Quantcast
Jump to content


Recommended Posts

The other day, a local fellow shop owner, was complaining to me that his plumber just charged him $225 labor for a house call.  My response was, "And why do you have an issue with that?"

I know this plumber; he is very successful, in high demand in the area, does great work and provides a VALUBALE service. Does this sound familiar?  You bet....sounds like you and your business!!!

When the day comes that all of us truly know what we are worth and charge for it, that will be the day when all us raise the level of the auto industry, begin to attract more people to us, pay our employees better, build for our future and go home with the pay we deserve.

I know this is going to cause controversy....so let's start the conversation.

 

 

 

 

 

  • Like 4
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 carmcapriotto
      https://www.youtube.com/watch?v=N9lUoKR3ysc
      Guest host, Chris Cloutier, Golden Rule Auto Care, CEO AutoText.me Virtual shop tour from Sam Craven, The Garagisti, Houston, TX Trivia Challenge: What year launched the Corvette ZR1, nicknamed the ‘King of the Hill”
      Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. By always innovating, Dorman has led the way in growing the aftermarket. Here you will see a few examples of a Dorman OE Fix. An OE FIX is a Dorman repair solution you can’t get from the original equipment manufacturer. It means they found a situation where they believe the OEM wasn’t giving repair professionals what they wanted, so we fixed it. Everything Dorman does is centered around providing customer value, both in the quality of products, and the creativity of solutions. Our engineers and designers go out of their way to save repair technicians time and save vehicle owners money. Want to really go under the hood? Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
       
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Seth Thorson has specialized in the service of European automobiles since 1999. First, in Michigan and now at his current location in New Brighton, MN. He just started to build a brand new shop and experts to be in by June 2021.
      Seth was educated at a UTI in Chicago, where he was at the top of his class. He then went to BMW Step to finish the master’s program. Thorson was hired in at a BMW dealership in Bloomfield Hills, Michigan. From there he moved to an independent shop in Waterford Michigan and learned VW Audi. Seth’s passion remained with BMW and he was offered a chance to buy an existing shop in New Brighton, Minnesota near where he grew up.
      He is the owner of Eurotech, which specializes in BMW, Mercedes, and Audi cars. He is a firm believer in using factory tools to ensure proper repairs and coding. His team of highly trained and certified technicians is able to diagnose today’s complex vehicle systems! His second location, Green Garage, works on all makes and models.
      Seth also owns and runs a BMW tech support company called LMV Bavarian that provides support and programming to a growing network of over 200 shops via remote diagnostics. He also teaches national seminars on BMW diagnostics. Seth has also partnered with SSF auto parts in their unique ‘hands-on’ training program.
      Seth belongs to AASP in MN, BIMRS as well as NASTEF. He is also a member of Cecil Bullards (Institute for Automotive Business Excellence) 20 group. He believes idea sharing and networking with other shop owners have helped grow his business. Listen to Seth’s previous episodes HERE.
      Troy Vaninetti- Troy has been Married to His beautiful wife Kori for 27 years and has four children with one still living at home with one 15 month old granddaughter.Troy started working in a Texaco full service station at age 17, and progressed through the following: from service attendant, tire attendant, apprentice technician, lead technician, shop manager, to purchasing Graham Auto Repair in 2006. Troy knew the importance of having coaching he joined ATI in 2012 and increased his business revenue every since. Troy leased a six-bay building in Graham for ten years before being forced to build his own 7 bay building due to losing His lease in 2016. In his first full year in the new building, Troy doubled his annual revenue. Since then Troy has won the National Top 12 ATI awards in 2018,2019, and 2020. Capturing the number one National Top Shop Award in 2020. Now Troy is working on His second location in Yelm Washington.
      Key Talking Points
      Seth Thorson- 3rd location, built within 9 months in a motorplex condo. It was a PUD (planned unit development). 4,000 square feet, 6 bays total. Tile floor came from Germany and an employee from the company came to install it on a work visa. Epoxy tends to not hold up as well as tile. Customer waiting room downstairs and VIP lounge upstairs. Kitchenette upstairs as well. The location will be hosting car shows and events. Two customer bathrooms and one employee bathroom. Oil and fluids housed upstairs with a pump system. Had fixed price budget bid. Radiant in-floor heat and HVAC air conditioner. Discussed planning and input with shop foreman. Promoting 3 locations on the website, you can call and reach a live person that will book an appointment and pick up car to be serviced at a different location. Troy Vaninetti- new building 4 years old, 7 bays. Over 2 years to be built start to finish. Covered entrance service area. Mixed soil with concrete because the soil was too wet to build on. Made depth 50 ft in case he wants to repurpose space as commercial retail space. Hired a designer to design the interior of the shop. Within the first year the shop doubled revenue, nicer building attracts different clientele. Upgrading customer amenities- people make emotional decisions based on how they feel when they walk into a place. Advice- start early because it is a long process. Remodeling is very different than new builds, make sure you are clear with vision with architect. Visit as many places as you can to decide what you like and don’t like. If you can, assign someone to help with obtaining permits and being the squeaky wheel. New builds/updates to buildings also attracts technicians that want to work there. Have financials in order for bank and be prompt with reports they need. A special thanks to Seth Thorson and Troy Vaninetti for their contribution to the aftermarket. Books Page HERE Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes. Facebook   Twitter  LinkedIn   Instagram  Youtube   Email  
      Mobile Listening APP’s HERE
      Join the Ecosystem – Subscribe to the INSIDER NEWSLETTER HERE.
      Buy Carm a Cup of Coffee 

