Auto Repair Customer Service 101
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By Joe Marconi in Joe's BlogAuto 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
Hunt explores the crucial differences between shop management software and QuickBooks, focusing on the impact on parts margin. This episode is a must-listen for shop owners and financial managers seeking clarity and efficiency in their business operations.
• Dual Bookkeeping Explained: Unravel the reasons behind running two sets of books and its effect on your financials.
• Real-Life Client Case: Learn from a client's experience with discrepancies in parts margin between shop management systems and QuickBooks.
• Strategies for Financial Accuracy: Gain insights into aligning financial data across platforms for precise tracking 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
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 captivating episode of "The Weekly Blitz," Coach Chris Cotton and Coach Mike take listeners on a deep dive into the remarkable transformation of a family-owned auto repair shop nestled in the heart of Louisiana. With their wealth of knowledge and expertise, the coaches explore the intricacies of ethical selling strategies, shedding light on the importance of building trust and fostering long-lasting relationships with customers.
Drawing from their own experiences, Coach Chris and Coach Mike delve into the unique dynamics of working with family in a business setting. They discuss the challenges and rewards that come with such a setup, emphasizing the significance of clear communication, mutual respect, and shared goals. Listeners gain valuable insights into how to navigate the complexities of family dynamics while maintaining a thriving and harmonious business environment.
Throughout the episode, the coaches stress the critical role of assembling the right team for success. They emphasize the importance of hiring individuals who align with the company's values and possess the necessary skills to deliver exceptional service. Additionally, they highlight the significance of fostering a culture of accountability, where team members take ownership of their responsibilities and strive for continuous improvement.
Coach Mike shares his personal journey of implementing transformative changes within the family-owned auto repair shop. He discusses the benefits of leveraging modern marketing channels and analytics to reach a wider audience and drive business growth. Listeners gain valuable insights into the power of data-driven decision-making and the impact it can have on the overall success of an auto repair business.
Sponsored by Shop Marketing Pros, this episode aims to equip auto repair business owners with the knowledge and tools needed to thrive in the ever-evolving automotive industry. By providing a comprehensive exploration of ethical selling strategies, the dynamics of working with family, and the importance of building the right team, Coach Chris and Coach Mike empower listeners to overcome challenges and achieve remarkable success in their own ventures.
Ethical versus non-ethical selling strategy [00:02:17] Discussion on the importance of selling services in a fact-based manner, using tests and evidence to inform clients.
Working with family members in the shop [00:05:14] Exploration of the challenges and benefits of having family members as employees, emphasizing the need for honesty and clear communication.
Having the right people [00:06:47] Importance of having team members who are willing to buy into the team culture, and the negative impact of individuals who are not team players.
The impact of negative influences [00:09:41] Discussion on how negative employees can affect the shop and the importance of removing them.
The need for accountability [00:11:47] Importance of having someone in the shop to hold everyone accountable and ensure strategies are implemented effectively.
The process of implementing changes [00:16:55] The ongoing process of implementing and reinforcing changes in the shop, including holding employees accountable and correcting their behavior.
The new software system and marketing channel [00:19:01] Discussion about implementing a new software system and the importance of utilizing a marketing channel for the shop's growth.
Improving the average repair order [00:20:41] Emphasis on the need to increase the average repair order and improve processes to attract more customers and increase revenue.
Coaching accountability and teamwork [00:21:30] The importance of coaching accountability and teamwork in achieving success, with the need for feedback and collaboration between the coach and the team.
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 Joe Marconi
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By carmcapriotto
Wesley Adams, a shop manager and radio host from Cincinnati shares his experiences in leadership, the importance of course correction in business, and the value of continuous learning. He discusses his mentorship under his boss, Bryan Kauffeld, and the adjustments they made in their business during the COVID-19 pandemic. Wesley also talks about his recent shift to managing a transmission shop and the importance of intuition and situational awareness in his role. Wesley Adams, Ulmer’s Auto Care, Cincinnati, OH.
Show Notes:
Course Correction (00:01:03) The concept of course correction in various aspects of life and business. Trusting Your Team (00:06:00) Wesley Adams talks about the importance of trusting your team and seeking honest feedback for making course corrections in business. The mentorship conversation (00:08:58) Wesley talks about his boss, Bryan Kauffeld, being his mentor and teaching him about life, business, and leadership. Course correction after COVID (00:10:12) Wesley discusses how the COVID pandemic forced them to make course corrections and look for new opportunities to improve and grow. Learning to manage a transmission shop (00:10:37) Wesley talks about the challenges and learning experiences of managing a transmission shop, including different business processes and sales tactics. The importance of understanding people and their attitudes (00:16:48) Wesley discusses the importance of knowing the attitudes and personal lives of team members in order to effectively manage a business. The value of incremental improvements (00:18:05) Wesley emphasizes that small, intentional course corrections and marginal gains over time can lead to significant success. Wesley's background and moral compass (00:18:41) Wesley shares his background and how his experiences shaped his moral compass, leading him to prioritize honesty and teaching in his approach to sales and leadership. Thanks to our Partner, Dorman Trainings.
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
-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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