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I am going to borrow a quote from billionaire, Warren Buffet, “The best investment you can make is in yourself,” This statement, while simplistic, speaks volumes. A shop owner is much more than a boss, a shop owner is a leader. And leaders are solely responsible for the success of their team. This means that you must work hard and commit to a life of continuous learning and improvement. It also means that if the team fails, a leader must always blame himself or herself for that failure and find ways to improve.
For your business to flourish, you must invest your time and energy in understanding what your role is in your company. It also means that you must be committed to continually improving your level of competence. This does not mean that every task is your responsibility. However, it does mean that the buck stops with you. If your business is not where it needs to be, or you are looking for increased growth, then it is your obligation to do the hard work and set goals, have the vision, perform the research, and develop the plan to achieve your overall objectives.
When you invest in yourself to become the best leader and the best businessperson you can be, others around you will feed off your energy and your passion. This sends a strong message to everyone on your team that you have what it takes to bring the company to the next level.
One last thing, another obligation to your company is assembling the right team of people around you. Once you have the right people, you need to invest in them too. Find what truly motivates them, not what you believe inspires them. Be a coach to your employees and always strive to bring out the best in them. Be strong with your convictions and expectations, build strong relationships with your employees, and don’t be afraid of admitting when you drop the ball.
While Warren Buffet is best known for making billions of dollars with his investment strategies, I want to believe that this quote has its basis in something that money cannot buy.
By Joe Marconi
Part 2 of our labor rate discussion in the automotive aftermarket industry. Our panel emphasizes the importance of setting labor rates based on the shop's own expenses and profitability, rather than comparing them to competitors. They also stress the need for regular labor rate increases and educating staff about the financial aspects of running a shop. They address fear and mindset issues that can affect labor rates and overall success. The episode provides valuable insights and advice for shop owners in effectively setting and managing their labor rates.
Chris Cotton, AutoFix Auto Shop Coaching, Chris Cotton Weekly Blitz Podcast. Listen to Chris’ previous episodes HERE
Rick White, President and Lead Coach for 180BIZ, Listen to Rick’s previous episodes HERE. Dave Schedin, CompuTrek Automotive Management Systems. Dave’s previous episodes HERE Show Notes:
Build Your Labor Rate From The Ground Up Part 1 [THA 276]: https://remarkableresults.biz/remarkable-results-radio-podcast/a276/ Where the Money Goes – The $100 Lesson [THA 210]: https://remarkableresults.biz/remarkable-results-radio-podcast/a210/ Labor rates should not be set based on competitors (00:02:10) The importance of setting labor rates based on the shop's own expenses and profitability, rather than comparing them to competitors. Educating staff about where the money goes in the business (00:03:18) The need to teach employees about the various expenses and costs involved in running a shop, to help them understand the labor rates and the owner's income. Fear and mindset issues affecting labor rates and success (00:05:02) The fear and mindset issues that can affect labor rates and the overall success of a shop, and the importance of addressing these issues before setting labor rates. The importance of financials and owner thinking (00:07:46) Discussion on the prevalence of shop owners not having up-to-date financial statements and the need for owners to transition from technician thinking to owner thinking. Raising the Labor Rate (00:15:40) Discussion on the importance of raising labor rates and providing value to clients. Labor Rate and Value (00:17:19) Exploration of flipping the conversation from price to value and the curse of knowledge. Labor as Time vs Value (00:18:05) Insights on how labor is often tied to time, but should be based on value and the skills of technicians. Setting a Higher Standard (00:23:11) Discussion about the importance of qualifying customers and setting a higher standard for the shop's services. Firing Customers for Excellence (00:24:03) Exploration of the concept of firing customers who compromise the shop's level of excellence and professionalism. Running the Business Like a Business (00:25:58) Importance of charging correctly, controlling the schedule, and making every car count to improve the shop's profitability and efficiency. The impact of