Profit Sharing: Net Income or Gross Profit? - Business By The Numbers
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By Joe Marconi in Joe's Blog5 commentsI 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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By carmcapriotto
Thanks to our Partner, NAPA TRACS and AutoFix Auto Shop Coaching Industry shop owners discuss the challenges and strategies of opening and managing a second location. They explore the motivations behind opening additional shops, touching on wealth building, seeking new challenges, and planning for retirement. Carl Hutchinson emphasizes the importance of providing a growth path and career opportunities to attract and train the next generation of industry professionals. The conversation highlights the complexities of scaling a business and the need for strong leadership, financial planning, and a commitment to developing talent within the industry. Carl Hutchinson, Complete Automotive, 2 locations, Springfield, MO. Listen to Carl’s previous episodes HERE Kim Auernheimer, CS Automotive, 2 locations, TN. Listen to Kim’s Episodes HERE. Jim Fleischman, Automotive Alley, 2 locations, Arcade and Marilla, NY. Listen to Jim’s previous episodes HERE.
Behind the Scenes: New Shop Retrofit/Remodel with Carl Hutchinson [CC 097]: https://remarkableresults.biz/remarkable-results-radio-podcast/cc097/ Store two considerations (00:01:01) Discussion on the importance and reasons for opening a second store, including financing and marketing efforts. Finding the second location (00:02:52) Panelists share their experiences in finding and choosing the location for their second store. Preparation and challenges (00:09:33) Challenges and preparations for operating a second location, including policies, procedures, and staffing. Systemizing and structuring (00:12:29) The importance of systemizing and structuring operations for a second location, as well as the challenges and preparations involved. Transition and training (00:15:14) Discussion on transitioning and training staff for a new location, including the use of a shop management system. Reflection and passion (00:17:32) Reflecting on the passion and effort required to start and grow a business, including the challenges of expanding to multiple locations. Store Number Two Challenges (00:17:56) Challenges of opening a second store, losing customers, ordering parts, and managing separate entities. Inventory and Supplies (00:20:14) Challenges in stocking inventory and supplies for a new store, unexpected expenses, and the importance of thorough planning. Financing and Cash Flow (00:24:43) Discussion on financing options, including seller financing, bank loans, and personal investment, and the impact of COVID-19. People Problems and Leadership (00:29:17) Dealing with turnover, hiring challenges, and the importance of finding the right people for leadership roles. Grooming and Growing Store Two (00:32:45) Balancing time and effort between store two and store one, empowering vice presidents, and the changing role of the company president. Building an MSO (00:34:48) Discussion on the motivations for building a multi-shop operation, including retirement planning, challenges, and personal growth. Creating Career Paths (00:41:26) The importance of creating a career path for the younger generation, fast-tracking growth, and training and educating employees. Valuing and Acquiring Businesses (00:47:31) Challenges in valuing and acquiring businesses, including the impact of market competition and the importance of assessing profitability. Equipment and Location Considerations (00:49:29) Discussion on starting from scratch, acquiring equipment, and the significance of location and infrastructure.
Thanks to our Partner, NAPA TRACS 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/ Thanks to our Partner, Auto-Fix Auto Shop Coaching Proven Auto Shop Coaching with Results. Over 61 Million in ROI with an Average ROI of 9x. Find Coach Chris Cotton at AutoFix Auto Shop Coaching on the Web at https://autoshopcoaching.com/ Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -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
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By nptrb
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By carmcapriotto
Matt Fanslow tackles the misunderstood relationship between profit and greed in business. He references the YouTube Short "Farmer Does the Right Thing on Shark Tank," using the comments section as a springboard to discuss public perceptions of profit.
Show Notes
The association of profit with greed (00:00:11) Matt discusses the perception of profit as a negative concept and its association with greed in business. YouTube short "Farmer Does the Right Thing Shark Tank" (00:01:14) Matt talks about a YouTube short video featuring a farmer's product pitch on Shark Tank. Challenges in justifying pricing to customers (00:03:41) Matt discusses the difficulties businesses face in justifying their prices to customers and the need to educate them about the value provided. Misconceptions about profit and pricing (00:06:21) Matt addresses the misconceptions regarding profit margins, and pricing strategies. Tackling the association of profit with greed (00:14:36) Matt explores strategies for addressing the negative association of profit with greed and the importance of educating customers about business operations.
Thanks to our Partner, NAPA Autotech napaautotech.com
Email Matt: [email protected]
Diagnosing the Aftermarket A - Z YouTube Channel HERE
Aftermarket Radio Network: https://aftermarketradionetwork.com/
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By Joe Marconi
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