Quantcast
Jump to content


Biggest Automotive Shop Expenses

Joe Marconi
 Share

Recommended Posts



hancock18 Explorer

hancock18

Posted
Posted

Yes insurance and rent are also our biggest expense. The rent at the older shop is much higher than the the mortgage at the new shop. We pay rent to a family member who still owns the property and so when we are having a difficult time the family member give us a break when she can. Our payroll expense included uniforms which we provide and the usual benefits such as paid sick days and vacations. We still can't afford health insurance but are working toward that goal for our employees. We pay all of our techs and service writers hourly. We cut back on advertising a few years back except for the sports and ROTC fundraising programs we sponsor at the local high school and elementary school. We find most advertising is a waste of money and so work harder in word of mouth from our loyal customers. We had a recent price increase in labor and parts that has helped and has hardly been noticed by our customers that helped. There really is not anything we can cut back on that we haven't already. The end of 2012 was really bad and so improvement on our old building have had to wait.

Link to comment
Share on other sites
williamballard Newbie

williamballard

Posted
Posted

I have found that your broker will not always try as hard as they can to get you the best price for your insurances. This year I reduced my workers comp cost $3000 and my pollution insurance down over $4000 by going out and getting another quote. Don't get to comfortable with the same broker year after year, they too are in business to make money.

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
 Share
Go to topic listing

  • Available Subscriptions

    See all Subscription Plans

  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's Blog
         0 comments
      It 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

    • carmcapriotto
      Disruptive Insights from Other Industries for Auto Repair Shop Owners [E174] - Chris Cotton Weekly Blitz
      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 podcast episode, Coach Chris Cotton from Auto Fix Auto Shop Coaching emphasizes the importance of seeking inspiration and innovation outside the auto repair industry. He challenges shop owners to break out of their comfort zones and learn from disruptors in fields like hospitality, retail, healthcare, and fitness. Chris discusses how adopting customer-centric approaches and technologies from these industries can transform auto repair businesses.
       
      For instance, he highlights how the hospitality industry's focus on exceptional customer service and personalized experiences can be mirrored in auto repair shops to build stronger customer relationships and loyalty. Similarly, he points out how retail's use of data analytics and customer feedback can help auto shops better understand their clients' needs and preferences, leading to more tailored services and improved satisfaction.
       
      Chris also explores how the healthcare sector's emphasis on transparency and trust can be applied to auto repair, fostering a more open and honest communication channel between mechanics and customers. Additionally, he draws parallels with the fitness industry's use of subscription models and community-building strategies, suggesting that auto repair shops could benefit from implementing similar membership programs to ensure steady revenue and customer engagement.
       
      He encourages proactive learning, attending conferences, and networking with professionals from other sectors. By stepping outside the traditional boundaries of the auto repair industry, shop owners can gain fresh perspectives and innovative ideas that can set them apart from competitors.
       
      The episode concludes with practical steps for implementing these innovative ideas to enhance customer experience and drive positive change in auto repair shops. Chris provides actionable advice on how to start small, such as introducing a customer feedback system or experimenting with new service packages, and gradually scale up these initiatives. He also stresses the importance of continuous improvement and staying adaptable to evolving customer expectations and industry trends. By embracing these strategies, auto repair shops can not only improve their operations but also create a more engaging and satisfying experience for their customers.
       
      The power of looking outside our industry (00:01:05)
      Exploring the importance of learning from disruptors in other fields to stay ahead of the curve.  
      Innovation at the edges (00:03:26)
       
      Discussing how innovation often occurs at the edges of industries and the benefits of looking beyond traditional practices.  
      Examples of disruptors in other industries (00:04:37)
       
      Exploring examples from healthcare, food and beverage, connected fitness apps, and education to draw insights for auto repair business.  
      Implementing ideas in auto repair shops (00:09:41)
       
      Strategies for implementing ideas from other industries, such as networking, adopting technology, experimenting with service models, focusing on customer experience, and empowering the team.  
       
       
      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
    • nptrb
      Managing Vacation Payroll Efficiently
      By nptrb