increasing labor rates on gross profit (00:31:37) The relationship between increasing labor rates and gross profit. It explains that when a technician's pay is increased, the labor rate must also be raised to maintain the same gross profit percentage. It highlights the importance of understanding the math behind labor rates and setting them proactively. The need to compete with other industries for skilled technicians (00:33:42) The challenges of attracting and retaining skilled technicians in the automotive industry. It compares the benefits and compensation offered by other industries, such as Target and emphasizes the need for competitive labor rates to attract and retain talent. It also highlights the importance of providing tools and benefits to technicians to create a profitable and sustainable industry. Building a profitable business (00:42:42) The significance of being profitable and setting labor rates that allow for a 20-25% net profit, as well as the importance of love and grace in running a successful shop. The importance of making changes now (00:44:27) The need to make changes in labor rates immediately instead of waiting and encourages shop owners to trust the advice of coaches. Thanks to our Partners Shop-Ware and Delphi Technologies
Shop-Ware: More Time. More Profit. Shop-Ware Shop Management https://getshopware.com/
Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. http://DelphiAftermarket.com
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By Changing The Industry
Should You Use A Scope Or A Multimeter #autotechnician
Thank you to our friends at RepairPal for providing this episode. RepairPal’s Certified Network of shops are trusted by millions of customers each month. Learn more at RepairPal.com/shops.
In this podcast episode, Brian and Kim discuss the benefits of auto repair shops having a podcast. They emphasize the importance of creating a podcast that focuses on topics related to the local community rather than solely on auto repair. They suggest discussing local events, leaders, and interesting stories to engage with the community and attract new customers. They also discuss the idea of featuring guests on the show, including influential people in the community. Brian and Kim highlight the value of planning and preparation for podcast episodes and recommend specific resources on how to start a podcast.
Show Notes with Timestamps
The importance of consistency in podcasting (00:01:02) Discusses the need for discipline and consistency in producing podcast episodes regularly. Choosing the right topic for your podcast (00:05:38) Suggests that an auto repair shop's podcast should focus on local community events and topics rather than solely on auto repair. Promoting local events on the podcast (00:06:55) Highlights the example of promoting a local event called "Hot August Stroll" and how it can engage the local community. The importance of community-focused podcasts (00:07:09) Discussion on the need for podcasts in local communities and the potential topics that can be covered. Events and community topics (00:08:03) Exploration of the types of events and community happenings that can be discussed on a podcast. Interviewing local influencers and political candidates (00:10:02) Suggestion to invite influential individuals in the community, including political candidates, for interviews on the podcast. The sponsorship opportunity (00:14:11) Discussion on how a repair shop can sponsor their own podcast and promote their business during the sponsorship segment. The importance of a simple podcast name (00:15:19) Advice on not using cute or clever names for podcasts and businesses, and the example of a successful podcast with a simple name. Starting a podcast and equipment options (00:18:14) Recommendation to check out a free guide by Pat Flynn on how to start a podcast and a discussion on different equipment options, including a simple setup with lav mics and an iPhone interface. The downsizing of podcast equipment (00:21:21) Discussion about the decision to downsize podcast equipment for travel purposes. Advice on starting a podcast (00:24:24) Discussion on the factors to consider when starting a podcast, including the importance of enjoying the topic and its potential effectiveness for marketing. Promoting the podcast and closing remarks (00:26:14) Discussion on promoting the podcast, directing listeners to the website for episodes, and encouraging subscriptions, reviews, and sharing.
Lagniappe (Books, Links, Other Podcasts, etc)
Smart Passive Income - How to Start a Podcast 2023 Simple Podcast Setup - Video Rode AI-Micro Rode smartLav+ Rode SC1 Extension Cable
How To Get In Touch
Group - Auto Repair Marketing Mastermind
Website - shopmarketingpros.com
Facebook - facebook.com/shopmarketingpros
Get the Book - shopmarketingpros.com/book
Instagram - @shopmarketingpros
Questions/Ideas - [email protected]
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