General Liability / Garage Keepers Insurance Quotes... What do you pay?
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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 Joe Marconi
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By Joe Marconi
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By carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
In this podcast episode, Chris Cotton from Auto Fix Auto Shop Coaching discusses the critical role of gross profit per hour as a performance indicator for auto repair shops. He explains how to calculate it and its importance in assessing efficiency, pricing, labor, training needs, and financial health. Chris also highlights its value in staying competitive. The episode includes a nod to the sponsor, Shop Marketing Pros, endorsing their services.
The importance of gross profit per hour (00:00:05) Chris discusses the significance of gross profit per hour as a key performance indicator for independent auto repair shops. Formula for calculating gross profit per hour (00:01:56) Chris explains the formula for calculating gross profit per hour and its role in pricing strategy and efficiency. Labor utilization and financial health (00:03:00) Chris emphasizes the importance of labor utilization and how gross profit per hour directly affects a shop's financial health. Calculating gross profit per hour (00:05:24) Chris provides examples of calculating gross profit per hour using a spreadsheet and discusses the importance of this metric. Measuring efficiency and pricing strategy (00:11:48) Chris explains how gross profit per hour helps measure efficiency, productivity, and pricing strategy in an auto repair shop. Competitive edge and conclusion (00:14:48) Chris discusses how a healthy gross profit per hour gives a competitive edge and concludes with a message about the podcast sponsor, Shop Marketing Pros.
Connect with Chris:
[email protected]
Phone: 940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/
AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
In this podcast episode, Chris Cotton from Auto Fix Auto Shop Coaching explores facility productivity in auto repair shops. He discusses the potential and actual productivity of facilities, using a Midwest shop with six bays and a southeastern shop with 24 bays as case studies. Cotton emphasizes the importance of maximizing current facility productivity before expanding. He suggests that many shops operate at only a fraction of their potential and offers insights on increasing technician efficiency and optimizing bay usage to enhance profitability.
The facility's productivity (00:01:07) Chris discusses the importance of understanding what your facility is capable of and how to measure its productivity. Case Study 1: Midwest Shop (00:05:25) Chris presents a case study of a shop in the Midwest, analyzing its potential sales capacity and current productivity. Case Study 2: Southeast Shop (00:11:34) Chris discusses a case study of a shop in the southeast United States, examining its potential sales capacity and current productivity. Improving facility productivity (00:13:40) Chris provides insights into improving facility productivity through better utilization of bays and technicians, and the importance of processes and procedures.
Connect with Chris:
[email protected]
Phone: 940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/
AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros
Click to go to the Podcast on Remarkable Results Radio
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