Quantcast
Jump to content


Recommended Posts

Posted

Many shop owners believe that paying flat rate is the only way to achieve high labor production. Others say that flat rate promotes the wrong culture. Many technicians are on straight salary. And there are those that prefer a blend of paying hourly plus an incentive bonus if certain billed hours are produced.  

While there are many pay plans out there, is there one that has worked for you?  And produced the results you are looking for? 

Posted
On 7/5/2023 at 5:56 PM, Ulfar said:

In my experience it depends on the tech more than anything else.

That is an interesting comment. Can you go into more detail?

Posted

There are techs who thrive under the pressure of flat rate, but most either don’t (making too many mistakes) or they feel that the flat rate system has burned them too much.
 

Too often management uses flat rate as a way to control their labor expense (which is exactly the wrong way to look at technician time, they are a commodity not an expense) instead of trying to create ways to make the technicians more efficient. 
 

I personally think a hybrid pay system is best as it rewards both quality and speed. 
 

Sorry if I ramble a bit. 

Posted
12 hours ago, Ulfar said:

There are techs who thrive under the pressure of flat rate, but most either don’t (making too many mistakes) or they feel that the flat rate system has burned them too much.
 

Too often management uses flat rate as a way to control their labor expense (which is exactly the wrong way to look at technician time, they are a commodity not an expense) instead of trying to create ways to make the technicians more efficient. 
 

I personally think a hybrid pay system is best as it rewards both quality and speed. 
 

Sorry if I ramble a bit. 

I tend to agree with you. 

To add to your comments, I do think that there is also a responsibility of the shop owner or manager to ensure that estimates are written properly, and that the correct labor is applied to each job (as best as possible).  For example. how often are deals made with the customer to sell the job, and many times the labor to test a complicated driveability problem is waived?  Does the tech get the labor time, or does the tech suffer? There are many more examples.  Labor hours is not just techs responsibility. It takes a team effort. 

Posted
10 hours ago, Joe Marconi said:

I tend to agree with you. 

To add to your comments, I do think that there is also a responsibility of the shop owner or manager to ensure that estimates are written properly, and that the correct labor is applied to each job (as best as possible).  For example. how often are deals made with the customer to sell the job, and many times the labor to test a complicated driveability problem is waived?  Does the tech get the labor time, or does the tech suffer? There are many more examples.  Labor hours is not just techs responsibility. It takes a team effort. 

It definitely is a team effort. It also requires a serious effort on the counter side. If you’re paying your technicians in ANY fashion that relies on an accounting of their time then they should get some amount of time every time they touch a vehicle. Even if the shop waives the diag or the bulb install or whatever. The tech should NEVER be on the short end of a deal made between the business and a client.

In addition I personally feel that almost all costs are the responsibility of the business, short of an employee’s gross negligence. Though even then the shop may cover the expense and either terminate or reprimand the employee dependent on the circumstances. 

Posted
12 hours ago, Ulfar said:

It definitely is a team effort. It also requires a serious effort on the counter side. If you’re paying your technicians in ANY fashion that relies on an accounting of their time then they should get some amount of time every time they touch a vehicle. Even if the shop waives the diag or the bulb install or whatever. The tech should NEVER be on the short end of a deal made between the business and a client.

In addition I personally feel that almost all costs are the responsibility of the business, short of an employee’s gross negligence. Though even then the shop may cover the expense and either terminate or reprimand the employee dependent on the circumstances. 

Makes sense, and I agree. I always say, when you are looking at a production problem, you need to look at the entire process: Estimating, scheduling, shop layout, training, tools & equipment, in-house information systems, service advisor skills, enough staff and great management. 

  • Like 1

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Available Subscriptions

  • Have you checked out Joe's Latest Blog?

         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
  • Similar Topics

    • By marxautocenter
      Hello everyone,
       
       Currently we use RO Writer and Auto Vitals to manage our shop workflow. It works out very well overall, but I'm looking for a way to keep track of daily/weekly shop numbers in a clean and easy to read format. We found it difficult to get clear numbers in RO writer, and use the punch in/out feature in Auto Vitals for time keeping (which limits our reporting features in RO writer). I'm looking for other shop owners who use this combination to tell me they way they keep track of their daily/weekly numbers, such as technician hours worked/billed, comebacks, declined work, sold recommended (and develop a ratio from declined work/sold recommended).
       
