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By Joe Marconi in Joe's BlogAuto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.
As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.
But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.
Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit.
Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good.
Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership.
The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production.
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By nptrb
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By carmcapriotto
Recorded Live at AAPEX 2023, Bill Hanvey and Paul McCarthy give insights into Right to Repair, what it takes to put on a massive show encompassing 2,600 exhibitors, and 46,000 buyers, and a recap of Magic Johnson's engaging keynote. In a recent study, by 2035 there could be a 54% decline in market share due to repair restrictions, translating to $92 Billion lost by the independent aftermarket. This issue is not just about the industry, but also about the consumers who rely on affordable and accessible auto services. Bill Hanvey, President and CEO of the Auto Care Association. Find Bill’s other episodes HERE. Paul McCarthy, President and CEO of MEMA (Motor & Equipment Manufacturers Association). Find Paul’s other episodes HERE. Show Notes
The impact of Right to Repair (00:02:58) Bill Hanvey and Paul McCarthy discuss a study by Roland Berger that predicts a decline in market share for the independent aftermarket due to repair restrictions. The importance of grassroots efforts in right to repair (00:04:51) The role of grassroots efforts and listener engagement in gaining support for the Right to Repair bill. Exceeding pre-COVID numbers at AAPEX 2023 (00:11:42) Conversation about the number of exhibitors and buyers at AAPEX, and positive feedback received. The technology-driven automotive industry (00:12:46) Exploration of the automotive industry's shift towards technology, the importance of data, and the excitement and opportunities it brings. The breakfast panel for next year (00:19:10) Discussion about planning for the next year's breakfast panel and the constant effort to innovate the show. The larger show for next year (00:19:33) Announcement of a larger show for the next year with more space and exciting new technology and innovations. Magic Johnson's appearance (00:20:22) Conversation about how Magic Johnson was chosen as a speaker and his impressive presence and interactions with the audience. Thanks to our Partner, NAPA Auto Care Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -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
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Thank you to RepairPal for sponsoring The Auto Repair Marketing Podcast. Learn more about RepairPal at https://repairpal.com/shops
How To Get In Touch
Group - Auto Repair Marketing Mastermind
Website - shopmarketingpros.com
Facebook - facebook.com/shopmarketingpros
Get the Book - shopmarketingpros.com/book
Instagram - @shopmarketingpros
Questions/Ideas - [email protected]
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
"76% of people have glossophobia, the fear of public speaking. They fear it more than death. And it's a little bit scary that someone might fear dying more than they fear getting up in front of a group of people. But that's why you go in this safe group, you overcome, and they're all there to see you become successful." Recorded Live at ASTE 2023, Carm Capriotto welcomes Chris Cloutier, Craig O'Neill, Sara Fraser, and Tracy Capriotto, who are all Remarkable Results Toastmasters group members. They discuss the importance of effective communication, the value of joining Toastmasters to improve speaking skills, the benefits of feedback and evaluation in Toastmasters, the significance of timing in public speaking, and the need for better communication in the automotive industry. They also discuss generational differences and the challenges of relating and connecting with others. Discover how improving your speaking abilities can help you build relationships, lead with impact, and leave a lasting impression. Craig O’Neill, VP of Training, AutoFlow. Listen to Craig’s previous episodes HERE Chris Cloutier is co-owner of Golden Rule Auto Care in Dallas Texas and CEO of Autoflow. Chris’s previous episodes HERE Sara Fraser, Haas Performance Consulting, Sara’s previous episodes HERE. Show Notes: Communication and Toastmasters (00:01:41) Discussion about the relevance of communication skills and the creation of a virtual Toastmasters group called Remarkable Results Toastmasters. AI and its impact (00:02:07) Conversation about the potential benefits and concerns regarding AI technology and its effect on various industries, including the automotive industry. The importance of in-person communication (00:08:13) Discussion on the significance of maintaining personal connections despite advancements in technology. The value of communication in relationships (00:09:03) Highlighting the significance