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Have you checked out Joe's Latest Blog?
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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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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 Joe Marconi
As we close out 2022, it's time to reflect on the past year. Review your accomplishments, the state of your business, your personal life, and things that could have gone better. The key thing to remember is that it's better to have a plan and goals instead of trying to fly blind.
Establish your goals for 2023 and beyond. Include family time too, and time for yourself. It's not all about business. Having the right balance will actually make your business more successful.
Speak with your employees too. Find out from them what went wrong, what went right, and what they would like to see in the coming year. While you can't always act on what your employees want, getting their perspective will not only help you create the plan moving forward, it will help to build morale, a win/win for all.
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By Joe Marconi
A recent Auto Leap Survey revealed that 64% of shop owners are looking to retire in the next 10 years. (Link below to survey)
So, I want to take an informal survey of our ASO members:
How long have you been a Shop Owner? When do plan on retiring?
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By Joe Marconi
Do you have a formal onboarding, or employee orientation, process? I know that so many shops these days are looking for employees, and many shops have been short-handed for some time now. But, is it wise to throw people into the mix without a formal onboarding process? Many say that the time it takes to prepare a new hire will pay dividends down the road.
Your thoughts and comments...
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By Joe Marconi
The word OSHA makes many shop owners cringe.
I was lucky enough years back to have my insurance agent suggest I perform a voluntary OSHA inspection. A private company did it at the time.
They found tons of violations; some we knew would be flagged, but most we did not.
Have you ever had an OSHA inspection? And what can shop owners do to protect themselves?
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By carmcapriotto
How do your service advisors close their sales with a customer? Are they pre-scheduling for future maintenance appointments? Brett Beachler’s business has a 40% close rate for pre-scheduled maintenance appointments. He discusses how to make your current customers, your future customers. Grab a pen and paper or head to the show notes on this episode. You don’t want to miss Brett’s closing presentation that can be implemented in your business.
Brett Beachler, Beachler’s Vehicle Care & Repair, Peoria, IL. Listen to Brett’s previous episodes HERE
Key Talking Points
Customer close procedure/presentation Try to understand what the other person sees and not just what your shop wants Factory specified maintenance review on cars- review the history on Carfax, review what the car needs according to the factory maintenance specifications. The system will actually calculate a date when it thinks you'll be due. Ask what are your plans on the car? Is the car paid for? Review with the customer what your technicians did. Solidify them saying “You guys are my guy.” Lay the groundwork for them to say “You know what? You just gave me all the right reasons to make an appointment 4, 5, 6, 7 months in advance” Send a text to them about a week ahead What you don't want to do- run the actual credit card amount and then try to explain it to the customer the factory maintenance and review etc.. As soon as they run that transaction, they're done. You must direct your advisors the best way they will get the highest batting average for pre-scheduling. Don't start with a closed transaction. If you don't capture them at that closed sale then the next thing is the email and the text, if we don't catch 'em there, then they call up three weeks later and say, “Hey, I just wanna schedule an oil change. And we go, oh, whoa, whoa, whoa, wait, wait, wait, wait, wait, you got all this factory maintenance dude. You wanna do it?”
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Set your sights on Las Vegas in 2022. Mark your calendar now … November 1-3, 2022, AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at AAPEXSHOW.COM/WEBINAR.
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