Quantcast
Jump to content


[Podcast] Aftermarket Acumen Part 4 – Technician Pay [RR 510]


Recommended Posts

Donny Seyfer the executive officer of NASTF (National Automotive Service Task Force) and Partner in Seyfer Automotive in Wheatridge, CO. Listen to Donny’s previous episodes HERE.

Jeremy O’Neal President and lead sales trainer for Advisorfix, began his career as a Service Adviser and moved into Service Management at the dealership level for VW, Audi, and Porsche. He consistently placed in the top 3% of Service Advisors across the nation.

With a passion for helping others, Jeremy started coaching Service Advisers in 2007. Jeremy also owns an independent auto repair shop Freedom Auto Repair in Hesperia, CA. Previous episodes HERE. Link to Advisorfix HERE.

Danny Sanchez is owner and founder, of Auto-shop Solutions and grew up spending countless hours working around his dad’s auto repair shop in California, eventually taking over and running the business himself. Auto-shop Solutions started in 1998 when Danny founded Auto Web Solutions.

The Internet was starting to take off, and Danny took great interest in the powerful marketing benefits it could provide. As a successful shop owner himself, Danny used Auto Web Solutions to consult with other repair shops on their business practices and web presence.

In 2005, when Google launched Ad Words and changed its search engine to favor local businesses, Danny saw a huge opportunity for the automotive industry to draw more clients from the Internet. With just a handful of clients and a few websites, Danny built the foundation of his company – quality, affordable, automotive websites and Internet marketing solutions, designed exclusively for the auto industry. Check Danny’s previous episodes HERE.

Sara Fraser is a millennial who has a love for life, travel, and connecting with other humans! She has over 15 years of retail management experience, the last 6 of them as an office manager for a used car sales and service center. To bring her customer service, marketing, and business knowledge to the automotive industry she has recently joined the team at Haas Performance Consulting.

Sara loves helping others grow and succeed and is excited to share her expertise on management and social media, her views on how and why the younger generations think and act, and how to work and manage a business within a multi-generational workforce. When she isn’t working Sara spends her time traveling, attending theatrical productions, music festivals, concerts, advocating for human and animal rights, celebrating life in general and connecting with other people from all over the world. Look for Sara’s previous episodes HERE.

Jim Silverman is the Director of National Accounts for ATI Automotive Training Institute. Listen to Jim's previous episodes HERE.

 

Key Talking Points:

  • Overall CommentsNot what they earn but what they keep
  • Build an invisible paycheck for each team member. Let them see the total cost to the company
  • Service advisors need to have a comp plan to reward their success
  • The company needs to have a strong profit in order to make this work
  • Fear is false evidence appearing real
  • Incentive pay ideasCompensation plans must conform to state and federal labor guidelines
  • Training
  • ASE
  • Comebacks
  • Complete inspections
  • Bonus rates can be based on the number of hours they can bill
  • To millennials, the invisible paycheck is an expectation. So important to create one
  • Link to Town Hall Academy- Paying Your Technicians $100K per Year
  • Sara FraserThe work needs to be there to increase pay
  • Are we selling all available hours?
  • Technicians and service advisors must be on the same page for similar rewards as they work together to sell the labor inventory
  • Danny SanchezActive marketing is necessary to bring in new clients
  • You lose 3% of your clients each year. They move. They Die.
  • Referrals should be your #1 tactic to grow new customers
  • Build the opportunity to thrive in so your team can be big earners
  • Selling 40 hours per week should not be your goal. It should be more
  • 40 hours per person cover your base costs
  • Less than 3% of the pool of technicians coming into the industry. A very small number
  • Emotional maturity is lower. 18 is the new 16
  • Learn how to split income from base income and opportunistic income
  • Donny SeyferHaving a 30-year career at one place is not going to be the norm
  • NASTF - The Road to Great Technicians
  • We raise our technicians with a wide but narrow scope
  • We don’t hire our future techs as interns. We must change that
  •  42 % of students that get through the program do not make it past two years in their initial jobs. We don’t do a good job of integrating them into our industryThey push a broom or work on the lube rack for too long
  • Young people in our industry want to be involved in something that matters
  • Donny says there isn’t a technician shortage. There are too many bays from marginal shops.
  • You need to run a better business. Become a business person. Stop being a tech
  • We need to look at 5th grade to discover our tactile learners
  • A great mentor would be the person who is the latest who’s been through the program. When you teach you learn  
  • Jeremy O’Neal$48.08 per hour to earn $100K
  • It gets increasingly hard to hire against larger companies. We are losing the top talent to the bigger companies who can provide a stronger benefit plan
  • Quote from Matt Fanslow: “We expect our technicians to be smart enough to fix today’s cars but be dumb enough to accept our pay plan.”
  • Willing to charge a fair price for the business
  • Your labor force is tough to duplicate and unique to your shop
  • Based on your profit targets you can calculate what your labor rate needs to be
  • It doesn’t matter what your competition charge
  • Actual production is key
  •  He is tracking Average Time of Repairs
  • Labor guides are just a guide 
  • Pay PlansTop producers will do full inspections and document them
  • Fix the car right the first time
  • Jim SilvermanYour culture is why people come to work for you and why they stay with you
  • You provide everything your people need to have a fruitful life at work and at homeIt says I want you here
  • A good mix for parts to labor is 50/50
  • ASCCA has a program in San Diego for an independent track in post-secondary at Cuyamaca College in El Cajon, CA. See this episode: https://remarkableresults.biz/remarkable-results-radio-podcast/e364/
  • Train on doing complete inspections. You’ve got to be consistent in what constitutes a quality complete inspection

