tools that are required and skills needed these days.
I think it is worth your while to read the article and start a conversation on this topic.