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Repairs on your own vehicles


gandgautorepair

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Wondering how you all handle repair work to your own vehicles. How do you pay, how do you handle parts costs, write an RO or not, how does it affect gross sales.

I currently write an RO, pay the guys time just like any other job, but cost the parts to myself. The RO is for zero sales but has tech time charged to it. Wondering how others do it. I also have too many vehicles...

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I AM a Tech. (sometimes) but sometimes my crew works on my cars to fill time.  When that happens I flag their time but no labor cost (so they get paid the commissionable hours) and parts at 2% over my cost (to cover credit card fees).  Thus I have a record of the job and parts (for warranty) in my software and the sales tax is taken care of.  I keep an eye on it but so far I haven't cost myself a bump in the profit sharing plan yet.  That plan is based on gross sales (I know, I know - but I have my reasons!) and too much of this type of activity could hurt...  

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My accounting is done through my bank deposits, not my invoices. I write a full priced invoice for work to my own cars, then do the work myself or have the guys do it. When I sell a car I show these full priced invoices to help bolster the value of the car. It skews my end of month reports in manage a bit, and I pay a little bit of sales tax (2.9%). When I file my sales tax I get a tiny bit of the sales tax bill back as administrative costs (the state gives this discount every month) so it is offset. I do not pay the nvoice so my accountant does not show it as income in my books but I do show the loss as parts money coming out.

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  • 3 months later...

This is a very good topic. Though I am not the owner but have managed multiple shops I always run into the question. Can I work on my vehicle during shop hours if we have an open bay and we are slow? Do we mark up the parts if they want to purchase them through the shop account? Do we open a repair order for insurance purposes? If the tech is paid salary do you charge him for the hours needed for the repair say like a valve cover replacement? I've been with many different independent shops and each owner does things differently. What do you all think is the right way to do it? 

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  • 4 weeks later...

I make an invoice for the parts at cost and pay it plus tax. ny is pretty funny about their sales tax so I'm paranoid. I could just buy the parts and pay sales tax on the spot and not write a r.o. But it's easier this way. 

My techs are hourly so they don't care or I just do it myself. 

Edited by alfredauto
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12 minutes ago, alfredauto said:

I make an invoice for the parts at cost and pay it plus tax. ny is pretty funny about their sales tax so I'm paranoid. I could just buy the parts and pay sales tax on the spot and not write a r.o. But it's easier this way. 

My techs are hourly so they don't care or I just do it myself. 

This is how I do it also. I do not show any labor on invoices for our personal vehicles, just parts @ cost, for the trucking company I do the same thing just tax-exempt with a exempt form on file for the company.

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  • Have you checked out Joe's Latest Blog?

         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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