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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.
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?
By ASOG Podcast
Getting Older As A Business Owner Makes You Realize This One Thing
Guest host and shop tour with Dan Hensel and Rachael Barraclough, Amton Auto & Truck, Tonawanda, NY. They have two shop mascots and an intern who loves working with his hands.
Dan Hensel and Rachael Barraclough, Amton Auto & Truck, Tonawanda, NY.
5 bays- 25% fleet work Skeleton mascot- never took down after Halloween, gets decorated for all holidays now Mya- shop dog Intern Nolan- Big Picture program, Nolan's been at the shop since March 2022. He loves the hands-on work, retains information well, positive experience for both the shop and Nolan. Teaching on a different level. Part time employee- clean and maintain shop few days a week, retiree Best Bathroom in Western New York!
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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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Recorded Live at the 2022 Transformers Summit with Mike Searls, President of ThiN AiR Brand, a toy company. Mike is a serial entrepreneur and he brings his passion for reinvigorating businesses to this episode. His secret? Find out what works and do more of that, find out what doesn't work and stop doing that, the faster you can do that, the faster you grow. Mike Searls, President at THiN AiR Brand
95% of companies never make it to 1 million dollars. When business owners are unable to change or unwilling to change, they tend to stagnate, hit that glass ceiling, and they can't grow In business, your job is to find out what works and do more of that, find out what doesn't work and stop doing that, the faster you can do that, the faster you grow. Money makes you more of what you already are. So if you're a good operator, money can be great, but if you're not a good operator, money will make you an even worse operator Most businesses have plenty of lead flow, but they don't have enough conversion Find a problem, solve it, create a system around it, and then delegate it Your goal in life as a business owner is to create systems and find people who are better than you EOS (Entrepreneurial Operating System)- best results and buy in are from the employees What do you want your life to look like? What do you want to accomplish? What do you want to build? A lot of entrepreneurs feel like they're not successful or not achieving their total dreams. They're not in their passion job. You don't have to love the industry you're in to have passion for it, it develops over time. If you love building something and you love winning, you're in a great industry to do that. Take the time to execute, and determine what you want to build, the love will come back If you're finding yourself in a rut, you're just unable to get to that next level. Fix yourself and get your self-esteem back (health, family etc). Start with your service, make sure you're offering world-class service. Then go to your sales, making sure you're selling it well so that you're getting more business. Third, work on your marketing, feed that marketing funnel, and then fourth, work on your operations.
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 2023. Mark your calendar now … October 31 - Nov 2, 2023, AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at AAPEXSHOW.COM Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com
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