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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.
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By Changing The Industry
Jeep Wrangler Coolant Leaks: What Every Owner Must Know #podcast #podcastclips #autorepairbusiness
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By Joe Marconi
When I started as a young auto technician in the mid 1970s, working in a general automotive repair shop was a lot simpler. After all, we mostly worked on GM, Ford and Chryslers, and most of the work was mechanical. Fast forward to today, can the General Repair shop model still work?
Today's techs who work in general repair shops have to bounce from Toyota, to Honda, to Nissan to GM to BMW, to Hybrids, and on and on. And then switch gears to a Ford pickup diesel.
Techs also need a working knowledge in, electrical, on board computer and driveability issues a wide variety of car makes and models.
And what about the training needed and the tools/equipment need to service and repair a wide range of worldwide car models?
If you are a general repair shop, I would like to learn more about how you are adjusting to the challenges of running a general repair shop.
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By Hands On
Hi folks. A quick search and I did not see any recent alignment machine posts. I have a quote from Hunter, $86,000 includes a scissor life and the concrete work to flush mount it, shipping, the machine with wall mount cameras. Some accessories. If I do conservatively 3 alignments a week my break even is approx 4.5 years, a bit longer depending on financing cost.
I lease my shop, and one of my biggest fears has been getting kicked out of here. Should I be looking at obtaining a location instead? I am always nervous about taking on the massive cost of a bigger building, especially when I struggle so often to hire good people. I talked to a friend that went from a small shop like I have to a larger facility and he said it was a lot more headaches with very little increase in income. I want less headaches, less stress.
Maybe it is my small shop that makes it hard to hire? Is this the right time to try to get a new location? How do I even start finding financing, I do not have a ton of cash saved up right now. Should I get the alignment machine now, and continue to save up for a new location? How much do I need down for a new spot? Should I keep my eye open for other shops that might fail in the coming year and hold off on the alignment machine and continue to stack cash? I am kind of tired of loosing an employee for 30 minutes to an hour to run an alignment across town that may or may not get done to the same quality standards I hold my employees to.
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By Joe Marconi
Marconi: There’s No One Size Fits All Repair Shop Business Model
Knowing your business and your customers safeguard your shop against trends that may not benefit you. Joe Marconi The year was 1973 and, like many from my era, I started my career working as a technician in a gas station. The typical gas station had two to three bays, and at least two to four gas pumps. Part of my job description was to pump gas if needed. Self-serve was not yet the norm. By the way, we were open seven days a week, with half days on Christmas, New Year's, Easter and Thanksgiving. The automotive repair industry has changed dramatically over the past few decades. There aren’t many gas station/repair shop business models these days. Today, there are franchises, tire stores, off-road shops, specialty shops and other niche businesses. In many markets, the independent general auto repair shop model dominates the typical modern-day model. No matter what business type, it seems shop owners crave benchmarks and guidelines. While there is merit to this, there’s no one size that fits all business model. And there shouldn’t be.
Numbers Vary Between Shops
The reason why I bring this up is that there are a lot of discussions these days about certain standards that auto repair shops should aspire to. Perhaps the most popular is setting a standard for the right KPIs and profit margins. Also, many industry people are promoting the five-day workweek as the standard, with some saying that a four-day work has benefits that outweigh the five- or six-day work model. Additionally, it’s common to hear that technician production and efficiency standards need to fit into a certain range to determine the overall success of the company.
We all understand the value of benchmarking as a way of analyzing what we are doing compared to other similar businesses. However, auto repair shops are like fingerprints; no two are alike. And from my experience as a former repair shop owner and now a business coach, trying to fit your repair shop into a neatly formed benchmark-based model may be more detrimental than beneficial.
If we look at KPIs and margins, for example, it’s typical for a general repair shop to strive for 70% or better on labor profit and a 50% part margin. But everyone reading this understands that percentages and dollars are not the same. Some shops do not fall into the typical percentage range, but their business model produces remarkable results to their bottom line in terms of “profit dollars.”
Customers Trump Trends
Let’s talk about the four and five-day workweek. As I mentioned earlier, back in the '70s, the gas station I worked at was open seven days a week, with half days on holidays. When I started my own business in 1980, I was not about to be open seven days a week, and holidays were out of the question altogether. But being open six days a week was something I felt I needed to do. I had to be there for my customers. Through the years we tried to close on Saturdays, but it just didn’t work for us. This is not to say you must be open six days a week or even five days a week, which is the point I’m making. Some point to employee morale and increased production by not working a five- or six-day workweek. This may be true and probably is for many shops. But can anyone say that this is true for every repair shop, in every area of the country?
Know Your Shop
Here's the bottom line. While there is a benefit to having standards and benchmarks, every repair shop is different. Learn what others are doing but understand your business model and the KPIs that drive dollars to your bottom line. Then decide for yourself what makes the most sense for your business, not someone else’s.
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