S.O.B: Son of Boss [THA 344]
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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 Transmission Repair
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By carmcapriotto
Drawing an unexpected parallel between the automotive and food industry, it comes down to maintaining quality and ensuring customer satisfaction. Tune in or watch as a video podcast on YouTube, as Matt Fanslow and Carm Capriotto compare the struggles of a restaurant owner and a shop owner as they watch 'Kitchen Nightmares 2023 Season 1 Episode 2.'
Show Notes
Watching "Kitchen Nightmares" (00:02:06) Discussion about watching the show "Kitchen Nightmares 2023 Season 1 Episode 2 with Gordon Ramsey" and the parallels between the food industry and the repair profession. The owner's emotional struggle (00:05:04) Analysis of the owner's emotional struggle and the importance of using emotions to make necessary changes in the business. The importance of focusing on the fundamentals (00:07:31) The customer's perspective and the importance of quality (00:09:00) How the customer's perspective and experience are crucial in determining the success of a business. T The need for effective communication and leadership (00:10:42) The importance of effective communication and leadership within a business. The technician shortage (00:14:44) Discussion on the difficulty of finding good technicians and the impact of a toxic work environment. The importance of customer satisfaction (00:17:10) Drawing parallels between the restaurant industry and the automotive industry in terms of the impact of negative customer experiences. The poor attention to detail and lack of caring (00:22:10) The issue of using cheap and low-quality parts in the automotive industry, leading to potential problems and customer dissatisfaction. The struggle with pricing and gross profit (00:22:52) The importance of systems and processes in running a successful business (00:25:54) The challenges of running a business (00:29:26) Discussion about the assumption that business owners are always successful and the high failure rate of businesses in the first few years. The importance of attention to detail (00:29:52) Exploration of the need for business owners to pay attention to every aspect of their business, including delegated responsibilities like executive chef or service advisor. The need for proper tools and communication (00:30:46) Highlighting the importance of providing the necessary tools and resources for employees to do their jobs effectively and the need for open communication between owners and employees. The pressure of handling daily challenges (00:36:24) Discussion on the pressure that technicians face in handling daily challenges and how it affects their performance. The impact of coaching and consulting in the food service business (00:38:28) Exploration of the growth of coaching, consulting, mentoring, and networking in the food service industry and how it helps businesses improve and succeed.
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
Recorded Live at ASTE 2023 Scott Brown discusses the evolving technology of Advanced Driver Assistance Systems (ADAS). He dives into the challenges and benefits of calibrating ADAS systems in vehicles, the future of level five automation and importance of technicians staying updated on technology advancements.
Scott Brown, Founder of Diagnostic Network. Scott's previous episodes HERE. Show Notes
Advanced Driver Assistance Systems (ADAS) by Steve Zack, Kurt Shadbolt and Scott Brown The evolution of ADAS technology (00:01:17) Scott Brown discusses his early exploration of ADAS technology and how it has become more focused over the years. Understanding computer vision in ADAS (00:02:12) Scott Brown explains how computer vision works in ADAS systems and the importance of training cars to recognize objects in their environment. Advancements in camera technology (00:04:25) Scott Brown discusses the advancements in camera technology, including the ability to remove radar sensors and rely solely on cameras for functions like cruise control and pedestrian detection. The Lane Assist Experience (00:08:03) Discussion about lane assist technology and the adjustment to driving without it. Tesla's Shift to Vision System (00:08:40) Explanation of Tesla's decision to no longer use radar sensors and instead rely on their vision system for ADAS. Static calibration challenges (00:16:38) Increasing use of cameras for dynamic calibration (00:17:32) Benefits of backup cameras (00:18:20) The importance of technology in automotive education (00:25:18) The need for updated curriculums in automotive schools and the role of technology in education. The potential career opportunities for students in automotive technology (00:27:29) The Tesla's Full Self Drive Experience (00:32:16)
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
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
-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
Shop owners and fathers Charlie Marcotte and Paul Campanella discuss the topic of passing down a family business to the next generation. They emphasize the importance of aligning roles and skill sets, providing training and guidance, and setting realistic expectations for children joining the family business. They also explore the value of mentorship, learning from outside sources, and the challenges and rewards of running a family business. Whether you're considering integrating your family into your business or looking for ways to make adjustments, this episode is a must-listen! Charlie Marcotte, American Pride Automotive, 5 locations, Virginia. Charlie’s other episodes HERE Paul Campanella, Paul Campanella's Auto and Tire Center, 5 locations, Delaware and Pennsylvania. Show Notes:
