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By Joe Marconi in Joe's BlogGot your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
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By Joe Marconi
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By carmcapriotto
Matt Fanslow explores the analogy between running a repair shop and the world of dating. He shares insights on first impressions, trust-building, and the value of substance over style in both customer relationships and shop management. Matt emphasizes the need for repair shops to maintain high standards of service and to view customer feedback as opportunities for growth.
Show Notes
Dating in Modern Times (00:01:15) Comparison of modern dating to historical dating and personal experiences with initial interactions. Physical Attractiveness and Shop Appearance (00:02:25) Reflections on interactions with physically attractive individuals, similar to the importance of a shop's appearance. Importance of Customer Reviews (00:04:54) Discussion on the significance of customer reviews, the impact of negative reviews, and the importance of backing up a shop's exterior with quality service. NAPA Auto Tech Training Sponsorship (00:11:34) Information about NAPA Auto Tech Training and its benefits for technicians and shop profitability. Constant Improvement in Customer and Employee Interactions (00:13:42) Emphasis on the importance of constant improvement in customer interactions and the parallels with employee relationships. Long-Term Relationships and Continued Accreditation (00:17:06) Discussion on the importance of continued accreditation and constant improvement to maintain long-term relationships with customers and employees. Shop Relationship Parallels (00:18:13) Drawing parallels between shop hiring and dating, emphasizing the importance of attracting and maintaining long-term relationships with employees. Attracting Talent (00:19:16) Encouraging self-reflection on what attracts and separates a shop from competitors, and the importance of perpetuating long-term relationships with employees. Promoting Training (00:20:20) Advocating for the importance of training.
Thanks to our Partner, NAPA Autotech napaautotech.com
Email Matt: [email protected]
Diagnosing the Aftermarket A - Z YouTube Channel HERE
Aftermarket Radio Network: https://aftermarketradionetwork.com/
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
This week on Business by the Numbers, I want to talk shop and share insights that hit close to home for every garage owner out there. Today, I’m talking about an often overlooked aspect of your business - the true cost of inaction. Not just the dollars and cents you count every day, but the opportunities you might be missing out on.
• The Hidden Expenses: The not-so-obvious costs tied to decision-making in your shop. From choosing between internal work vs. retail work to the long-term effects of quick fixes
• Opportunity Cost Explained: Ever wondered about the cost of sitting on your couch instead of grabbing that $100 helping a buddy out? Opportunity Cost: It's all about what you're missing out on by choosing one option over another.
• Real-life Examples: From loaner cars to hiring decisions, I aim to illustrate how overlooking opportunity costs can have a tangible impact on your bottom line.
And hey, if you're hitting up Kansas City for Vision 2024, swing by and say hi. I'll be there, ready to chat and share insights in person. See you out there!
Thanks to our partners, NAPA TRACS and Promotive
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.com
It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: [email protected]
Get a copy of my Book: Download Here
Aftermarket Radio Network
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Matt Fanslow and guest Margaret Light, a licensed marriage and family therapist, dive into the complexities of grief. They discuss the inevitability of loss, the importance of acknowledging grief, and strategies for self-support during the grieving process, such as maintaining routines and honoring loved ones. They also cover how to support others who are grieving, offering practical help and emotional support. The conversation touches on the challenges of dealing with grief in the workplace and the need for understanding and patience. Additionally, they explore the concept of surrendering to grief and the dangers of using work or other distractions to avoid dealing with emotions.
Show Notes with Timestamps
Margaret Light: https://www.equilibriumtherapyservices.org/ Matt's personal experience (00:01:12) Matt shares a personal experience about his father's health issues and his own feelings of grief and survivor's guilt. Understanding grief (00:05:29) Margaret explains the broad concept of grief, including different types of loss and the idea of complicated grief. The process of grief (00:12:36) Discussion on the non-linear nature of the grief process, the stages of grief, and the need to experience and process grief. Supporting individuals experiencing grief (00:18:06) Matt and Margaret discuss the challenges of navigating grief in professional settings and provide pointers on how to support individuals experiencing grief. Supporting Ourselves When Grieving (00:19:31) Tips for self-care during grief, including creating routine, seeking support, and honoring the loved one. Supporting Someone Who's Grieving (00:23:08) Practical ways to support a grieving person, such as providing childcare, acknowledging their grief, and avoiding false platitudes. Learning to Live with Loss (00:30:54) Discussion on the process of learning to live with the loss of a loved one and the challenges of accepting mortality. Dealing with Loss and Control (00:34:44) Exploration of the fear and loss of control associated with unexpected or unexplainable events, and the frustration of not being able to fix emotional pain. Grieving requires attention (00:37:28) Discussion on the intentional effort needed to be present and attentive during the grieving process. Surrendering to grief (00:38:03) Exploring the concept of surrendering to grief and accepting difficult emotions. Recognizing red flags in grief (00:41:22) Identifying signs of unhealthy coping mechanisms and behaviors in response to grief. Reintegration and moving forward (00:49:06) Exploring the reintegration phase of grief and the purpose of grief in helping individuals move forward in life. Acknowledging the value of grief (00:51:21) Recognizing the significance of grieving as a reflection of love and the importance of feeling strong emotions. Challenges in addressing emotions (00:54:35) Discussing the difficulties in addressing emotions, especially in male-dominated industries, and the need to learn to navigate and apply emotional understanding. Grief and Emotional Intelligence (00:56:33) Discussion on the benefits of emotional intelligence, the downside of suppressing emotions, and the importance of addressing grief.
Thanks to our Partner, NAPA Autotech napaautotech.com
Email Matt: [email protected]
Diagnosing the Aftermarket A - Z YouTube Channel HERE
Aftermarket Radio Network: https://aftermarketradionetwork.com/
Click to go to the Podcast on Remarkable Results Radio
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By Changing The Industry
Episode 144 - From Customer Conflicts to Industry Innovations with Arun Coumar
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