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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
Some years back I took part in a boot camp for businessmen where they physically and mentally beat us down. My big takeaway was to “stop stopping”. It doesn’t matter if we’re talking about marketing, coaching, growing a business, learning, dieting, working out, or whatever. We all need to stop stopping.
Thank you to RepairPal for sponsoring The Auto Repair Marketing Podcast. Learn more about RepairPal at https://repairpal.com/shops
Show Notes with Timestamps
Stop Stopping (00:00:01) Brian introduces the topic of "stop stopping" in business growth and shares personal experiences from a boot camp for executives. The Roller Coaster of Marketing (00:02:04) The challenges of marketing for a local agency and the negative impact of starting and stopping marketing efforts. The Importance of Consistency (00:03:44) The need to stop stopping in various aspects of business, including marketing, inspections, and tracking KPIs. Stop Stopping (00:08:56) Brian discusses his struggle with weight loss and the importance of not stopping in order to achieve better results. Keep Going (00:09:48) The need to continue taking action in business and not stopping in order to achieve growth and success. Scaling Back (00:10:40) Brian suggests various strategies for handling an overwhelming amount of business, such as raising prices, expanding the shop, or opening a second shop.
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
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By Joe Marconi
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By carmcapriotto
What are the hidden risks associated with Electric Vehicles (EVs)? Multi-shop owner and District Chief of the Troy Fire Department Donnie Hudson and mechanical engineer and Captain of the Troy Fire Department, Pat Durham, discuss the importance of awareness and proper training for EVs. EV fires can be complex and involve risks of corrosion and short circuits. Education and training are crucial for firefighters, first responders, and automotive professionals to ensure EV safety. Working on EVs can also have insurance implications, with potential surcharges. Despite the risks, being prepared and knowledgeable about EVs is critical when handling damaged vehicles.
Donnie Hudson, Troy Auto Care, Troy, MI. District Fire Chief, Troy Fire Department. Donnie’s previous episodes HERE
Pat Durham, Captain, Troy Fire Department. StacheD Training.
Show Notes
Watch Full Video Episode The importance of proper towing for EVs (00:05:30) Why EVs should only be towed on a flatbed and the risks of towing them in other ways. The potential dangers of EV fires and battery corrosion (00:02:43) Exploration of the risks associated with EV fires, including the potential for battery corrosion and subsequent fires. The need for training and education on EVs (00:06:42) Discussion on the lack of training for firefighters, first responders, and technicians on EVs, and the importance of staying ahead of the growing popularity of EVs. The surcharge for EVs (00:08:02) Discussion on the insurance surcharge for working on and storing EVs overnight. The safety of EVs after a crash (00:08:44) The increased risk of fire and other catastrophic events in EVs after they have been in a crash. Concerns about aftermarket batteries (00:10:31) The potential risks and dangers associated with aftermarket batteries in EVs. The ineffectiveness of water in extinguishing EV fires (00:17:10) The misconception that water can put out EV fires. The potential risks and limitations of using piercing nozzles (00:21:28) The importance of immediate action after a crash (00:23:52) Inspecting for road debris damage (00:25:38) The impact of road debris on EVs, including the need to inspect for visible damage and the measures taken by manufacturers to protect battery enclosures. Inspecting EV components on a lift (00:27:52) The need for thorough inspections of EV components, such as the battery, wires, connections, and electric motors, and the importance of documenting any issues for customer safety. Importance of understanding high voltage (00:32:25) The need for proper knowledge and safety precautions when working with high voltage in EVs. Thanks to our Partner, NAPA AUTO CARE
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
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-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 Changing The Industry
How to STOP Losing Customers to Phone Shopping: Solutions To BOOST Conversion For Auto Repair Shops
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