S.O.B: Son of Boss Episode: https://remarkableresults.biz/remarkable-results-radio-podcast/a344/ The importance of bringing children into the family business (00:00:01) Discussion on the process of bringing children into the family business and the importance of earning their position. Setting children up for success in the family business (00:01:00) Exploration of how to mold a child's career path, provide appropriate training, and avoid nepotism in the family business. The role of passion and high expectations in the transition process (00:06:29) Insights on allowing children to follow their passions, setting high expectations, and the impact of high standards on their passion and performance. Earning trust and positions in the organization (00:09:04) Paul talks about how his son earned trust throughout the organization and how he wasn't just a "silver spoon boy" but earned every position he got. Short term and long term goals for the next generation (00:18:33) Discussion on the short term goal of working together to understand the importance of relationships and the long term goal of applying learned tools to take the business to the next level. The importance of protecting the family in the long term (00:21:38) Advice on the need to protect the family in the long term and the potential challenges and risks involved in bringing a child into the business. Balancing family time and work time (00:23:29) Advice on setting boundaries and not bringing work stresses home, as well as the importance of enjoying family time and not letting work monopolize it. The importance of outside mentorship (00:25:18) Discussion on how mentoring children in the family business can make the owner a better leader. The value of recognition and praise (00:26:11) The need to recognize and praise children in the family business for their hard work. The power of learning from others (00:27:50) The benefits of letting children learn from mentors and peers outside of the family business. Building personal connections with employees (00:34:33) Importance of getting to know employees on a personal level, asking about their weekends, families, and showing genuine care and concern. The importance of integrating family into business (00:35:55) Discussion on the value of family integration in business, learning from past experiences, and how it can shape the future success of the business. Thanks to our Partners Shop-Ware and Delphi Technologies Shop-Ware: More Time. More Profit. Shop-Ware Shop Management https://getshopware.com/ Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. http://DelphiAftermarket.com 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 -Special episode collections: https://remarkableresults.biz/collections
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Jake Sorensen shares his experiences with running an apprentice program at McNeil's Auto Care. Initially, they were able to find suitable applicants easily, but as time went on, they faced challenges in finding the right candidates. Jake also talked about the practical skills gap he has observed in the younger generation. He shared an anecdote about an apprentice who had never drilled a hole in a wall or hung anything before. Despite this knowledge gap, Jake believes that with the right attitude and willingness to learn, the right apprentices can become great technicians in the future. Jake Sorensen, 2019 NAPA ASE Technician of the Year and 2019 Ratchet + Wrench All-Star technician of the year. Shop manager and diagnostic technician at McNeil’s Auto Care in Sandy, UT. Listen to Jake’s previous episodes HERE
Show Notes
The challenges of finding qualified applicants (00:03:33) Jake discusses the difficulties his shop faced in finding suitable applicants for their apprentice program. The importance of communication skills (00:05:24) Jake talks about the struggle with communication and the need to adapt to the communication style of the younger generation. The strength of written skills in the younger generation (00:07:26) Jake highlights the writing skills of the younger generation and how they excel in written communication compared to verbal communication. The challenges of practical skills (00:08:35) The lack of practical skills among the younger generation and the need to walk them through basic tasks. The lengthened early stages of apprenticeship (00:10:54) The early stages of apprenticeship now take longer due to the need to teach every step from the ground up. Knowing when to let go of the wrong fit (00:14:12) The importance of recognizing within 30 to 60 days if an apprentice is the right fit and being willing to let go if they are not. Recruiting through word of mouth (00:17:23) Discussion on the challenges of recruiting individuals interested in working with their hands and fixing cars. Teaching soft skills in apprenticeship programs (00:18:37) Exploring the need to incorporate soft skills training into apprenticeship programs and bridging the gap between technical and communication skills. Breaking the barrier to entry for tools (00:21:26) Explaining how McNeil's Auto Care helps apprentices with tool acquisition through providing a shop cart, toolbox, tool credits, and a tool allowance. The challenges of apprenticeship programs (00:26:43) Discussion on the time and effort required to build a technician through an apprenticeship program. Apprenticeship vs College (00:27:05) Comparison of the value and hands-on experience gained through an apprenticeship program versus attending college. The role of a mentor in the shop (00:28:10) The difficulties and balancing act of being a mentor while still working on cars in the shop.
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
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
-Special episode collections: https://remarkableresults.biz/collections
Click to go to the Podcast on Remarkable Results Radio
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