Intentionally Lowering Tensions in Conversations [RR 893]
-
Have you checked out Joe's Latest Blog?
-
.thumb.jpg.2b345efc275b9df0af2bbb306a10a78a.jpg)
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.
-
-
Similar Topics
-
By carmcapriotto
Recorded Live at AAPEX 2023, Andy Bizub and part owner Brandon Ludwikowski discuss the transition from technician to business owner, the importance of a positive attitude, and the tools and knowledge required for technicians. The conversation also covers the division of responsibilities within the company, decision-making processes, and the importance of understanding business fundamentals and financials. Brandon Ludwikowski, Midwest Performance Cars, Chicago and Northbrook, IL. Andy Bizub, Midwest Performance Cars, Chicago and Northbrook, IL. Andy’s previous episodes HERE. Show Notes
Attitude is Key (00:02:12) Brandon emphasizes the importance of having a positive attitude in the face of challenges and setbacks. Providing the Right Tools and Knowledge (00:03:19) Brandon discusses the need for owners to provide technicians with the necessary tools and knowledge to perform their job effectively. Finding the Best Training Sources (00:04:51) Andy explains how he identifies knowledge gaps in his team and seeks out the best training sources to enhance their skills and capabilities. Using a dashboard for learning and improvement (00:09:10) Discussion about the usefulness of a dashboard in identifying areas for improvement. Dealing with overconfidence and ego in technicians (00:09:42) The challenges of working with technicians who believe they know everything and the importance of leaving ego at the door. Considering succession planning and bringing on an ownership team. (00:11:01) The reasons behind bringing on an ownership team, including geographical considerations and planning for the future. The journey to becoming part owners (00:17:56) Brandon discusses the process of becoming a part owner of Midwest Performance Cars and the decision-making involved. Andy describes the complementary skills and characteristics of the three owners: Chris, Ryan, and Brandon. Future plans and ownership transition (00:24:34) Andy explains the terms of the deal, including the timeline for the owners to fully pay for their shares and the possibility of Andy staying on as an advisor. The importance of balance sheets (00:31:46) Andy explains the importance of understanding balance sheets and how they show the true worth of a business. Teaching finance to the team (00:34:02) Andy discusses how he teaches finance to his team, emphasizing the importance of understanding numbers and making informed decisions. Transitioning from a single owner to a business owner (00:34:24) The conversation shifts to the challenges faced by single owners and how they can start transitioning to becoming successful business owners. The balance sheet and cash flow statements (00:34:40) Explanation of the importance of understanding balance sheets and cash flow statements for business owners. The benefits of having a coach (00:36:17) Discussion on the positive impact of having a coach for business owners. Transitioning to a business mindset (00:37:08) The importance of shop owners understanding the business side of their industry and becoming businessmen, rather than just shop owners. Thanks to our Partners, AAPEX and NAPA TRACS Set your sights on Las Vegas in 2024. Mark your calendar now … November 5th-7th, 2024. 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: -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 -Visit the Website: https://remarkableresults.biz/ -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
-
By carmcapriotto
In this episode of "The Weekly Blitz," Coach Chris Cotton discusses the importance of being prepared in life and business, drawing from his own recent experiences. He shares a harrowing account of a multi-vehicle accident he witnessed, emphasizing the fragility of life.
He also expresses frustration at bystanders who filmed a deceased person rather than offering help. Cotton encourages listeners to be ready to help others and to have plans in place should something happen to them. He ends the episode with a message of gratitude for his listeners and the importance of continuous learning and growth in the auto repair industry.
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
The Near Accident and Reflection (00:02:17) Coach Chris Cotton recounts a recent near accident on the road and reflects on the fragility of life.
Assessing the Accident Scene (00:05:51) Coach Chris Cotton describes the aftermath of the accident and his efforts to check on the drivers involved.
Reflecting on Life and Gratitude (00:09:07) Coach Chris Cotton emphasizes the importance of being mentally, physically, and spiritually prepared for life and expresses gratitude for his own life and listeners.
Coach Chris Cotton expresses his frustration with people taking pictures and videos of a tragic accident instead of offering help, and emphasizes the importance of being prepared, spiritually ready, and grateful.
Connect with Chris:
[email protected]
Phone: 940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/
AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros
Click to go to the Podcast on Remarkable Results Radio
-
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
-
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
-
By carmcapriotto
Inspiring story of a shop owner Kendall Warnock who went from growing up on a Native American reservation to successfully owning and operating a thriving business.
Thank you to RepairPal for sponsoring The Auto Repair Marketing Podcast. Learn more about RepairPal at https://repairpal.com/shops
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]
Click to go to the Podcast on Remarkable Results Radio
-
-
-
Our Sponsors
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now