-
Available Subscriptions
-
Have you checked out Joe's Latest Blog?
-
By Joe Marconi in Joe's Blog0 commentsIt 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.
-
-
Similar Topics
-
By carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo: https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops. I’d like to give another shoutout to our sponsor, Shop Marketing Pros. They are the only marketing company I recommend, and they handle all of the marketing for my own shop as well. If you’re serious about growth, you need strategies that actually work: better websites, higher Google rankings, and ads that bring real customers through your doors. Visit ShopMarketingPros.com/chris to partner with a team that understands your business. Because every great shop deserves marketing that’s just as great. Check out their podcast here: https://autorepairmarketing.captivate.fm/ If you would like to join their private Facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
In episode 205 of "The Weekly Blitz," host Chris Cotton delves into the themes of personal growth, overcoming guilt, and the pursuit of one's goals. Throughout the episode, Chris opens up about his own experiences, sharing the challenges and triumphs he faced while juggling multiple responsibilities. As a shop owner, Chris had to manage the day-to-day operations of his business, ensuring everything ran smoothly and efficiently. At the same time, he made the courageous decision to return to college, determined to complete his degree and fulfill a long-held aspiration.
Chris discusses the delicate balance he had to maintain between his professional duties and academic commitments. He candidly talks about the guilt he initially felt for dedicating time to his studies, fearing it might detract from his business or family obligations. However, through this journey, Chris learned the critical importance of self-care and the necessity of prioritizing one's own dreams and aspirations. He encourages listeners to pursue their goals with determination and to not let guilt stand in the way of their personal development.
Reflecting on his journey, Chris highlights the profound sense of fulfillment that comes from achieving personal goals. He notes how this accomplishment not only boosts self-esteem but also has a positive ripple effect on overall well-being, enhancing both personal and professional life. By sharing his story, Chris aims to inspire others to take bold steps towards their own dreams, reassuring them that it is possible to balance responsibilities while pursuing personal growth.
The episode wraps up with a sponsorship mention for Shop Marketing Pros, a company that specializes in providing marketing solutions tailored specifically for auto repair shops. This partnership underscores the episode's focus on professional development and growth within the auto repair industry.
Introduction to the Episode (00:00:00)
Chris Cotton introduces the podcast and its purpose, highlighting its focus on auto repair business insights.
Sponsorship Mention (00:00:59)
Details about Shop Marketing Pros and their services for auto repair shops are discussed.
Reflection on Vision 2025 (00:01:03)
Chris shares his experience at the Vision 2025 event, noting the busy atmosphere among shop owners.
The Importance of Self-Care (00:02:00)
Discussion on the necessity of taking time for oneself as a shop owner without feeling guilty.
Overcoming Guilt (00:03:04)
Chris addresses the guilt shop owners often feel and the importance of prioritizing personal well-being.
Personal Journey to Education (00:05:02)
Chris reflects on his decision to return to college after many years, motivated by personal goals.
Completion of Degrees (00:06:03)
He shares the timeline of his and his daughter's graduation, emphasizing the significance of finishing what you start.
Lessons in Persistence (00:08:26)
Chris discusses the importance of completing tasks and setting an example for his daughter.
Final Thoughts and Call to Action (00:10:30)
Encouragement to pursue personal goals and a reminder of the podcast's sponsor, Shop Marketing Pros.
Connect with Chris:
chris autofixsos.com
Phone: 940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/ AutoFixAutoShopCoaching
Youtube: https://bit.ly/3ClX0ae
The Aftermarket Radio Network
Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion
Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life.
The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level.
The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.
Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest.
Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.
To listen to more episodes, make sure and go over to iTunes and or Spotify.
Don't forget to rate and review us!
Connect with Chris:
AutoFix-Auto Shop Coaching
www.autoshopcoaching.com
www.aftermarketradionetwork.com
940-400-1008
Facebook: https://www.facebook.com/AutoFixAutoShopCoaching
YouTube: https://bit.ly/3ClX0ae
Email Chris: [email protected]
Click to go to the Podcast on Remarkable Results Radio
-
By Joe Marconi
Many auto repair shops are adding a fee to the final invoice for customers using credit cards. I get it, but don't agree.
