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By Joe Marconi in Joe's Blog0 commentsAuto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.
As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.
But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.
Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit.
Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good.
Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership.
The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production.
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By carmcapriotto
"AutoTechIQ helps car and truck owners identify problems their vehicles are having. We provide proven auto repair work that has solved similar issues thousands of vehicle owners have faced. We also recommend auto repair shops in your area based on trust, customer education, and quality of work. These shops inspect your car using a courtesy Digital Vehicle Health Inspection and create a state of health report with symptom information and necessary fixes." Frank Scandura and Krista Erickson discuss how AutoTechIQ aims to bridge the gap between shops and customers by creating better relationships through technology and transparency. The goal is to empower customers with knowledge and build trust. Frank Scandura, Frank’s European Service, Las Vegas, NV. VP of Certified Shop Relations and Member of the Board of Directors, AutoTechIQ. Frank’s previous episodes HERE. Kirsta Erickson, VP of Client Services and Marketing, AutoTechIQ Show Notes
AutoTechIQ: https://www.autotechiq.com/ Transparency is the New Trust (00:01:02) Discussion on the importance of transparency in building trust with customers and how it relates to online reviews and consumer behavior. Using Data to Inform Customers (00:03:52) Explanation of how AutoTechIQ utilizes data from repair shops to provide customers with relevant information and help them make informed decisions about their automotive repairs. The Power and Carefulness of AI (00:08:55) Exploration of AI as a smart algorithm and a powerful search engine that requires careful questioning to avoid getting incorrect answers. Transparency and Expertise in Automotive Services (00:10:33) Explanation of how AutoTechIQ aims to connect customers with expert shops that provide transparency, digital inspections, and communicate in a language that customers understand. The disruptors (00:15:16) Discussion on the impact of disruptors in various industries and the need for new solutions. Vetting process for certified shops (00:16:30) Explaining the requirements and process for certifying shops, including reputation, online reviews, and digital inspections. Driving consumers to shops (00:17:54) The importance of bringing consumers to shops through technology and creating a bridge between customers and shops. The digital vehicle inspection revolution (00:23:06) Discussion on the importance of digital vehicle inspections and the need to educate shops and customers about its benefits. The percentage of shops doing digital vehicle inspections (00:23:33) Exploration of the industry-wide adoption of digital vehicle inspections and the varying definitions of what constitutes a digital inspection. Disrupting business directories with transparency (00:25:22) The potential impact of AutoTechIQ on business directories, focusing on transparency and high-quality service. Thanks to our Partner, NAPA Auto Care Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Recorded Live at AAPEX 2023, Carm is joined in studio with Aftermarket Radio Network hosts Brian Walker and Matt Fanslow for milestone episode 900. Carm discusses the process of creating the podcast, the journey to expand to the Aftermarket Radio Network and how his daughter Tracy became a crucial part of the team, starting as an editor and eventually working full-time with him. Carm also reflects on the challenges he faced when starting the podcast, the importance of consistency, quality, and good editing, and the shifts he had to make along the way. Aftermarket Radio Network Hunt Demarest, CPA, Paar Mellis and Associates, Business by the Numbers Podcast Matt Fanslow, Riverside Automotive, Red Wing, MN, Diagnosing the Aftermarket A to Z Podcast Kim and Brian Walker, Shop Marketing Pros, Auto Repair Marketing Podcast Chris Cotton, AutoFix Auto Shop Coaching, Chris Cotton Weekly Blitz Podcast Show Notes
RR 172: Giuliano Zuccato, Clay Sculptor – 1964 Mustang RR 243: Giuliano Zuccato – Chrysler Crossfire & Horse of Destiny Foundation The preparation process (00:01:51) The process of preparing for a podcast episode, including research, vetting ideas, and interviewing guests. Working with Tracy (00:06:38) Carmen shares how his daughter Tracy came to work with him on the podcast and the proposal he made to her to join the team. The success of the Aftermarket Radio Network (00:07:59) The preparation process for podcast episodes (00:08:29) Carmen discusses the things he had to learn and the podcast coach he hired before starting the podcast. The first interview (00:09:27) Carm talks about how he called Dave, a shop owner, to be his first interviewee for the podcast and how they connected. The evolution of the podcast (00:12:52) Carm reflects on the growth of the podcast, starting with the first episode and the decision to create additional shows like the Town Hall Academy and For the Record. The struggle of starting a business (00:18:22) Carm discusses the challenges he faced when starting his business, including finding sponsors