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how Covid is affecting Car counts


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Not much to do here so I've been studying last years numbers. January and February 2020 were on the level with 2019. Car counts around 195-210. March 2020 - 45. April 2020 - 31. The rest of last year followed the pattern. No activity.  It went up some in the fall but we are down 70% as far as car counts go last year.  A bonus if you want to call it that was the cars we did see needed a lot of help. The average RO was up almost 35%.  Overall we will survive but we aren't swimming in gravy. Over the past 11 years our sales charts looked like a right triangle. Up every year. Very linear. Then came 2020 that sent us back to 2014 sales levels. This year so far is looking positive but we are still way off our goals. Car counts are at an all time low. And that's with a lot of our competition closed down permanently. Get ready folks it's going to be another tough year.  

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I relay this out of appreciation for our good fortune. I would also not want their to be a false impression that the industry was down everywhere. We were up again in 2020 after several years of increases, with only one blip in 2017. Of the 1200 or so stores that I can see increase/decrease numbers for, over 50% were flat or up in 2020. 

We were down in January 2021 by 20%, over 2020, but only down in Jan 2021 3% over 2018/2019. Things definitely felt tighter this last 30 days. 

 

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On 1/31/2021 at 12:21 PM, HarrytheCarGeek said:

Yes. Don't expect lots of replies, the large majority of business owners I have spoken to are not willing to discuss this particular issue.

 

It's no secret when shops are advertising $17.99 oil changes they are hurting for customers bad. 

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We see the opposite. We were up only 5% over 2019 but 2019 was a rocking year and 2020 was even better. We did 1.7 mil with only 5 techs. Car count around 400 per month. This year we are 15% bottom line to date over last year. I see a bright future this year too as long as our government does not screw us all. 

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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most 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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