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Diagnostic labor must become a profit center. We can no longer give away or undercharge for diagnosing complex systems. Breaking even is not an option. Making a profit is. We need to separate the analysis from the repair. Doctors do it. We should too. How do you charge for diagnostic labor and what systems do you have in place?

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This is a great topic. There is class that AMI offers:

 

Selling Diagnostic Labor Profitably

 

This workshop includes identifying the labor inventory, description of the four types of time, detailed explanation of productivity and efficiency, the value of a technician's minute, demonstration of techniques to sell diagnostic labor, labot matrix forms and explanation, the value of selling one more labor hour per tech per day, and diagnostic worksheet forms with full explanation of their use.

 

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Here is the link to the course.

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  • Have you checked out Joe's Latest Blog?

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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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