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  • Have you checked out Joe's Latest Blog?

         3 comments
      Got 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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      Premium Member Content 

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    • By carmcapriotto
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      Click to go to the Podcast on Remarkable Results Radio
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      Click to go to the Podcast on Remarkable Results Radio
    • By Joe Marconi

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      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • 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, Coach Chris Cotton from Auto Fix Auto Shop Coaching shares strategies to increase net profit in auto repair businesses. He advises against unnecessary purchases and unused subscriptions, which could save around $200 per week.
      He also stresses the importance of analyzing labor rates and suggests that even a small increase could significantly boost profits. Cotton emphasizes improving productivity with existing staff rather than hiring more.
      He concludes by encouraging struggling shop owners to seek resources like podcasts and business coaches, and underlines the importance of strategic decisions, effective management, and continuous learning in the industry.
       
      Stop buying unnecessary items (00:03:11) Coach Chris Cotton advises to avoid impulsive purchases and save $100 a week by not buying unnecessary items for the auto repair shop.
       
      Analyze and reduce expenses (00:04:20) He suggests looking at expenses, stopping payments for unused items, and renegotiating contracts to save money and increase net profit by $100 a week.
       
      Increase labor rates and improve technician productivity (00:05:25) Coach Chris Cotton discusses the importance of raising labor rates and conducting a competitive labor rate analysis. He also emphasizes the need to improve technician productivity to reach 80% or more, resulting in an additional $10,248 in net profit per week.
       
      Increase net profit through productivity (00:10:07) Coach Chris Cotton discusses the importance of productivity in increasing net profit and provides tips on improving technician productivity.
       
      The potential net profit increase (00:11:11) Coach Chris Cotton calculates the potential net profit increase by implementing the tips shared earlier, highlighting the significant impact it can have on small and big auto repair shops.
       
      Closing thoughts and resources for success (00:12:27) Coach Chris Cotton encourages struggling auto repair shop owners to seek resources such as podcasts and business coaches to help them advance their businesses in the coming year. He emphasizes the importance of strategic decisions, effective management, and a thirst for knowledge in achieving success.
       
       
      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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