 

Resources:

  • Thanks to Donny Seyfer, Jeremy O'Neal, Noah Frank, Danny Sanchez, and Sara Fraser for their contribution to the aftermarket’s premier podcast.
  • Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
  • Love what we do, buy a cup of coffee HERE.

Be socially involved and in touch with the show:

Facebook   Twitter   Linked In   Email

Listen for free on Apple Podcasts, Google Podcasts, Spreaker, iHeart Radio, Spotify, Podchaser and many more. Mobile Listening APP's HERE

Join the Ecosystem - Subscribe to the INSIDER NEWSLETTER HERE.

Buy Carm a Cup of Coffee 

This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion global automotive aftermarket industry and has everything you need to stay ahead of the curve. With 2,500 exhibiting companies, you’ll see the latest products, parts, and technologies for your business. As a result, the event also offers advanced training for shop owners, technicians, warehouse distributors (WDs) and auto parts retailers, as well as networking opportunities to grow your business. AAPEX 2020 will take place Tuesday, Nov. 3 through Thursday, Nov. 5, at the Sands Expo in Las Vegas. Therefore, more than 48,000 targeted buyers are expected to attend, and approximately 162,000 automotive aftermarket professionals. They will be from 135 countries which are projected to be in Las Vegas during AAPEX 2020. For information, visit aapexshow.com

Click to go to the Podcast on Remarkable Results Radio

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Similar Topics

    • By Joe Marconi
      For many shops, business during the winter can slow up due to a number of reasons.  What I have found that works is to schedule a flood of service reminders and past recommendations to go out during the months of Jan and Feb.  Maintaining touch with your existing customers is a great way to keep your shop top of mind, and it may just bring in a little extra work too.
      Any winter marketing tips to share? 
       
    • By Joe Marconi
      One of the lessons from COVID is for repair shops to have a strong cash reserve.  Shop owners need to budget their money each week, and allocate money to different bank accounts, such as payroll, operating expenses, taxes, etc.
      Another account I would recommend is to have a Cash Reserve account, where money is allocating each week, and not touched unless their is a emergency, such as an economic downturn and or if an economic emergency occurs in your area or with your company. 
      While no one could have predicted the affects from COVID 19, I think we can all agree that being cash strong is a viable strategy.
      You should have anywhere from 3 to 6 months of covered expenses in a separate bank account.  I know, I know....it's a lot of money. Start slow and build each week. Anything set aside is better than nothing. 
      Of course, to have a reserve means that you need to have the profit to put away. Right?  Well, another reason to know your numbers, revisit your pricing and make sure your labor rate is enough to support your payroll, operating expenses and have enough left over to set aside money for the unexpected.
      Trust me, you'll be glad you did. 
       
