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By Joe Marconi in Joe's Blog5 commentsI recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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By nptrb
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By NATURE
Hey everyone. I'm planning on opening in about 3 weeks and am looking for a credit card processing company. Are there any geared for our type of business? Does anyone recommend Intuit for it's ease of integration with Quickbooks? I'll be doing around $10,000 a month in CC payments averaging $200.00 per RO. Payments are predominately Visa or Mastercard swiped. A very small percentage of Amex, Discover or over the phone. If there is a company name that a lot of you experienced members would recommend, I would like to hear it.
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By bantar
I get the daily calls of wanting me to switch CC processors and with MUCH (misplaced) confidence, I refused to have a discussion with any of these guys, because I already had great rates. Then, I had a persistent one call me back and ask why I didn't want to talk. She said enough right things that I let the salesman come visit me.
My rates were and supposedly were going to get better over time as I built up history. Original Quote:
Credit Card Rate - 0.05% + Interchange (AMEX 0.055%) Debit Card Rate - 0.05% + Interchange Credit Transaction fee - 0.05 cents per transaction Debit Transaction Fee - 0.05 cents per transaction PCI Compliance-$9.95/monthly Chargeback fee-$10.00 (VISA, MC, Discover) $30.00 (AMEX) Paper Statement-$5.95 monthly (online statements free) The other guy comes in and tells me that my current processor increased my rates and added numerous junk fees. The rate raised to 0.25% for most cards and .75% for AMEX and now have a $34.95 platform fee and numerous other fees. At this point, I stand to save $250/month minimum by switching CC vendors. I did confirm that on day 1, my bills had way fewer fees. The bills also stated that they were raising rates along the way, so they were disclosed and allowed by contract. I'm halfway thru a 3 year contract with a $495 cancellation fee. This is what I'm paying now with the same processor:
Credit Card Rate - 0.25% + Interchange (AMEX 0.75%) Debit Card Rate - 0.05% + Interchange Credit Transaction fee - 0.05 cents per transaction Debit Transaction Fee - 0.05 cents per transaction PCI Compliance-$9.95/monthly Annual PCI Audit Fee - $99 Chargeback fee-$10.00 (VISA, MC, Discover) $30.00 (AMEX) Paper Statement-$5.95 monthly (online statements free) New Junk Fees - $41 To be clear, the interchange fees don't change on either deal. We are only dealing with CC processor markup fees and junk fees. The 0.05% is a markup fee over interchange. The new deal is:
Credit Card Rate - 0.05% + Interchange (all cards including AMEX) Debit Card Rate - 0.00% + Interchange Credit Transaction fee - 0.05 cents per transaction Debit Transaction Fee - 0.05 cents per transaction PCI Compliance - $0 (with a successful audit and $9.95/month penalty without one) Annual PCI audit fee - ?? Chargeback fees - $25.00 (VISA, MC, Discover, AMEX) - refundable if you win Monthly Charge - $10.00 As best I can tell, it looks legitimate. I'll be carefully reading the new contract tomorrow. So, the real question is whether or not I'm switching from one liar to another liar? This second one is telling me that my contract will have the rates guaranteed and locked in. If I see the right things in writing, I'll be switching. Will recoup my cancellation / startup costs in 3 months.
I guess the moral is get an annual checkup from a competitor.
Supposedly these rates are available as a result of being low-risk from my transaction history (or it's just marketing-speak). I don't know. My original deal was reasonable, but it isn't any longer. My plans were to wait for the 3 year contract to end before shopping around.
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By xrac
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By carmcapriotto
The ERTC (Employee Retention Tax Credit) is something Hunt has talked about in the past (See Episode 10 and 33) but this week, he wants to discuss the current status of the IRS with regard to auditing and follow-up on businesses that have claimed this credit, such as:
IRS is upping their fines if you don't disclose all funds, even the legit ones. IRS amnesty programs: From a simple "Hey, I've got this account" to "I owe you, let's settle." The IRS usually has three years to ask for back taxes, but some exceptions exist. If you've taken the ERTC money, there's a two-year period where the IRS might have you on their radar. Bigger amounts = more attention. The ERTC program's end is in sight, with some parts set to phase out soon. Want more details? Click here: https://www.irs.gov/newsroom/to-protect-taxpayers-from-scams-irs-orders-immediate-stop-to-new-employee-retention-credit-processing-amid-surge-of-questionable-claims-concerns-from-tax-pros
Thanks to our partners, NAPA TRACS and Promotive
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.com
It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
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
Aftermarket Radio Network
Click to go to the Podcast on Remarkable Results Radio
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