      This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com

      This episode is brought to you by Shop Marketing Pros. Your guides are Kim and Brian Walker with a rich history as shop owners and industry veterans. When someone searches for a shop, who are they finding? Your competitors? It should be you! The good people over at Shop Marketing Pros know how to drive website traffic and make Google work for you! www.shopmarketingpros.com
      Click to go to the Podcast on Remarkable Results Radio
    • By Joe Marconi
      In the 4 decades as a shop owner, my number one way to have a smooth running shop is to surround yourself with the right people.
      I am interested in hearing from other shop owners. What's your opinion on how to run a smooth running operation? 
    • By carmcapriotto
      Kenneth Greffin-28 years in the automotive industry. President of Aspen Auto Clinic with 5 locations. He's done a bit of everything; tire buster, oil changer, Shop Owner, Franchise Consultant and Big Box Automotive Retail Executive.
      Sam Craven- Owner of The Garagisti, Houstin, TX. Following an established career in business and real-estate, native Houstonian Sam Craven has brought his passion for business and racing together with a return to his roots within the world of cars and motorsports. A graduate of Texas A&M’s Mechanical Engineering school, Sam was a busy student. While some headed to the bars on the weekend, Sam headed out all over the country between classes (and sometimes during classes…) to work as a mechanic and run data systems for Ferrari, Porsche and open wheel race cars. Sam created The Garagisti to be a space for both the hardcore enthusiasts and people who simply desire trusted, quality work combined with an excellent client experience. The Garagisti was made for the people that appreciate their car and expect a dealer level experience.
      Greg Bunch is the owner of Aspen Auto Clinic, a five-location automotive and service business in Colorado. Greg started his passion for cars at 15 when he began rebuilding a 1966 Volkswagen Bug. Greg has moved from a Volkswagen mechanic to ASE Master Technician, to Management, to starting his shop 18 years ago in his garage, to an award-winning multi-location business.
      Greg is currently a board member for the STEM-based charter school call “Automotive Institute of Science & Technology” and on the Advisory board of Ratchet and Wrench Magazine. Greg is also a board member of the Autocare organization and a certified instructor for the Worldpac Training Institute and Carquest Technical Institute. Greg’s unwavering passion for the industry has also led him to form a company called Transformers Institute, a coaching and training company dedicated to transforming the automotive industry.
      Listen to Greg’s previous episodes HERE. Transformers Institute HERE.
      Key Talking Points
      Build a culture where technicians meet owners of vehicles- brings more relationship and effort to repair.  Break down the wall of what technician knows and what customer understands- if the customer doesn’t understand, they don’t feel comfortable buying Build trust at every touchpoint- mailer, curb appeal, roads on way to location (are mom and kids comfortable driving there?) marketing, follow up after the customer has left, answering the phone, how does the shop look? How do technicians look and speak to customers? Make it a point that technicians should say “hello” to customers when walking by.  Little things lead to big things- both positive and negative “I need my car towed to your shop” - set it up yourself instead of giving them the tow truck phone number “No update update” -keeping customers in the loop Phone etiquette- beginning of first human interaction, the customer is calling because they are looking for help. Take the stress level of customers down. Building trust and making them feel like they called the right place. Tonality, customers can’t see your face, your only tool is your voice. Record and listen to your phone calls. Get the basics done. Make it personal- use pictures of owner/employees Collaborative interaction with customers- make them a part of the process. Show them the DVI. The choice is their own, how you relay the message and repairs makes the difference.  Collaborative interaction with employees- everyone needs to hold each other accountable, share ideas, support, offer feedback  Transparency- no one makes decisions unless they 100% understand, consider showing the customer their fluid sample colors “Test procedures” can help customers understand diagnostic work  “Key droppers”- are they repeat customers? Service advisor’s goal- win skeptical customers over with exceptional customer service  How do you handle complaints? Find resolution and recovery to repair the relationship  Consultive style selling techniques- ask the customer what they use their car for, what is their relationship with their car, how long do they plan on keeping it A special thanks to Ken Greffin, Sam Craven and Greg Bunch for their contribution to the aftermarket. Books Page HERE Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes. Facebook   Twitter  LinkedIn   Instagram  Youtube   Email  
      Mobile Listening APP’s HERE
      Join the Ecosystem – Subscribe to the INSIDER NEWSLETTER HERE.
      Buy Carm a Cup of Coffee 

