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  • Have you checked out Joe's Latest Blog?

    • By Joe Marconi in Joe's Blog
         4
      Typically, 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. 
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    • By Beep

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    • By Joe Marconi
      It's a safe bet that nearly every auto repair shop is looking to hire an employee, most likely a technician.  While I am a big proponent of a plan to recruit constantly, we can never forget about the employees we have right now.
      Do all you can to create a healthy workplace with high morale. Have a one-on-one with all your employees. Find out what they like about working at your repair shop and perhaps more importantly, what they would like to change. 
      Ask your employees what they would do to improve your company. If you have never done this before, you may get the "deer in the headlights" look, but don't worry, keep asking and in time your employees will be a great resource for you. 
      When people feel appreciated and know that their opinion counts, it helps them from looking over the fence for greener grass. 
      What do you do at your auto repair shop to help retain your employees? 
       
    • By Joe Marconi
      I recently read an article that said that giving a technician a pay guarantee each week promotes complacency and leads to lower production.  In other words, if they don't produce, they don't get paid.  Really?  While I do get the logic, I don't agree. 
      I am not going to promote one pay plan against another, but for me, if I require a technician, or any employee to be at my company a certain amount of hours, then they will get paid for every hour they are there. Now, I do believe in performance-based bonuses; so if someone produces more, they need to be rewarded for that. 
      What I have found is that business success and maintaining high production levels requires hiring the right employees, and having the right culture combined with the right leadership.
      Your thoughts and comments? 
       
    • By Joe Marconi
      A recent Auto Leap Survey revealed that 64% of shop owners are looking to retire in the next 10 years. (Link below to survey) 
      So, I want to take an informal survey of our  ASO members:
      How long have you been a Shop Owner? When do plan on retiring?   
       
    • By Joe Marconi
      Last week, I had an interesting conversation with a shop owner friend of mine. He told me that he does not mark up his parts as much as he once did, mainly because of pushback from customers. He states that Google, Amazon, Rock Auto, and others, have hurt that part of the business.
      I don't want to debate that fact right now, but what I told him is that It doesn't matter how you arrive at your required profit, but you need to maintain profits.
      If you concede on your part margin, then the only way to maintain your required Gross and Net Profit is to increase your labor rate.
      Your thoughts and opinions? I would like to know what other shops are doing with part margins these days. 


  • By nptrb, in Automotive Industry,

    By nptrb, in Automotive Industry,

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