    • By carmcapriotto
      Kevin Syed, Owner of Integrity 1st Automotive, 8 Locations, Dallas Fort Worth TX, grew up with an entrepreneurial father and was always encouraged to lead. Having successfully earned a Bachelor’s degree in Business Management from University at Buffalo, Kevin went on to become a franchisee with Getty Petroleum / British Petroleum service centers for the better part of a decade in New York City. After gaining the knowledge, experience, and funding required to produce his own operation, Kevin went on to operate his own independent shops in New York. Kevin sought to find a new place to call home with his wife and twin girls; he longed for the community values and environment of the South and so his family made the decision to move to Texas. Integrity 1st Automotive was then born in Texas and Kevin has scaled his business to multiple locations across the Dallas Fort-Worth Metroplex. When he’s not working, Kevin enjoys local car rallies (e.g. Lamborghini Club Dallas), traveling, and hunting. Listen to Kevin's other Episodes HERE
      Carl Hutchinson, Owner, Complete Automotive, 2 locations, Springfield, MO has been in the car industry since 1982, but has worked on vehicles long before that time. He has a passion for engineering, for understanding how vehicles operate, and how to repair a customer’s concern. Earlier in his career, Carl started working at a GM Dealership, then went to work at independent repair facilities as a technician and eventually became a service advisor. Carl’s experience in the automotive industry led him to his current position as co-owner with Maureen Hutchinson of Complete Automotive in Springfield MO., where he works every day to provide high-quality, valuable service to all customers. Carl is an Alumni with Ozarks Technical Community College, Springfield MO Campus. He currently sits on the Automotive Advisory Board with Ozark Technical Community College, a member of South East Rotary, and a member of the Springfield Midwest Auto Care Alliance chapter. Carl has his Master ASE Certification, L1 and Service Advisor certification and is an AMI Graduate. Listen to Carl’s previous episodes HERE Kenny Wedow, Owner, Fine Tuned Auto, 2 Locations, Broomfield and Erie CO  knows cars. A natural talent even at the young age of 17, he pursued it auto repair in shop classes in school then slipped right into the work field. Working for dealerships such as Saturn, and Nissan, as well as other independent shops, has afforded Wedow with extensive and well-rounded education. More importantly, before Wedow branched off to open the doors of Fine Tuned Auto in 2013, he already learned the importance of patient diligence. Many dealerships and independent auto shops can default to make generalizations about the problems with your car, sometimes not always seeing the things that really might put you in danger on the road. The patience Wedow has to pull everything apart if need be to find the root answers makes him unique in his field. It is a quality that got him promoted to foreman at a Nissan dealership when he was only twenty-three. It wasn’t that the six technicians under him weren’t experienced, in fact, some of them had worked considerably longer than Wedow. However, his attention to detail and follow-through put him above and beyond. Listen to Kenny's other episodes HERE
      Key Talking Points
      Building Trust- Focus on relationships, not transactions. Reviews, book of business, referrals etc. People always like to try something new, wow them. Make customers feel better- don’t fake it. Location Location Location- be selective. Walk-ins at an easy location will increase with oil changes etc. First chance to gain customers for life.  First impression marketing- Kenny uses poker chips with his information to attract new customers. Signage, uniforms, customer waiting area etc elevate the professionalism. The image plays a huge role in sales, female-friendly bathroom/lobby, cleanliness, smell in the waiting lobby, convenience etc. Be mindful of female customers, educate and simplify.  Direct mail, google ads, geofencing- who is your clientele? What advertisement is right for your area? Once you have multiple growing businesses- what is your year after year retention?  Why do people choose certain careers/trades? What is the reason? Look at different industries and see what they provide.  Focus on the relationship, not the transaction   Be involved in the community Connect with the show:
      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 partners:

