[Podcast] RR 494: Women In Auto Care 2019 Honorees
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Have you checked out Joe's Latest Blog?
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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 Joe Marconi
Many auto repair shops are still busy, and many are booked out from a few days to weeks. After the initial shock of Covid, the recovery for our independent auto repair industry has been quite good, with many positive indicators for the future.
However, how many of the auto repair shops that did suffer a great loss in business during the lockdown phase of Covid would have survived if not for the SBA loans, the Pay Protection Program and the Employee Retention Credit?
Building a cash reserve is crucial to prepare yourself for the next economic downturn. How much should you set aside? That depends on your business model, how much debt you have and other financial conditions. Speak to your accountant, financial advisor and business coach, if you have one.
Rule of thumb, you should have at least three months of operating expenses set aside in a dedicated bank account. Some accountants and financial advisors may suggest up to six months.
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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!
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By carmcapriotto
Bill Thompson, President of IMR.INC brings to the podcast a recent release of the United States household perception of the trades, focusing on the automotive career path. Find out who recommends our industry to young people as a career path, the perception of the automotive industry, and more. Bill Thompson, President of IMR Inc. Listen to Bill’s previous episodes HERE Key Talking Points
Research once every quarter since 2020, talk to 25,000 households about their perception of the trades in the United States on the auto industry Roughly 46% of parents are talking about college as an option, 33% of the children were seriously considering that as an option. About 30% of those same children thought about entering the workforce immediately. Disconnect with parents and children. More kids prefer to entering the workforce immediately than go to community college or trade school How are the trades perceived? 18% are talking about career options with their child. 65% of the households would recommend the trades as a career option. Parent advocates for the trades- Rural America has the highest likelihood to recommend at 62% recommendation rate. Urban is next to 52.2, and then suburban 42%. The people that are least likely to recommend the trades are people with a four year college degree Are we even willing to recommend ourselves? The education path to becoming an automotive technician is unclear, Career opportunities for women are abundant. But women themselves do not believe that there are opportunities for themselves The general perception- working as an automotive technician is a job, not a viable career. The good news is only 17% of people agree that it's a job and not a career, 44% disagree. automotiveresearch.com
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
Click to go to the Podcast on Remarkable Results Radio
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