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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
Recorded Live at AAPEX 2023, Bob Heipp discusses personal health issues, the importance of open communication and vulnerability, and the subsequent lifestyle changes he made. The conversation further delves into the significance of honesty in relationships, mindfulness, and overcoming addictive behaviors.
Show Notes
The Heart Attack Scare (00:02:05) Bob shares his experience of having a heart attack scare and undergoing a double bypass surgery. The Importance of Early Detection (00:08:19) The discussion highlights the fact that many people's first heart attack is their last, emphasizing the need for early detection and lifestyle changes. The baseline test (00:09:53) Discussion about the benefits of taking a calcium test to determine the need for cholesterol medicine. The importance of vulnerability in relationships (00:13:28) Conversation about the significance of being open and vulnerable in maintaining sustainable relationships. The Vulnerability of Leadership (00:19:40) Discussion on the shift in outlook towards vulnerability in managing businesses and people. The Power of Meditation and Silence (00:20:58) Exploration of incorporating meditation and prayer, including the benefits of silence and introspection. Rewriting Programming and Dehumanizing (00:26:15) Conversation on the process of rewiring the brain and the dangers of dehumanizing people, including discussion on neuroplasticity and the impact of social media and pornography. The Health Focus (00:29:27) Discussion about Bob's focus on health, including surgery and depression after major heart surgery. Experiences at Apex 2023 (00:32:49) Conversation about attending AAPEX 2023 in Las Vegas for the first time, experiencing Halloween on Fremont Street. Evolution and Journey after Open Heart Surgery (00:35:08) Reflection on the personal growth and emotional transformation after open heart surgery, discussing the ongoing journey of self-discovery and figuring things out.
Thanks to our Partner, NAPA Autotech https://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
Vic Tarasik is eager to share his insights and personal experiences with fraud, a subject that's not always pleasant but is crucial to address. As Ronald Reagan famously said, "Trust but verify." Trust is vital in business relationships, but so is verification. Vic highlights the need for proper documentation, procedures, systems in place to prevent fraud, cash management and the potential for fraud in parts purchases. He advises shop owners not to assume they are immune to fraud. Vic Tarasik, CEO of Shop Owner Coach. Vic’s previous episodes HERE. Show Notes
The importance of trust and verification (00:01:49) Discussion on the importance of trust but verify in business relationships and the need for systems to keep people accountable. Personal experience with fraud in shop ownership (00:02:47) Vic shares his personal experience with fraud in his first four years of shop ownership and the consequences of not having verification systems in place. Managing cash and verifying deposits (00:06:14) The importance of managing cash, verifying bank deposits, and the responsibility of shop owners to ensure every dime and penny is accounted for. Fraud by an employee (00:09:34) Vic reveals how one of his employees committed fraud by zeroing out an invoice and pocketing the money, highlighting the need for trust and verification in business. Importance of consequences (00:16:34) Carm and Vic discuss the importance of having serious consequences, such as jail time or termination, for employees who commit fraud or theft in a company. The importance of trust and verification (00:17:46) Discussion on the need for employees to sign documents and the importance of trust and verification in business. The need for a restitution or fraud clause (00:18:31) Importance of having a restitution or fraud clause in the hiring package and the need to act on it if fraud occurs. The importance of purchase orders (00:26:36) The value of implementing a system that requires purchase orders for all sales transactions to ensure accountability. Returning unopened rolls of stamps (00:28:01) The story of a young employee who stole unopened rolls of stamps from the shop and how the lack of systems and accountability contributed to the situation. The importance of controlling losses (00:34:55) Discussion on how shop owners can control losses and the impact of not doing so. Taking action to prevent fraud (00:36:20) Encouragement to take proactive measures to prevent fraud and the importance of discussing the topic openly. Thanks to our Partners, AAPEX and NAPA TRACS Set your sights on Las Vegas in 2023. Mark your calendar now … October 31 - Nov 2, 2023, 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: -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
Carm Capriotto introduces a group of automotive industry professionals who are part of a leadership program led by Shawn Gilfillan. This group has been working on a 20-week program designed to enhance leadership skills and empower teams in the automotive industry. The program emphasizes the importance of self-talk and changing one's self-perception to become a better leader. They highlight the benefits of using the DISC test to understand themselves and their team members better, promoting understanding and empathy. They also discuss the positive impact of active listening and effective communication in resolving conflicts and improving relationships. They emphasize the value of continuous learning and the benefits of joining a leadership coaching group. Tina Ormond, DeBoer’s Auto Sales & Service Hamburg, NJ. Steve Hixson, Arts Automotive, Estes Auto Center, Longview, WA. Brian Nerger, Nerger's Auto Express, Bound Brook, NJ. Albert Stashluk, Automotive Magic, Kenvil and Lake Hopatcong, NJ Shawn Gilfillan, Automotive Magic, Kenvil and Lake Hopatcong, NJ. Shawn’s previous episodes HERE Show Notes