      This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com

      This episode is brought to you by Shop Marketing Pros. Your guides are Kim and Brian Walker with a rich history as shop owners and industry veterans. When someone searches for a shop, who are they finding? Your competitors? It should be you! The good people over at Shop Marketing Pros know how to drive website traffic and make Google work for you! www.shopmarketingpros.com
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Your weekly broadcast production with wisdom shared by our guest host and a virtual shop tour. There is a trivia challenge. 
      Dwayne Myers talks about technician career paths. Dwayne’s previous episodes HERE Virtual Shop Tour by Jonathan Ortiz from Foreign Affairs, Palm Beach, FL. Jonathan's previous episodes HERE Trivia Challenge:  

      Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. By always innovating, Dorman has led the way in growing the aftermarket. Here you will see a few examples of a Dorman OE Fix. An OE FIX is a Dorman repair solution you can’t get from the original equipment manufacturer. It means they found a situation where they believe the OEM wasn’t giving repair professionals what they wanted, so we fixed it. Everything Dorman does is centered around providing customer value, both in the quality of products, and the creativity of solutions. Our engineers and designers go out of their way to save repair technicians time and save vehicle owners money. Want to really go under the hood? Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
      Click to go to the Podcast on Remarkable Results Radio


  • Similar Tagged Content

    • By Joe Marconi
      Got your attention? Please read on...
      In case you were hibernating the last year and half, you had to notice all the increases around you. From food, gas, utilities, taxes, insurance, etc., etc., etc. Not to mention all the training and tool investment we must make from now on, to remain in the business.
      I have been preaching this for decades: As an industry we don't charge enough, especially when it comes to labor. 
      While there are ways to increase labor dollars, for example: becoming more productive, making sure that we charge for complex testing and driveability; Base labor rates have to factor in as the most important KPI in your business.
      Do the math, get help from a coach if you need help calculating your labor rate.
      A real Down and Dirty calculation:  If you have one tech and you pay this tech $35 per hour ($42 loaded), then this tech has to bill $140 of labor for every hour worked.  ASSUMING THIS TECH IS 100% PRODUCTTIVE. 
      DISCLAIMNER:  THIS IS A REAL DOWN AND DIRTY QUICK CALCULATION, SEEK ADVICE IF YOU WANT A MORE ACCURATE REQUIRED LABOR RATE. 
    • By Alex
      We now have a nice tool available to all premium and platinum members under the tools menu, where you can view labor rates entered by our members on an easy to use map, similar to our member map. This is designed to give you an idea of where you are vs the market in your area. As you zoom in, the circle averages open up to more specific areas.

