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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
Rick White discusses the challenges of maintaining focus and avoiding distractions. He explores the negative effects of distractions on productivity and share insights on how to improve focus. Rick White, a business coach, provides tips on creating bubbles of focus, scheduling tasks, and setting boundaries with distractions. He emphasizes the importance of having a clear destination and purpose, as well as the need to overcome obstacles and challenges.
Rick White, President and Lead Coach for 180BIZ, Listen to Rick’s previous episodes HERE.
Show Notes
The importance of focus and distractions (00:00:01) Discussion on distractions in daily life and the negative effects on productivity. Distractions in today's world (00:02:07) Exploration of the various distractions in modern life, including social media and psychological behaviors. Tips for improving focus (00:05:00) Rick White provides insights on improving focus, including creating bubbles of focus, scheduling tasks, and avoiding distractions. Discussion on the importance of staying focused on the goal and not comparing oneself to others.i se Overcoming obstacles and finding success through adversity (00:15:04) Rick White shares examples of successful individuals who faced challenges and overcame them, highlighting the importance of perseverance and resilience. The importance of having a destination (00:19:33) Discussion on the significance of having a clear goal or destination to create focus and avoid distractions. The power of the "why" (00:21:02) Exploration of the emotional aspect of setting goals and understanding the purpose behind them to stay motivated and focused. Creating a distraction-free workplace (00:26:16) Tips on minimizing distractions in the workplace, including setting boundaries. The importance of removing distractions (00:26:20) Discussion on the dangers of distractions in the auto service industry and the need to remove distractions for safety and productivity. Tips for maintaining focus (00:27:49) Insights on how to improve focus and avoid distractions, including writing down tasks and avoiding interruptions. The impact of social media on attention (00:32:18) Discussion on the attention-grabbing tactics used by social media platforms and the importance of using social media intelligently. The importance of focus and avoiding comparisons (00:34:40) The mistake of thinking that life and business are finite games, the negative effects of comparing oneself to others, and the importance of comparing oneself to their potential. The role of comfort zones and downtime (00:36:25) The benefits of the comfort zone as a place to recharge and recover, the importance of having downtime, and enjoying activities that provide comfort and relaxation. Maintaining focus and avoiding self-imposed stress (00:39:38) The importance of finding joy and fun in work, avoiding self-imposed stress, and creating a positive culture in the workplace. The importance of focus (00:43:03) Discussion on the impact of focus using the example of Michael Phelps gold medal. Getting a coach for more focus (00:43:50) The benefits of having a coach to improve focus and accountability. Expecting ups and downs in performance (00:44:30) Understanding that performance will fluctuate but as long as it trends upward, it's considered progress. Thanks to our Partners, AAPEX and NAPA TRACS.
Set your sights on Las Vegas in 2023. Mark your calendar now … October 31 - Nov 2, 2023, 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/
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By Joe Marconi
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