Watch Full Video Episode The Leadership Group Program (00:02:27) Discussion about a leadership program that helps owners and managers grow their team and improve their businesses. The Imposter Syndrome (00:06:08) Discussion about imposter syndrome and how participating in the program has helped build self-assurance and fill knowledge gaps. The Value of the DISC Test (00:07:33) Discussion about the benefits of using the DISC test to understand communication styles and improve team dynamics. Understanding the DISC Test Results (00:08:27) Discussion about the experience of taking the DISC test and how it reveals strengths and weaknesses. Using DISC Profiles in Hiring and Team Building (00:09:27) Exploring how DISC profiles can be used to assess potential employees and create a cohesive team. The Importance of Self-Awareness and Communication (00:11:08) Highlighting the significance of understanding individual DISC profiles and adapting communication styles accordingly for effective teamwork. The root of the problem (00:16:17) Discussion about identifying the root cause of a person's upset and resolving conflicts. Active listening and transformation (00:17:10) Importance of actively listening to others and how it can lead to personal growth and transformation. Benefits of team training (00:19:39) The benefits of team training in addressing interpersonal issues and improving communication within an organization. The importance of effective communication (00:24:55) Discussion on the value of clear and articulate communication in a leadership coaching group. The benefits of having a support network (00:26:33) Exploring the advantages of having a team outside of your own shop to provide support and guidance for leadership challenges. Improving performance through clear communication (00:30:10) Sharing a conversation between a technician and a coach, discussing the importance of setting clear intentions and removing emotions to develop a plan for improvement. The importance of effective communication (00:32:47) Understanding the different communication styles and needs of team members to improve productivity and support. The significance of clear goals and roles (00:35:08) Highlighting the importance of having a clear mission and goals for the team to enhance performance and avoid confusion. The power of active listening and understanding emotions (00:38:55) Exploring the three powerful elements of active listening: repeating the words, acknowledging emotions, and identifying commitments, to foster better communication and empathy. The power of support pillars (00:40:43) Discussion on the importance of having support pillars in business and how they can help in times of conflict and change. Availability of coaching and support (00:41:30) Encouragement to take advantage of coaching and support available outside of regular meetings to enhance learning and understanding. Impact of improved communication (00:42:58) The positive effects of improved communication on business growth, sales, and productivity, as well as personal development and motivation. Thanks to our Partners, AAPEX and NAPA TRACS Set your sights on Las Vegas in 2023. Mark your calendar now … October 31 - Nov 2, 2023, 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: -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 sweitzerperformance
Hey everyone, First I must say thank you to those of you that have taken the time to help me work through many of my startup issues! I'm still quite a ways off, about 8 months, but the future looks bright!
Anyway, its time for me to start writing employee handbooks and a shop operations manual. I have a few templates, but they are pretty general. I know a lot of the "my shop specific" items I want in these, but a lot of the cookie-cutter type tasks and items I'm sure I will forget trying to write the entire document from scratch.
Would any of you be willing to share these documents for your shop with me? I would very much appreciate you all's help!
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By carmcapriotto
The ERTC (Employee Retention Tax Credit) is something Hunt has talked about in the past (See Episode 10 and 33) but this week, he wants to discuss the current status of the IRS with regard to auditing and follow-up on businesses that have claimed this credit, such as:
IRS is upping their fines if you don't disclose all funds, even the legit ones. IRS amnesty programs: From a simple "Hey, I've got this account" to "I owe you, let's settle." The IRS usually has three years to ask for back taxes, but some exceptions exist. If you've taken the ERTC money, there's a two-year period where the IRS might have you on their radar. Bigger amounts = more attention. The ERTC program's end is in sight, with some parts set to phase out soon. Want more details? Click here: https://www.irs.gov/newsroom/to-protect-taxpayers-from-scams-irs-orders-immediate-stop-to-new-employee-retention-credit-processing-amid-surge-of-questionable-claims-concerns-from-tax-pros
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
Click to go to the Podcast on Remarkable Results Radio
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