of phone calls and personal interactions in maintaining relationships and connections. Toastmasters Feedback and Learning (00:16:30) Discussion about the benefits of receiving feedback and coaching in Toastmasters, and how it helps members grow and learn. Maximizing Profit without Sacrificing Service (00:17:15) Exploration of how to increase profitability in an auto repair business while maintaining quality service. The Importance of Timing in Public Speaking (00:23:44) Conversation about the discipline of speaking within a designated time frame, with examples from Toastmasters. The importance of timing in presentations (00:24:52) Discussion on the significance of timing in presentations and the discipline it requires to effectively manage time during a class or training session. The role of effective communication in improving the industry's image (00:26:23) Exploration of how effective communication can help improve the reputation and image of the industry. The importance of connecting and relating (00:32:39) Discussion on the significance of better relating and connecting in the industry, particularly in terms of communication and mastering people skills. Challenges in connecting with the next generation (00:33:43) Exploration of the difficulties in connecting with the next generation in the industry and the need for relationship building and authentic experiences. Overview of Toastmasters meetings (00:37:08) Explanation of the structure and format of Toastmasters meetings, including introductions, planned speeches, evaluations, and the fun and beneficial table topics segment. The importance of effective communication during crisis (00:47:33) Discussion on the need for leaders to connect with people and ease tensions during times of crisis. The value of Toastmasters in improving speaking skills (00:48:33) Exploration of how Toastmasters can help individuals eliminate filler words like "ums" and "uhs" in their speech. The importance of practicing and learning to become a good speaker (00:49:52) Insights into the fact that great speakers, including lawyers, are not naturally born but have put in time and practice to improve their skills. Thanks to our Partners Shop-Ware and Delphi Technologies Shop-Ware: More Time. More Profit. Shop-Ware Shop Management https://getshopware.com/ Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. http://DelphiAftermarket.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
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Recorded Live at ASTE 2023, Lester Kovacs, Director of Ideation at Dorman Products, explains Dorman's unique approach to product development, including working closely with technicians, searching through junkyards for challenges, and conducting extensive testing. He also discusses supply chain issues, reaching out to their network for feedback, and upcoming products at Dorman.
Lester Kovacs, Director of Ideation, Dorman Products
Show Notes:
Uncovering Technician Challenges (00:04:02) Discussion on how Dorman works with technicians to uncover their challenges and develop solutions. Part Availability and Supply Chain Issues (00:05:31) Conversation about supply chain issues and challenges with part availability for older vehicles. The discovery of a new product category (00:08:31) Discussion about finding a new product category and the process of developing that particular product. The challenge of developing new products (00:11:00) Exploration of the challenges faced in developing new products and the need to work against the clock. Testing and validation of new products (00:12:58) Explanation of the testing and validation process for new products, including material testing, dimensional testing, and trial and test on actual vehicles. The incubator analogy (00:15:54) Discusses the role of the incubator in finding and developing ideas, identifying bottlenecks, and resource decisions. Percentage of ideas that make it (00:16:58) Discusses the percentage of ideas that make it through the validation process and the importance of a tight funnel to meet customer expectations. Lester's career journey (00:18:04) Explores Lester's background, starting from his love for cars as a kid. Changing Habits and Customer Perception (00:23:01) Discussion on the challenge of changing habits in the aftermarket industry and the need to shift customer perception of certain parts. Improving Marketing Strategy and Relaunching Products (00:23:25) Exploration of the relaunch of a product line after initial poor sales, including collaboration with customers and counter professionals to improve marketing and sales strategies. Suggestion for Website Enhancement (00:24:32) A suggestion to add a tab on the website to address why customers are not buying certain products, with testimonials and repair pictures to encourage sales. Thanks to our Partner, Dorman Products.
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
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
Click to go to the Podcast on Remarkable Results Radio
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