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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 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
"AutoTechIQ helps car and truck owners identify problems their vehicles are having. We provide proven auto repair work that has solved similar issues thousands of vehicle owners have faced. We also recommend auto repair shops in your area based on trust, customer education, and quality of work. These shops inspect your car using a courtesy Digital Vehicle Health Inspection and create a state of health report with symptom information and necessary fixes." Frank Scandura and Krista Erickson discuss how AutoTechIQ aims to bridge the gap between shops and customers by creating better relationships through technology and transparency. The goal is to empower customers with knowledge and build trust. Frank Scandura, Frank’s European Service, Las Vegas, NV. VP of Certified Shop Relations and Member of the Board of Directors, AutoTechIQ. Frank’s previous episodes HERE. Kirsta Erickson, VP of Client Services and Marketing, AutoTechIQ Show Notes
AutoTechIQ: https://www.autotechiq.com/ Transparency is the New Trust (00:01:02) Discussion on the importance of transparency in building trust with customers and how it relates to online reviews and consumer behavior. Using Data to Inform Customers (00:03:52) Explanation of how AutoTechIQ utilizes data from repair shops to provide customers with relevant information and help them make informed decisions about their automotive repairs. The Power and Carefulness of AI (00:08:55) Exploration of AI as a smart algorithm and a powerful search engine that requires careful questioning to avoid getting incorrect answers. Transparency and Expertise in Automotive Services (00:10:33) Explanation of how AutoTechIQ aims to connect customers with expert shops that provide transparency, digital inspections, and communicate in a language that customers understand. The disruptors (00:15:16) Discussion on the impact of disruptors in various industries and the need for new solutions. Vetting process for certified shops (00:16:30) Explaining the requirements and process for certifying shops, including reputation, online reviews, and digital inspections. Driving consumers to shops (00:17:54) The importance of bringing consumers to shops through technology and creating a bridge between customers and shops. The digital vehicle inspection revolution (00:23:06) Discussion on the importance of digital vehicle inspections and the need to educate shops and customers about its benefits. The percentage of shops doing digital vehicle inspections (00:23:33) Exploration of the industry-wide adoption of digital vehicle inspections and the varying definitions of what constitutes a digital inspection. Disrupting business directories with transparency (00:25:22) The potential impact of AutoTechIQ on business directories, focusing on transparency and high-quality service. 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
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private facebook group go here:https://www.facebook.com/groups/autorepairmarketingmastermind
In this episode of the "Weekly Blitz" podcast, host Coach Chris Cotton discusses the concept of value in the auto repair business. He emphasizes that value goes beyond price, encompassing quality service, skilled labor, genuine parts, and transparency. Cotton debunks the myth that being the cheapest shop guarantees success, instead advocating for a balance between price, quality, and value. He also highlights the link between staff compensation and value, stating that a well-compensated team is more motivated and productive, enhancing the overall customer experience.
The concept of value and self-esteem [00:01:02] Discusses the importance of shop owners valuing themselves and their businesses in order to show value to customers and potential employees.
Defining value from a customer's perspective [00:02:14] Explains how customers perceive value as the total package of quality service, skilled labor, genuine parts, transparency, and other benefits.
The balance of price, quality, and value [00:03:20] Highlights the importance of striking the right balance between price and quality to provide real value to customers, debunking the myth that the cheapest prices are always the best.
Connect with Chris:
[email protected]
Phone: 940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/
AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #autoops #onlinebooking #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
"76% of people have glossophobia, the fear of public speaking. They fear it more than death. And it's a little bit scary that someone might fear dying more than they fear getting up in front of a group of people. But that's why you go in this safe group, you overcome, and they're all there to see you become successful." Recorded Live at ASTE 2023, Carm Capriotto welcomes Chris Cloutier, Craig O'Neill, Sara Fraser, and Tracy Capriotto, who are all Remarkable Results Toastmasters group members. They discuss the importance of effective communication, the value of joining Toastmasters to improve speaking skills, the benefits of feedback and evaluation in Toastmasters, the significance of timing in public speaking, and the need for better communication in the automotive industry. They also discuss generational differences and the challenges of relating and connecting with others. Discover how improving your speaking abilities can help you build relationships, lead with impact, and leave a lasting impression. Craig O’Neill, VP of Training, AutoFlow. Listen to Craig’s previous episodes HERE Chris Cloutier is co-owner of Golden Rule Auto Care in Dallas Texas and CEO of Autoflow. Chris’s previous episodes HERE Sara Fraser, Haas Performance Consulting, Sara’s previous episodes HERE. Show Notes: Communication and Toastmasters (00:01:41) Discussion about the relevance of communication skills and the creation of a virtual Toastmasters group called Remarkable Results Toastmasters. AI and its impact (00:02:07) Conversation about the potential benefits and concerns regarding AI technology and its effect on various industries, including the automotive industry. The importance of in-person communication (00:08:13) Discussion on the significance of maintaining personal connections despite advancements in technology. The value of communication in relationships (00:09:03) Highlighting the significance of phone calls and personal interactions in maintaining relationships and connections. Toastmasters Feedback and Learning (00:16:30) Discussion about the benefits of receiving feedback and coaching in Toastmasters, and how it helps members grow and learn. Maximizing Profit without Sacrificing Service (00:17:15) Exploration of how to increase profitability in an auto repair business while maintaining quality service. The Importance of Timing in Public Speaking (00:23:44) Conversation about the discipline of speaking within a designated time frame, with examples from Toastmasters. The importance of timing in presentations (00:24:52) Discussion on the significance of timing in presentations and the discipline it requires to effectively manage time during a class or training session. The role of effective communication in improving the industry's image (00:26:23) Exploration of how effective communication can help improve the reputation and image of the industry. The importance of connecting and relating (00:32:39) Discussion on the significance of better relating and connecting in the industry, particularly in terms of communication and mastering people skills. Challenges in connecting with the next generation (00:33:43) Exploration of the difficulties in connecting with the next generation in the industry and the need for relationship building and authentic experiences. Overview of Toastmasters meetings (00:37:08) Explanation of the structure and format of Toastmasters meetings, including introductions, planned speeches, evaluations, and the fun and beneficial table topics segment. The importance of effective communication during crisis (00:47:33) Discussion on the need for leaders to connect with people and ease tensions during times of crisis. The value of Toastmasters in improving speaking skills (00:48:33) Exploration of how Toastmasters can help individuals eliminate filler words like "ums" and "uhs" in their speech. The importance of practicing and learning to become a good speaker (00:49:52) Insights into the fact that great speakers, including lawyers, are not naturally born but have put in time and practice to improve their skills. 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 -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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