ASOG Podcast Ep 4 - Why Is THAT Your Goal? w/ Robert Morton
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By Joe Marconi in Joe's Blog13 commentsMost 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 Ruben Van Zenden
Today, we simply cannot ignore social media, everyone is using it whether you are a fan or not. Personally, I think it has its negative and positive sides.
I have been looking at 100+ car repair shops and noticed that only a hand full are using social media marketing, for example, Facebook advertising.
Why are so few car repair shops making use of this, in my opinion, great opportunity to increase car count?
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By carmcapriotto
Will diagnostic work overtake remove and replace work? How will you position and present your shop as a technologically advanced repair center? What training will our employees need? How will artificial intelligence impact our industry? Will we be prepared? Join Jake Sorensen, Chris Chesney and Derek Kaufman as they discuss the shop of the future. Jake Sorensen, 2019 NAPA ASE Technician of the Year and 2019 Ratchet + Wrench All-Star technician of the year. Shop manager and diagnostic technician at McNeil’s Auto Care in Sandy, UT Listen to Jake’s previous episodes HERE
Chris Chesney, Training and Organizational Development, Repairify. Chris’ previous episodes HERE
Derek Kaufman, Managing Partner, Schwartz Advisors, President of C3 Network. Listen to Derek’s previous episodes HERE
Show Notes:
Looking up and reading service procedures is already a must, but even more so as technology advances. Example: ADAS systems now require calibrations when performing repairs like an alignment or bumper cover removal. If you change a headlight assembly that requires bumper R&R, you may need to perform a radar calibration. The only way to know for sure is to read service information. Reading technical information/technical reading skills- much different than reading newspaper or Facebook posts, a book etc. Evelyn Wood speed reading course- reading with purpose An explosion of information- computing power for all industries 2022 captures over a trillion data points that will be aggregated to provide insights AI- mining data for trends Diffusion of innovation curve- 17+ years for EV’s We have expected Technicians to be masters of everything. Many better diagnostic technicians are inefficient at R&R and do not enjoy it. Shift mindset to a technology industry Even today, electric vehicles account for 18% of new vehicles sold, and those won't be in our bays tomorrow. By 2030 the population of vehicles in operations, over 300 million, and only 8% will be electrified. Get ready, or some other service industry will beat you to the punch How are you presenting your shop to the public?
Thanks to our Partners Shop-Ware and Delphi Technologies Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com
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Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
On Record with Greg Buckley. Greg discusses extended car warranties. You must educate your customer!
Greg Buckley, owner of Buckley’s Auto Care in Wilmington, and Millsboro DE. Greg’s previous episodes HERE.
Show Notes:
Extended warranty- used car market has been hot over the last few years. People want a ‘protection’ What types of companies underwrite policies? You must educate the customer on what they already purchased for their vehicle- most contracts are limited Ask for a copy of the contract, review it, look for ‘what’s not covered,’ and explain to customer. Additional testing time? Labor? Rust? “Do your own warranty” before you fall into the marketing funnel of extended warranties Are these customers one and done? Only repairing what is covered and not doing proper maintenance. Better margins with OE for warranty claims You must have oil change records- regular service receipts
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:
Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
On Record with Lauren Fix as she discusses the used car market and the importance of car maintenance.
Lauren Fix, Car Coach Reports, Total Car Score Podcast, is an automotive expert and analyst based in Buffalo, NY. She has written three books on automobiles. She has appeared on CNN, Fox News, Newsmax TV, CNBC, and USA Radio’s Daybreak USA show. Lauren's previous episodes HERE
Show Notes:
Car Coach Reports Prior to covid selling cars: 17.5 million vs 13.7 million now. Average car profit to manufacturer: 10K...4 million sales lost People are buying out their car lease now Dealerships have 30% retention for car repair Repossessions are increasing- people bought cars during COVID, inflation and recession “Doing maintenance now will save you money down the road” Which cars can last 300K miles? Iseecars.com “Never invest more in a car than it’s worth” USAmotorjobs
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:
Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
Click to go to the Podcast on Remarkable Results Radio
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