Quantcast
Jump to content


    • You can post now and register later. Already registered? sign in now to post with your account.
    • ×   Pasted as rich text.   Paste as plain text instead

        Only 75 emoji are allowed.

      ×   Your link has been automatically embedded.   Display as a link instead

      ×   Your previous content has been restored.   Clear editor

      ×   You cannot paste images directly. Upload or insert images from URL.


      Once you submit your question, a new topic will be created for you in our forums. Our moderators may move your topic to a more suitable forum category if one exists. Members will see your topic and be able to respond to your question.

    • This will not be shown to other users.

Recommended Posts

Posted (edited)

 

 

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

Share this post


Link to post
Share on other sites


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

  • Similar Topics

    • By Dr.Dave
      Help i need shop keepers insurance now. I have no claims in the last 3 year and 1 for $400 5 years ago. We went thru a rough time and paid the premium on the last day of when they sent notce. They won't renew .on going through Keller Stonehenge for pen n national .I have a 2 bay shop for over 10 years what a shock
    • By Joe Marconi
      After 39 years in business, it's time to get serious about my exit plan. While I don't think I will ever truly retire, I do think it's time to plan the next chapter in my life.  I would  like to hear from shop owners out there in the same  situation.  What are your plans?  Are you selling your repair shop?  Do you have a succession plan?  And are you thinking about a different line of work to keep you busy?
       
    • By Joe Marconi
      Shop owners, you have a little less than two months before the end of the year.  And that means it's time to start thinkning about your Tax Planning for 2019. Don't procrastinate on this. Meet with accountant. Review the year, review profit.  Consider things such as major equipmenet purchases and other major investments you made in 2019.  Look at bottom line profit and determine if you set aside enough cash to pay your taxes come April 15, 2020.  
      One thing, Cash is King, So, before you purhase any major equipment before the end of the year, listen to your accoutant, not the Tool Sales-person.  In many cases, it's better to pay some tax and hold on to cash for a rainy day. 
      A little planning now will save you big time in 2020, and also help you sleep better! 
       
    • By sparkerauto
      Has anyone painted the shop floor ? Looking at what products actually work and can withstand all the chemicals and chipping. Thanks in advance !
    • By Joe Marconi
      The mild fall appears to have caused a slow down for many shops. We have seen this before.  But, winter tempertures are here, and the threat of snow will boost repair shops.  


  • Similar Tagged Content

    • By Joe Marconi
      Not every shop pays flat rate; for many reasons.  So, many techs are on hourly pay.  There is nothing wrong with hourly pay, as long as you have an incentive program in place that promotes high production levels to avoid complacency.  For hourly paid employees I strongly urge you to have a pay plan that rewards production levels on a sliding scale.  
      As a business coach, I have seen too many times shops with low production levels and high tech payroll due to overtime pay. Overtime pay must not be used to get the jobs done with no regard to labor production.  Limit overtime and create a strategy that increases production and rewards techs with production bonuses.  By the way, there are many ways to incentivize techs, it's not all about money. 
      Overtime without high levels of production will eat into profits and if not controlled, with kill your business. 
      If your shop is an hourly paid shop, what incentives do you have in place to maintain production levels? 
    • 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.
      I first learned about Dr. J’s erratic behavior from a few of my employees. According to these employees, his behavior was destructive, disrespectful and rude. He never acted differently in front of me, so I had a hard time understanding what was going on. I talked to Dr. J about what others were saying, and he looked stunned.
      “Joe, I really can’t tell you why anyone would be unhappy with me. I get along with everyone,” he told me.
      I met with the employees who expressed concerns and let them know that I appreciated their feedback. I told them that Dr. J had been with us for a number of years and that I had never witnessed any unusual behavior from him. I tried to look at all sides and suggested that perhaps he was going through some personal issues, so let’s try to be a little more understanding.
      Out of respect, the employees agreed—but not for long. I was away on a business trip when I got a disturbing text message from one of my technicians. The text read, “Joe, if you don’t do something about Dr. J, we’ll deal with it ourselves.” It was late when I got the text, but decided to call the tech anyway. He told me in great detail what Dr. J was saying and how he behaved. I was shocked by what the tech told me. Could this person be a real life Jekyll and Hyde?
      It was early Monday morning, my first day back, when my office manager came into my office, closed the door behind her and said, “Joe, if you don’t do something about Dr. J, people are going to quit.” I knew at this point I had a real problem on my hands.
      I brought Dr. J into my office and told him everything that I had heard. I told him that the employees did not like the way he treated them and that the harsh words he used was causing a problem with everyone. Again, Dr. J was defensive and denied everything. However, this time he told me his perspective of the situation.
      According to Dr. J, the rest of the employees were not pulling their weight and that all he was trying to do was to motivate them. I tried to explain to him that criticism and harsh words are viewed as an attack. And if this strategy is repeated over and over, people will push back and shut down—the exact opposite of any intended good. I could tell by the look on Dr. J’s face that he really didn’t agree with what I was saying, but he told me that he would take my opinion under consideration.
      After that meeting, I paid careful attention to Dr. J’s treatment of others. All seemed good. Then one day, I witnessed the Jekyll and Hyde persona for myself. Dr. J didn’t know I was in the front office as he lashed out at one of the technicians. The tone and the words that came out of his mouth were unacceptable and appalling. I saw firsthand what everyone in the shop was experiencing. After repeated attempts to correct his behavior, his conduct never improved. It was time to let him go.
      I never found out what changed Dr. J, but I did feel confident that I gave him every opportunity to correct his behavior. While Dr. J may have fooled me initially, I have to admit that I did see that the mood of the shop was tense and morale was down. With Dr. J no longer employed, morale improved and everything went back to normal.
      The workplace environment is a delicate balance between culture and production. It’s also filled with emotions. People want to rally together for the greater good. But, they also need to know that their leader protects them from any threats that attempts to harm the team. It’s also wise not to readily dismiss the concerns your employees express to you. Be on the lookout in your shop. You just might have a Dr. J of your own.
      This story was originally published by Joe Marconi in Ratchet+Wrench on December 7th, 2018


      View full article
    • 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 Ron Ipach
      December spells the end of 2018, and hopefully you're wrapping up what was a fantastic year for your auto repair shop and business.
      Now… it’s time to start thinking about how to make 2019 an EVEN BETTER year. (Heck, let’s go ahead and plan on making it your best year ever! Right?)
      By attending for this special Live Online Webinar, you're going to get the proven 4-step process that will practically GUARANTEE 2019 to be a blow-out success for you.
      With these four steps, you’ll be able to…
      👉 ==> DOUBLE your take-home pay (Yes, that’s not a misprint. I’ll show you how.)
      👉 ==> Magnetically attract more (and even better!) customers to your shop
      👉 ==>  Easily sell your services at higher prices than your competitors
      👉 ==>  Find, hire, and keep that elusive tech you’ve been searching for
      👉 ==>  Put the fun back into running your shop!
      If you're interested... there is absolutely ZERO cost to attend this training.
      All you'll need is 45 minutes of your day set aside in order to watch this webinar live.
      For the dates, times, and registration details,  CLICK HERE

  • AutoShopOwner Sponsors



×
×
  • Create New...