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CLICK HERE TO JOIN THE SUCCESSFUL SHOP OWNERS FACEBOOK GROUP

[transcription]

Could Auto Repair Flat Rate Be Dead?

TECHNICIAN shortage today is real. Last study that I saw said, for every eight shops that’s looking for a technician, there’s only one tech available so I know many of you watching this are experiencing that same thing. And I’ll also say one thing that I found: most technicians, when I mention flat rate, their cheeks kind of pucker up. They hate it. Why? There’s risk. They’ve been burned before. So often in the technicians starved market, what’s a shop owner left to do but put technicians on hourly or even maybe salary? And what that leads to is, really what I’m going to call an “uninspired performance.” Why? They get comfortable, they’re able to pay their bills without exerting a ton of effort.

So what’s a shop owner to do? The answer I’ve uncovered recently in my shop is to have a Win Number. For every single employee. See one of the truths I discovered in my 30 plus years of being a shop owner is that often we don’t get the most out of our employees because we never really sat down and told them what we expect. I know that’s been one of my mistakes.

So one of the things that I’ve done recently is I’ve given each employee a weekly Win Number, and that’s why it’s so important. For example, I recently sat down with each of my technicians and shared with them their Win Number. What do I mean by win number? What I expect out of them in parts and labor production for each employee. The numbers are based on my desired technician cost as a percentage of sales. It’s worked so well with my technicians that I now sent it out and established that win number with both my CSR and my service advisor.

I’ve got to tell you the results have been incredible. Not only are my sales and profits up through the roof lately, it’s led to believe it or not, happier employees. Why? They drive home at the end of the day or at the end of the week knowing that they hit their goals. Knowing that they’ve contributed to a successful week for the shop and that certainly led to a happier shop owner!

So, let me leave you with a question. Does each and every one of your employees on your team clearly know what you expect of them?

If your answer is not a resounding YES, it’s time to put a pencil to paper and figure out each team employee or each team members weekly and daily Win.

Edited by Ron Ipach

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    • By Joe Marconi
      The year was 1980 - the year I founded my company. And, like many new business owners, I didn’t have a clear understanding of what was needed to grow a successful business.  I thought that success would be determined by my technical skills and my willingness to wear the many hats of the typical shop owner. It wasn’t until I began to let go of trying to do everything that I realized that success is not just dependent on what I do, but by the collective work accomplished by the team. I eventually discovered that I was not the center of my universe.  After a few years in business, I began the transition from simply owning a job to becoming a businessman. And, while technology has reshaped our industry throughout the years—and will continue to do so—there is one constant that will never change: success in business rests largely on the people you have assembled around you.
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    • By Joe Marconi
      We allow visitors to read the first post of each topic. To read this post, please login or register for a membership. 
    • By Joe Marconi
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    • By Ron Ipach
      Brand New LIVE Workshop for Auto Repair Shop Owners.
      ...I've got to tell you I'm super excited because I just created the final details on this brand new Live Workshop that I'm going to be offering tomorrow at Noon EST
      [ Register here for free: https://zoom.us/webinar/register/4815585386172/WN__Vh527KXQPSAmM8P97M0jw ]
      I'm going to be covering the three most important things that you could ever do in your shop. These are the three things that the top shop owners are doing and they've mastered this and that's the sole reason why they are, well, BETTER than everybody else.
      [ Register here for free: https://zoom.us/webinar/register/4815585386172/WN__Vh527KXQPSAmM8P97M0jw ]
      It's the best training I'd say I've probably done in the 23 years that I've been doing this. So I'm super excited. I want you to join me go down below this video, click the button and I'll see you on the live training.
      [ Register here for free: https://zoom.us/webinar/register/4815585386172/WN__Vh527KXQPSAmM8P97M0jw ]
       
    • By Joe Marconi
      Can someone truly have two personalities? A real life Dr. Jekyll and Mr. Hyde—the one you see, and the one everyone else sees? I had a Dr. Jekyll and Mr. Hyde employee a number of years ago; we’ll call him Dr. J. He was my shop foreman and helped the manager run the daily operations. Dr. J was employed about five years before things began to change.
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      This story was originally published by Joe Marconi in Ratchet+Wrench on December 7th, 2018


      View full article
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