Marketing Mistakes and Kim's Pet Peeves - The Auto Repair Marketing Podcast
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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 Joe Marconi
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By carmcapriotto
Today on Business by the Numbers, Hunt explores key strategies for enhancing business success through effective team management and development, as well as the long-term benefits of strategic employee management and development for sustained business success.
• Strategic Value of Team Retreats: Insights into how team retreats and paid time off (PTO) contribute to employee satisfaction and business growth.
• Collaboration in a Hybrid Work Environment: Adapting to modern work models and the importance of in-person collaboration for team dynamics.
• Investing in Employee Well-being and Training: The critical role of continuous training and employee appreciation in boosting productivity and profitability.
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
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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 episode of Auto Fix Auto Shop Coaching, Coach Chris Cotton discusses the potential signs of a recession and its impact on the auto repair industry. He highlights indicators such as rising unemployment rates, declining consumer spending, and stock market volatility. Cotton also discusses the mixed effects of a recession on the industry, including potential parts obsolescence and reduced cash flow. He advises listeners to prepare by diversifying services and increasing their online presence. The episode emphasizes the importance of preparedness and not panicking during economic downturns.
Recognizing the signs of a recession (00:01:06) The speaker discusses the topic of recognizing the signs of a recession and mentions a post in a shop owner group that sparked interest in the subject.
Rising unemployment rates (00:02:24) The speaker explains that rising unemployment rates can be a sign of financial trouble and shares their thoughts on the current unemployment situation.
Declining consumer spending (00:03:20) The speaker talks about how a dip in retail sales figures can indicate consumers tightening their belts and expresses concerns about maxed-out credit cards and defaults on payments.
The impact on the auto repair industry (00:09:40) Discussion on how recessions can have a mixed impact on the auto repair industry, with people potentially delaying buying new cars and needing to repair their existing vehicles.
Potential challenges during a recession (00:10:53) Exploration of potential challenges during a recession, such as parts obsolescence, reduced cash flow, and supply chain issues.
Actions to take to prepare for a recession (00:12:00) Advice on actions to take for auto repair businesses to prepare for a recession, including diversifying services, increasing online presence, stockpiling cash, improving efficiency, engaging with the community, and being adaptable and innovative.
Recognizing the signs of a recession Indicators of a recession: rising unemployment rates, declining consumer spending, stock market volatility, flattening or inverted yield curve Impact of government policies, global events, and consumer sentiment on the economy Importance of staying informed and not panicking Need for preparedness and taking action before a potential downturn Impact of a recession on the auto repair industry Delayed car purchases leading to increased need for repairs Concerns about parts obsolescence and availability Effects of a recession on the auto repair industry: reduced cash flow, less disposable income, supply chain issues, potential affordability of skilled labor compromising quality of work Actions to prepare for a recession in the auto repair industry: diversifying services, increasing online presence
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
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By carmcapriotto
Recorded Live at ASTE 2023, twin brothers Mario and Martin Rojas and their employer Jason Athanas, discuss their work in the automotive industry, the importance of continuous training and staying updated on technology, and their unique business model. Mario also talks about his YouTube channel 'Super Mario Diagnostics, which is used for training and customer engagement. Mario, Martin Rojas, and Jason Athanas, Autobahn Performance, Oakland Park, FL https://www.youtube.com/@SuperMarioDiagnostics
Show Notes
Watch Full Video The twins' journey to finding Jason (00:02:23) Mario and Martin Rojas explain why they decided to join Jason's shop. The importance of proper tools in a shop (00:03:06) The significance of having the right equipment and factory scan tools in a shop to effectively. Challenging the traditional rating system for technicians (00:04:03) The dissatisfaction with the current rating system for technicians and propose alternative ways to evaluate and recognize their skills and experience. The technician's self-training (00:08:15) Martin's diagnostic skills (00:09:13) The owner's role and challenges (00:10:08) Jason talks about his role and the challenges he faces in balancing his technician work with ownership responsibilities. The satellite location and shuttle service (00:16:54) Discussion about the separate buildings, shuttle service, and transportation methods used by the shop. Using YouTube videos as a marketing tool (00:18:19) Conversation about the agreement to film YouTube videos and how it benefits the shop by attracting technicians and showcasing their work to customers. 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
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By Joe Marconi
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