For me it's simple. First, do your best to negotiate the best deal from your credit card provider service. Next, take that fee and add it to your cost of doing business. To me, I consider this fee an expenses, just like all other expenses: office supplies, utility bill, insurance, taxes, training, travel expenses, maintenance, etc. etc.
From your total average monthly expenses, you will be able to determine your breakeven, and from there, set your net profit goal. In other words, forget about the charging the customer a fee, just build into your overall prices. You will accomplish the same thing, and not bring attention to the customer that small fee that may be a big deal.
-
By carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private Facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
In this episode of "The Weekly Blitz," Coach Chris Cotton from Auto Fix Auto Shop Coaching provides an in-depth exploration of managing parts costs in auto repair businesses, a critical aspect of maintaining profitability and efficiency. He begins by outlining effective strategies for handling core returns, which are essential for recouping costs and maintaining good relationships with suppliers. Chris emphasizes the importance of having a systematic approach to managing new part returns, ensuring that any defective or unnecessary parts are returned promptly to avoid unnecessary expenses.
Furthermore, Chris highlights the significance of a well-organized receiving process. By implementing clear procedures and assigning accountability, auto repair shops can minimize errors and streamline operations. This organized approach not only reduces costs but also enhances the overall workflow within the shop.
In addition to parts management, Chris discusses the often-overlooked area of shop supplies. He stresses the need for careful monitoring and management of these supplies to prevent waste and ensure that they contribute positively to the shop's bottom line. Implementing a structured parts matrix is another key strategy Chris recommends. This matrix helps in setting appropriate pricing levels for parts, ensuring that the shop remains competitive while also maintaining healthy profit margins.
Chris also underscores the necessity of regularly evaluating these processes. By doing so, auto repair businesses can adapt to market trends and inflation, ensuring that their strategies remain effective and relevant in a constantly changing industry landscape.
Sponsored by Shop Marketing Pros, the episode also highlights the critical role of effective marketing strategies for auto repair shops. Chris points out that in addition to managing costs, attracting and retaining customers through strategic marketing is vital for the long-term success of any auto repair business. The sponsorship by Shop Marketing Pros serves as a reminder of the interconnectedness of operational efficiency and marketing prowess in driving business growth.
Introduction to Parts Management (00:00:11)
Coach Chris Cotton introduces the importance of managing parts costs in auto repair shops.
Core Returns Importance (00:02:13)
Discusses the significance of tracking core returns to avoid losing money on refundable deposits.
New Part Returns Management (00:04:40)
Explains how to manage new part returns to minimize errors and losses.
Receiving Process for Parts (00:07:57)
Emphasizes the need for an organized receiving process to prevent mix-ups and errors.
Shop Supplies Overview (00:10:49)
Highlights the importance of shop supplies in parts costs and how to manage them effectively.
Parts Matrix Implementation (00:14:28)
Discusses the necessity of using a structured parts matrix for pricing and profitability.
Regular Evaluation of Processes (00:16:45)
Encourages regular evaluation of parts processes to ensure efficiency and adaptability in the business.
Connect with Chris:
[email protected]
Phone: 940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/
AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros #autofixautoshopcoachingbook
Click to go to the Podcast on Remarkable Results Radio
-
By carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private Facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
In this episode of "The Weekly Blitz," host Coach Chris Cotton offers auto repair shop owners a wealth of valuable insights aimed at enhancing their businesses. He begins by emphasizing the critical importance of conducting thorough repair order audits. These audits are essential for ensuring accurate record-keeping, which in turn fosters customer trust and satisfaction. By maintaining precise records, shop owners can avoid potential disputes and demonstrate transparency to their clients.
Chris then shifts the focus to improving service advisor phone interactions. He underscores the significance of active listening and empathy in these exchanges. By truly understanding and addressing customer concerns, service advisors can enhance the overall customer experience, leading to increased loyalty and repeat business.