      This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com

      Are you seeing auto shops in your area get hundreds of 5-star Google reviews and are you feeling left behind because your shop only has a few?
      Hey look, Broadly is your answer to getting more online reviews. With more reviews, your business will rank higher in search results — and that means more customers coming into your shop every day. Broadly helps you automatically request reviews so that your customers can promote your business with just one click. When you immediately ask for a review after service, when the experience is still fresh in their mind, you’re more likely to get a 5-star positive review. Plus, asking for feedback makes your customer feel valued and more connected to your business. Isn’t that what you want a connected customer? See how Broadly can help grow your auto shop.  Visit www.getbroadly.com/chat to learn more.
      Click to go to the Podcast on Remarkable Results Radio
    • By champtires
      Champtires – one of the leading e-commerce used tire sellers – is not facing supply chain issues. In fact, over the past several months, Champtires’ inventory has grown exponentially.
      “Luckily, we are still able to source really great tires right now,” said Brad Rea, president and founder of Champtires. “Ninety percent of our inventory has 7/32 tread or above, and we’re adding hundreds of Michelins, Pirellis, Continentals – tires in every brand really – every day.”
      Reselling used tires with significant tread life left saves them from ending up in a landfill. And it allows consumers and auto businesses to save drastically compared to new tire prices.
      “Relying on premium used tires is a responsible way to use recycled products while saving yourself a lot of money,” Rea said.
      High quality used tires are perfect if you need to match one or two to a remaining set or when replacing all four tires. Every tire that enters a Champtires facility goes through a thorough three-step inspection process. Free FedEx shipping is included on all website orders to the continental U.S.
      Learn more and shop now at Champtires.com.
    • By carmcapriotto
      John Eppstein, owner of John's Automotive Care, San Diego CA has been in business since 1998. The business is a complete general automotive repair and a smog test station. John’s Automotive Care has been relocated twice; the last move was in 2003. John has been in the automotive industry since 1985. He is the Immediate Past President of the B & G Clubs of East County where he's worked since 1996. He is also a member of a local NAPA BOG group. John's been a member of ASCCA's Chapter 24 for over 12 years during which time he has served as secretary, vice president and chair of the Meetings Committee. John's Automotive Care is also currently an ASC Educational Foundation Cars for Careers donation site for San Diego, CA. Listen to John's other episodes HERE
      Dave Kusa is the owner of AutoTrend Diagnostics in Campbell, CA. Dave is very active in Chapter 42 and currently serves as a board member and chapter representative. He has also helped several new shops become ASCCA members. Dave advocates with local legislators on behalf of small businesses and their employees. He contributes to TeamTalk and is a huge resource for members. He was ASCCA’s past president. Look for Dave’s other episodes HERE.
      Key Talking Points
      Purpose - Raise funds and money to support and encourage technical education and training for the automotive industry through scholarships, endowments, career development and other industry inspired programs. Vehicle donations from customers that go to auction- “cars for careers” Example- transmission/engine repairs. You are able to donate a vehicle  no matter where you are, it’s not limited to only California Low overhead- about 75% of the money coming in from the vehicle donation program gets put into funds. Volunteer-based foundation. You don’t need to be a shop owner to be included in the board of trustees (tax advisor, grant writer etc) Last year they awarded 28 scholarships to 16 deserving students for a total of $23,500. To date, this is the largest amount awarded in the history of the Foundation. Schools involved - community colleges across California such as Cuyamaca College, Skyline College, Rio Hondo College, San Diego Miramar College, Citrus College, Chabot College, UTI Vetting process – Scholarships are awarded to students who fill out applications at https://automotivescholarships.com/ all applicants that meet basic requirements are then scored by a panel of automotive professionals and winners are picked from the highest scoring applicants. Opportunities to create a scholarship- John has started a scholarship with his business. He will match whatever his employees put into it. There are also one time scholarships for smaller amounts.  
      Connect with the show:
      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:
      Since 1989 TRACS has been the industry’s leading shop management system. And in the last 30 years it’s gotten better and better. Today TRACS Enterprise offers even more of the features AutoCare Center owners want—things like a powerful interactive scheduling calendar, faster and streamlined work flow, plus streamlined parts ordering and purchasing options. And there’s more—Punch-out to Mitchell ProDemand, mobile VIN capture, and multi-shop capabilities. That means you can count on TRACS Enterprise to help drive your success today and well into the future. Learn more about TRACS Enterprise and the hundreds of other benefits the NAPA family has to offer. Talk with your servicing NAPA store or visit www.NAPAAutoCare.com.

      Click to go to the Podcast on Remarkable Results Radio


  • Our Sponsors



×
×
  • Create New...