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  • Have you checked out Joe's Latest Blog?

      Auto 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.
  • Similar Topics

    • By carmcapriotto
      G Jerry Truglia is well known for his automotive training through his company ATTS: Automotive Technician Training Services, where he covers topics ranging from hybrid vehicles, electricity, to Heavy Duty Truck repair. G is also a very proud founding member of the non-for profit Technician Service Training group. G Jerry Truglia Previous Episodes HERE.
      Dave Hobbs automotive service experience spans 40 plus years in the industry, starting out as a technician and then as a service manager working in his family’s repair shop (Hobbs Auto Electric) in Kokomo, Indiana. After leaving Hobbs Auto Electric, Dave began working as a hotline advisor and field engineer at GM’s Delco Electronics. Those roles eventually led to becoming an electronics systems instructor for thousands of Delco Electronics / Delphi engineers throughout North American and Asia.
      Dave is currently the lead technical trainer and course developer for Delphi Product and Service Solutions. In addition, he serves part-time as a contributor to Motor Age Magazine and as a field correspondent for MACS Worldwide (Mobile AC Society). Dave’s previous episodes HERE.
      Peter Orlando Sr. Curriculum Developer/Technical Instructor at Advance Auto Parts Carquest Technical Institute.
      Talking Points:
      Takes months to prepare and put together, document stories, real-world scenarios  Build relationships with students- students respond better to instructors that do not talk down to them, encourage networking and asking questions  Technicians often have an ego- they can fix any car, but need to also admit they don’t know everything, often feel embarrassed or afraid to ask questions Constant reading and research on curriculum   Retention of information- poll questions and feedback   Keeping students engaged- move around the room, have students highlight and underline during class Becoming an instructor doesn’t happen overnight- need to be seasoned over time, always someone smarter than you who you need advice from Sometimes you need grace from your audience- constructive feedback and criticism  Resources:
      Thanks to G Jerry Truglia, Peter Orlando, and Dave Hobbs for their contribution to the aftermarket’s premier podcast. Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers. Love what we do, buy a cup of coffee HERE. Be socially involved and in touch with the show:
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      Buy Carm a Cup of Coffee 

      This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion global automotive aftermarket industry and has everything you need to stay ahead of the curve. With 2,500 exhibiting companies, you’ll see the latest products, parts, and technologies for your business. As a result, the event also offers advanced training for shop owners, technicians, warehouse distributors (WDs) and auto parts retailers, as well as networking opportunities to grow your business. AAPEX 2020 will take place Tuesday, Nov. 3 through Thursday, Nov. 5, 2020 at the Sands Expo in Las Vegas. Therefore, more than 48,000 targeted buyers are expected to attend, and approximately 162,000 automotive aftermarket professionals. They will be from 135 countries which are projected to be in Las Vegas during AAPEX 2020. For information, visit aapexshow.com
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Scott Shotton has over 25 years of technical experience in automotive repair shops. As the owner of The Driveability Guys, Scott performs mobile diagnostics and reprogramming for local repair shops in the DeKalb Illinois area as well as industry training around the United States and Canada. He was also one of the four trainers for the Illinois EPA’s vehicle emissions testing program. 
      As an automotive instructor at Kishwaukee College since 2009.
      Prior to Kishwaukee College, Scott was adjunct faculty at the College of DuPage for 7 years. He has a degree in Automotive Service Technology as well as many hours of training by manufacturers and independent training entities.
      Recognized as an Illinois state emissions repair technician.
      He was also a technical trainer during his 8 year Army career. He has written many technical articles for MotorAge and Gears magazines, and became an ASE Subject Matter Expert (SME) in 2017.
      Scott currently maintains 21 ASE certifications including Master Automotive Technician, Master Truck Technician, A9, L1, L2, L3, Alternate Fuels and more. Listen to Scott’s previous episodes HERE. 
      Post secondary school
      Learning the basics to be technicians- some know nothing coming into post secondary ASC Education Foundation- set list of tasks to cover in classes (lecture, demonstration, hands on, lab work etc) Independent shops getting involved- help bridge the disconnect between administration and program if shop owners are on the advisory board Building classes
      Starts with a rough outline, theory, bullet points easiest to hardest, take case studies and work them in- is able to cover all levels Case studies need to be updated from time to time but concepts still remain the same     Future trainers
      If you’re going to be a trainer then you will continue to go to training- take notes on technical information and what trainer does Make sure you’re comfortable with material and topic with adequate research Incorporate what you like into your own training style No one knows everything- might have questions in class you don’t know how to answer  Previous episodes with Scott Shotton: 408 and 419
      Talk soon,

      Thanks to Scott Shotton for his contribution to the aftermarket’s premier podcast. Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers. Episode 408 HERE. Episode 419 HERE. Leave me an honest review on iTunes. Your ratings and reviews really help and I read each one of them.

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      Subscribe to a mobile listening app HERE.

