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By Joe Marconi in Joe's BlogTypically, 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.
By Joe Marconi
You can't pick up a newspaper or watch the news on TV without reading or watching something about the state of the economy. No matter how this was caused, or whether we are in a recession now, or it is coming, will the state of the economy affect the Auto Repair business?
Are we recession-proof as so many say we are? Or should we prepare ourselves for tough times ahead?
If you're thinking about transitioning from employee to shop owner, this episode is for you. Instead of guessing your way through the transition, let the Aftermarket Radio Network be your free library of industry peers across the country help you get started the right way.
Maylan Newton, ESI- Educational Seminars Institute, is a business coach, trainer and industry speaker. Maylan's previous Episodes HERE Vic Tarasik, CEO of Shop Owner Coach. Vic’s previous episodes HERE.
A good technician only makes a good business owner with proper training, guidance, and accountability. You need these 5 professionals- business coach, accountant, financial planner, insurance advisor, attorney Build the business that survives you and provides a legacy to your family the business is not about you is about all the people that depend on the business for their survival, family employees vendors Most importantly, do not treat your business as a hobby you not fixing cars running a business The business owner is the leader, not to fix cars/writing service “People are so afraid of success, that when they reach success they self-destruct.” Not paying yourself opens the door to resenting the business. What is YOUR cost of doing business? Don’t let the high level of confidence in fixing cars create a false sense of security in solving all things in business. Ask questions of the right individuals- someone with experience who’ve successfully overcome what you have in front of you “Implementation of knowledge is power.” Focus on the fundamentals from the beginning “Begin with the end in mind” (Covey)- Now that your journey has begun, what is your endgame? “Life begins and ends at the edge of your comfort zone” Pay your taxes- set up a system where deductions from
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Check out today's partners:
Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com
Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com
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By ASOG Podcast
Maximizing Profits Or Happiness - Is There An Ideal Size For An Auto Repair Shop
I have always appreciated this forum and not sure how I didn't think to ask this question here to begin with!
I received an unexpected phone call from a gentleman whom I've never spoken to or met before the day after Christmasz but he was aware of me and my recent achievements while managing an independent franchise of a national auto repair chain (honestly doesn't make a difference to me if you know where u can msg me if u want. Just didn't know the rules on it)
In less than 60 seconds he was able to explain who he was, where he was from, and that he would like to move me out there for the purpose of taking over his shop and running it for him until he retires at which time I could buy it if I wanted it and I told him it is certainly a discussion we can have and would get back to him the following day.
Our next conversation I had the chance to interview him about the shop and a little about himself to which I have no objections and went on to inform him that picking up my life and moving out of state would not be a quick decision and would require a process in which 3 things would need to take place.
1. We would need to meet in person obviously, but also spend a decent amount of time in an environment outside of the work setting to get to know a little more of each other and assuming no red flags (very doubtful there are any to find) move forward
2. I would need to see the shop and be able to shadow how it's currently operated for a day or 2 and if no issues were to come up that within a few days at most I woulr let him know what it would take and the cost needed in order for me to commit to this and move.
3. We would both have to mutually agree to or re negotiate a deal to be out in writing and signed and any upfront requirements fulfilled.
Until late May I had spent the last 3 1/2 years as general manager for another franchise of the same chain that was nearly bankrupt when I started and lead it on to achieve new reocrds parts and labor sales . I wrote out a business plan outlining all new policies, procedures, products, and pay structure that changed everything from the ground up.
The first year reflected an increase in more than 150k of gross sales at just shy of 1m and the second was the highest gross sales recorded at 1.29m, and I parted ways respectably in late May on track to exceed 1.5m. (sadly, they did not make this mark)
During this time my compensation was a base salary of $1000/week, 1% of gross sales, and a weekly kicker of $250 per week gross sales ended over $20k, and an additional $250 for each $5k after for that week. 2021 I grossed $109k and this year was on track to end at $150k if I had remained.
There was nothing negative involved or that created the reason my departure. The regional manager for the 166 stores or whatever it is in the NW asked me long ago if I would ever be willing to relocate and run another "franchise store" and I had a couple people email me that I couldnt even take seriously, but never let them go any further.
I am scheduled to leave by train this Monday 1/9 where he has provided me with a hotel and rental car for a 3 day stay to complete the other steps needed to move forward.
Below is a general idea of what I have in my head as far as what I expect out of a relocation package, but I've never had to hire or been hired this way before. Needless to say I could use and would appreciate any insight from anyone that has experience or any history with this process and reasonable expectations.
1. Move in costs including first and last months rent, security deposit, and any application fees.
(I was going to put a cap on the amounts, but the cost of living there is ridiculously higher than here and I don't feel like moving from a nice 3 bdrm house that I have here to go live in some cheap 1 bdrm apartment there is the right direction lol)
2. All personal property will be prepared and packed by myself and then loaded and delivered at owners expense.
3. Pay structure to remain the same as previous Midas employer with a $250 increase to weekly salary.
4. Employee discount will be all products and parts at cost.
5. One time payment of $15,000 as incentive to ease the complications that come with relocating.
(,Thought of splitting up? 1/2 up front and other half dispersed with regular pay over next 6 mos?)
Any feedback or thoughts is welcomed and appreciated.
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