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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
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
Today, Hunt unpacks the groundbreaking verdict against the National Association of Realtors
that's shaking up the real estate world
Show Notes
Verdict Breakdown: What the NAR ruling means for future home sales and industry reforms. Commissions in Question: Insight into how the lawsuit may dismantle traditional commission structures. Industry Impact: From $1.8 billion judgments to the potential restructuring of real estate giants. Market Evolution: The shift toward transparency and fairness in real estate transactions.
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 Changing The Industry
Episode 137 - Overcoming The Fear to Revolutionize the Industry With Jeff Compton At ASTE 2023
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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 carmcapriotto
In this episode of the Auto Repair Marketing Podcast, host Brian Walker welcomes Coach Nate Bailey as his guest. They discuss "what do you really want?" and the importance of understanding one's desires beyond career goals. They delve into the challenges of identifying what one wants, the impact of societal stigmas, and the need for clarity and support in the process. Coach Nate shares his personal experience of admitting their desire for six-pack abs and the deeper motivations behind it. They also discuss the mindset of being a business owner and the potential for growth and success. Coach Nate emphasizes the power of shared experiences, pushing oneself to overcome challenges and the importance of self-care and self-awareness for leaders.
Thank you to RepairPal for sponsoring The Auto Repair Marketing Podcast. Learn more about RepairPal at https://repairpal.com/shops
Show Notes with Timestamps
The theme of the episode (00:00:10) Introduction to the episode and the topic of "What do you really want?" with guest Coach Nate Bailey. The challenges of knowing what you want (00:01:49) Discussion on how people often know what they don't want rather than what they do want and the impact of the fast-paced, reactive nature of life. The importance of being honest about what you want (00:04:23) Exploration of the tendency to lie to oneself about desires and the need to stop complaining and take ownership of choices. Admitting the Desire for Six Pack Abs (00:06:05) Coach Nate discusses the difficulty of admitting the desire for six pack abs due to societal stigmas and the importance of being honest with oneself. The Journey to Achieving Six Pack Abs (00:07:08) Coach Nate emphasizes the hard work, discipline, and dedication required to achieve six pack abs and how it can translate to success in other areas of life. Celebrating Others' Success and Allowing Yourself to Succeed (00:10:43) Brian and Coach Nate discuss the insecurity and jealousy that can prevent people from admitting their desires and celebrating others' success and how changing this mindset can lead to personal success and support from others. The importance of clarity (00:12:25) The significance of having clarity in order to have a clear path towards achieving goals. Overcoming fear and past traumas (00:13:34) The difficulties of opening up and thinking big due to past traumas and failures, and emphasizes the need to let go and grow. Staying true to yourself and not worrying about others' opinions (00:15:25) Coach Nate discusses the challenge of staying true to oneself and not being influenced by societal expectations or other people's desires. The importance of profitability (00:18:32) Brian and Coach Nate the significance of being profitable as a business owner and the potential to serve more people and expand the business. Building a team and reducing stress (00:20:08) Exploration of the benefits of having a team to run the business, reducing the workload and stress on the owner. The process of growth and creating a plan (00:22:37) Encouragement to take the process of growth step by step, giving oneself grace and permission to take time to build a team and achieve goals. Realizing Your Potential through Team Building (00:24:19) The power of going through difficult experiences together as a team, forming strong bonds, and realizing one's true potential. The Importance of Self-care for Leaders (00:25:08) The importance of self-care for leaders, highlighting that taking care of oneself first is essential to showing up as a powerful leader for others. Connecting with Coach Nate Bailey (00:26:28) How listeners can connect. Coach Nate provides his website and social media channels as the best ways to reach out to him.
Lagniappe (Books, Links, Other Podcasts, etc)
Coach Nate Bailey - https://natebailey.org/
Unleash the Leader - https://natebailey.org/ulw-experience/
How To Get In Touch
Group - Auto Repair Marketing Mastermind
Website - shopmarketingpros.com
Facebook - facebook.com/shopmarketingpros
Get the Book - shopmarketingpros.com/book
Instagram - @shopmarketingpros
Questions/Ideas - [email protected]
Aftermarket Radio Network
Click to go to the Podcast on Remarkable Results Radio
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