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Do I Need a Shop Management Program?


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Hey guys looking for a little advise for people that have been in my situation. We are a smaller shop but really starting to transition to doing more volume in the past 2 years. Been in business for 10 years now and currently have 2 full time tech's and myself. I manage most of the office and service writing stuff and even occasionally help wrench in the back when required. Looking to hire a service advisor soon to help with the work load on the counter.

 

Currently we just use a a mix of excel spreadsheets for invoicing and customer history, as well as Google calendar. My questions is will I see a big benefit from moving to a all in one management program? Is it worth the monthly fee's for a smaller outfit like mine? 

 

Should mention we are in the powersports arena (mostly boat repair with some other rec equipment) so some of the platforms out there are not 100% tailored to our industry with the ones that are not offering up everything you would get out of a automotive program. Thanks in advance for the help!

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Hey Xtreme Marine! Thought I would chime in on this. I currently do not own a repair shop - I did - and how I help repair shop owners to get the car count they want and need. 

Your question about value is one that only you can answer. But let me ask you this "How do you stay in touch with customers?" Do you send them Christmas cards; Reminders; Maybe even the odd promotion?

What I'm really asking is "how do you mail or contact your customers?" Or do you just want to "churn and burn" - keep wasting money on getting new customers only to have to replace them in a few months. 

To get to the point, every business (repair shop) will have a loss in customers. Let's face it, some move away; change jobs; buy new cars and some even die. But the BIGGEST reason customers leave your business is "indifference". They think you don't care! 

So I can't speak to your specific requirements but from what you outlined, looks like you've got things "duct taped" together pretty well. That would be like my repair shop going across the street to  borrow their floor jack to lift my car; and then driving down the street to borrow the other shop's oil filter wrench, just so you can do an oil chance on my car. You know - sort of "duct tape" it all together. 

Sorry if I'm being a smart a** - but your customer list is your most valued asset. After all, without customers you would be running a hobby. But once you go through the learning curve of getting a proper system up and running (because there WILL be a learning curve, I promise) , I'll bet that a good system set up well will prove to be worth the "weight". 

Hope this helps!

Matthew
"The Car Count Fixer"
More help? Join the conversation on YouTube @ Car Count Hackers

 

 

 

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We are also a small shop in a small town, same situation. I have been contemplating an upgrade myself. We use QuickBooks and it's worked well for us. I may consider an upgrade down the road, but for now it does what I need. 

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Hey DAC, I get it. Actually, I've used QuickBooks in some applications when getting some things started and I've got nothing bad to say about it. Maybe it's not centered on the auto repair shop - but it's a lot better than scribbling down names and numbers on a napkin!

And understand this - I'm not selling anything - and I can't tell you what app you should or shouldn't use because I haven't worked with any of them for a long time. But here's something I can tell you - You said you've got what you need with QuickBooks. Great. But I always ran my businesses with the "where do I want to go?" attitude (or question). 

I listened to sales people selling their stuff because that was the only way I could understand what their product/service could do. But the overall focus was me, asking myself, "will this take me to where I want to go?", and in all honesty, that's the real question you need to answer (for yourself - nobody else!)

Hope this helps!

Matthew
"The Car Count Fixer"

P.S.: Follow me on YouTube @ Car Count Hackers

P.P.S.: How to Get Car Count in 72 Hours or Less - Guaranteed!

P.P.P.S.: Facebook?

 

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About 70% of my business is powersports (ATV's and UTV's).  I also do automotive work.  I have 2 techs and myself as well as part time service writer. I can't even imagine operating this business without some sort of shop management program. I started out with baymaster and was extremely happy with them until they were transitioning to online only.  The price was reasonable.  When they transitioned I panicked as there were alot of flaws and I ended up switching at that point to AllData.  I probably would have been better off to stick it out with baymaster, and if they would have held off their transition until they had all the bugs worked out I would have.  In addition to AllData, I have added "myshopmanager" which is a marketing program that automatically texts my customers checking in on them about jobs we have completed.  It also has a VERY GOOD vehicle inspection part that allows us to send a text to our customers with pictures and videos of their vehicle inspection.  This has sold alot of extra work we wouldn't have had without it.  In order to grow in this industry at this time, you have to invest in the technology.  I think I'm paying $289 a month for "my shop manager", and I'm ok with that as I can see clearly it's bringing in an extra $2,500 a month in revenue  per month as long as we are using it.  We've been so busy the last couple month that we have not been using the inspection feature as much as we should be.  Our biggest problem there is staff.  If anyone has any advice on getting quality mechanics that want to work and can show up on time... please share your secrets.  I could be a 3 tech shop instead of a 1 1/2 tech shop if I could just find the right people.  The 1/2 is my second and isn't efficient or reliable.... and may not be employed for long.

 

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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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