       
      If you aren't currently a subscribed premium or platinum member, you can upgrade here.
    • By spencersauto
      What's your houlr labor rate and where are you located? We're currently at $95 in Texas
    • By HarrytheCarGeek
      For those with bodyshops, here is some interesting reading:
      http://www.bodyshopsolutions.com/WordPress/?p=111
       
      bodyshopsolutions.com/WordPress/ John Shortell I’ve taken a part time job working at an independent body shop close to my home writing estimates and supplements and harassing insurance companies. I’ve been at it for a few months now and up until recently I haven’t seen or heard from a Progressive appraiser. Finally, several weeks ago, I had a customer who was hit by one of Progressive’s insureds. Because I’m in a different area of the state now, I’m unfamiliar with the local appraisers. More importantly, they are unfamiliar with me. What fun!
       
      First let me admit that I was spoiled working at a high line dealership body shop. Those evil rich drove nice new cars that demanded nice new OEM parts. Now all I see are Honda’s and Hyundai’s. Old ones at that. I’ve never seen so many junk cars in my life. But I guess the poor have to drive too.
      Anyway, I had a customer who was hit by a Progressive insured. I wrote an estimate and asked the customer to make arrangements to meet the Progressive appraiser here at my shop. Progressive people hate that. They’d rather look at the vehicle somewhere else. Any where I am not. When the Progressive appraiser showed up I knew there would be trouble. He looked to be about 12 years old. He fit Progressive’s archetype for their ideal appraiser: young, naive and no experience in the collision repair industry.
      His estimate was several hundred dollars less than mine. No surprise there. But it was a small repair, and that several hundred dollars amounted to about 30% of my estimate. Of course, the labor rate was an issue, but what really got me wound up with this moronic “blend within the panel” crap. I basically told the kid he could take his “blend within the panel” and have his first sexual experience with it. I wasn’t going to accept it. There were some other issues too, and it all added up to the 30% deficiency. I was beginning to lose my cool because this prepubescent putz couldn’t figure out how to meet my bottom line, so I told him to do what a lot of other appraisers do: make something up and put it on the estimate. Of course, I was being sarcastic, but being so young, this kid didn’t understand the sarcasm and took offense to my suggesting he commit fraud. Well at least the kid is honest.
      I asked the kid for his appraiser’s license number and the name of his supervisor and explained that I would be filing a complaint with the insurance department, which I did immediately after he left (And don’t we all know how effective that was). I told the customer not to worry about the difference–I would take care of it. I had her sign a repair authorization, a direction to pay and a power of attorney in case I had to sue the bastards. Working at a dealership I never had the opportunity to sue an insurance company because the owner didn’t want the trouble, but now that I’m working at a small independent shop, the owner is willing to go after insurers who don’t play nice.
      I spoke with the kid’s supervisor over the phone about the situation. For the record, she was very pleasant, just like talking to sweet high school girl. I didn’t meet her in person, but by the sound of her voice she was another Progressive clone–too young and inexperienced in anything to be dealing with these issues. But she promised to look into it. I knew I was wasting my time, and I was. After three days of haggling, the young girl managed to come up with another hundred dollars. She was still a couple of hundred short. I explained to her that I was going to sue her insured for the balance. She responded with a perky “OK” like I had just asked her if she wanted to go hang out at the mall. She was trained to perfection. Great job Progressive behavior modification department!
      With little effort I was able to locate the guy who hit my customer and promptly mailed him the following letter:
