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Why Do a Repair Order Audit? [THA 286]


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Are you chasing the KPI’s in your business without pausing and diving into what creates those Key Performance Metrics? Are you reviewing repair orders? The amount of data filtered properly from an RO Audit will astound you. Use the data from a Repair Order Audit to refine your business. Watch the Episode on YouTube Matt Wagg, Accelerated Diagnostics and Automotive, Bennington, NE, Matt's previous episodes HERE Pat Schnaidt, Performance Tune Auto Repair, Fort Collins CO Bill Haas, Owner of Haas Performance Consulting, Bill’s previous episodes HERE. Key Talking Points

  • When you perform an audit of your invoices, you realize what created the KPIs we pay so much attention to. Puts another set of eyes on your invoices to read the story. “What happened? What did we provide? Are we doing what we should be doing? Are we saying what should be said? Are we meeting what the customer is looking for?” Ensures your advisors are aligned with your business expectations. Don’t assume things are happening because you talked about it once!
  • While many of us trust "gut feel" - and that is important to have - math always wins. Data-driven decisions provide insight. Can prove or disprove your gut?
  • You have a KPI for parts gross profit. When you audit your invoices, you find the jobs that provide the best parts gross profit. You have a KPI for hours per invoice. The audit identifies the jobs that produce the most hours. Now you understand the work you should be focused on.
  • Coaching opportunities- you can see things at a daily point and address them immediately. Technicians with inspection issues, profitability issues, service advisor, declined job tracking, selling maintenance and prescribing it, getting hours per RO up. Magg Wagg coaches daily with email, calls out the good things as well. 
  • Discoveries- process flaws, unsold jobs, how little you make on oil service jobs, what is the average mileage of vehicle, selling maintenance jobs, confidence to bring another service advisor on board, creates relationship builder with customers, track trends. Don’t be afraid of change, have open eyes, take the time to evaluate, and you will see a return on the time and investment. 
  • Looking at internal processes- Pat identified warranty jobs weren’t being processed correctly. Tracking internally cost of goods.


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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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