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By Joe Marconi in Joe's Blog13 commentsMost shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.
Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
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By Joe Marconi
On Sunday morning December 7, 1941 America's naval base at Pearl Harbor, Hawaii was attacked by aircraft and submarines of the Imperial Japanese Navy, killing 2,403 American military personnel and civilians and injuring 1,178 others. The attack sank four U.S. Navy battleships and damaged four more. It also damaged or sank three cruisers, three destroyers, and one mine-layer. Aircraft losses were 188 destroyed and 159 damaged.
The day after the attack, the United States declared war on Japan and entered World War II. President Franklin Roosevelt, in a speech to Congress, stated that the bombing of Pearl Harbor is "A date which will live in infamy."
"There are some things that we must never forget, the attack on Pear Harbor is one of them" , President Franklin D. Roosevelt
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By Joe Marconi
On Sunday morning December 7, 1941 America's naval base at Pearl Harbor, Hawaii was attacked by aircraft and submarines of the Imperial Japanese Navy, killing 2,403 American military personnel and civilians and injuring 1,178 others. The attack sank four U.S. Navy battleships and damaged four more. It also damaged or sank three cruisers, three destroyers, and one minelayer. Aircraft losses were 188 destroyed and 159 damaged.
The day after the attack, the United States declared war on Japan and entered World War II. President Franklin Roosevelt, in a speech to Congress, stated that the bombing of Pearl Harbor is "A date which will live in infamy."
"There are some things that we must never forget, the attack on Pear Harbor is one of them" , President Franklin D. Roosevelt
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By Joe Marconi
I know that there are many things on your mind this time of the year. With the winter coming and the holidays upon us, theres a lot going on these days. But, as a business owner, you need to consider that 2015 is right around the corner. The better you prepare now, the more successful you will be in the New Year and beyond. I have put together a short To Do list to help you prepare.
1. Review all the numbers for the first 11 months of 2014 and compare those numbers with the same 11 months in 2013 and 2012.
2. Based on the numbers, you can now begin to plan out your 2015 budget.
3. If you have not done so yet, have a meeting with your accountant. Review all the numbers for 2014. You want to know now about projected taxes you may owe, and not wait until April 15. Also, make sure you get a current checklist from your accountant on what is needed for yearend 2014.
4. Review your inventory. This goes hand in hand with your tax strategy. It will also indentify dead stock that hurts your cash flow.
5. Are there any tools, equipment, improvements to your facility or any other expenses that you can use in 2014 to reduce your tax liability for 2014.
6. Review all your goals for 2014. Did you achieve all your goals? If you did not, dont worry. Thats to be expected. Reestablish your personal and business goals now, before the end of the year. Also, start thinking about your future training and equipment needs.
7. Contact your financial advisor and discuss any financial issues and retirement plans.
8. Have an end of the year shop meeting. Outline all the accomplishments of 2014 and outline your goals and objectives for 2015 and your vision of the future. Most important; thank each and everyone for their efforts and make sure you convey to everyone that its the efforts of the team that determines success.
9. If you have not done so in a while, have one-on-one meetings with your employees. Do not make it a beat up session. Promote the positive attributes of the employee and ask for feedback on how the employee views the business, and ask for ideas and suggestions on ways to improve the business.
10. And, lastly, make sure you set aside time to work on self-improvement. As the leader of your company, all eyes are on you. Its your vision, your leadership qualities and your positive attitude that ultimately determines your success. Remember, you can achieve what you want from life, if you help others achieve what they want.
I hope you had a good year, and best of luck in 2015 and beyond!
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By Joe Marconi
The Pearl Harbor Attack, December 7th 1941 A day that will live in infamy
On Sunday morning, December 7, 1941 America's naval base at Pearl Harbor, Hawaii was attacked by aircraft and submarines of the Imperial Japanese Navy, killing 2,403 American military personnel and civilians and injuring 1,178 others. The attack sank four U.S. Navy battleships and damaged four more. It also damaged or sank three cruisers, three destroyers, and one minelayer. Aircraft losses were 188 destroyed and 159 damaged.
The day after the attack, the United States declared war on Japan and entered World War II. President Franklin Roosevelt, in a speech to Congress, stated that the bombing of Pearl Harbor is "a date which will live in infamy."
There are some things that we must never forget, the attack on Pear Harbor is one of them.
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