      A few days later I received a phone call from Mr. XXXX. He wanted to discuss the matter. I explained the situation to him in more detail, and he agreed to pay the balance owed and then deal with his insurance company. I again offered to help him in any way I could with filing a complaint with the insurance department or recovering the money from Progressive. He didn’t take me up on the offer, but he did send a check the next day. I’ve yet to hear from him or Progressive so I have no idea if he was reimbursed or not. I do know the gentleman was not too happy about having pay for repairs to someone else’s car after he had been paying premiums for liability insurance. Something tells me Mr. XXXX will be finding someone else to send his hard earned money to for insurance in the near future.
      I fully expected to have to go to small claims court. I knew Progressive would not give in, and I never expected the insured to cough up the money so easily. I feel sorry for the poor bastard. But I’ll be damned if I will become a cheap whore just because Progressive is too profit driven to treat my customers fairly. It’s ironic. Progressive was started by a left wing socialist. The name Progressive is not a coincidence. This nut job and his dope smoking kid, who recently stepped down from running the company, preached the progressive movements dogma, and heavily funded many of its whacked out causes. Progressives are supposed to be more fair than the evil rich. They are supposed to care about the little guy and scorn the evil corporations, yet here they are now acting as bad as any corporation ever did. They only care about their profit and share holders. Kind of makes them big time hypocrites. Just my humble opinion.
      Lesson learned? Never sell yourself short. If you’re going to be a whore, at least be a high priced whore. Stand up for yourself. Had I gone to court, I most certainly would have won. It is astonishingly easy to demonstrate to a judge how labor rates are artificially suppressed by insurers, how they manipulate the system for their corporate financial gain, and that they will do just about anything to save a buck. To be fair, I would probably do the same if I worked for Progressive or another insurance company. It is all part of their survival. When your cat eats a cute little bird, you may think it horrific, but it is only natural. And it is only natural for collision repairers to fight to survive. What is not natural is when collision repairers give up and play nice at the risk of losing everything. That’s agonizing suicide.
      If you’re thinking that I spend a lot of time talking about Progressive, there’s good reason. First, they deserve it. Second, I know my audience–and it’s Progressive. For this past year, Progressive Insurance has been my number one visitor to this website. State Farm has been catching up lately. They are the top visitor this month. Way ahead of everyone else. The only other entities that generate more traffic to this site are the large ISP’s like Road Runner and AOL. I’m flattered. Hopefully some of what I talk about is subliminally sinking in.
      Oh yeah, remember my prediction about CCC’s announcement that it would get rid of the prompts for bumper covers? I said it would be slow in coming. Well here we are a couple of months and updates later and it’s still there. Your complaints forced them to make a public acquiescence, but now that the hell raising has died down, no need to rush things. We’re still waiting CCC. Wassup?
      One more thing. Apparently there is a lawsuit going on in Arizona against Progressive. The plaintiffs have deposed a former Progressive employee. The deposition is interesting reading. For an inside look on the pressure and incentives to steer vehicles to network shops give it a read. It is only a partial transcript. If anyone has the entire document or a link, please send it to me or link to it in the comments section.
       
      http://www.bodyshopsolutions.com/WordPress/wp-content/uploads/2008/01/nobile-iacano-docs.pdf
       
    • By jfuhrmad
      There are quite a few threads about pricing but I think it might be better to shift that discussion to value.  How do you add value for your customers?  For example, we have a very clean waiting room with coffee, wifi, nice music etc...  We also, answer the phone in the happiest way possible, we use tablets for inspections, we vacuum the front footwells for all oil changes, we have demo parts to help educate customers and we have a 3yr 36k warranty.  Recently I've been trying to dream up ways to add even more value so I can compete hard on what I deliver.  For example, I just added a 20 year master tech, I thought I could vacuum every car and leave a thank you note on the dash.
      What are you doing to add value?  What additional value are you adding that I'm not doing?  I would love to borrow some ideas if you are willing to share.
  • Our Sponsors



×
×
  • Create New...