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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 nptrb
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By Joe Marconi
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By carmcapriotto
'Car Coach' Lauren Fix discusses the topic of synthetic fuel, explaining Porsche's investment in e-fuel as an alternative to electric conversion. Lauren shares her thoughts on EVs and the government's role in mandating their use. She believes in the freedom of choice when it comes to the type of vehicle one wants to drive, be it electric, hybrid, diesel, or gas.
Lauren Fix, Car Coach Reports, Total Car Score Podcast, is an automotive expert and analyst based in Buffalo, NY. She has written three books on automobiles. She has appeared on CNN, Fox News, Newsmax TV, CNBC, and USA Radio’s Daybreak USA show. Lauren’s previous episodes HERE
Show Notes:
Watch Full Video Fuel for the Future (00:03:39) Discussion on the development of synthetic fuel by Porsche and its potential impact on the automotive industry. OEMs and Synthetic Fuel (00:08:27) Exploration of the interest and excitement among major automakers like GM, and Ford in the potential of synthetic fuel as an alternative to traditional gasoline. Electric Vehicle Range Limitations (00:09:55) Discussion on the limited range of electric vehicles and its impact on certain professions like landscaping and plumbing. Electric Vehicle Mandates and State Opposition (00:11:25) Exploration of the opposition to electric vehicle mandates, particularly in states outside of California, and the potential blockage of such mandates by Congress. Financial Implications for Car Manufacturers (00:15:04) Insights into the financial challenges faced by car manufacturers in complying with electric vehicle mandates and the potential fines for non-compliance. The transition to electric vehicles (00:16:51) Discussion on the transition from traditional vehicles to electric vehicles and the possibility of putting an ICE engine in an EV platform. Politics and government influence on the automotive industry (00:18:10) Exploration of the political factors influencing the push for windmills, solar panels, and electric cars, and the impact on the availability and affordability of alternative fuels. The impact of UAW strike on car production (00:22:36) Concerns about the potential UAW strike and its potential impact on car production, leading to a shortage of vehicles and affecting the used car market. Challenges with EPA's automobile emissions guidelines (00:27:02) Critique of the EPA's automobile emissions guidelines and the concerns about mandating electric cars. Slow growth of electric cars in the US (00:30:09) Exploration of the low adoption rate of electric cars in the US and the potential for slow growth in the market. 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
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Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Dr. David Weiman discusses the emotional attachment people have to their cars and how the repair industry can empathize with customers during the process of saying goodbye to a beloved vehicle. This case study was prompted by Dr. David's own experience with saying goodbye to his car unexpectedly. He discusses the parallel between the automotive industry and the medical field in terms of diagnosis and repair, and the importance of trust and the role of service professionals in providing certainty and safety to customers. Dr. David Weiman is the president of Weiman Consulting, a leadership consulting firm in Philadelphia PA. Listen to David’s previous episodes HERE
Show Notes
The emotional attachment to cars (00:01:09) The emotional attachment people have to their cars and the importance of empathy in dealing with the loss of a favorite vehicle. The connection between memory and cars (00:02:04) How memory is connected to cars and how the brain creates memories through touch and experience. The parallel between the automotive and medical industries (00:07:20) The parallel between the automotive industry and the medical field in terms of diagnosis, repair, and the interaction between professionals and customers. The psychology of decision making (00:08:25) Explains the importance of presenting options to customers in a way that they can understand and make a decision. Using visuals to aid understanding (00:10:10) Discusses the use of photographs and videos to help customers understand technical explanations and repairs. The dilemma of repairing an old car (00:13:01) Explores the decision-making process when faced with costly repairs on an old car with corrosion issues. The decision-making process (00:16:36) The three decisions customers have to make regarding their car: what to do with the old car, how to get around without a car, and finding a reliable used car. The importance of trust in service industries (00:17:41) The value of trust in service industries, and how it extends beyond the core service to ancillary areas like advice on purchasing a new car. Creating a deeper connection with customers (00:20:02) The impact of sharing personal experiences with customers, creating a stronger bond and deeper connection with them. Finding a gem of a car (00:26:27) Dr. David describes the serendipitous discovery of a well-maintained 2011 Lexus with low mileage and impeccable condition. The training of service advisors (00:33:40) Discussion about the training provided to service advisors in the automotive industry, focusing on helping them deal with customer emotions and uncertainties. The psychology of the automotive service counter (00:33:40) Suggestion to have courses or workshops on the psychology of the automotive service counter, highlighting the need for understanding and empathizing with customers. Similar situations faced by customers (00:34:38) Acknowledgment of the many customers who come into shops with similar situations, emphasizing the importance of learning from Dr. Dave Weiman's story.
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:
-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 Ruben Van Zenden
Today, we simply cannot ignore social media, everyone is using it whether you are a fan or not. Personally, I think it has its negative and positive sides.
I have been looking at 100+ car repair shops and noticed that only a hand full are using social media marketing, for example, Facebook advertising.
Why are so few car repair shops making use of this, in my opinion, great opportunity to increase car count?
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