The First Breast Cancer Vaccine Trial Recipient: Jennifer Davis [CC 111]
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Have you checked out Joe's Latest Blog?
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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
The only way to ever have a truly successful business is to manage your money like a professional money manager. I’ve never been great at managing money, but despite that fact I’ve become very good about doing this thing that simply doesn’t come naturally to me, and it’s made an incredible difference in my business. I want you to do the same because I see the impact it has made on my life, my team, and our clients. It wasn’t easy, but it’s been worth it, and I continue to improve every day. Listen in and hear my plea for you to become an ace at managing your business’s money as well as your personal finances.
Thank you to RepairPal for sponsoring The Auto Repair Marketing Podcast. Learn more about RepairPal at https://repairpal.com/shops
Show Notes with Timestamps
The importance of managing money (00:01:03) The significance of managing money in both business and personal life, and how it relates to the profitability of a business. Money mismanagement in a church (00:01:57) Brian shares a personal experience of money mismanagement in their church, highlighting the potential negative impact it can have on the overall purpose of the organization. Understanding the true financial health of a business (00:05:18) The limitations of relying solely on the profit and loss statement (P&L) to assess the profitability of a business, emphasizing the importance of considering other factors such as taxes, debt service, and assets on the balance sheet. Managing Money and Operational Expenses (00:07:11) Understanding the difference between operational expenses and assets, and the impact on profitability. Debt Service and Profit Margin (00:08:05) The impact of debt service on profit margin and the misconception of making money based on P&L. Profit First System (00:09:53) Implementing the Profit First system for better money management and its positive impact on the business. The importance of managing personal finances (00:14:50) The need to manage personal finances effectively and the benefits it brings to business owners. The role of a CFO in managing personal finances (00:15:48) How having a CFO can help in preparing reports and managing personal finances efficiently. The value of outsourcing accounting services (00:17:43) Brian encourages business owners to lean on outside services, such as accounting professionals, to handle financial aspects of their businesses. The importance of a 20% profit margin (00:20:37) The industry standard of maintaining a 20% profit margin and the significance of running a healthy business. Balancing profitability and employee raises (00:21:33) The challenge of giving employees raises while maintaining a 20% profit margin and the importance of making decisions that prioritize the health of the business. The benefits of running a healthy business (00:23:22) The positive impact of running a healthy business on employees, clients, and the ability to provide quality service and warranties.
How To Get In Touch
Group - Auto Repair Marketing Mastermind
Website - shopmarketingpros.com
Facebook - facebook.com/shopmarketingpros
Get the Book - shopmarketingpros.com/book
Instagram - @shopmarketingpros
Questions/Ideas - [email protected]
Aftermarket Radio Network
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
This episode is sponsored by AutoLeap. AutoLeap is a cloud-based all-in-one automotive invoice software that helps you supercharge your mechanic shop. Their customers have experienced:
30% increase in revenue by improving transparency and trust
50% reduction in time spent researching and ordering parts
10% increase in profit margins through robust reporting
Click here to learn more about AutoLeap and schedule a demo:
AutoLeap Link: http://bit.ly/3GRgO88
In this podcast episode, Coach Chris Cotton from Autofix Auto Shop Coaching talks about his recent trip to the Sunrise Training Expo in Phoenix, Arizona. He shares insights on various topics related to auto repair shop management, including service advisor best practices, using technology to increase efficiency and productivity, and new products and apps for technicians, service advisors, and customers. He also discusses his experience moderating the owner's round table, where they had a great conversation on various topics such as inflation, the economy, and productivity. Finally, he encourages attendees to stay for the entire event and take advantage of all the opportunities available.
BG Booth [00:02:43] Coach Chris Cotton talks about his visit to the BG booth at the Sunrise Training Expo and the new products and apps they offer.
Service Advisor A to Z Class [00:05:35] Coach Chris Cotton discusses the Service Advisor A to Z class he taught at the Sunrise Training Expo, covering topics such as service advisor best practices, daily responsibilities, and effective communication.
Managing Expectations and Using Technology [00:07:20] Coach Chris Cotton talks about managing expectations and using technology to make service advisors more efficient and productive.
Owner's Round Table [00:09:23] Discussion on inflation, economy, productivity, and the issue of being booked weeks in advance.
Employee Handbooks and Cell Phone Usage [00:10:18] A comment from a 50-year industry veteran on cell phone usage and the importance of being productive.
Importance of Staying for the Whole Event [00:11:10] Encouragement to stay for the entire event, including the owner's round table, and take advantage of all the opportunities.
Don't forget to rate and review us!
Connect with Chris:
[email protected]
940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/AutoFixAutoShopCoaching
Youtube: https://bit.ly/3ClX0ae
An episode of CAMP referenced by Chris. Industry coaches talking about the value of training and expos. https://bit.ly/3NyHYnI
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Exploring the Brakes for Breasts Campaign: Raising Funds for Breast Cancer Vaccine Research at the Cleveland Clinic The Brakes for Breasts campaign, every October, supports breast cancer vaccine research at the Cleveland Clinic. The co-founders of the campaign, Leigh Anne Best and Laura Frank, discuss the importance of finding a cause that aligns with their values and the challenges of funding vaccine research. Justin Johnson, PhD, provides updates on the progress of the clinical trials for the vaccine. Our panel discusses the success of the campaign and its goals for the future, encouraging independent repair shops to participate and donate 10% of labor and parts for brake jobs. They also emphasize the impact of the campaign on cancer research and encourage listeners to get involved. We are challenging the industry to reach a goal of $369,000 or even $400,000 for the next year and to involve at least 500 shops. This is a simple and effective program to offer to your customer.vite anyone involved to tour the lab and see the impact of their contributions.
Thanks to our Partner, Technician Find. If you are tired of struggling to find skilled automotive technicians for your independent auto repair shop, say goodbye to the endless search and let Technician Find be your solution. We are a 'Single Stop To Staff Your Shop.' Click Here for Technician Find
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
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Click to go to the Podcast on Remarkable Results Radio
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