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Have you checked out Joe's Latest Blog?
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By Joe Marconi in Joe's BlogMost shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.
Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
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Upcoming Events
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March 24, 2023 01:00 PM Until 09:00 PM
0Hi all,
AutoLeap is hosting Amplify 2023, a virtual auto repair conference for shop owners, on March 24. We have 22 incredible speakers, and 13 industry associations and training institutes participating in this virtual event. The conference is free of cost.
You can book your complimentary, virtual seat today using this link: https://bit.ly/3EXvfWY
Amplify 2023 speakers include: Joe Marconi, Co-Owner AutoShopOwner and Elite Business Coach @Joe Marconi Aaron Stokes, ShopFix Academy Cecil Bullard, The Institute for Automotive Business Excellence Chris Cotton, AutoFix Auto Shop Coaching Darrin Barney, Elite “G” Jerry Truglia, Automotive Technician Training Services Greg Bunch, Transformers Institute Jeremy O'Neal, AdvisorFix The conference will cover essential topics such as:
Navigating through the current industry challenges Tackling the technician shortage through employee retention Creating memorable customer experiences Growing & expanding your business in 2023 Financial planning & KPIs to measure And that’s not all.
The interactive, dynamic conference also offers live networking opportunities, and fun games and prizes.
You can book your complimentary, virtual seat today using this link: https://bit.ly/3EXvfWY
#AutoLeapAmplify23
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Similar Topics
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By carmcapriotto
Guest host and shop tour with Niko Sougias, Charlie's Foreign Car, Encinitas, CA. Niko says customers want explanations about their car repair and he has found a way to connect with them on his YouTube Channel. Find out how he does it.
Niko Sougias, Charlie's Foreign Car, Encinitas, CA
Show Notes:
Building was built in 1988- waterless car wash on every car, 17 bays, 16,000 square feet in total (with showroom) People want explanations- make videos; technical education should have a time limit (60 seconds) Most watched video of 2023- control arm bushings Full-time employee (Jax) is the editor of videos Audio- quality is important with wireless mics Pre-Covid work- maintenance Post Covid work- boom of work, customers are authorizing more work to be done, almost doubled ARO Challenges- keeping loyal customers happy while being booked 2 weeks out Future think for 2023- monitoring new car sales with interest rates rising Lead technician is moving to the foreman position
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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
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By Transmission Repair
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By carmcapriotto
Are you ready for an inspiring story that will leave you with goosebumps? I’m with Eric Dallas at Vision 2022, one of the Technician of Tomorrow scholarship winners, who shares his story about taking a pay cut from a dealership to work for ChangingGears. Their mission is to empower people who are working their way out of poverty by providing affordable transportation. Listen and be inspired and realize the good that scholarship programs are doing to invest in our future.
Eric Dallas, ASE Certified Master Technician, ChangingGears, Cincinnati, OH.
Key Talking Points
ChangingGears in Cincinnati- provide transportation for people breaking out of poverty. Providing freedom by leaving bus lines/public transportation. Volunteer with habitat for humanity with clients. Doner will get the maximum donation possible instead of the vehicle going to auction Won Vision 4 day all training classes access/meals/hotel scholarship, is ASE mastered certified Eric Ziegler was providing training in Cincinnati, told him about Vision The deadline for the scholarship had expired- applied anyway, received an email that he won 3-4 weeks later In 2009 started working at a dealership- no mentor, new people were “shunned” at first. Didn't have fulfillment/purpose working at the dealership. Found Craigslist ad looking for entry-level technician, applied, and realized it wasn’t located in the ideal place but was warmly greeted, learned about the mission, and was fully on board. Took a pay cut. Eric provides 1 on 1 dialogue and education with clients about their vehicle Funding- vehicles not suitable for clients will sell at auction and that money goes to overhead, fundraising, doners Changing-gears.org
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Subscribe on YouTube
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Follow on Facebook
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Buy me a coffee
Important Books
Check out today's partner:
Learn more about NAPA AutoCare and the benefits of being part of the NAPA family by visiting www.NAPAAutoCare.com
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By carmcapriotto
Kent Bullard. Find Kent's other episodes HERE.
