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By Joe Marconi in Joe's Blog13 commentsMost 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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By Joe Marconi
For all the veteran shop owners who have been around the block a few times, and have experienced the roller-coasted rides of being an auto repair shop owner, what advice could you give those shop owners just starting out or planning to go into their own business?
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By carmcapriotto
In this episode, consultant David Fisher gives you a chance to understand OSHA and keep you compliant. This is a must listen episode. The information could save your business. Regarding workplace safety and HR compliance, 85 - 90% are not compliant across America. To be non-compliant could cost your business. OSHA will interview your employees. Are you inspecting your lifts yearly? Does your team have access to SDS sheets (Safety Data Sheets). Are you giving all your employees access to your safety program? OSHA is ramping up stricter enforcement procedures. Invest in an annual walk of your shop from an OSHA consultant and get the accountability you need to prevent huge fines.
California Employer’s Services. OSHA & Labor Law Experts. Dave's previous episodes HERE
Show Notes
OSHA - will now interview your employees while inspecting your job site Ignorance is not an excuse anymore OSHA has determined that they want safety in the workplace. Compliance is like a picture painted by numbers. The more numbers you have filled in, the better off you're gonna be. OSHA is looking for, among others is your safety program, safety training, documentation, workers' compensation You've got 72 hours to a week at the most to get it back to them with your reply. After they get your reply, they're gonna review it, and then they're gonna assess the fines and fine you accordingly. No matter what state you do business in, you must meet the basic OSHA standards. Every year, you must have your lifts certified/inspected. You can certify them yourself if you installed them. The company that sold them can certify them. But if you install them, the state feels you have the wherewithal to inspect them and certify them. Be careful. There is no easy button for safety or HR compliance. The one thing you do have to be aware of is that if you name a safety officer in your business, they're gonna be tied into any potential lawsuit that arises out of a safety act or an accident in the workplace. OSHA knows that we, as a group of consultants, have more authority and more power over employers than they do When a company has paid money for a safety consultant, they know that the shop has an accountability partner, If you're gonna get with an HR services company, make sure they're working with actual attorneys. Make sure that these attorneys are gonna be there for your clients. You can have a perfectly legal employee handbook that covers the policies adequately. But you may not be able to take that employee handbook into court because when you go to court, there are certain things that the judge is gonna look at to make sure is in certain places of your employee handbook. If it's not in those places, you're gonna have two strikes against you in the eyes of the judge before you even start One is your at-will status between page one and page three Number two is your sexual harassment policy. Is it between pages three and page five? Does your sexual harassment policy include bullying in the workplace and all the other things that have now been dovetailed into that policy? You need to understand your policy and how a termination, not done correctly, can hurt a suit from a former employee. This three strikes you're out is a joke. There is no effort to rehabilitate the employee in most companies. Some companies are very progressive, and that's a good thing. Create a very positive workplace culture. Compliance is always cheaper than the fines and the hassle Link to handout David spoke about: HERE.
Thanks to our Partners AAPEX and NAPA TRACS. Set your sights on Las Vegas in 2023. Mark your calendar now … October 31 - Nov 2, 2023, AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at AAPEXSHOW.COM NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at NAPATRACS.com Connect with the Podcast: -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 Check out today's partners:
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By Joe Marconi
Many shop owners have increased their labor rates in the past year or so. That is great news. Now, what's your next move?
Anyone who knows me knows that, in my opinion, in general, we have been too cheap for too long. But, determining your labor rate is not the only consideration to attaining a profitable business.
What about productivity, efficiency, keeping expenses in line, gross profit, and net profit?
What are you doing to ensure you are meeting the financial needs of your business and also paying your employees the money they desire?
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By carmcapriotto
Join 3 shop owners as they share some great stories and wisdom about what works and what doesn't when talking about pay. Can you show how to earn the pay they want? How can you bring the team together when there are earning discrepancies?