and promoting his podcast. Becoming a better interviewer (00:22:09) Carm explains how he had to improve his interviewing skills, drawing inspiration from NPR and studying interviewers like Charlie Rose. Giuliano Zuccato (00:26:26) Carm tells the story of Giuliano, a guest on the podcast, who came from Italy and ended up working as a sculptor for auto manufacturers. Carm's visit to Giuliano's house and recording the episode on the crossfire (00:28:53) Carm visits Giuliano at his house in Detroit and records an emotional episode about Giuliano's work on the crossfire, despite his illness. Tractor envy and equipment (00:33:47) The future of the industry (00:35:27) Carm mentions that he is preparing an episode on the future of the industry and talks about the challenges and changes that may occur in the next five years. New shows on Aftermarket Radio Network (00:40:54) Carmen and Tracy are brainstorming ideas for new shows on Aftermarket Radio Network, aiming to grow the network and engage with the audience in new ways. Cherishing milestones (00:43:15) Carm discusses the importance of celebrating milestones, such as the 900th episode, as a way to improve personal and professional success in the automotive aftermarket. Thanks to our Partners, AAPEX and NAPA TRACS Set your sights on Las Vegas in 2024. Mark your calendar now … November 5th-7th, 2024. AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at http://AAPEXSHOW.COM/WEBINAR NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private facebook group go here:https://www.facebook.com/groups/autorepairmarketingmastermind
In this podcast episode, Brian Walker and Coach Chris Cotton discuss the importance of marketing in the auto repair business, particularly during slow times. They emphasize the need to address underlying issues in car count, average estimate, and average repair order before implementing marketing strategies. They stress the significance of consistent marketing throughout the year and suggest planning marketing activities on a yearly basis. They also discuss adjusting marketing strategies during peak and valley periods, investing in business growth, and the importance of timely communication with marketing teams. They highlight the benefits of time blocking and prioritizing marketing efforts, as well as the importance of self-care for business success.
Planning Your Marketing Calendar [00:08:46] Discussion on when to start planning your marketing for the following year and adjusting your marketing during peaks and valleys.
Knowing When You're Not Ready for Marketing [00:04:07] The importance of fixing business practices before focusing on marketing and how marketing isn't always the solution to business problems.
Marketing for Slow Times [00:02:30] Introduction to the topic of marketing for slower months and the importance of maximizing car count and repair order before implementing marketing strategies.
The importance of year-round marketing [00:10:51] Discussion on the significance of having a strong marketing strategy throughout the year, rather than relying on holiday marketing or slow times.
Lag time in marketing campaigns [00:13:20] Exploration of the lag time required for marketing efforts to yield results, typically a 60 to 90 day cycle.
Making time for communication with marketers [00:16:22] Emphasis on the need for shop owners to prioritize regular communication with their marketing team for optimal results.
Planning marketing for state fair [00:21:38] Discussion on how the state fair impacts business and the importance of planning marketing strategies around it.
Importance of time blocking and making a marketing plan [00:23:34] Emphasizing the need for shop owners to create a marketing calendar and plan ahead for events like state fair, Halloween, Thanksgiving, etc.
Incorporating workouts into work week [00:30:49] Highlighting the significance of including workouts as part of the workweek and how it can enhance productivity and creativity.
The importance of planning marketing in advance [00:33:31] The speaker emphasizes the need to plan marketing strategies well in advance to avoid being late.
Foundational marketing and business practices [00:35:27] The discussion focuses on the significance of having strong foundational marketing strategies and efficient business practices.
Continued commitment to learning and improvement [00:37:07] The speaker expresses gratitude towards the listeners' commitment to learning and improvement, and encourages them to continue seeking knowledge and growth in the auto repair industry.
Connect with Chris:
[email protected]
Phone: 940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/
AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #autoops #onlinebooking #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Gary Gunn discusses how mentoring differs from coaching and how it can benefit shop owners in defining their own success and implementing necessary changes in their businesses. Gary shares his experience as a mentor and offers tools and strategies for shop owners to implement new ideas and overcome challenges. He emphasizes the importance of working on the business and oneself, creating a scoreboard for business performance, and understanding the true cost of doing business. Gary also explains the role of a true mentor and the value of assessments in tailoring mentoring approaches. Carm and Gary believe that mentoring can enhance the value of coaching and help shop owners gain confidence and make informed decisions.
