Are Your Customers More Sensitive to Labor or Part Prices?
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By Joe Marconi in Joe's Blog0 commentsIt always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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By Joe Marconi
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By carmcapriotto
Welcome to the Auto Repair Marketing Podcast with Brian Walker. In this solo episode, Brian discusses the importance of taking massive action during slow business periods.
Drawing from a recent conversation with a shop owner, he shares strategies to combat slow times, including leveraging networking groups like BNI, using your CRM effectively, creating engaging video content, and offering incentives.
Brian also highlights the importance of personal health and well-being, emphasizing that a healthy business owner is crucial for a thriving business.
Tune in for practical tips to help fill your bays and keep your business thriving.
Thank you to RepairPal for sponsoring The Auto Repair Marketing Podcast. Learn more about RepairPal at https://repairpal.com/shops
Lagniappe (Books, Links, Other Podcasts, etc)
Greg Buckley at Buckley's Auto Center : https://www.youtube.com/@BuckleysAutoCare/featured
Charlie's Foreign Car
https://www.youtube.com/@fixingcars
Royalty Auto Service
https://www.youtube.com/@theroyaltyautoservice
Dave’s Auto Center
https://www.youtube.com/@DavesAutoCenterCenterville
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
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By Joe Marconi
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By carmcapriotto
Thanks to our Partner, NAPA Auto Care Murray Voth, owner of RPM Training, discusses the importance of language in the automotive industry, advocating for a shift from "labor rate" to "service rate" to better reflect the value provided. He also dives into financial strategies for shops, emphasizing the significance of setting the right service rate and understanding gross profit to ensure business profitability. Murray Voth, RPM Training. Listen to Murray’s previous episodes HERE. [email protected] Show Notes
The breaks for breasts initiative (00:00:13) Discussion about the initiative started by two shop owners to raise funds for breast cancer research. https://brakesforbreasts.com The rise of the mechanical and technology specialist (00:02:28) A language shift in the industry and the importance of recognizing the rise of mechanical and technology specialists. https://remarkableresults.biz/rise Transitioning from diagnostics to testing (00:03:04) Discussion about the shift in terminology from diagnostics to testing to improve customer perception and willingness to pay. Changing terminology from labor rate to service rate (00:04:09) The importance of changing the terminology from labor rate to service rate and its impact on customer perception. Professionalism and perception in the industry (00:05:26) Discussion about the importance of professionalism and perception in the industry and its impact on customer behavior. Showing the value of service rates (00:13:24) Strategies for showing the value of service rates to customers, beyond just raising prices. Analogies for service rate and cost (00:14:25) Using analogies of fast food restaurants and steakhouses to explain the concept of service rate and cost. NAPA Auto Care Apprentice Program (00:17:05) Information about the NAPA Auto Care apprentice program as a solution to the technician shortage. Financial calculations and analysis (00:19:26) Murray Voth shares calculations and analysis of a shop's financial data, including occupancy costs, labor rates, and profit margins. Determining the right service rate (00:22:05) Discussion on adjusting service rates, parts margin, and other expenses to optimize profitability while considering market competition. Challenges and mindset shift (00:30:14) Exploration of the emotional and intellectual barriers shop owners face when making financial decisions and setting service rates. Wages and effective proficiency (00:33:40) Analysis of technician wages and the impact of selling work properly on the effective service rate, setting goals for improvement. Coaching Gross Profit (00:34:52) Murray discusses coaching gross profit, creating net profit, and making changes to increase revenue. Back-End Sales Impact (00:35:48) The impact of service improvements on parts purchases, revenue, and margin. Behavior Coaching (00:37:09) Murray talks about coaching to behavior, raising inspections, and the 100% rule for vehicle inspections. Facility Service Rate Calculator (00:39:02) Murray offers a facility service rate calculator and discusses how to obtain it. Odd Numbers and Service Rates (00:40:52) Murray explains the significance of odd numbers in service rates and how to use the calculator effectively. Profit in the Estimate (00:44:39) Murray emphasizes the importance of the estimate in generating gross profit and providing value to clients.
Thanks to our Partner, NAPA Auto Care Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -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
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