As the year draws to a close, Chris provides strategic advice on finishing 2024 strong. He encourages shop owners to maintain their momentum and begin planning for 2025 with clear, measurable goals. By setting specific objectives, businesses can chart a course for sustained growth and success in the coming year.
Throughout the episode, Chris highlights the significance of cultivating a positive work culture. He explains how a supportive and motivating environment can lead to increased employee satisfaction and productivity. Additionally, he discusses the numerous benefits of coaching, which can provide shop owners with the guidance and support needed to navigate challenges and seize opportunities.
The episode concludes with a heartfelt expression of gratitude to the listeners for their continued support. Chris also extends his thanks to the episode's sponsor, Shop Marketing Pros, for their partnership and contribution to the show's success.
Election Update (00:02:07)
Discussion on the recent elections and its impact on the business environment.
Importance of Repair Order Audits (00:03:08)
Emphasis on maintaining accurate records and conducting repair order audits for business health.
Customer Experience and Transparency (00:04:10)
The need for transparency with customers and sharing inspection results to build trust.
Technician Productivity Issues (00:05:15)
Challenges with ticket assignments affecting technician productivity and customer service.
Service Advisor Phone Calls (00:07:31)
The significance of mastering service advisor phone calls for customer relationships.
Finishing Strong in 2024 (00:09:47)
Encouragement to maintain momentum and finish the year strong despite holiday distractions.
Planning for 2025 (00:11:55)
Advice on setting goals and priorities for the upcoming year to ensure proactive growth.
Measuring Success (00:12:55)
The importance of setting measurable goals and tracking progress for accountability.
Closing Remarks (00:14:03)
Final thoughts on support for shop owners and the importance of a positive mindset moving forward.
Connect with Chris:
[email protected]
Phone: 940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/
AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros #autofixautoshopcoachingbook
Click to go to the Podcast on Remarkable Results Radio
-
-
By Joe Marconi
Five Proven Tips to Improve Your Bottom Line
By Joe Marconi, an Elite Blog -
A recent Small Business Administration (SBA) report revealed that one of the main reasons for small business failure is due to a lack of financial knowledge. Another survey, also conducted by the SBA, found that 83% of failed business owners stated that their failure was due to cash flow problems. While there are many facets to operating a successful auto repair business, one thing that is common to all is that it needs to be profitable.
The fact is that too many auto repair shops struggle financially. The sad news is that most of them actually have a booming business that is clouded by their financial woes. The typical auto repair shop has consistent car counts, a calendar booked out for at least a few days, and in many cases, booked a week or more. Where so many auto shop owners fall short is understanding their financials, more specifically, not focusing enough on generating consistent profit and improving cash flow.
In this blog, I will outline five proven tips to help you increase your bottom-line profit and improve cash flow. Becoming financially stable also improves your personal life and the lives of those you employ.
Understand Your Financial Reports. Establish Your Financial Goals
There are three main accounting reports that you should have a basic knowledge of: The profit and loss statement, the cash flow statement, and the balance sheet. Most auto repair shops either have an in-house bookkeeper or an accountant to generate these reports. It doesn’t matter who updates and runs these reports, as long as they are reviewed by you, the shop owner, periodically.
Have regular meetings with either your bookkeeper or accountant and become familiar with your financial reports. You do not have to understand these reports as well as your bookkeeper or your accountant does. However, the more knowledgeable you are about your financial reports, the better financial decisions you will make, which will make a difference to your bottom line.
Performing an in-depth analysis of your financial reports will give you valuable information on the financial strengths and weaknesses of your company. This information is crucial when establishing your financial goals. Having financial goals is essential to your company’s future. Share your goals with your entire team and brainstorm collectively to find ways to achieve them.
Focus on Gross Profit, Not Total Sales
When shop owners get together they typically share their year-over-year sales increases. While total sales revenue is important, it doesn’t tell the entire story. And it may not reflect the true financial health of your company. If you had a choice, would you rather have a 1.5-million-dollar business that produces a net profit of $50,000, or a one-million-dollar business that nets a profit of $175,000? The answer is obvious. Why? Your bottom line net profit is what truly matters, not the total sales number.
