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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 Changing The Industry
Episode 138 - Revolutionizing Industry Training With Paul & Kristin Danner At ASTE 2023
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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
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Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
The EV/Hybrid training you've been searching for. Carolyn Coquillette, the President and CEO of Earthling Training and Earthling Automotive, and Jack Rosebro, the Head of Training at Earthling Automotive discuss their insights on the growing market of EVs, their unique approach to EV training, and how they adapted to the challenges of the COVID-19 pandemic. Carolyn Coquillette, the President and CEO of Earthling Training and Earthling Automotive. Listen to Carolyn’s other episodes HERE. Jack Rosebro, the Head of Training at Earthling Automotive. [email protected] Show Notes:
Earthling Automotive Training The Dream of Being an EV Training Specialist (00:02:53) Carolyn and Jack discuss the watershed moment that led them to focus on EV training and the similarities to their previous experience with hybrid vehicles. Small Class Sizes and Effective Learning (00:08:41) The importance of small class sizes for effective learning and how it was influenced by their experience training through COVID-19. Utilizing technology in training (00:09:49) Enhancing the learning experience in the classroom. The immersive learning experience (00:11:10) The decision to have individual students work independently rather than in paired groups, allowing for a more immersive learning experience. The importance of basic electrical knowledge (00:18:16) Discussion on the significance of understanding basic electrical concepts in automotive diagnostics. Assessing technicians' background knowledge (00:19:18) The process of assessing technicians' electrical knowledge before enrolling them in specific classes. Tracking progress and improvement (00:23:32) The use of case studies and comprehensive notes to track technicians' progress and ensure effective training. Training in the Deep End (00:25:46) Discussion on the importance of hands-on training and the limitations of slide presentations. Investing in Community Colleges (00:28:05) Highlighting the value of community colleges in providing hands-on training and the need to support and invest in them. Facing the Unknown (00:31:12) Encouraging instructors to embrace new technologies, such as EVs, and challenge themselves to continue learning and adapting their teaching methods. The Paradigm Shift in the Automotive Industry (00:33:53) Discussion about attracting people with a computer science mindset to the automotive profession and the need for a paradigm shift in what a car is. The Profound Impact of EV Training (00:35:04) A story about a student who realized that everything is different when working on Teslas and how it can change a person's perspective forever. 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 Joe Marconi
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