Quantcast
Jump to content

Recommended Posts

Posted

I feel the need to say thank you! After reviewing the financials for this past year I was quite depressed. I did $100,000 more business than the year before, but hardly any more profit to show for it. I had personally been stressed out, buisy beyond belief, and just plain beat up this past year, and for what... a small profit??? Yes I did profit more than the year before, but put it this way - not impressive. One night I tuned to Auto Shop Owners for a little help and guidence. Threre was a TON of helpfull posts, and some real eye openers. The one post that was burned into my brain was a post about running a business vs. running a repair shop. I told myself it was time to run a BUSINESS not just a AUTO REPAIR SHOP. I had a BIG meeting with my guys, telling them its time they stepped up there game and helped me "bear" some of weight I was carrying around with this business. I raised prices $5 per hour. I started charging for diagnosis. I started tracking the techs billed hours (I pay hourly) and created a bonus program for them. I actually started "watching and analyzing the numbers" rather just going off of feel.

The results.... Utterly amazing. This year (Jan and Feb) I have profited almost twice as much as last year. I know!!! that is crazy. Just goes to show what a little "thinking" can do. I remind myself everyday to treat my shop as a business, not a "repair shop". I hope this helps others, it sure helped me. Hopefully this trend continues for me, but again THANK YOU to my fellow shop owners for posting your knowlegde and advise!!!

 

Sent from my Chromebook 11 Model 3180 using Tapatalk

 

 

  • Like 4
Posted

I've been listening to an interesting book that I think a lot of us can benefit from. "Profit First" by Mike Michalowicz. It takes the "pay yourself first" principles that a lot of personal finance gurus talk about, but few of us do, an applies it to doing business. We all need to understand that our businesses exist to produce a profit for the owner, not to fix cars. If we want to fix cars, we can fix cars working for someone else.

I'm fortunate enough to have my business to a place where I'm actually getting a decent profit, although it's not quite as much as I want. Probably a result of being lucky more than being good. I have never quite reached the elusive 20% net plus my W2 pay. I intend to change that this year by removing my profit first, then figuring out how to run the business on what remains. If we think about it, we figure out how to run our businesses on less money all the time. Every lean month we have, we figure out how to get the bills paid with what we have. What if "what we have" is simply what's left after we remove the profit? I bet we could all figure out how to make it work, and would finally realize the benefit of being business owners.

Posted

Great story, thanks for sharing. i have had a few aha moments in my career. Never regretted any of them. 

 

Posted

Yup, that’s the one! Thank you for posting that. That post along with many others honestly transformed the way I view, and therefore run my businesses. I was basically making every decision for every repair in my shop. It’s been hard to let go, but also very freeing. I’m putting a whole lot more pressure on my techs to MAKE DECISIONS, but after all it is there job to make sure the vehicle they are working on is properly diagnosed and repaired. Not the owners! Let them do there job and hold them accountable.


Sent from my iPhone using Tapatalk

  • Like 1
Posted

Makes life a little easier, no? I pay my guys hourly as well and was wondering how their bonus program is structured?

Posted

yes I also pay my guys hourly. The bonus program is pretty simple. I’ve been paying them $1 for every billed hour. After every month, we have a lunch meeting and go over numbers, I give them their folder with all the jobs they billed out that month. They can make around $150 (or more) if they have a decent month. I used to give them 100 bucks if we surpassed a certain gross sales per month. However this seems be working pretty well and the guys get a kick out of watching their numbers. It’s also help because I let them recommend their own labor times per job (so there extra mindful now if they think something is going to take longer)

  • Thanks 1

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
  • Available Subscriptions

  • Have you checked out Joe's Latest Blog?

         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.
  • Similar Topics



  • Our Sponsors

×
×
  • Create New...