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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
How can different personality types impact leadership and success in business? Murray Voth discusses the importance of understanding personality types in business. He introduces a new acronym, CASE, which stands for Controller, Analyzer, Socializer, and Entrepreneur. The conversation also covers the role of human motivation, clear expectations and accountability in managing employees, and the importance of giving space to your partner in a marriage and how it applies to business relationships. Find out how you can create a harmonious and productive team dynamic, where individuals can play to their strengths and contribute effectively to the business. Murray Voth, RPM Training. Listen to Murray’s previous episodes HERE Show Notes
CASE: Controller, Analyzer, Socializer, Entrepreneur Defaulting to Personality Types Under Stress (00:08:42) Discussion on how individuals default to certain personality types under moments of stress, fear, and overwhelm. Understanding and Utilizing Different Personality Types in Leadership (00:09:45) Exploring how different personality types, such as controllers, analyzers, socializers, and entrepreneurs, can contribute to effective leadership and business success. Using the SOAR Acronym for Problem-Solving (00:16:19) Introduction of the SOAR acronym (Situation, Outcome, Action, Results) as a tool for problem-solving and decision-making in coaching and personal development. The Outcome and Visualization (00:17:08) Discussing the importance of imagining the desired outcome and visualizing the qualities and skills of a potential service advisor. Taking Actions (00:17:57) Exploring the necessary actions to achieve the desired outcome, such as creating an advertisement, conducting interviews, and ultimately hiring a service advisor. Dopamine and Accountability (00:18:51) Highlighting the role of dopamine in motivating and rewarding oneself throughout the process, as well as redefining accountability as providing clear expectations and tools for employees. The technician who is a serial or the visionary (00:25:22) Discusses the different types of technicians and how to effectively utilize their skills and strengths in a shop environment. The analyzer technician who spends excessive time diagnosing (00:26:17) Explores the reasons behind why some technicians feel the need to overanalyze and prove themselves, and shares a personal story about an apprentice. The importance of decision making and understanding personal strengths (00:30:46) Highlights the impact of decision making on business and personal life, and emphasizes the importance of making decisions based on strengths rather than getting stuck in analysis paralysis. The Growth Mindset vs Fixed Mindset (00:35:20) The concept of growth mindset vs fixed mindset and how it affects learning and personal development. Fear of Regret (00:37:43) The fear of regret and how it holds people back from making decisions and taking risks. The Check Engine Lights of Your Business (00:41:46) Teaching business owners to diagnose their business using KPI technology and scanning tools. Learning How to Learn (00:42:31) Beta testing the idea of using personality assessments to understand team dynamics and improve business performance. Playing to Strengths in the Shop (00:43:36) Positioning team members based on their strengths, such as having analyzers in the background and socializers at the front counter. 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
Join Matt Fanslow as he answers some questions from his listeners in his 'mailbag.' Matt discusses the hiring bonus dilemma, compensation and profit sharing, the power of training, the flat rate pay system, book recommendations and how to create a network of industry peers.
Have a question for Matt to answer? Email him at: [email protected]
Show Notes
Hiring Bonuses for New Techs (00:02:27) Discussion on the fairness and impact of hiring bonuses for new technicians and how it affects existing employees. Broken System of Compensation (00:04:58) Exploration of the different ways technicians are compensated and how it can lead to resentment and difficulties in hiring new technicians. Ethical Profit and Long-Term Benefits (00:07:31) Explanation of how Matt's shop rewards employees based on ethical profit and how hiring bonuses can benefit both the shop and existing employees in the long term. The Mismanagement of Compensation (00:09:59) Discussion about the mismanagement of compensation in the aftermarket automotive industry and the potential impact on employees. Concerns about Flat Rate Pay (00:13:33) Addressing concerns about transitioning to a flat rate pay system and the potential negative impact on technicians' income and job satisfaction. Recommended Books for Auto Repair (00:19:49) Discussion on the importance of reading books on auto repair Building a Network in the Automotive Industry (00:26:06) Advice on how to build a network of connections in the automotive industry, including attending trade shows and utilizing social media. The importance of networking (00:29:42) The value of building relationships and networking in the automotive industry.
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/
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Thanks to our partners, NAPA TRACS and Promotive
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.com
It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: [email protected]
Get a copy of my Book: Download Here
Aftermarket Radio Network
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, Coach Chris Cotton discusses the importance of physical and mental health for independent auto repair shop owners. He encourages finding an exercise activity that gets the blood pumping and the brain firing, even if it's just for 30 minutes to an hour each morning.
Coach Cotton shares his personal experience with biking and how it energizes him for the day ahead. He emphasizes that taking care of physical and mental health is a personal responsibility and can have a positive impact on operational stamina, work-life balance, decision-making, and overall business success.
The episode also highlights the significance of staying updated with the latest technology and repair methodologies, understanding marketing trends, and fostering strong relationships. Coach Cotton concludes by reminding shop owners that success requires strategic decision-making, effective management, and continuous education.
The importance of physical health [00:01:07] Discussion on the significance of physical health for independent auto repair shop owners, including the benefits of regular exercise and staying fit.
The role of mental health [00:07:30] Exploration of how mental well-being influences decision-making, problem-solving, and overall business success in the auto repair industry.
Achieving work-life balance [00:09:46] Highlighting the importance of maintaining a healthy work-life balance to prevent burnout and prioritize personal rejuvenation.
The importance of mental sharpness [00:10:52] Mental sharpness aids in decision making, understanding marketing trends, and fostering strong relationships.
The well-being of the captain influences the ship's direction [00:12:07] The well-being of the shop owner directly affects the success and growth of the business.
Continuously seeking education and strategic decision-making [00:13:10] Success requires making strategic decisions, effective management, and continuously educating oneself and the team.
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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