[Podcast] Patrick McHugh – 20 Questions in 30 Minutes [RR 563]
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By Joe Marconi in Joe's BlogMost 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 carmcapriotto
A surprise taping of a tribute to the eight years since starting the service aftermarket’s premier podcast. We also want to express gratitude to the hundreds of guests that have enriched over 1,100 episodes of the collection of Remarkable Results Radio, the Town Hall Academy, and Aftermarket Weekly podcasts. We thank them for sharing their wisdom so we all rise to new levels of success. We will continue to provide the industry's widest range of topics, both in audio and video formats. And along with the 1 ½-year-old Aftermarket Radio Network, we are there for every aftermarket professional to Advance the Aftermarket.
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Rena Rennebaum Tracy Capriotto Bill Nalu Chris Cloutier Chris Cotton Clint White Brian Walker Kim Walker Matt Fanslow Aaron Woods Dwayne Myers Cecil Bullard Hunt Demarest Tim Shaffer
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Remarkable Results Radio HERE. This includes the Town Hall Academy, Aftermarket Weekly and CarmCast’s Matt Fanslow HERE. Diagnosing the Aftermarket A to Z Hunt Demarest HERE. Business by the Numbers Chris Cotton HERE. The Weekly Blitz Kim and Brian Walker HERE. The Auto Repair Marketing Podcast
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By Joe Marconi
Is there are advantage for the service advisor starting the multipoint process, if at all possible? For example, the service advisor is writing up the car and performs a walk around, takes a few photos of the exterior, take a look a the tires, looks for damage, maybe an obvious torn wiper, etc.?
Would this speed up the process and build value? Again, this may be hard to do for some shops.
Thoughts and comments?
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NAPA Benefits Center: napabenefitscenter.com
NAPA Member Site: member.napaautocare.com
Email Matt: [email protected]
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