Chris Lawson, TechnicianFind.Com. Chris' previous episodes HERE Mehrdad Avar, Haven Auto Repair, Rancho Cucamonga, CA Shawn Gilfillan, Automotive Magic, Kenvil and Lake Hopatcong, NJ. Shawn’s previous episodes HERE
Show Notes:
When in doubt about what to list as pay in an ad, look at your top compensated tech and use that as a benchmark. Commitment to training- investment, not a liability, not a cost. It’s always best to put your best foot forward with respect to salary in an ad. “What’s the highest pay level you feel comfortable having a conversation about?” In other words, “If you were sitting across your desk from a tech and they asked for that salary/compensation, do you feel comfortable having a conversation where you show them how they can earn that level of income?” (production and efficiency levels needed + salary, bonuses, profit sharing, etc.) Changing the perception of your technicians not wanting to hire another. Asked, “Did your income get better or worse?” Sharing profit and loss, where and how the shop will continue to grow. Make sure your salaries and job titles match up and are in alignment with market rates.(you can verify this on Indeed Hiring Insights) As the owner- look at yourself from the inside out. Make yourself worthy of the top employees. What is the perception of your business from the outside? Your business is a reflection of yourself. Interviewing technicians- you will spend more time at work than at home. Is 1-hour interview worthy of a ‘marriage?’ Listen closely to the interviewee’s questions. Get your team involved in the process, and consider a trial period. Comebacks- learning experiences with the whole team, quality control employee Zero sum decision making- knowing what you know now, would you make the investment in XYZ, if you wouldn't make that decision again, move on.
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Important Books
Check out today's partners:
Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com
Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
What does the future look like for the automotive industry? Listen to the perspectives of Jennifer Maher, Executive Director of the TechForce Foundation, Derek Kaufman, Managing Partner at Schwartz Advisors, Matt Fanslow, Lead Diagnostician and Shop Manager at Riverside Automotive, and Dustin Brown, Shop Owner of Brown Auto Experts with 3 locations. We have an open discussion about future trends, aftermarket challenges, and electric vehicles.
Jennifer Maher, Executive Director, TechForce Foundation, Jennifer's previous episodes HERE Derek Kaufman, Managing Partner, Schwartz Advisors, President of C3 Network. Listen to Derek’s previous episodes HERE. Matt Fanslow, lead diagnostician and shop manager, Riverside Automotive, Red Wing, MN. Matt’s previous episodes HERE Dustin Brown, Brown Auto Experts, 3 Locations in New Mexico, Albuquerque, Village of Los Ranchos and Rio Rancho. Listen to Dustin’s other episodes HERE
Show Notes:
Today's BEV headlines may be "over the top" in terms of the pace of BEV adoption, but the VIO will definitively change over time – we are forecasting the VIO at 7.3% BEV in 2030, 26.5% in 2040 and 51.2% in 2050 We know that people are talking about 60 and even 70% reductions in BEV maintenance versus ICE cars, and that may be true – but the true lifetime service of BEVs has more to do with major part failures than it does maintenance. Motors, power modules and other BEV components will fail and the aftermarket will be ready to service them. BEVs will generate new under-car and cooling system service opportunities – they are heavier and have higher torque, so suspensions, half shafts, and steering gear will see more wear than ICE cars. Cooling systems will be much more sophisticated with multi-directional and intelligent valves, PTC and Heat Pump heaters, multiple radiators, and many more fluid connectors. Multi Shop Owner- consistency of service Technology not only makes things more complex, in many cases, but that complexity is usually in the background. Technology also makes things easier. Not just vehicle technology itself, but tools and equipment technology. The technology is here for a 100% automated tire changing system, but it is cost prohibitive for many/most. It won't remain so, and if it isn't 100% automated, you'll just need someone to take the wheel off and roll it to the machine, the machine will replace the tire, maybe test the TPMS sensor, and then mount the new tire and balance it. The human will be little more than an assistant. Technology may make vehicles, as it has already done, even more reliable, but also change how we service them. The following are already expected by most but will soon be expected by all due to the cost of repairs. Top Notch Facilities, clean and professional appearance inside and out. Top customer service experience. Professionalism from all areas of the business. Tools, equipment, digital inspections, customer education materials Diversity in the workforce- including more women and the younger generation, puzzle solving Variety of vehicles in the next 30 years New jobs- power stations, power grids, safety on repairs Investors- real estate game (pit stop), autonomous trucks in ‘service center.’ Be malleable and willing to adapt
Connect with the Podcast
Aftermarket Radio Network
Subscribe on YouTube
Visit us on the Web
Follow on Facebook
Become an Insider
Buy me a coffee
Important Books
Check out today's partners:
Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com
Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com
Click to go to the Podcast on Remarkable Results Radio
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