Quantcast
Jump to content


    • You can post now and register later. Already registered? sign in now to post with your account.
    • ×   Pasted as rich text.   Paste as plain text instead

        Only 75 emoji are allowed.

      ×   Your link has been automatically embedded.   Display as a link instead

      ×   Your previous content has been restored.   Clear editor

      ×   You cannot paste images directly. Upload or insert images from URL.


      Once you submit your question, a new topic will be created for you in our forums. Our moderators may move your topic to a more suitable forum category if one exists. Members will see your topic and be able to respond to your question.

    • This will not be shown to other users.
Joe Marconi

More Issues with Flat Rate

Recommended Posts

There has been a lot of controversy recently with flat rate pay plans.  Below is a link to an article about a technician's strike that was held in Chicago. Although the strike and issues in the article centered around dealerships, the article brought up good points about flat rate pay, and the low hourly pay many techs receive.  It points to reasons why many techs are unhappy, leaving the industry and why we have issues attracting quality people to our industry. 

I don't want to start a firestorm, and there are many forms of flat rate pay...but, is it time to rethink flat rate pay plans?  And also, we really need to compensate our employees at a standard that is in line with the training, the tools that are required and skills needed these days. 

I think it is worth your while to read the article and start a conversation on this topic.

http://www.autonews.com/article/20171023/RETAIL05/171029996/

 

Share this post


Link to post
Share on other sites


We allow visitors to read the first post of each topic. To read this post, please login or register for a membership. 

  • Like 1

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Similar Topics

    • By nptrb
      Hi, Natalie here. You have a great selection of tools on hand that will cover every job a customer will bring into your shop. Whether it’s Mac Tools, Snap-on, OTC, or Wright, the right tool for the job is priceless.
      The tools we’re talking about in this post are for finances, but the same strategy holds true. If you’re planning to do your own bookkeeping, the right tool for your financial job is also priceless. They can take what may appear to be a daunting challenge and save you a ton of time. You’ll be back to running your shop before you know it.
      Stick around until the end and I’ll outline what’s in my bookkeeping toolbox. Here is an overview with some suggestions on how to choose great financial tools
      Here are the top 10 categories:
      1. Accounting Software
      QuickBooks has been the go-to software for accounting for decades. There are online tools that may be a better option for you. The most popular choice is Xero and the numbers of small business owners that are using Xero is increasing. Compare several and pick the one that is both robust and flexible.
      According to the 2015 edition of the Business News Daily’s Buyer’s Guide here are the features you should look for:
       Invoicing
       Expense Tracking
       Client/Vendor Contact Management
       Billing and Recurring Payments Automation
       Quote and Estimate Creation
       Tax Preparation
       Multiple-User Access
       Payroll Processing
       Mobile Access
       Integration with Programs Such as Point-Of-Sale Software, Credit Card
      Processing, and Google Apps
      2. Budgeting Tools
      Creating a budget is the cornerstone of your shop’s financial success. Staying on task within your budget is equally as important. If your accounting software has this feature, you may already have the proper tool to create that budget. If your preference is a tool dedicated to this task, a recommendation is PlanGuru.
      3. Payroll Management System
      Payroll management can occupy so much of your time and mistakes are easy to make. Look for tools that streamline the payroll process and cut costly errors. A tool that integrates with your other tools is another feature to look for. Some tools like SurePayroll can calculate and pay payroll taxes. Simple. A couple of other tool suggestions are ZenPayroll and ADP. These combine payroll and HR functions in one.
      4. Agile Billing
      Speed and flexibility in your billing process means quicker cash flow back to you. With a tools like FreshBooks or Bill.com the billing process will be quicker and give your customers an easy experience. Improving the billing process will serve you and your customers better and shorten delays in receiving payments.
      5. Financial Dashboard
      The dashboard gives you a quick look at your shop’s financial health. See at a glance if your shop is thriving or surviving. Tools such as LivePlan or InDinero give you clear visuals and show you if you’re starting to go off course. Then you can take the actions to keep moving towards your financial destination.
      6. Cash Flow Analysis
      Your accounting software should have cash flow statement capability. As with the budgeting tools there are specialty tools for cash flow tracking. A couple of suggestions are Float or a simple spreadsheet. These give you patterns from the past to offer a forecast of your shop’s financial future.
      7. Inventory Management
      This is all about efficiency and tracking. From the purchase of parts and consumables to generating sales reports and low inventory alerts, this is a very valuable tool. A couple of cloud-based options are SOS Inventory and Scout’s top Shelf.
      8. Expense Tracking
      Those tiny expenses can quickly add up and may be hard to track. Using an expense report tool such as Expensify or Xpenditure makes this much easier. Track those meals, gas, and incidental expenses by scanning receipts and typing in cash expenses. Some tools have the capability to link to mobile devices helping to track these instantly..
      9. Business Credit Card
      A business credit card, when used properly has several benefits
       Improve your shop’s credit history
       Earn higher credit limits
       Receive rewards and discounts
       Manage employee cards (ease of tracking expenses)
       Boosts employee morale due to convenience and trust
      10. E-commerce Solutions
      Imagine your customer paying for their oil change before the service is completed. They need a couple of quarts of oil to tie them over. It’s easy to buy them online from their trusted repair shop.
      Many businesses have seen an increases in cash flow since the beginning of the pandemic by using E-commerce solutions. These are powerful and create revenue streams that you may not have thought of.
      11. Three Rivers Bookkeeping
      With my 5-years of experience, these are the tools I use:
       Accounting software – QuickBooks
       Payroll Management System – ADP
       Agile Billing – bill.com
       Financial Dashboard – LivePlan
      I’m passionate about books and service to my clients. If you’d like to have a conversation about tools and why I selected the one’s above, contact me. I can also outline the services I provide and why adding me to your team may make perfect sense to you.
      Saving you time and headaches is the value I bring to you, the Auto Repair Shop Owner.

