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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 Joe Marconi
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By Hands On
I keep getting a request now and then to go to someones house. I am starting to wonder, is it because they think it would be cheaper, or is it like in that show billions, where the guy has so much money, he can afford to pay chef ryan to come to his house to cook dinner.
How much would it take to get each of you to come to my house to work on my car? Honest answers, and you have to give an amount.
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By carmcapriotto
Meg Lewis, BJ’s Automotive Diagnostic Center, Belfast, ME, NAPA Auto Care Technician of the Year 2022. Carm and Meg discuss the shop's transition to a four-day workweek to promote work-life balance, the challenges of finding and retaining skilled technicians. Meg shares her experience as a female technician. They also discuss the need to change the perception of the automotive industry and attract more women. The episode concludes with a discussion on succession planning and the shop's community involvement
The decision to move to a four-day workweek (00:03:14) Meg discusses the idea of transitioning to a four-day workweek and the process of deciding which day to take off. The role of a diagnostician as a technology specialist (00:07:55) Carm suggests renaming the role of a diagnostician to a technology specialist, highlighting the importance of technology in automotive diagnostics. The collaboration between a technology specialist and a mechanical specialist (00:08:48) Carm and Meg discuss the complementary roles of a technology specialist and a mechanical specialist in automotive repair and the importance of their collaboration. Challenges with staffing during COVID-19 (00:10:02) The impact of COVID-19 on staffing, including layoffs, struggles to find new technicians, and the use of apprenticeship programs. The decision to pursue automotive technology (00:17:36) Meg discusses her early interest in working with cars and her decision to pursue automotive technology in high school and college. The importance of attracting more women to the automotive industry (00:18:09) Carm suggests changing the perception of the industry and highlights the unique traits that women can bring to the workplace. Overcoming physical challenges as a female technician (00:19:31) Meg talks about how she adapts and finds creative solutions to overcome physical challenges in her work as a female technician. Importance of communication in internal succession (00:27:14) The significance of regular and effective communication between the owner and the successor in a business's internal succession process. 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
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-The Aftermarket Radio Network: https://aftermarketradionetwork.com
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By carmcapriotto
How can different personality types impact leadership and success in business? Murray Voth discusses the importance of understanding personality types in business. He introduces a new acronym, CASE, which stands for Controller, Analyzer, Socializer, and Entrepreneur. The conversation also covers the role of human motivation, clear expectations and accountability in managing employees, and the importance of giving space to your partner in a marriage and how it applies to business relationships. Find out how you can create a harmonious and productive team dynamic, where individuals can play to their strengths and contribute effectively to the business. Murray Voth, RPM Training. Listen to Murray’s previous episodes HERE Show Notes
CASE: Controller, Analyzer, Socializer, Entrepreneur Defaulting to Personality Types Under Stress (00:08:42) Discussion on how individuals default to certain personality types under moments of stress, fear, and overwhelm. Understanding and Utilizing Different Personality Types in Leadership (00:09:45) Exploring how different personality types, such as controllers, analyzers, socializers, and entrepreneurs, can contribute to effective leadership and business success. Using the SOAR Acronym for Problem-Solving (00:16:19) Introduction of the SOAR acronym (Situation, Outcome, Action, Results) as a tool for problem-solving and decision-making in coaching and personal development. The Outcome and Visualization (00:17:08) Discussing the importance of imagining the desired outcome and visualizing the qualities and skills of a potential service advisor. Taking Actions (00:17:57) Exploring the necessary actions to achieve the desired outcome, such as creating an advertisement, conducting interviews, and ultimately hiring a service advisor. Dopamine and Accountability (00:18:51) Highlighting the role of dopamine in motivating and rewarding oneself throughout the process, as well as redefining accountability as providing clear expectations and tools for employees. The technician who is a serial or the visionary (00:25:22) Discusses the different types of technicians and how to effectively utilize their skills and strengths in a shop environment. The analyzer technician who spends excessive time diagnosing (00:26:17) Explores the reasons behind why some technicians feel the need to overanalyze and prove themselves, and shares a personal story about an apprentice. The importance of decision making and understanding personal strengths (00:30:46) Highlights the impact of decision making on business and personal life, and emphasizes the importance of making decisions based on strengths rather than getting stuck in analysis paralysis. The Growth Mindset vs Fixed Mindset (00:35:20) The concept of growth mindset vs fixed mindset and how it affects learning and personal development. Fear of Regret (00:37:43) The fear of regret and how it holds people back from making decisions and taking risks. The Check Engine Lights of Your Business (00:41:46) Teaching business owners to diagnose their business using KPI technology and scanning tools. Learning How to Learn (00:42:31) Beta testing the idea of using personality assessments to understand team dynamics and improve business performance. Playing to Strengths in the Shop (00:43:36) Positioning team members based on their strengths, such as having analyzers in the background and socializers at the front counter. 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
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By carmcapriotto
Hunt explores the crucial differences between shop management software and QuickBooks, focusing on the impact on parts margin. This episode is a must-listen for shop owners and financial managers seeking clarity and efficiency in their business operations.
• Dual Bookkeeping Explained: Unravel the reasons behind running two sets of books and its effect on your financials.
• Real-Life Client Case: Learn from a client's experience with discrepancies in parts margin between shop management systems and QuickBooks.
• Strategies for Financial Accuracy: Gain insights into aligning financial data across platforms for precise tracking and profitability.
Thanks to our partners, NAPA TRACS and Promotive
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.com
It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: [email protected]
Get a copy of my Book: Download Here
Aftermarket Radio Network
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