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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 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
Gary Gunn discusses how mentoring differs from coaching and how it can benefit shop owners in defining their own success and implementing necessary changes in their businesses. Gary shares his experience as a mentor and offers tools and strategies for shop owners to implement new ideas and overcome challenges. He emphasizes the importance of working on the business and oneself, creating a scoreboard for business performance, and understanding the true cost of doing business. Gary also explains the role of a true mentor and the value of assessments in tailoring mentoring approaches. Carm and Gary believe that mentoring can enhance the value of coaching and help shop owners gain confidence and make informed decisions.
Gary Gunn, Auto Shop Showcase
Show Notes:
The importance of mentoring for shop owners (00:01:12) Gary Gunn discusses the concept of mentoring for shop owners and how it can benefit them in achieving better lives. Defining mentoring and its role in implementing change (00:05:56) Gary explains his definition of mentoring and how it involves helping shop owners implement changes that will lead to true freedom and success in their businesses. The role of a mentor in addressing specific struggles (00:07:03) Gary talks about how a mentor can assist with specific challenges such as hiring, budgeting, and determining financial goals, and how their role is to help mentees become self-sufficient in these areas. Implementing Ideas from Training (00:09:35) Discussion on the challenges shop owners face when trying to implement new ideas and how mentoring can help them overcome resistance and successfully implement changes. Using Tools for Implementation (00:11:32) Explanation of the five tools that shop owners can utilize to implement changes in their business, including staff training sessions and staff behavior sessions. Understanding the True Cost of Doing Business (00:15:02) Explanation of the concept of the true cost of doing business and how it can help shop owners analyze their financials and make informed decisions. The missing piece for shop owners (00:19:05) How mentoring can complement coaching and provide shop owners with additional value and guidance. Group mentoring and individual sessions (00:22:01) The different formats of mentoring, including group mentoring sessions and one-on-one sessions, based on the specific needs of the participants. The concept of mentoring in the automotive industry (00:26:50) Discussion on the importance of accepting the need for mentoring and the discrepancy between appearances and reality in the industry. The potential benefits of seeking a mentor (00:27:10) Highlighting the potential positive impact of finding a mentor to help individuals and businesses grow and improve. The role of a mentor as a supplement to coaching (00:28:45) Explaining how a mentor can work alongside existing coaching programs to provide additional support and guidance to shop owners. 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:
-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
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 nptrb
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