Key Talking Points:
Gamification- changing behavior, designing an experienceHow do you engage people with game theory? Focus on process orientation than goal orientation- not outcome focused, be action focused Customer’s want to come back again The Big E’sEnvironment: Physical triggers for customers and employees- is it distracting them or focusing? Putting mirror by phone so service advisors smile when they answer the phone Engagement: What, how, when, do they interact with each other? Instruction- walk in door, reward is smell of cookies Rules of play- “restrictions” calling customer back by certain time determined by shop and try to beat that time Effect: What are possible outcomes during experience? Illusion of choice- simplify set of outcomes that you can control Design experience- three service advisors, two on phone, one has green light on desk and is waiting to help customer Emershion: How do I continue to convince customers to keep coming back? Marketing and advertising- emails or phone calls as touch point Easy and positive experience equals customers wanting to come back Evolution: Adding new things to your process, always be evolving, constant and consistent growth. People get bored easily DVI in shop Experimentation- Customers using rules and restrictions to create difference experience Be aware and flexible- have limitations or expiration on promotional discounts Enjoyment and EventsExpected to pay certain amount and ends up paying less End game: what ways do we continue to engage customers? Mentor-ship, rewards points, events, involve customers with community Resources:
Thanks to Kent Bullard for his contribution to the aftermarket’s premier podcast. Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers. Love what we do, buy a cup of coffee HERE. Be socially involved and in touch with the show:
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Buy Carm a Cup of Coffee
This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion global automotive aftermarket industry and has everything you need to stay ahead of the curve. With 2,500 exhibiting companies, you’ll see the latest products, parts, and technologies for your business. As a result, the event also offers advanced training for shop owners, technicians, warehouse distributors (WDs) and auto parts retailers, as well as networking opportunities to grow your business. AAPEX 2020 will take place Tuesday, Nov. 3 through Thursday, Nov. 5, 2020 at the Sands Expo in Las Vegas. Therefore, more than 48,000 targeted buyers are expected to attend, and approximately 162,000 automotive aftermarket professionals. They will be from 135 countries which are projected to be in Las Vegas during AAPEX 2020. For information, visit aapexshow.com
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By carmcapriotto
Rocky Khamenian is the owner/operator of Bimmer & Benz Specialists in Costa Mesa, located in south Orange County, CA. He is an active member of Chapters 48 and 50 of the Automotive Service Councils of California. He has served on the Board of Directors for those chapters.
Throughout his 32-year career, Rocky has continually increased his education to maintain the highest possible level of professionalism. He’s achieved the status of Master Technician through ASE and he has completed a wide variety of technical classes on the repair and maintenance of BMW and Mercedes Benz vehicles through WTI. He is becoming certified as a Bosch Master Technician.
Rocky is the outgoing president of ASCCA Automotive Service Councils of California. He gives some life lessons for every shop owners, shares the importance of association membership and gives us a glimpse of the new ASCCA Degree program at Cuyamaca College in El Cajon, California. Look for Rocky’s other Episodes HERE.
Rory Balmer of Twin Peaks Auto Service in Twin Peaks is a past ASCCA Chapter 14 President and a past ASCCA Membership Committee Chair. He is the incoming ASCCA Vice-President. Rory is working full-time at his business. He attends De Vry University, where he is completing a BA degree in technical management. He will be attending Washington State University, entering into the Executive MBA program. ASCCA Past President Mary Kemnitz says Rory is “One of the most effective committee members I have ever had the pleasure to work with. He has won the “One Member Can Campaign” twice. He has had a significant impact on the growth and energy within Chapter 14.
John Eppstein is the owner of John’s Automotive Care in San Diego, CA. He is the incoming ASCCA President. One thing he credits for his success is making his customer his main focus. John was honored as the 2016 NAPA ASE Technician of the year. Hear John in our one on one interview in episode 119, 200 and Academy 003 on the Top Qualities of a Service Advisor. Look for John’s other episodes HERE.
ASCCA Presidency- engage and unite automotive shop owners Follow guidelines Do the guidelines with your own personality On 8 committees, visit chapters, and constant communication with the administration Brought vendors to the association- make industry and association stronger, will only help their business in the end VP Rory- ETI committee (Education Training and Information) Getting new members- need to continue to connect with shops (what’s working and not working), every shop has different problems, “what can we do to help?” Enroll and inspire other chapter leaders/members to connect with people Legislative day- April, make an impact on shop and industry Biggest challenges for automotive shops Finding quality employees Lack of training HR issues as your business grow larger Connected cars Informing members about the future and beyond Team weekend trainings- 4 times per year NASTAF securities Resources:
Thanks to Rocky Khamenian, John Eppstein, and Rory Balmer for his contribution to the aftermarket’s premier podcast. Twin Peaks Auto Service Website HERE. John’s Automotive Car Website HERE. Bimmer & Benz Specialist Website HERE. Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers. Leave me an honest review on iTunes. Your ratings and reviews really help and I read each one of them.
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The auto care industry is revving up. New technologies are changing cars and the way people use them. To stay in the driver’s seat of all these advancements, you need to take charge of your learning, your business, and your legacy. That’s where the 2020 NAPA EXPO comes in. With help from industry experts and the best suppliers and manufacturers, the 2020 NAPA EXPO will provide the innovations and answers you need to charge forward into the future.
This is your chance to network with experts in the industry. Discover the latest innovations that will help you stay market competitive. Learn more about new products, services, and equipment. You will be using them every day.
Join us in Las Vegas, April 6-9, 2020! Contact your NAPA AUTO PARTS store today to reserve your package for this can’t miss event. Enrollment is going on now.
To learn more about NAPA AutoCare and the benefits of being part of the NAPA family, visit www.NAPAAutoCare.com.
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