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Car Counts or ARO?


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It doesn't matter if you think about it - what matters is that your Gross Profit (the $ left after paying your Parts and subcontracted vendors AND your techs) is substantially greater than your Operating Expenses. Financially healthy shops across the country are reporting 15-25% net income before taxes but after their wages are taken out. I am not there yet but working on it.

 

You need both in my opinion - we have a relatively health avg RO of $395 but we don't have enough cars to keep 4 ASE Master L1 techs busy through out the year.

 

My Service Manager argues that I should lower my Parts markup so that our Parts Prices are more in line with the dealers and jobbers and perhaps he is correct. BUT if I lower my Parts GP then I either have to increase my volume, increase my Labor charges or cut my techs wages, cut a tech perhaps and replace with a "General Service Tech" but somehow increase or maintain my total GP and get my net profit after taxes from our present 5% up to 15% .

 

 

In short, I told him and I'll tell everyone here - it doesn't matter what you charge for Labor or how you mark your parts up or whether or not you pay staff's health insurance premiums, turn the heat down and the lights off when you leave, etc - what matters is whether your clients accept your pricing and how your Bottom Line looks after all is said and done

 

 

Any suggestions from anybody out there? That's what I am hoping to gain from this Forum

Edited by Stephen
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  • 1 year later...

Whatever Love Means

Although neither or them remembered the occasion, Diana first met her future husband when she was just a baby. It happened during the winter of 1961, when twelve-year-old Charles, Prince of Wales, was visiting his mother's Sandringham retreat. (wow power leveling,)

At the time, your Prince Charles barely glanced at the tiny baby sleeping in her cot. After all, bow could a twelve-year-old boy be interested in babies?

But the Prince would eventually take a very keen interest in this particular baby —it would just take some time.

In fact, it would be sixteen years before Prince Charles and Lady Diana Spencer took place in the middle of a farmer's field during a shooting party in November 1977.

It was a cold, rainy, bleak afternoon when sixteen-year-old Diana, dressed in a borrowed parka that was too large for her, boots, and blue jeans, crossed the field to meet the heir to the British throne.

It was almost twilight when the two came face to face near Nobottle Woods.

"What a sad man," Diana thought when she first saw him. The future Princess was intrigued to finally meet the most eligible bachelor in England, thought she was not impressed with his five-foot-ten-inch height, thinking to herself that she would tower over him in high heels. But Diana would later say that she admired his beautiful blue eyes. (World of warcraft Power Leveling)

The Prince later remarked that he thought Diana was "a very jolly and attractive" girl, "full of fun," though Diana herself believed that "he barely noticed me at all."

Diana, it was discovered later, first came to the attention of the royal family when she acted as a bridesmaid for her sister Jane's wedding that April. It was the first major social occasion that Diana attended as a young woman. And many of the royals were surprised at how beautiful and mature the once-gawky girl had become.

Even the Queen Mother. Prince Charles's grandmother, noticed Diana's beauty, grace, and charm. She complimented the Earl on the fine job he had done in bringing Diana up.

A short time later, Prince Charles sent his valet to hand-deliver a formal invitation for Diana to accompany him that very evening to the opera and a latenight dinner at the palace.

Though she was flustered, and the invitation came at such short notice, Diana accepted. She and her roommate, Carolyn Bartholomew, hurried to dress and prepare Diana for her big date. The evening was a success, and an invitation to party on the royal yacht came soon after……

Although she was intimidated by the crowd at Balmoral, Diana was wise enough not to stay in the castle itself. She asked for, and was granted, an invitation to stay with her sister Jane and her young husband at their cottage on the Balmoral estate. (wow gold)

The Prince visited Diana there every day, offering to escort her to a barbecue, or extending an invitation for a long walk in the woods.

When Charles went to Switzerland for a ski vacation, Diana missed him terribly. He called her after a day or two, and told Diana he had something important to ask her.

He arrived home on February, 3, 1981.Three days later, he arranged to see Diana at Windsor Castle. Late that evening, while Prince Charles was showing Diana the nursery, he asked her to marry him.

To his surprise, Diana treated his proposal as a joke, She actually giggled. But soon she could see that Prince Charles was serious. Despite an insistent voice inside her head that told her she would never be Queen, she accepted his proposal. (World of warcraft gold)

Di ana told Prince Charles over and over that she loved him.

"Whatever love means." Was his reply.

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  • Have you checked out Joe's Latest Blog?

         5 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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