[Podcast] RR 471: Vin Waterhouse on Intensive Labor Rates & Financial Benchmarks

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Vincent B. Waterhouse (Vin) is the president and founder of The Waterhouse Group, (TWG), an automotive Accounting, Training and Coaching company. He has over thirty years of experience in the automotive aftermarket and has written several manuals on asset management. His specialty is working with auto repair shop owners, part store owners and outside salespeople.

He has written magazine articles and authored private label courses for NAPA, Parts Plus and others in the aftermarket. He has conducted hundreds of profit management seminars and workshops for auto repair shop owners, auto part store owners and parts distribution center management teams across the United States including Alaska, Hawaii, Canada, and Guam. He is a pioneer in his field and author of “The Labor Factory” and the “NAPA exclusive AutoCare Financial G.P.S.”

On another level, he authored “The Three Mile Survey” and sales courses for jobber owners, store managers, and factory representatives. His workshops have revolutionized the way professional technicians and shop owners interact with their parts suppliers. He is rated as an excellent instructor whose past personal experience helps attendees succeed at their businesses. Vin Waterhouse is a master motivator, able to relate to his audience, and a sought-after speaker at conventions and professional group meetings on topics such as sales, marketing, operations, and finance.

Prior to founding Automotive Aftermarket Consulting Group (AACG) in 1986, and The Waterhouse Group Inc. in 1997, he held positions as a Stock Room Mgr, Sales representative, Market Development Manager, General Manager, and Regional Manager, with profit and loss accountability, for NAPA, ITT Automotive Distributors Division, and former CARQUEST.

A veteran of the U.S. Navy, he holds a B.S. in Business Administration and Accounting from the Plymouth State University of New Hampshire. In 1973, he cut short his pursuit of a law degree to work full time in the automotive field.

Beginning with the year 2000 he has made an arrangement to work with NAPA on an exclusive basis as a consultant and business trainer across the USA. Look for Vin’s other episode’s HERE.

 

Key Talking Point

• Parts pricing transparency- the internet and parts storesParts per avg vehicle (ICE) 28-30.000, electric (EV) has 7-10,000
• Make money in labor not parts for future- profit in labor is double the profit in parts
• Average shop bills 334 hours/month- before 80% parts and labor, now 30% parts and labor 
• Business owners afraid of losing customers with higher labor rates will find a big financial/profit squeeze.
• They are going to be faced with less parts per vehicle as technology brings on more diagnostic work. A labor rate adjustment will be necessary in order to generate the right income to sustain your business.  
• “Labor Intensive” Labor Rates consider less parts sold per hour
• Plumbers and electricians figured this out
• Benchmarks have a shelf life
• Benchmarks can show you an area of your business that needs attention
• Website: Vinwaterhouse.com
• Password: vinwaterhousenapaautocare (Move curser all the way to the left before entering Password)Calculate what percent of the business is labor and parts, gross profit per billed hour between parts and labor
• Financial GPS- Napa toolAutocare GPS- benchmarks in 66 categories for shops and average of top 25% most profitable shops (based on net profit)

 

Resources:

• Thanks to Vin Waterhouse for his contribution to the aftermarket’s premier podcast.
• Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
• Link to website HERE.
• Leave me an honest review on iTunes. Your ratings and reviews really help and I read each one of them.

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As a member of the NAPA family, AutoCare Center owners can take advantage of the NAPA National Health Program from the NAPA Insurance Center. This “NAPA only” program gives you and your employees access to national “large group” rates on medical insurance with premiums discounted up to 30 percent. These rates are based on the collective purchasing potential of 22,500 NAPA locations including both NAPA AUTO PARTS stores and NAPA AutoCare Centers.

The NAPA Insurance Center can help you with a variety of other insurance benefits too. For more information about The NAPA National Health Benefits program as well as all of the insurance benefits available to your AutoCare Center and your employees, visit the NAPA Benefits Center, at www.napabenefitscenter.com or call the NAPA Benefits Center at 844-627-2123.

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