Gary Gunn, Auto Shop Showcase
Show Notes:
The importance of mentoring for shop owners (00:01:12) Gary Gunn discusses the concept of mentoring for shop owners and how it can benefit them in achieving better lives. Defining mentoring and its role in implementing change (00:05:56) Gary explains his definition of mentoring and how it involves helping shop owners implement changes that will lead to true freedom and success in their businesses. The role of a mentor in addressing specific struggles (00:07:03) Gary talks about how a mentor can assist with specific challenges such as hiring, budgeting, and determining financial goals, and how their role is to help mentees become self-sufficient in these areas. Implementing Ideas from Training (00:09:35) Discussion on the challenges shop owners face when trying to implement new ideas and how mentoring can help them overcome resistance and successfully implement changes. Using Tools for Implementation (00:11:32) Explanation of the five tools that shop owners can utilize to implement changes in their business, including staff training sessions and staff behavior sessions. Understanding the True Cost of Doing Business (00:15:02) Explanation of the concept of the true cost of doing business and how it can help shop owners analyze their financials and make informed decisions. The missing piece for shop owners (00:19:05) How mentoring can complement coaching and provide shop owners with additional value and guidance. Group mentoring and individual sessions (00:22:01) The different formats of mentoring, including group mentoring sessions and one-on-one sessions, based on the specific needs of the participants. The concept of mentoring in the automotive industry (00:26:50) Discussion on the importance of accepting the need for mentoring and the discrepancy between appearances and reality in the industry. The potential benefits of seeking a mentor (00:27:10) Highlighting the potential positive impact of finding a mentor to help individuals and businesses grow and improve. The role of a mentor as a supplement to coaching (00:28:45) Explaining how a mentor can work alongside existing coaching programs to provide additional support and guidance to shop owners. Thanks to our Partner, Dorman Products.
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
Connect with the Podcast:
-Join our Insider List: https://remarkableresults.biz/insider
-All books mentioned on our podcasts: https://remarkableresults.biz/books
-Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom
-Buy Me a Coffee: https://www.buymeacoffee.com/carm
-The Aftermarket Radio Network: https://aftermarketradionetwork.com
-Special episode collections: https://remarkableresults.biz/collections
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Pete McNeil discusses the changing needs of employees in the post-COVID workplace, particularly focusing on Gen Z employees. He talks about the importance of providing a positive customer experience and adapting to the preferences and attention span of Gen Z employees. He also discusses the challenges of hiring and retaining Gen Z employees, including the need for benefits, learning opportunities, and potential pay advantages.
Pete McNeil, McNeil’s Auto Care, Sandy and Riverton, UT. Pete’s previous episodes HERE
Show Notes:
The Legacy of Old Car Repair Tools (00:01:39) Discussion about displaying old car repair tools in the waiting room to showcase the evolution of automotive technology. The Importance of Customer Experience (00:07:21) Highlighting the exceptional service provided by a server at a restaurant and the need to recruit service advisors from industries with a focus on customer experience. Understanding Gen Z Employees (00:08:47) Exploring the characteristics and preferences of Gen Z employees, including their shorter attention span and the need for clear direction and guidance. Gen Z Challenges in the Workplace (00:09:18) Discussion on the challenges faced by Gen Z employees entering the workplace without prior working experience. Adapting to Gen Z Preferences (00:12:19) Exploring the changing expectations of Gen Z employees during job interviews, including flexible work schedules and work-life balance. Creating Hybrid Pay Programs (00:16:38) The need for customized pay programs to meet the diverse needs and preferences of employees, with examples of different pay structures. Valuing Diagnostic Technicians (00:19:31) The need to compensate diagnostic technicians accordingly. Specialization and Rewarding Expertise (00:21:31) Highlighting the importance of specialized technicians in areas like transmissions, electrical, and HVAC, and the need to reward their knowledge and time investment. The importance of involving families in social events (00:26:34) Discussion on the significance of including employees' families in non-work related special events. Creating a positive work culture through various events (00:27:29) Exploration of different events, such as boating trips and casino nights, that the company organizes to foster camaraderie and teamwork among employees. The communication preferences of Gen Z employees (00:29:40) Insights into the communication preferences of Gen Z employees, including their preference for face-to-face interactions and the low reliance on social media for communication. The changing needs of employees (00:35:23) Discussion about the need for a new way of connecting and learning with the new age employees. Adding on to the Riverton store (00:35:47) Updates on the expansion of McNeil's Auto Care in Riverton, Utah, including adding six bays and a warehouse. Appreciation for Carm Capriotto (00:36:17) Expressing gratitude for Carm Capriotto's contributions to the automotive industry and the podcast. Thanks to our Partner, Dorman Products.
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
Connect with the Podcast:
-Join our Insider List: https://remarkableresults.biz/insider
-All books mentioned on our podcasts: https://remarkableresults.biz/books
-Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom
-Buy Me a Coffee: https://www.buymeacoffee.com/carm
-The Aftermarket Radio Network: https://aftermarketradionetwork.com
-Special episode collections: https://remarkableresults.biz/collections
Click to go to the Podcast on Remarkable Results Radio
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