[Podcast] A Simple Letter of Intent Transformed an Employee Into a Shop Owner [RR 551]
Have you checked out Joe's Latest Blog?
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.
By ASOG Podcast
Automotive Training Doesn't Pay... Fight Me
By Joe Marconi
As an "old timer" who got his start during the muscle car era, this is hard to accept. Am I too sensitive?
The Associated Press covered some of the driveway mechanics and enthusiasts who are converting classic cars into electric restomods.
This includes some business owners like Sean Moudry, co-owner of InspireEV near Denver. He recently restored a 1965 Ford Mustang with an electric powertrain. The project cost upwards of $100,000.
Read the article in Ratchet and Wrench:
By ASOG Podcast
A Game Changer for Automotive Service Advisors?
By Joe Marconi
Happy New Year to all Auto Shop Owner members and their families! It's been a wild ride the past few years, but automotive shop owners and their staff are amazing and resilient people!
Let's make 2023 and beyond our best years!
Live from the 2022 Transformer's Summit, keynote speaker John Dijulius categorizes the automotive industry as a 'grudge buy' for customers when they are at their most vulnerable. How is this an opportunity for your business to be the 'hero?' How do you make price irrelevant? John Dijulius, John Robert’s Spa, The DiJulius Group. John's had the privilege of working with world class companies like the Ritz-Carlton, Lexus, Starbucks, Nordstrom, Nestle, Marriott Hotel, Pricewaterhouse Coopers, Cheesecake Factory, Bausch & Lomb, Progressive Insurance, Harley Davidson, State Farm, Chick-fil-A, Entrepreneurs Organization, YPO, Aveda, and many more. Listen to John's previous episodes HERE Show Notes
Drove for UPS- his wife was a hairdresser, and they opened a salon. John started getting involved in the business. “We aren’t going to be the best salon, we will be the best experience of your day.” Chambers of commerce businesses started asking John for business consulting. 20 years ago John’s first book came out and took him to the next level Business and Artistry Pengeleum Making price irrelevant- based on the experience your brand consistently delivers, your customers shouldn't have an idea what your competitors charge because they aren’t window shoppers. Who is more expensive? Why are they? “We do $10 haircuts” vs “We fix $10 haircuts.” Give the experience before you charge for it and justify it -“What does a $1,000 haircut look like? What is that greeting like? How is the massage during shampoo? What does a $1,000,000 keynote speech look and sound like?” Grudge buy and losing time- automotive repairs. When you can come to the rescue when a customer is at their most vulnerable, there is an emotional connection and memory made. Customers asking about price- opportunity The biggest cause of anxiety is uncertainty- no update update for customers Level 1 through 10 hairdressers based on expertise “Discounting is the tax you pay for being average.” Things that make a brand something customers can’t live without- the quality of work, consistency, employee evangelism (educate vs sell), how do you make me feel, Capitalize the ‘C’ in Customer to show the emphasis in your policies and procedures Building relationships with FORD- family, occupation, recreation, dreams Disney- know your role and be ‘on’ when you’re on, leave your problems at the door The Customer Service Revolution: Overthrow Conventional Business, Inspire Employees, and Change the World- John Djulius The Relationship Economy: Building Stronger Customer Connections in the Digital Age - John Dijulius
Connect with the Podcast: Aftermarket Radio Network Subscribe on YouTube Visit us on the Web Follow on Facebook Become an Insider Buy me a coffee Important Books Check out today's partner: Learn more about NAPA AutoCare and the benefits of being part of the NAPA family by visiting www.NAPAAutoCare.com
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