First The Basics - Diagnostics starts with powers and grounds NOT with parts and labor
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By Joe Marconi in Joe's BlogAuto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.
As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.
But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.
Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit.
Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good.
Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership.
The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production.
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By Hands On
I keep getting a request now and then to go to someones house. I am starting to wonder, is it because they think it would be cheaper, or is it like in that show billions, where the guy has so much money, he can afford to pay chef ryan to come to his house to cook dinner.
How much would it take to get each of you to come to my house to work on my car? Honest answers, and you have to give an amount.
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By Joe Marconi
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By carmcapriotto
Recorded Live at ASTE 2023, twin brothers Mario and Martin Rojas and their employer Jason Athanas, discuss their work in the automotive industry, the importance of continuous training and staying updated on technology, and their unique business model. Mario also talks about his YouTube channel 'Super Mario Diagnostics, which is used for training and customer engagement. Mario, Martin Rojas, and Jason Athanas, Autobahn Performance, Oakland Park, FL https://www.youtube.com/@SuperMarioDiagnostics
Show Notes
Watch Full Video The twins' journey to finding Jason (00:02:23) Mario and Martin Rojas explain why they decided to join Jason's shop. The importance of proper tools in a shop (00:03:06) The significance of having the right equipment and factory scan tools in a shop to effectively. Challenging the traditional rating system for technicians (00:04:03) The dissatisfaction with the current rating system for technicians and propose alternative ways to evaluate and recognize their skills and experience. The technician's self-training (00:08:15) Martin's diagnostic skills (00:09:13) The owner's role and challenges (00:10:08) Jason talks about his role and the challenges he faces in balancing his technician work with ownership responsibilities. The satellite location and shuttle service (00:16:54) Discussion about the separate buildings, shuttle service, and transportation methods used by the shop. Using YouTube videos as a marketing tool (00:18:19) Conversation about the agreement to film YouTube videos and how it benefits the shop by attracting technicians and showcasing their work to customers. Thanks to our Partners, AAPEX and NAPA TRACS Set your sights on Las Vegas in 2024. Mark your calendar now … November 5th-7th, 2024. AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at http://AAPEXSHOW.COM/WEBINAR NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections
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By carmcapriotto
Thank you to RepairPal for sponsoring The Auto Repair Marketing Podcast. Learn more about RepairPal at https://repairpal.com/shops
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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By carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:
https://shopmarketingpros.com/chris/
Check out their podcast here:
https://autorepairmarketing.captivate.fm/
If you would like to join their private facebook group go here:
https://www.facebook.com/groups/autorepairmarketingmastermind
In this podcast episode, Coach Chris Cotton introduces the show as a valuable resource for auto repair businesses. He is joined by Coach Brent, Coach Brent discusses a case study of a successful small-town auto repair shop and shares strategies for improving productivity and setting goals. They emphasize the importance of proactive business management and marketing. They also discuss reducing accounts receivable and hiring new technicians. The episode concludes with a reminder to subscribe and collaborate in the auto repair industry.
Billed hours improvement [00:02:25] Discussion on how a shop improved their technicians' build hours by recording and displaying them, leading to increased productivity.
Internet presence enhancement [00:07:55] Efforts to improve the online presence of a shop, including getting a website, updating Google Maps listing, and starting a Facebook page.
Community involvement promotion [00:09:54] Highlighting the importance of promoting community involvement and showcasing the shop's support for local events and initiatives.
The importance of self-promotion [00:10:31] Discussing the significance of promoting one's own business and deepening community ties.
Fixing broken fundamentals before marketing [00:11:28] Explaining the process of addressing and improving the basic aspects of a shop before implementing marketing strategies.
Managing accounts receivable [00:14:47] Sharing the experience of reducing accounts receivable and the impact it has on cash flow and business profitability.
The online hiring process [00:21:05] Discussion on hiring a new full-time technician and the resources available for setting up an account and finding an A-level technician.
Concentrating on billed hours and shop efficiency [00:22:20] Focus on improving billed hours and sharing ideas on making the internals of the shop more efficient.
Growing and maximizing the potential of your shop [00:26:10] Encouragement to grow and maximize the potential of the current shop, utilizing the full capacity of the shop and increasing performance.
Connect with Chris:
[email protected]
940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/AutoFixAutoShopCoaching
Youtube: https://bit.ly/3ClX0ae
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #autoops #onlinebooking #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz
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