      View full article
    • By Elite Worldwide Inc.
      Superstar shop owner and Elite Business Development Coach Ed Cushman shares an excerpt from a book that will change the way you view leadership.
       
       
      For additional help building a more successful auto repair business, learn how you can team up with a superstar shop owner like Ed through Elite Top Shop 360: One on One Coaching

      View full article
    • By Elite Worldwide Inc.
      Although COVID-19 has brought our industry plenty of challenges, it has also taught us a valuable lesson. Many of us have seen a drop in our car counts, but have simultaneously witnessed an increase in our AROs and happier customers. These slower days give us the opportunity to spend more time with each and every individual and vehicle that enters our shop, yielding positive results for both our business and our customers.
      From this point forward, in order to maximize every single opportunity at your shop, I recommend you implement the following three items.
      First, I recommend you hold a meeting with your employees as soon as possible and make sure they know that each vehicle that comes in should be properly, professionally and ethically inspected. Make sure they also know that everything should be documented.
      Next, it’s important that every single customer that enters your facility gets full disclosure on what is going on with their vehicle. This includes what needs to be done now, what should be done in the near future, and what may need to happen in the long run.
      Lastly, make sure that everyone in your company believes in all of your products and services. When a tech or advisor is on the phone with a customer, they must truly believe in their recommendations in order to really get through to that customer. The customer will be far more likely to listen if they know the recommendations are coming from a place of honesty and care.
      If you can implement the three items above, not only will you see sales go up, but you will have happier customers as well. I can assure you that the more time you spend on each vehicle and with each customer, the more successful you will be. 
       
      For additional help making the most of your shop’s opportunities, visit the Elite website or call 800-204-3548.

      View full article
    • By Elite Worldwide Inc.
      Superstar shop owner and Elite Business Development Coach Greg Skolink shares a fun tip on how to keep your shop's customers engaged on Facebook.
       
      For additional help building a more successful auto repair business, learn how you can team up with a superstar shop owner like Greg through Elite Top Shop 360: One on One Coaching

      View full article
    • By Elite Worldwide Inc.
      By Bob Cooper
       
      Given the uncertainty many businesses around the world are currently experiencing, we must look for ways to save as much money for our shops as possible, while also making sure we are maintaining and building a more profitable business in the long haul. Here are 4 powerful tips to help you save on your shop’s expenses.
       
      1. Review your profit and loss statement, and take a look at each and every line item. For each line item, you should ask yourself up to 3 questions: First, ask yourself if the line item is going to lead to an immediate profit. An example of this would be parts purchases or labor.  If the answer to this question is no, then ask yourself if the line item will lead to a potential profit in the near future. An example of this would be your advertising or marketing investments. If the answer to this question is no again, then ask yourself if the line item will lead to any foreseeable profit at all. Examples of these items would be insurance investments, utilities, and your water cooler payment. Once you have the answer to these questions, it will be much easier to see where you can scale back or even put certain items on hold for the time being.
       
      2. This tip comes from Dean Kuhn, a successful transmission shop owner and one of Elite’s rockstar Business Development Coaches. He recommends taking a look at the top 2-3 most expensive items on your financial statements each month. When you look at these expenses, really dive deep into every single line item that goes along with it. This way, nothing will slip through the cracks and you can get a complete picture your business’s finances, which will help you determine areas where you can save.
       
      3. Always remember that your vendors are your partners, and it’s important to treat them this way. I would highly recommend meeting with each of your vendors and having an honest conversation with them to make sure your partnership is as mutually beneficial as possible. During these discussions, set clear expectations for the vendor and make sure that you are meeting theirs. This will save you valuable time in the long run and will make both of your businesses more successful!
       
      4. To save on what’s likely one of your biggest expenses, I recommend that you sit down with your landlord or mortgage owner and have a conversation with them to see what can be done to reduce this cost. You’d be surprised how often an agreement can be made to help in situations like the one we are currently facing.
       
      Since 1990, Bob Cooper has been the president of Elite (www.EliteWorldwide.com), a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers the industry’s #1 peer group of 90 successful shop owners, training and coaching from top shop owners, service advisor training, along with online and in-class sales, marketing and shop management courses. You can contact Elite at [email protected], or by calling 800-204-3548.

      View full article


  • Similar Tagged Content

    • By Joe Marconi
      Not every shop pays flat rate; for many reasons.  So, many techs are on hourly pay.  There is nothing wrong with hourly pay, as long as you have an incentive program in place that promotes high production levels to avoid complacency.  For hourly paid employees I strongly urge you to have a pay plan that rewards production levels on a sliding scale.  
      As a business coach, I have seen too many times shops with low production levels and high tech payroll due to overtime pay. Overtime pay must not be used to get the jobs done with no regard to labor production.  Limit overtime and create a strategy that increases production and rewards techs with production bonuses.  By the way, there are many ways to incentivize techs, it's not all about money. 
      Overtime without high levels of production will eat into profits and if not controlled, with kill your business. 
      If your shop is an hourly paid shop, what incentives do you have in place to maintain production levels? 
  • AutoShopOwner Sponsors



×
×
  • Create New...