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Have you checked out Joe's Latest Blog?
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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 Joe Marconi
There are many benefits to growing a company so that it runs smoothly and efficiently without the shop owner. Building systems and procedures to get the entire team on the same page is essential to any successful business. In addition, an auto repair shop will grow more successful, and worth more if the shop owner, is not needed in the day-to day operations.
However, the question is: Should you become an absentee owner? This is not an easy question to answer, since it really depends on the size of your shop, your role in the business and how you feel about your business. For example, if you run a 4-bay shop, with four employees, that is vastly different from a company that has three locations with 25 employees. And also, you may really enjoy going to work and being involved.
The bottom line is this: Build your company so that it can run without you, but know when to step back in when needed. Great leaders know when to get out of the way, and when to step back in and make course corrections. Ultimately, your business is your business, and the responsibility for its success rests largely on your shoulders.
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By carmcapriotto
This episode is sponsored by AutoLeap. AutoLeap is a cloud-based all-in-one automotive invoice software that helps you supercharge your mechanic shop. Their customers have experienced:
30% increase in revenue by improving transparency and trust 50% reduction in time spent researching and ordering parts 10% increase in profit margins through robust reporting
Click here to learn more about AutoLeap and schedule a demo:
AutoLeap Link: http://bit.ly/3GRgO88
During Today's episode #99 I’m going to be talking about: Tracking & Measuring, Different Levels of Both, What to Track
Can’t Measure What You Don’t Track!
Top to bottom
SMS/POS System for a real time look, Make sure it matches your Income Statement as closely as possible.
The actual Income Statement/P or L
Scorecard for Success
Productivity for Technicians
Your Bank Account!
To listen to more episodes make sure and go over to itunes and or Spotify.
Don't forget to rate and review us!
Connect with Chris:
[email protected]
940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/AutoFixAutoShopCoaching
Youtube: https://bit.ly/3ClX0ae
Click to go to the Podcast on Remarkable Results Radio
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By Joe Marconi
Marconi: You Can (and Will) Survive an Economic Downturn
Joe Marconi
December 12, 2022 Speaking with shop owners around the country, it appears that the recent surge in business may be showing signs of vulnerability. For most automotive repair shops, the past few years have been a comfortable ride with sales and profits exceeding expectations. While no one can predict what will happen in the future, should we be concerned at this point?
The COVID pandemic may have been a challenge for businesses in general. However, it proved to be a minor blip on the economic radar screen for most repair shops. Yes, there were some areas around the country where business slowed to a crawl and some repair shops had to close their doors permanently. But for the most part, the conditions caused by the pandemic created the perfect opportunity for most auto repair shops. Will this perfect opportunity lead to the perfect storm? Let’s take a closer look.
Due to the pandemic, many repair shops received some monetary relief in the form of the Economic Injury Disaster Loan, the Payroll Protection Program, and more recently, the Employee Retention Tax Credit. The concern is what these programs are having on the economy. Another issue is this: Did these programs give us a false sense of accomplishment, boosting our cash reserve when most shops experienced an increase in business?
If we are honest with each other, then we need to consider two things. How many of us were prepared for such an extraordinary event as COVID? And how much of the recent boon in our businesses resulted from anything we did? Most shops are reaping the rewards of ideal conditions caused by factors that were mainly out of our control
Today, we face high inflation, rising interest rates, parts shortages, a technician shortage, rising wages and a possible recession. Is this all doom and gloom? No, of course not. As a former shop owner who spent 41 years working in the trenches, I have lived through many economic downturns and survived. From each economic downturn, the hardships endured led to valuable business and life lessons for those willing to view the tough times not as stumbling blocks but as stepping stones to a better future.
The strategy now for shop owners is to build their companies to prepare and withstand the unknowns. You cannot assume things will stay the same. They never do. Complacency can be just as damaging as fear and negativity. Revisit your key performance indicators to ensure you continue earning a profit. Build a healthy cash reserve. If needed, adjust your pricing, margins and labor rates. Get your personal finances in order, too. Continue your marketing efforts, especially if you feel you are heading into a slowdown. Don’t make the mistake that so many companies make and pull your advertising budget to cut expenses. Bump up your training programs and invest in new technology. Perhaps the most important component in preparing for the future is assembling a great team of employees and creating a workplace environment that tells your employees, we care, and we want you to stay
Our economy goes through wild swings, combined with good and bad times. The truth is that no economic situation is sustainable forever. The companies that prepare and grow their companies in the best of times will make it through the tough times. However, surviving is not the goal; thriving is. Become diligent with your approach to your company. Work hard today to grow your business in every aspect. Preparation, combined with hard work, will always pay off in any economy.
https://www.ratchetandwrench.com/articles/13005-marconi-you-can-and-will-survive-an-economic-downturn?utm_campaign=10MMCD221212014&utm_medium=email&utm_source=newsletter&oly_enc_id=2793F8381667E8G
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