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Local Dealer Lays Off 5 Techs


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My younger brother works at a Chrysler dealership... he's one of the top techs, but he's even worried about his job. The problem seems to not so much to be customer loyality but in how much work the tech can turn out. They work the dealership where every ticket has to have some sort of up sale included. If the tech is unable to make that extra sale per job... he's out. Now that gets back to customer loyality. If this is the type of customer who isn't worried about price then there is no problem, but those type of customers are getting few and farer between.

 

Right now, I'm overwhelmed with work. Mostly older vehicles. But, they are looking for somebody to keep these relics alive so they can avoid buying another car. That to me... is where we as the independent market need to stress our expertise. Most dealerships wont take on a car that is over 5 or 10 years old, where we'll take it on. The dealership has an attitude that the older the car is the less likely to have had regular maintenance and their liability goes higher and higher on those older cars.

 

I really believe the ability of a decent independent shop rests on taking care of the cars that their customers bring them. Not to take on jobs they don't have the expertise in, but ship those customers to a shop that can do that work. Don't be greedy, share it with the rest of the working shops in the area. The more we work together the more people will understand that the real value in car repair is in a shop that they can trust, can do the job, and is willing to go the extra mile to repair it.

 

Keeping the cost down isn't as much a problem when it comes to the idea that the customer knows this is the ONLY way to get their car repaired without going to a bunch of retards that claim they know how to fix it but really only change parts.

 

Keep the work honest, keep the work on the top shelf... and I truly believe we'll all be in business for years to come.

 

 

 

 

The brother of one of my techs works at a local Chevy dealer and told me the other day that they laid of 3 techs recently and will lay off another 2 today. This dealer is the only Chevy dealer left in its area and it's a sign of what the dealers cannot do, build strong relationships.

 

As dealer margins on new cars continue to shrink they will become more aggressive with building the service department. Dealers are already slashing prices, thinking that people want price only. Discounts will attract some people, but the effect it will have on industry pricing is what I fear.

 

Times are tough, but we must build for the future. We need to keep a close eye on the dealers. They are in a fight for their survival

 

 

 

 

 

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  • 7 months later...

My younger brother works at a Chrysler dealership... he's one of the top techs, but he's even worried about his job. The problem seems to not so much to be customer loyality but in how much work the tech can turn out. They work the dealership where every ticket has to have some sort of up sale included. If the tech is unable to make that extra sale per job... he's out. Now that gets back to customer loyality. If this is the type of customer who isn't worried about price then there is no problem, but those type of customers are getting few and farer between.

 

Right now, I'm overwhelmed with work. Mostly older vehicles. But, they are looking for somebody to keep these relics alive so they can avoid buying another car. That to me... is where we as the independent market need to stress our expertise. Most dealerships wont take on a car that is over 5 or 10 years old, where we'll take it on. The dealership has an attitude that the older the car is the less likely to have had regular maintenance and their liability goes higher and higher on those older cars.

 

I really believe the ability of a decent independent shop rests on taking care of the cars that their customers bring them. Not to take on jobs they don't have the expertise in, but ship those customers to a shop that can do that work. Don't be greedy, share it with the rest of the working shops in the area. The more we work together the more people will understand that the real value in car repair is in a shop that they can trust, can do the job, and is willing to go the extra mile to repair it.

 

Keeping the cost down isn't as much a problem when it comes to the idea that the customer knows this is the ONLY way to get their car repaired without going to a bunch of retards that claim they know how to fix it but really only change parts.

 

Keep the work honest, keep the work on the top shelf... and I truly believe we'll all be in business for years to come.

 

 

 

Now that gets back to customer loyalty. If this is the type of customer who isn't worried about price then there is no problem, but those type of customers are getting few and farer between.

 

Actually have a different way of looking at this... Customer loyalty can be a key factor but any customer can become a loyal customer... its up to the writer to educate and inform the customer, build trust and therefore loyalty.

 

Keeping the cost down for the client as far as awareness of their resistance to spend goes but following proper procedures is paramount and charging for them is the ticket to profitability. Diagnosis time for every concern. Apples for apples in parts quality and warranty. Your profitability in your center should be paramount that the only other thing should ever exceed that is reputation. The rest will take care of itself.. actually older cars give you from an industry average a higher ticket, more repeat business and is a great model to build something solid off. As the economic climate improves and they can afford a new car they will return to you for the gravy, 5K, 15K, 30K 60K services that drive profitability and you will further sting the dealer by keeping their FORMER client now your client happy. Keep up the good work.. Love to hear guys that are honest and do only top of the line work.. Kudos

 

Carl

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The gravy service's are being offered with the new car purchase in many cases. People being offered Free tires,oil changes,loaner cars, etc. It's war. We must Fight the good fight for a profitable niche so that our familes and employees can live a decent life.

B)

 

 

And what would be your ideas to "fight the good fight"? I would be interested in hearing them.

 

Spence

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Now that gets back to customer loyalty. If this is the type of customer who isn't worried about price then there is no problem, but those type of customers are getting few and farer between.

 

Actually have a different way of looking at this... Customer loyalty can be a key factor but any customer can become a loyal customer... its up to the writer to educate and inform the customer, build trust and therefore loyalty.

 

Keeping the cost down for the client as far as awareness of their resistance to spend goes but following proper procedures is paramount and charging for them is the ticket to profitability. Diagnosis time for every concern. Apples for apples in parts quality and warranty. Your profitability in your center should be paramount that the only other thing should ever exceed that is reputation. The rest will take care of itself.. actually older cars give you from an industry average a higher ticket, more repeat business and is a great model to build something solid off. As the economic climate improves and they can afford a new car they will return to you for the gravy, 5K, 15K, 30K 60K services that drive profitability and you will further sting the dealer by keeping their FORMER client now your client happy. Keep up the good work.. Love to hear guys that are honest and do only top of the line work.. Kudos

 

Carl

 

A lot of good comments you make Carl. It's applying those thoughts that I think would be good to explore. We'll see...

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And what would be your ideas to "fight the good fight"? I would be interested in hearing them.

 

Spence

 

 

I am Second, Read My Bible Every day, Seek Wisdom , Service others as i would want to be served ,Give every customer something they can see for free. Give every person you meet a reason to smile and say hello next time they see you. Give a business card to everyone you meet thanking them for prayers and referrals,Early to bed ,early to rise makes one Healthy, Wealthy and Wise. No Drugs, No Booze. Happy Wife Happy Life, Go to Church often.Never Give Up. B)

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  • Have you checked out Joe's Latest Blog?

         0 comments
      Auto 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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