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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
Today on Business by the Numbers, Hunt explores key strategies for enhancing business success through effective team management and development, as well as the long-term benefits of strategic employee management and development for sustained business success.
• Strategic Value of Team Retreats: Insights into how team retreats and paid time off (PTO) contribute to employee satisfaction and business growth.
• Collaboration in a Hybrid Work Environment: Adapting to modern work models and the importance of in-person collaboration for team dynamics.
• Investing in Employee Well-being and Training: The critical role of continuous training and employee appreciation in boosting productivity 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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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
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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
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By Joe Marconi
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By carmcapriotto
Recorded Live at AAPEX 2023, Bill Hanvey and Paul McCarthy give insights into Right to Repair, what it takes to put on a massive show encompassing 2,600 exhibitors, and 46,000 buyers, and a recap of Magic Johnson's engaging keynote. In a recent study, by 2035 there could be a 54% decline in market share due to repair restrictions, translating to $92 Billion lost by the independent aftermarket. This issue is not just about the industry, but also about the consumers who rely on affordable and accessible auto services. Bill Hanvey, President and CEO of the Auto Care Association. Find Bill’s other episodes HERE. Paul McCarthy, President and CEO of MEMA (Motor & Equipment Manufacturers Association). Find Paul’s other episodes HERE. Show Notes
The impact of Right to Repair (00:02:58) Bill Hanvey and Paul McCarthy discuss a study by Roland Berger that predicts a decline in market share for the independent aftermarket due to repair restrictions. The importance of grassroots efforts in right to repair (00:04:51) The role of grassroots efforts and listener engagement in gaining support for the Right to Repair bill. Exceeding pre-COVID numbers at AAPEX 2023 (00:11:42) Conversation about the number of exhibitors and buyers at AAPEX, and positive feedback received. The technology-driven automotive industry (00:12:46) Exploration of the automotive industry's shift towards technology, the importance of data, and the excitement and opportunities it brings. The breakfast panel for next year (00:19:10) Discussion about planning for the next year's breakfast panel and the constant effort to innovate the show. The larger show for next year (00:19:33) Announcement of a larger show for the next year with more space and exciting new technology and innovations. Magic Johnson's appearance (00:20:22) Conversation about how Magic Johnson was chosen as a speaker and his impressive presence and interactions with the audience. 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/ -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
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