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Creating Consistent Routines that Drive Success [THA 331]


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Do you find it hard to create consistent routines that drive success? This episode discusses the importance of standard operating procedures (SOPs) and how they can help businesses achieve their goals. Our guests, Jaron Kleber, Chris Machado, and Nick Hively, discuss the positive impact of SOPs on creating a positive culture and improving the consistency of the customer experience. They also discuss the importance of engaging team members and getting their input when creating SOPs. "Success is not final, failure is not fatal: It is the courage to continue that counts." - Winston Churchill. Chris Machado, Circle M Tire & Auto and Circle M Truck Repair Bakersfield, CA. Nick Hively, Automotive Unlimited, Chanhassen, MN. Jaron Kleber, Repair Shop of Tomorrow, National Sales Manager. Jaron's previous episodes HERE

Show Notes:

  • Watch Video Episode HERE
  • Creating Consistent Routines (00:00:01) The importance of consistent routines and how they can help businesses achieve their goals.
  • SOPs as a Roadmap (00:03:39)
  • Starting with the E-Myth (00:07:30) Jaron Kleber recommends the book "The E-Myth" as a starting point for those looking to implement SOPs in their businesses.
  • Importance of SOPs (00:09:00 - 00:11:05)
  • Updating SOPs (00:09:27 - 00:10:13) How often SOPs should be updated and how to implement amendments when necessary?
  • SOPs and Culture (00:14:21 - 00:15:49) How a business's culture and its team members' strengths and weaknesses can impact the creation and implementation of SOPs.
  • Engagement and Disengagement (00:18:18) The importance of engagement and how disengagement can affect businesses.
  • Implementing SOPs (00:21:29) How SOPs can help make decisions easier by providing data
  • SOPs and comebacks (00:27:30-00:31:51)
  • Financial side of the business (00:31:51-00:33:48) The challenges of running the financial side of the business and the importance of having SOPs in place for financial management.
  • Expectations and SOPs (00:35:41) The importance of setting expectations and creating standard operating procedures (SOPs) for shops and new employees.
  • Dispatch SOPs (00:36:48)
  • Creating a Winning Culture (00:37:10)

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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