To have a healthy net profit requires that you have a healthy bottom line. Gross profit is the amount of money left over from your total sales after paying your technicians and paying all the costs of sales items for all work performed. The higher the gross profit, the higher the net profit. Gross profit is important because it pays for all other operating expenses and loans. After paying all your operating expenses, what’s left over is your net profit. Depending on your business model, typically, auto repair shops look to attain a net profit of 10% to 25%.
Improving your bottom line requires that you properly establish your labor and part profit margins. While there are benchmarks for the average auto repair business, the margins you set for your company may be different. With that said, we usually want to see 40% to 55% part profit, and a 70%-plus labor margin. A good number to shoot for is a 60% overall gross profit for parts and labor.
One more thing to consider when calculating your gross profit requirement: Your operating expenses need to be in line too. Keeping your expenses in line by cutting excess and waste will lower your operating expenses and increase your net profit.
If you are not sure how to calculate your margins properly or need help with maintaining your expenses, speak to your accountant, or seek help from a qualified business coach.
Improve Quality and Total Shop Production
During the Great Depression of the 1930s, Chrysler gained market share and financial stability by improving production. While other car companies were looking for ways to cut costs, Chrysler made a bold decision to focus on building more affordable cars and improving overall efficiencies. Their strategy was to produce more cars with the same labor costs. This ultimately resulted in increased sales and profits. It also propelled Chrysler to become known as one of the “Big Three” automakers, along with General Motors and Ford.
Improving workflow production in your auto repair shop by utilizing the same direct labor cost will result in increased sales and profits. Essentially, improving productivity by using your current workforce means more work is done in a given period.
Shop owners, take a long hard look at your overall workflow processes. Track all the steps your technicians are taking throughout the day. Are there wasted steps that can be eliminated? Are there bottlenecks in the service advisor process? Are your service advisors properly trained in the art of sales, and in delivering exceptional customer service? Improving your total shop production and quality will result in increased profits.
One last word on the topic of production; look at your shop layout. Are tools, equipment, and information systems easily accessed? And let’s not forget how continuous training for all employees is a key component in delivering consistently high levels of quality and productivity.
Build More Profitable Estimates
Years ago, we used to say that technicians have control over their efficiency. This may have been true to some extent, but today there are too many variables. Let me give you an example. Your service advisor wants to sell exhaust manifolds on a Chevy pickup truck. The published labor time in her business systems calls for 1.7 hours per side. However, all the studs are rusted away which will require drilling and installing new studs, which is probably a 6-hour job, or more. If the wrong labor time is sold, there will be no way the technician can complete this job in the labor time sold to the customer.
Sometimes you need to close the book, and openly discuss with your technicians the true labor time based on experience and the individual scenario. There are too many published labor times that are not correct. Increasing billed labor hours is perhaps one of the best ways to improve your bottom line.
Control Account Receivables and Inventory
Controlling your account receivables will not affect your gross or net profit. However, it will impact cash flow. Essentially, high account receivables reduce the amount of cash on hand. Available cash and profit are not the same. Your shop can generate a net profit of $25,000 for the month, but if your account receivables are $35,000, you will have a $10,000 shortfall of cash for that month.
Most auto repair shops these days do not have an extensive inventory. Exceptions are repair shops that stock tires and shops located in extremely rural areas. Even if your inventory is low, pay attention to it. Limit your inventory to only those items that move fast. Having old stock sitting on a shelf reduces your available cash. Another important task is to ensure that your inventory pricing is up to date. Charging out-of-date prices are losses that go under the financial radar and will hurt your bottom line.
Conclusion
Most shop owners have their vision of a successfully-run business. This vision includes providing a healthy work environment for their employees, providing training and equipment, and having a clean and customer-friendly facility. Additionally, shop owners want to provide a benefits and pay package that attracts and retains the best employees. And of course, the owner must be able to earn a respectable wage too. All this requires profit.
At Elite, we understand what auto shop owners desire from their businesses. We not only provide the business tools, one-on-one coaching, service advisor training, and peer groups that we know will help take your company to the next level, but we accomplish this in the most honest and ethical way.
View full article
-
-
-
Our Sponsors
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now