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • carmcapriotto
      Tracking Parts and Expenses with Data Mining: Discover Your Weaknesses [RR 970]
      By carmcapriotto
      Thanks to our Partner, NAPA Auto Care Alex Saladna from WickedFile discusses the challenges shop owners face in tracking parts, expenses, and managing profit margins. With real-life examples of shop owners discovering hidden costs and inefficiencies, this episode is a must-listen for anyone looking to optimize their business operations. Alex Saladna, WickedFile Show Notes
      The Brakes for Breasts Initiative (00:00:15) An initiative by two shop owners to raise funds for a vaccine for triple negative breast cancer. https://brakesforbreasts.com Challenges in Business Management (00:02:06) The challenges in tracking parts, expenses, and managing profit margins in the automotive industry. Founding of WickedFile (00:02:38) How WickedFile was founded and the motivation behind creating a parts tracking solution for the auto repair industry. Importance of Tracking Spending and Financial Documents (00:06:05) Discussion about the significance of tracking spending and managing financial documents in the automotive industry, including the risks of financial discrepancies. Identifying Business Gaps (00:07:14) Alex highlights the importance of identifying gaps in business operations and the potential financial impact. Efficient Parts Tracking and Profit Management (00:09:25) Discussion about the significance of efficient parts tracking and managing profit margins in the automotive industry. Tracking Vendor Credits (00:10:35) Discussion about the processes and disciplines for tracking vendor credits and ensuring the accuracy of financial transactions. Simplified Document Management (00:12:04) Explanation of the simplified document management process offered by WickedFile, including email invoicing and categorization. Efficiency in Document Retrieval (00:13:31) The efficiency of document retrieval in WickedFile's system and the benefits of streamlined data organization. Expense Management (00:15:40) Discussion about the upcoming features of WickedFile for expense management, including insights into business spending patterns. WickedFile's Integration with Management Systems (00:20:19) Explanation of the integration process and the management systems currently supported by WickedFile. Inventory Management and Disciplines (00:21:47) The importance of inventory management, including tracking parts and maintaining discipline in the system. WickedFile's Role in Enhancing Business (00:25:01) How WickedFile aims to enhance business operations, improve profitability, and address parts-related challenges. Training and Support for WickedFile Users (00:26:16) Details about the training, support, and enablement provided by WickedFile for its users. Impact of WickedFile on Business Operations (00:26:57) Real-life examples of how WickedFile helped businesses identify issues such as excessive spending and theft.
      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/ -Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -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
    • Twilight
      Categorizing Software Expenses on Financial Statements
      By Twilight
      Hello everyone,
      I have a question regarding the categorization of software expenses on financial statements. Specifically, I'm wondering if I should list expenses for computer software like accounting or computer protection separately from the software I use to actually fix cars, such as updates to scan tools and management software.
      How do you handle these types of software expenses in your financial statements?
      Thanks in advance for your help!
       
    • carmcapriotto
      Four Day Work Week for Your Auto Repair Shop! [E170] - Chris Cotton Weekly Blitz
      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 podcast episode, Coach Chris Cotton from Auto Fix Auto Shop Coaching delves into the multifaceted benefits of adopting a four-day workweek within the auto repair industry. He underscores significant enhancements in employee morale, work-life balance, and overall productivity, while also noting the potential to attract and retain top-tier talent. Chris provides an in-depth analysis of various structural approaches for implementing a four-day workweek, including staggered shifts and rotating schedules, ensuring that operations run smoothly without compromising service quality.
       
      The episode, sponsored by Shop Marketing Pros, is a treasure trove of practical tips for auto repair shop owners contemplating this transition. Chris emphasizes the importance of developing a customized plan that meticulously balances employee satisfaction with operational efficiency. He discusses the nuances of different implementation strategies, such as ensuring adequate coverage during peak hours and maintaining customer service standards. Additionally, Chris shares real-world examples and success stories from shops that have successfully made the switch, providing listeners with a comprehensive understanding of the potential challenges and rewards.
       
      Listeners will also gain insights into the financial implications of a four-day workweek, including potential cost savings from reduced overhead and increased employee retention. Chris highlights the importance of clear communication with staff throughout the transition process and offers advice on how to gather and incorporate employee feedback to fine-tune the new schedule. By the end of the episode, auto repair shop owners will be equipped with the knowledge and tools needed to make an informed decision about whether a four-day workweek is the right fit for their business.
       
      Boosted Employee Morale and Productivity (00:02:19) Shorter workweek leads to increased productivity and higher job satisfaction, improving employee morale and focus. Improved Work-Life Balance (00:03:28) A four-day workweek allows for more family time, hobbies, and rest, reducing burnout and maintaining mental and physical health. Attracting Top Talent (00:04:23) Offering a four-day workweek can attract top talent valuing flexibility and work-life balance, setting the employer apart. Operational Efficiency and Financial Benefits (00:05:32) Streamlining operations, reducing turnover rates, and potential cost savings with a condensed workweek. Structural Approaches to Transitioning to a Four-Day Workweek (00:06:34) Staggered shifts, extended hours, rotating schedules, and seasonal adjustments to implement a four-day workweek.  
       
       
      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


  • nptrb

    Understanding S-Corp Distributions and Draws | Are They Taxable?

    By nptrb, in Automotive Industry,

    1 comment 1,522 views
    nptrb

    Tax Season Preparation: A Comprehensive Guide

    By nptrb, in Automotive Industry,

    1 comment 1,357 views
    nptrb

    Spring Clean Your Finances: 5 Steps Every Business Should Take

    By nptrb, in Automotive Industry,

    1 comment 1,298 views

  • Our Sponsors



Main Sections

More Sections

Discussion Forums

×
×
  • Create New...