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By Joe Marconi in Joe's Blog5Typically, 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.
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By carmcapriotto
This week Hunt talks about incentivizing key employees with profit sharing and how to hold them accountable for the overall company and its profits.
How to motivate key employees to think like owners Pros and cons of giving key employees minority ownership What are alternative options for incentivization? Caveats for expansion and/or quick growth
The Show is sponsored by:
Shop-Ware on the web at getshopware.com
NAPA Auto Care Repair Shop of Tomorrow at https://repairshopoftomorrow.com
Hunt Demarest, CPA
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
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Recorded Live at the Transformers Summit with Aftermarket Radio Network host, Hunt Demarest, CPA at Paar Mellis and Associates and host of the Business by the Numbers Podcast. Hunt's firm specializes in automotive repair clients and he gives us an inside scoop on common new client questions and concerns as well as some behind the scenes about his podcast!
Hunt Demarest, CPA, Paar Mellis and Associates, Business by the Numbers Podcast
Show Notes
Finance and accounting with new clients- “I want to know more about my finances, but I don't understand them.” Clients have to see the value in their numbers themselves How do you want to make more money if you don't even know how much money you're making right now? You need to set up your financials in a way that makes sense to you. Profit is used to pay down debt. Profit is used for your distributions. Profit is used for you to buy inventory and equipment. Paar Melis gives you a report card at the end of the month. Focus on the red items and that's going to tell you everything that you need to know. Numbers don't lie, but they can be misleading Instead of charging credit card fees, instead, raise your labor rate, and raise your parts margin 3%. Now you're making that credit card fee on every person
Connect with the Podcast:
Aftermarket Radio NetworkSubscribe on YouTubeVisit us on the WebFollow on FacebookBecome an InsiderBuy me a coffeeImportant Books
Check out today's partner:
Learn more about NAPA AutoCare and the benefits of being part of the NAPA family by visiting www.NAPAAutoCare.com
Click to go to the Podcast on Remarkable Results Radio
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By TTP
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