      I'm working on a Google sheet now, but I'm looking for opinions on what you find easiest to read, while limiting entering too much information multiple times.
       
      Thank you for your comments in advance!
       
      Cheers!
    • By carmcapriotto
      Thanks to our Partner, NAPA Autotech
      Matt Fanslow recommends a variety of resources for automotive technicians beyond standard service manuals.
      Thanks to our Partner, NAPA Autotech
      NAPA Autotech’s team of ASE Master Certified Instructors are conducting over 1,200 classes covering 28 automotive topics. To see a selection, go to napaautotech.com for more details.
      Contact Information
      Email Matt: [email protected] Diagnosing the Aftermarket A - Z YouTube Channel
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/
      The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/
      The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/
      Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/
      Click to go to the Podcast on Remarkable Results Radio
    • 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 the 200th episode of "The Weekly Blitz," Coach Chris Cotton marks a significant milestone for the podcast by taking a moment to reflect on the journey over the past year. He shares personal anecdotes that resonate with the audience, including a heartfelt update on Kimberly, who made the selfless decision to donate a kidney to her brother, highlighting the profound impact of family and generosity.
      Chris delves into key topics that are crucial for auto repair shop owners, offering insights and advice that are both practical and forward-thinking. One of the main discussions revolves around the concept of adopting a four-day workweek. He explores the potential benefits this can bring, such as improved work-life balance for employees, increased productivity, and enhanced job satisfaction, while also addressing the challenges and considerations that come with implementing such a change.
      Another focal point of the episode is the distinction between commitment and mere interest. Chris emphasizes that true success in business requires a deep commitment, rather than just a passing interest. He encourages shop owners to fully dedicate themselves to their goals and to cultivate a mindset that prioritizes long-term success over short-term gains.
      The benefits of business coaching are also highlighted, with Chris advocating for the value of having a mentor or coach to guide business owners through the complexities of running an auto repair shop. He shares how coaching can provide clarity, accountability, and strategic direction, ultimately leading to more effective decision-making and business growth.
      Throughout the episode, Chris underscores the importance of professionalism within the industry. He stresses that maintaining high standards of professionalism not only enhances the reputation of individual shops but also elevates the industry as a whole.
      In addition, he encourages listeners to take advantage of the marketing resources offered by the podcast's sponsor, Shop Marketing Pros. He explains how utilizing these resources can help shop owners effectively reach their target audience, build their brand, and drive business success.
      Overall, the episode serves as both a retrospective on the past year's achievements and a motivational message aimed at inspiring business improvement. Chris Cotton's insights and stories provide valuable lessons and encouragement for auto repair shop owners looking to elevate their businesses to new heights.
      Introduction to the Podcast (00:00:11)
      Overview of the podcast's purpose and the value it offers to auto repair businesses. Celebrating Episode 200 (00:01:08) Kimberly's Kidney Donation (00:02:06) Highlighting Episode 164 - Unlocking Greatness (00:04:21) Highlighting Episode 170 - Four Day Workweek (00:05:24) Preparing for 2025 (00:07:42) Highlighting Episode 172 - Commitment vs. Interest (00:08:46) Highlighting Episode 175 - The Pumpkin Patch (00:09:58) Highlighting Episode 180 - Profit First (00:11:11) Highlighting Episode 185 - Mom and Pop Shops (00:12:00) Highlighting Episode 186 - Coached vs. Uncoached (00:12:46) Highlighting Episode 187 - Project Alpha (00:13:05) Highlighting Episode 189 - Impact of Politics (00:13:55) Highlighting Episode 192 - Self-Obstruction (00:14:20) Highlighting Episode 193 - Being the Best Shop (00:14:46) Highlighting Episode 197 - Chris's Favorite Things (00:15:30) Looking Ahead to Episodes 201 and 202 (00:15:50)
      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 #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros #autofixautoshopcoachingbook