      Gold Certification recognizes top tier NAPA AutoCares with a high level of participation in the AutoCare program. The program was built by AutoCare Centers for AutoCare Centers to provide a consistent consumer experience, maximize technology leverage, and reward NAPA’s most committed partners. In other words, Gold Certified AutoCare Centers are the standard bearers for the AutoCare brand nationwide. Simply put, the Gold Certified NAPA AutoCare program, powered by your local shop brand, will separate you from the rest helping you boost your bay counts and your average repair orders.
      Learn more about NAPA AutoCare, Gold Certification, and the hundreds of other benefits the NAPA family has to offer by talking with your servicing NAPA store or visiting www.NAPAAutoCare.com.
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Bob Greenwood, AMAM, is President and CEO of Automotive Aftermarket E-Learning Centre Ltd and has over 40 years’ experience working with Independent shops developing their business to maximize business net income.
      Bob writes management articles for ASA’s magazine AutoInc and has developed live business management classes for ASA. He writes monthly management articles for Motor Age magazine in the USA and writes semi-monthly shop management articles for CARS Magazine. Bob’s previous episodes are HERE.
      Eric Ziegler owns and operates EZ Diagnostic Solutions Inc in Peoria, IL. Eric specializes in module programming, driveability, electrical and network systems diagnostics. Eric has over 30 years of experience as a technician with an extensive diagnostics background.
      Eric supports collision centers and auto repair shops and has one tech in his mobile diagnostic business.
      Eric Ziegler is an ASE Certified Master Tech • L1 Advanced Level Diagnostic Specialist • L2 Electronic Diesel Engine Diagnostic Specialist • L3 Light-Duty Hybrid & Electric Vehicle Specialist • ASE Certified Medium Duty Truck Technician.
      Eric is an ASE Recertified Advance Level L1 Master Technician who has spent a great deal of his career focusing on automotive electronics, engine management diagnostics, module programming, and network communication.
      In addition to owning and operating EZDS, Eric is an accomplished automotive trainer working for Automotive Seminars and the Driveability Guys training technicians in the latest diagnostic techniques and technologies throughout the Midwest and US. He regularly attends and trains at some of the automotive industries top training events like Vision KC, ASA ATE, Automechanika, NESSARA, AV Tech Expos, KOI, Indiana ASA and the CAN Conference. Eric’s previous episodes are HERE.
      Being business developers.Owners need to take inventory of the staff’s knowledge- where they are at, where they should be. Need to be a well-rounded team that trusts each other- employees having knowledge of both business and technical aspects of shop. “If you don’t believe in your people, why did you hire them?”    Having a passion for the industry.Are you living your dream? Share your knowledge and develop others, become a mentor to the next generation. A passion for being a trainer can become a mentor figure when it comes from the heart. Who are the replacements for the current top-level industry trainers?We must start to pass this on and help the new generation. Eric’s story from his dad, a Caterpillar add:“In business as in life, there are no simple solutions, just intelligent choices”. -Caterpillar TrainingAttendance rates are down. Daytime training should rule so the trainer can have a life. One-day class should be $395-495 per person, minimum 20 per class and maximum limit. Some shops do not want to spend money on training, the younger generation would rather take an online class. People that need training the most are not at training seminars. Training is not an expense, it is an investment in business and investment in your future. Getting the most out of training classes.Study agenda ahead of time. Are the topics covered beneficial to your business? Confirm with the instructor. Great Idea! Twenty Style Group for Technicians “A Ten Group”Use Warranty Labor as a metric Hands-on Theory Lead my an industry instructor. Resources:
      Thanks to Bob Greenwood and Eric Ziegler for their contribution to the aftermarket’s premier podcast. Link to Automotive Aftermarket E-Learning Centre Ltd. HERE. Link to EZ Diagnostic Solutions HERE. Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers. Leave me an honest review on iTunes. Your ratings and reviews really help and I read each one of them.

      Be socially involved and in touch with the show:
      Facebook  Twitter  Linked In  Email   Events   Speaking
      This episode is brought to you by Federal-MogulMotorparts and Garage Gurus. With brands like Moog, Felpro, Wagner Brake, Champion, Sealed Power, FP Diesel and more, they’re the parts techs trust. For serious technical training and support – online, onsite and on-demand – Garage Gurus is everything you need to know. Find out more at fmmotorparts.com and fmgaragegurus.com

      Click to go to the Podcast on Remarkable Results Radio
    • By Jay Huh
      Hi everyone, first time post and it's been good reading everyone's input on this forum. Just so happened to stumble upon this forum and it's awesome having other people in my shoes.
      I quit my job as a service advisor and started doing side work out of my garage @$35/labor rate. Became a mobile mechanic with $45/hr 3 months after. Got a shared building with 2 bays and bumped up to $60 an hour. 8 months later, I am now at my current very own 6 bay facility with 4 employees and I just bumped up my rate to $75/hour. I have 2 national chains that share the same wall (Meieneke and Precision tune) and they charge $95/hour.
      Problem is, I still have customers that come to me from my $35/hr days and feel extremely bad and guilty for charging new rate. Should I be? Best way to implement change without losing customers? From the customers perspective, do you think they understand the operating costs and justification in price increase?

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