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Alignments Taking Longer: Are We Charging Enough? [THA 323]


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The automotive industry constantly evolves, with new technology and safety features being added to vehicles each year.  Are you investing in technology and education to stay competitive and provide quality service to customers? In this episode, we discuss the importance of charging enough for alignments and educating customers on the need for calibration and maintenance to ensure their safety on the road.

Bill Nalu, Interstate Auto Care, Madison Heights, MI. Listen to Bill’s previous episodes HERE.

Joe Hanson, Gordie’s Garage, Roseville, MI. Listen to Joe’s previous episodes HERE.

Justin Allen, Manufacture’s Rep, Hunter Engineering Company

Show Notes:

  • Watch Video Episode HERE
  • Alignments! Rates, Numbers and ROI [THA 303]
  • Selling alignments as maintenance [00:05:57] Discussion on the importance of selling alignments as maintenance service
  • The use of Hunter Lane Check [00:06:23]
  • The importance of printouts and pictures [00:07:28] Discussion on whether consumers need printouts or pictures of alignment results to believe they need an alignment.
  • Alignment as an Opportunity [00:08:31] Discussion on the high demand for alignment services and the opportunity it presents for business owners and customers.
  • Educating Customers and Shop Owners [00:09:32]
  • Alignment Inspection and Safety [00:10:20]
  • Proper Alignment Techniques and Training [00:10:59]
  • Charging for Alignments [00:12:23]
  • Educating Service Advisors [00:13:58] The importance of having talented service advisors who have been trained properly to work through different levels and tiers of alignment.
  • Teaching the Next Generation [00:15:23] The opportunity to bring in the next generation and teach them about alignment technology and how to properly service ADAS and calibrate targets.
  • Hunter Net System [00:16:24] Hunter Engineering's online system for accessing visual aids and data on car safety system alignment.
  • Importance of Proper Alignment [00:18:56] Proper alignment is crucial for safety and avoiding costly mistakes.
  • Alignment as a Profitable Service [00:20:17] Alignments should be profitable on their own, not just as a supplementary service.
  • Recalibrating Steering Angle Sensor [00:24:01]
  • ADAS Calibration [00:25:32]
  • Preparing for Newer Vehicles [00:27:15] Importance of understanding the complexity of newer vehicles and the potential cost of alignments, especially with ADAS technology.
  • High-Tech Industry [00:33:21] Discussion on the high-tech nature of the automotive industry and the responsibility of repair shops to educate customers on the importance of calibration and maintenance.
  • Moving away from two-wheel alignment [00:37:42] Discussion on the need to move away from two-wheel alignment and the importance of educating clients on the purpose of alignment.
  • Alignment equipment frustration [00:38:40]
  • Customer experience and professionalism [00:39:37]
  • Challenges of technician training [00:40:50]
  • Shift towards multi-shop ownership [00:42:17]
  • ROI of Alignment Machine [00:44:19] Discussion on the ROI of the Hunter Lane Check alignment machine.
  • Embracing Technology [00:46:23] The importance of embracing technology and investing in the future of the automotive industry

Thanks to our Partners Shop-Ware and Delphi Technologies Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com

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

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  • Have you checked out Joe's Latest Blog?

         0 comments
      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.
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