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Thanks to our Partners, NAPA TRACS, and Today's Class Discover how to harness AI tools effectively in business with two experts from Optimize Digital Marketing. They share practical tips on using AI to streamline operations, generate creative marketing ideas, optimize SEO, and improve customer interactions—all while maintaining a personal touch. Learn how to balance AI’s efficiency with human creativity and judgment, avoid pitfalls like bias and plagiarism, and make AI work for you without losing authenticity. Doug Robison, Director of Sales and Partnership, Optimize Digital Marketing  Jordan Greene, Director of Product and Partner, Optimize Digital Marketing  Show Notes Watch Full Video Episode Discussion on AI (00:00:00) "Add You to It" Concept (00:02:13) Cautions with AI Use (00:03:56) AI in Customer Interactions (00:05:08) Risks of AI Responses (00:06:18) Personalization in AI Responses (00:07:29) AI's Evolution (00:08:26) AI's Historical Context (00:09:23) Logistical Challenges of AI (00:12:09) AI in Automotive Industry (00:13:11) AI's Role in Marketing (00:14:01) Best Practices for Using AI (00:15:51) Emotional Tone in AI Prompts (00:16:49) Adapting AI for Different Roles (00:17:16) Gemini AI and Source Validation (00:19:59) Caution with AI Outputs (00:21:08) AI's Role in Enhancing Efficiency (00:22:05) Plagiarism Concerns in AI Usage (00:23:00) SEO and AI Integration (00:26:07) Human Oversight in AI Use (00:29:09) Veterinary Analogy in Customer Relations (00:34:29) The Importance of Charging Appropriately (00:34:52) AI as a Virtual Assistant (00:36:10) Utilizing AI for Problem-Solving (00:37:25) AI in Education (00:37:51) Enhancing Communication with AI (00:39:07) Efficiency Through AI (00:39:38)
      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, Today's Class Optimize training with Today's Class: In just 5 minutes daily, boost knowledge retention and improve team performance. Find Today's Class on the web at https://www.todaysclass.com/ Connect with the Podcast: -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters -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 X: 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 -Special episode collections: https://remarkableresults.biz/collections The Aftermarket Radio Network: https://aftermarketradionetwork.com/ Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/ Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/ Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/ The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/ The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/ Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/
      Click to go to the Podcast on Remarkable Results Radio
    • By carmcapriotto
      Thanks to our Partners, NAPA Auto Care, NAPA TRACS and Automotive Management Network Tune in to hear James Marsh's journey as he navigates the transition from a family-owned dealership to managing an independent automotive shop. James shares the significant differences between dealership and independent shop environments. He discusses marketing strategies, the importance of customer service, and the challenges and opportunities independent shops face. James Marsh, Empower Automotive, Traverse City, Michigan Show Notes Watch Full Video Episode Empower Automotive Name Change (00:01:40) Transition from Dealership to Independent Shop (00:02:52) Employee Retention and Culture Shift (00:03:28) Perception of Independent Shops (00:05:40) Marketing Challenges (00:08:30) Wage Comparisons (00:10:01) Warranty Work Impact (00:11:55) Management Culture Differences (00:12:53) Key Performance Indicators (00:14:15) Customer Service Focus (00:14:49) Comfort with Aftermarket Parts (00:21:19) Quality Suppliers Discussion (00:22:00) Transition to Independent Service Center (00:22:33) Marketing Strategies for 2025 (00:23:40) Population and Market Insights of Traverse City (00:26:56) Impact of Remote Work on Local Economy (00:28:35) Networking for Hiring (00:30:12)
      Thanks to our Partners, NAPA Auto Care, NAPA TRACS and Automotive Management Network Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care 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/ Get ready to grow your business with the Automotive Management Network: Find on the Web at http://AftermarketManagementNetwork.com for information that can help you move your business ahead and for the free and informative http://LaborRateTracker.com Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters -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 -Special episode collections: https://remarkableresults.biz/collections The Aftermarket Radio Network: https://aftermarketradionetwork.com/ Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/ Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/ Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/ The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/ The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/ Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/         Click to go to the Podcast on Remarkable Results Radio


  • Similar Tagged Content

  • Our Sponsors

×
×
  • Create New...