Quantcast
Jump to content

general heavy-duty 728x90


general heavy-duty 468x60


general heavy-duty 250x250

Dealer Reducing Flat Rate Time


Recommended Posts

I just hired a tech from a local Toyota dealership. He said he was tired of the flat rate pay program. There were weeks when he booked over 60 hours and other weeks where he barely broke 10. But, the interesting thing he told me was that the dealer has been reducing flat rate times below published times in order to compete and to raise revenue.

 

For example, a wheel alignment may have paid 1 hour, but the dealer, to compete with the market, has reduced the price and adjusted the alignment to .6 tech time.

Other reductions are tire rotations, tire mount, major services, oil changes, Timing belts, other repairs and tire balance. In addition, Toyota has severely cut back on selling fluid services and any other preventive maintenance services that are not in the owner’s manual. All these reasons combined are making it difficult for an honest tech to make a decent wage in a dealership.

 

Could this be an opportunity for the independents to acquire technicians?

Link to comment
Share on other sites


general heavy-duty 728x90


general heavy-duty 468x60


general heavy-duty 250x250

How has your experience been with hiring dealer techs? The ones who have been deaaler techs for very long haven't done too well for us?

 

From my experience, if a dealer tech has a lot of years with one car line (15 years of better), they can't make the transitiion to an independent that deals with multiple car lines. The only dealer techs that have worked out for me were the younger techs. I now have 3 former dealer techs, but when they came to me there were all in their mid 20's. They are all working out fine. The dealer techs that were hired in the past that had 15 years or more did not work out. In fact they lasted about a month.

Link to comment
Share on other sites

I'm hearing the same from my brother who is a service advisor for Mercedes. They are really cracking down on the times and what they will allow with the warranty work. In turn nobody wants the warranty work. I'm glad I dont have a new vehicle that needs warranty work.

Link to comment
Share on other sites

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 account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Similar Topics

    • By Joe Marconi
      I will never forget the day when a customer, who didn't like the price, took cash out of his pocket, crumbled up the cash, and threw the money at me. 
      This customer clearly crossed the line, in my opinion. 
      Before I tell the rest of this "true" story, I would like to hear from you: How would you have handled this situation? 
       

    • By carmcapriotto
      Guest host and shop tour with John Bridgwater, Doral's Auto Repair, San Leandro, CA. Find out how John recovered from losing 3 technicians in 3 weeks.
       
      John Bridgwater, Doral’s Auto Repair, San Leandro, CA. Listen to John’s previous episodes HERE
      Key Talking Points
      Lost 3 technicians within 3 weeks “When it’s time to go it’s time to go, don’t prolong the inevitable” Has Transformers Institute as coaching company- did SWOT analysis, put an action plan in place Replaced 2 technicians already and other interviews scheduled Hiring a manager to be an integrator  Advice- be transparent and be open, no matter how bad the situation is there is always growth  
      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 partner:
      Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
       

      Click to go to the Podcast on Remarkable Results Radio
    • By Mike DelaCruz
      A topic that I’ve become more and more interested in is the future of our industry, specifically when it comes to Technicians.  I returned from the Spring Leadership Days in Orlando by Auto Care Association with an entirely new outlook, continuously reminding myself:  What can I do to help strengthen our future?
      As I scroll through my Facebook feed, reading through various forums and private group comments, I constantly hear about the Technician shortage and have been over the past few years.
      Does that raise any concern that we’re still talking about this after several years?  
      As I read through the comments in hopes to find solutions, regrettably the majority of the comments are not solutions to the problem.  So, my hope is to find a solution and identify what action I can personally take to help strengthen our future and do my part.  I don’t want to spend anymore time talking about what we already know (tech shortage), and watch our industry reduce to rubble in the years ahead.  Not on my watch… and I know a lot of you are with me!  Days turn into weeks, weeks turn into months and months turn into years.  Let’s not wait!
      As I visit shops around the country, which is my favorite thing to do, I notice a common pattern in the workflow.  Nearly 70% of the shops that I have visited in the past year have empty bays.  For example, a shop in the Bay Area I visited recently had 8 bays, but 4 were empty.  They had 2 Technicians, who both told me they’re extremely busy and this has become the “norm” until they hire more Technicians.  
      Of course, the owners have “tried everything”, but what does that mean?  Have they really tried “everything”, or are they looking for a band-aid to fix the short-term problem and not thinking about a long-term solution and preparing for the future?  
      Shops are busy right now and business is booming for most.  So even though they have the Tech shortage issue on their minds, it’s less of a priority right now because they’re busy!  It reminds me of what one of my favorite industry coaches (and friend) told me one time about “Panic Marketing”. Business slows down, then we expect our marketing company to step up some SEO or Ads and get cars in today, when in reality you have to plan out your marketing 6-months or a year in advance.  
      So what do we do when we have empty bays and a Tech shortage?  Many will simply place an Ad on Indeed, cross their fingers and hope for immediate applicants! That quick-fix strategy will never work.  But what will?  
      There are shops out there with effective strategies that actually work well.  Look at what they’re doing and get some ideas.  Joe Marconi has some awesome tips on hiring great people.  Having worked directly with Joe, I’ve seen the success firsthand.
      But for me personally, I’m more interested in the long-term and getting the “younger generation” interested in our trade.  I think this will help shape our future.  But how do we do this?  Someone once told me, if every shop ran an Apprenticeship program, this would help solve the problem.  
      Is that the silver bullet?  If not, what is?  
       
    • By Joe Marconi
      Yesterday, around mid-day, I headed out to run a number of errands. I first stopped for a quick lunch, then on to the hardware store, the beer distributor (for Father's Day BBQ), the grocery store, and then I went to Staples to pick up a few shipping cardboard boxes.
      EVERY place I went to had a sign out in front: NOW HIRING! 
      I don't get it, where are all the workers?  The unemployment rate is at 3.6%. Does that really reflect the number of people out of work, or is the number higher when we factor in those that don't want to enter the workforce or those that have left the workforce? 
      Something doesn't add up.
       
    • Heavy Duty Parts Fleetcross
    • By Joe Marconi
      When I started my auto repair shop in 1980, it was typical to work at the shop 50 to 70 hours a week.  More than half of that time was working on cars. I kept that work pace for over a decade. I know that many shop owners of my generation did the same thing. 
      That's all changed now. And for the better.  More shop owners today understand that their leadership roles are critical to their success and the best strategy for the welfare and development of their employees. 
      Jump to the link below for a few quick stats on the different roles of today's shop owner. 
       


  • Our Sponsors


Flash Sale + Social Proof


Flash Sale + Social Proof


Flash Sale + Social Proof

×
×
  • Create New...