Conference ROI: Extend Your Conference Investment 10X [RR 886]
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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
Join our panel as they discuss the use of deferred work as a sales growth tactic. They share their insights on the importance of effective communication, customer education, and creating a positive exit experience. They also highlight the role of CRM systems, DVI's, and proactive maintenance. Remember, the key to success in selling deferred work lies in discipline, process, and repetition. Tom Schearer, Schearer’s Sales and Service, Allentown, PA. Tom's previous episodes HERE Bill Greeno, Quality Automotive Servicing, Truckee, CA. Bill’s previous episodes HERE Jaron Kleber, Repair Shop of Tomorrow, National Sales Manager. Jaron’s previous episodes HERE Show Notes: The discovery conversation and setting expectations (00:04:03) The importance of having a conversation with clients to set expectations about the service process and timeline. The exit experience and creating a positive lasting impression (00:04:49) The significance of providing a positive exit experience for customers to encourage repeat business and referrals. Bringing back the personal touch after the touchless experience (00:06:57) The need to reintroduce personal interactions with customers after the touchless experience during the COVID-19 pandemic. The importance of asking questions (00:08:49) The importance of having a conversation with customers and asking them questions to understand their concerns and needs. Deferred work as a liability (00:10:16) The potential risks of deferred work, emphasizing that shop owners are responsible for ensuring the safety of customers' vehicles and can be held liable for any accidents or issues related to deferred maintenance. Transitioning to proactive maintenance (00:13:39) The need for shops to transition from a reactive mindset to a proactive maintenance approach, using digital inspections and technology to educate customers about the maintenance needs of their vehicles. The importance of vehicle inspections and customer involvement (00:18:30) Discusses the significance of conducting vehicle inspections and involving customers in understanding how they use their vehicles. Managing and leading deferred work (00:21:39) Explores strategies for managing and leading deferred work, including the frequency of contacting customers and offering incentives to schedule repairs. The importance of CRM and phone calls (00:26:07) Discussing the effectiveness of CRM systems and the percentage of customers responding to phone calls and utilizing coupons. Building trust and scheduling future appointments (00:30:10) The significance of human interaction in building trust and the potential for scheduling future appointments based on client history and vehicle data. The importance of complete inspections (00:35:01) Discusses the significance of providing a complete inspection to customers and educating them on its importance. Consequences of not addressing issues (00:36:00) Talks about the consequences that customers may face if they don't address the issues in a timely fashion. Setting expectations and building relationships (00:36:54) Highlights the importance of reminding customers that they are valued clients and explaining how the shop operates, including follow-ups and addressing deferred work. 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 -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
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
Aldo Gomez discusses the significance of self-understanding and acceptance in improving sales performance. Aldo shares his journey from being a service advisor to a sales trainer, emphasizing the importance of practicing presentation scripts and handling customer responses. He also differentiates between coaching for performance and development, highlighting the value of personal growth. Aldo reassures introverted individuals that they can be successful in sales and stresses the importance of a strong work ethic. Aldo Gomez, Business With Purpose, Sales Trainer, http://www.bwpcoach.com Show Notes:
Understanding and Accepting Yourself (00:01:48) Aldo discusses the importance of understanding and accepting oneself in sales training, particularly when it comes to delivering presentations and scripts. Practicing the Presentation (00:03:59) Aldo shares his personal experience of practicing the sales presentation in various locations, such as in front of a mirror and in the car, to become comfortable and natural with the script. Being a Better Listener (00:04:48) The script is not meant to oversell or undersell, but to give confidence and allow the salesperson to focus on being a better listener during interactions with customers. The struggle that got you to where you are (00:09:57) Aldo shares his experience of starting as a service advisor and the challenges he faced. The importance of being a good student (00:13:16) Carm and Aldo discuss the significance of being a good student and learning from experienced mentors. Reading and its benefits (00:16:18) Aldo talks about the importance of reading, how it develops the mind, and the impact it has on vocabulary and personal growth. The importance of being a better person for better performance (00:19:15) Coaching for performance focuses on making salespeople better individuals to improve their motivation and job performance. Embracing introversion in sales (00:20:06) Being an interesting introvert can be advantageous in sales, and it is better to focus on listening skills rather than being an exciting extrovert. The value of personalized and interactive training (00:21:16) The training provided by Aldo Gomez and Barry Barrett is unique because it is tailored to individuals or small groups, allowing for more personalized attention and overcoming shyness. They also use role play and review actual phone calls with customers for effective learning. The importance of being grateful for your job (00:28:04) Discussion on working as a service advisor and the benefits of the job. Aldo's journey from service advisor to sales trainer (00:28:57) Aldo's background and experience working in various jobs before becoming a sales trainer. Training for development and changing perspectives (00:31:08) The approach to sales training, focusing on personal development and changing perspectives to improve performance. Thanks to our Partner, Dorman Products.
Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
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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