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The Roadmap to Success: Work Smarter Not Harder [RR 884]


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Dan Taylor discusses various aspects of running a successful automotive repair business. He emphasizes the importance of having a roadmap to success, repackaging information to resonate with different people, utilizing reliable shop management systems, client and employee retention, effective marketing strategies, well-defined processes and procedures, and artificial intelligence in the industry. The episode concludes with a discussion on the importance of making money in the automotive repair industry and the need for a paradigm shift towards maintenance and customer service.

Dan Taylor, Senior Business Advisor, Transformers Institute. Dan’s previous episodes HERE

Show Notes

  • Retention: Keeping Top Employees [THA 327]
  • Is Your Company Culture Holding You Back? [RR 864]
  • The roadmap to success (00:01:17) Discussion on the importance of having a roadmap to success, both personally and for your team.
  • Repackaging and giving things in a different light (00:02:22) Exploration of how repackaging messages can resonate differently with people and lead to success.
  • Major components for success (00:03:16) Introduction of seven major components that can guarantee success if followed, along with the need to reassess and upgrade strategies.
  • Retention and Point of Sale Systems (00:10:04) Discussion on the challenges of retaining customers and the limitations of point of sale systems.
  • Marketing and Client Retention (00:11:01) Importance of marketing efforts for client retention and the impact on business growth.
  • Team Retention and Processes (00:14:44) The significance of team retention, the need for processes and procedures, and the constant improvement of organizational systems.
  • The importance of presenting all information to clients (00:19:57) Explains how some shops present all the necessary repairs to clients and allow them to decide what to prioritize.
  • Challenges in service maintenance and inspections (00:20:56) Discusses the challenge of inspecting and recommending services that have already been done or are not needed.
  • Utilizing data and technology to improve operations (00:22:05) Highlights the importance of integrating data and technology to streamline operations, improve customer service, and gain trust and credibility.
  • Sales and Relationship Building (00:29:45) The importance of sales and building relationships with clients in the automotive industry, and the need to educate clients about the value of maintenance.
  • Operations and Productive Technicians (00:36:37) The need for productive technicians and efficient operations in order to maximize profitability and provide quality assurance to customers.
  • The forgotten child (00:39:54) Discussion about the importance of the admin role in a shop, including timely financials and prompt paperwork.
  • Monitoring KPIs (00:40:35) Exploration of key performance indicators (KPIs) such as opportunities, closed rate, and client retention.

 

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/

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  • Have you checked out Joe's Latest Blog?

         0 comments
      Auto 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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