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Will Banner Programs Compete with the Big Boys?


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It has it's advantages. I can pick up a phone and call corporate or I can call another owner and seek advice or help. It can be about management, sales, marketing, advertising, yellow pages, computer software, shop equipment, parts purchasing, etc. There are new programs and services offered. The business model is discussed and expanded, etc. Sometimes it is real helpful other times maybe not so much. The question now is is it worth 5% of gross sales. Our franchise agreement expires in 4 1/2 years.

Joe this is Randy this sounds like management success agian!!

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In what way?

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They are strictly manage by statics. This is the key to the whole program.They also were talking about the percentages on parts, labor, office, overhead, and what percentage your are really need to make (20%profit) This is a lot things you have be talking about all over this site.

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While I do agree that all businesses must track key numbers and recognize certain trends, I do not take that as the only criteria. I have been to many management training seminars and clinics and have taken countless home study courses.

 

Numbers are great, but real world is better. My philosophy is to look at each shop and find out what works for them. I really don’t think you can use a benchmark number in California and say it holds true in Rocky Mountain N.C .

 

Every business is different with different fixed expenses, goals, employee wages, labor rates, rents, etc. A shop owner needs to sit down with his/her accountant and find out that they need to turn a profit.

 

So, while we need to understand the numbers of the business, it’s our numbers that really count.

That is right every shop is different but they all have a break even and some shop owners do not have the business training.Nor do they have the advertising experience it takes to book a shop like it should. To run a business or does the shop run you????

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  • 6 months later...

Too many shop owners have nothing more than a job and not a very good job because they don't charge enough. They work a lot of hours and sacrifice themselves and their families but wind up with little to show for it. They have no retirement plan, they have no buisness asset they can sell or pass on, their bodies are broken down, their equipment is worn out, their location is terrible, someone else owns the property, etc. They have never understood return on investment, opportunity cost, gross profit margins verus net profit, etc. The shops my dad use to take his cars to all closed when the owner died or retired. Not a one survived. They worked all of their lives and then got to the end of their life and find that they had nothing.

WOW!!!!!! It seems you have described me and my business to a T. I have owned my business for 5 1/2 years. I have worked for both Ford and Chrysler dealerships both as a tech and as a Service Manager. I have myself and one son working full time and two part time who are mostly lube and tire techs. I feel my biggest issue I can not seem to overcome is trying to work the front desk and the back both. I see daily that I run wide open all day, still do not accomplish much. Our shop stays super busy but we still dont seem to get ahead. I have been on both sides of the fence (shop and management) Any ideas, suggestions would be appreciated more than you know. Im gonna have to go spend a day in xrac's store>

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Rick, I thought you were going to stop by and visit us. My service manager and I will be happy to help you every way we can. However, one of the problems you have is location. People in rural areas want everything cheap.

I am coming up to see you xrac, just havent been able to get away. When I first opened, the Chrysler dealership I was at closed so I opened with a good cusstomer base. I opened running it a lot like I ran the Service Dept at the dealership. I opened as a Tech-Net shop. I used the Customer Survey Cards, Tech-Net Vehicle Inspection forms. I was even a National nominee for the Tech-Net dealer awards. However it seems as I get busier I let these things slide. I have been considering taking a few days to clean, rearrange and more or less reopen almost like a new shop. Maybe this would instill a more professional image. I have a good customer base of customers who are more interested in quality and customer care (just as Joe described) but seem I am being overwelmed by the bottom feeders. I could ramble on and on. Joe, xrac any thoughts, ideas, suggestions? I know I have the opportunity to corner the market in my community by being a more professional shop. Just seems I have trouble running the business instead of letting it run me. Our area has plenty of shade tree shops, but I think the quality customers are looking for quality repairs and honest caring service.

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  • 1 month later...

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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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