By Joe Marconi
Not every shop pays flat rate; for many reasons. So, many techs are on hourly pay. There is nothing wrong with hourly pay, as long as you have an incentive program in place that promotes high production levels to avoid complacency. For hourly paid employees I strongly urge you to have a pay plan that rewards production levels on a sliding scale.
As a business coach, I have seen too many times shops with low production levels and high tech payroll due to overtime pay. Overtime pay must not be used to get the jobs done with no regard to labor production. Limit overtime and create a strategy that increases production and rewards techs with production bonuses. By the way, there are many ways to incentivize techs, it's not all about money.
Overtime without high levels of production will eat into profits and if not controlled, with kill your business.
If your shop is an hourly paid shop, what incentives do you have in place to maintain production levels?
By Elite Worldwide Inc.
Elite's AMI accredited Online High Impact Course, sponsored by Jasper Engines & Transmissions, starts October 16th!
This industry acclaimed online service advisor training course is delivered by 2019 Ratchet & Wrench All-Star Award winner Jen Monclus, and has been proven to generate both happier customers and higher sales.
Here are a few of the topics that will be covered:
- Selling multiple repairs & big ticket items
- Selling diagnostic testing & maintenance
- Building powerful relationships in 60 seconds
- Overcoming the most challenging sales objections
- Generating more repeat and referral business
- Presenting service recommendations in a way that makes customers want to buy
- Note: Course will come with a workbook, homework assignments and testing to ensure accountability and lasting results
It's only $179 to enroll, and seating is limited, so call 800-204-3548 or visit our Online High Impact page to secure your advisor's spot today!
The tight labor market can be a boon for blue-collar workers: They are more likely to find good-paying jobs and experience rapid wage growth. More employers are trying to tackle the aversion to manual labor jobs by offering workers higher salaries, tuition reimbursement and apprenticeship programs. Technology is also transforming blue-collar workplaces, making more advanced skills in demand. Across the country there are more drivers on the road, and many of them hanging on to their vehicles longer than ever. That means workers like Michael Gerhart are in demand.
Gerhart, a master auto technician at Pep Boys, has been fixing cars for nearly three decades, keeping on top of his skills as technology advances and learning how to do his job in a new way. Today, his focus is on engine diagnostic work, including things like the driveability of vehicles and emissions testing for the state of New Jersey. He works on different vehicles throughout the day, flexing his knowledge base on makes and models of all kinds.
“Cars have changed a lot, even in the past 10 years as far as the diagnostic end of things, and training has become more advanced as far as what’s required to fix the current vehicles,” Gerhart said. “It definitely doesn’t get boring and it’s always changing.”
Some 46,000 automotive service technicians and mechanics will be needed to fill roles through 2026, according to the Bureau of Labor Statistics, at a time when the skills gap and worker shortage is particularly acute for blue-collar jobs. As economic growth is expected to continue in 2019, so too is a labor shortage both blue-collar and low-paying services occupations, a recent study from The Conference Board found. Baby boomers are aging out of the workforce at the same time the pool of available labor has become more educated, and thus less interested in blue-collar jobs.
Automotive mechanics and technicians like Michael Gerhart are in high demand as a blue-collar worker shortage is expected to continue this year. Kate Rogers | CNBC “In the U.S., more than most other advanced economies, the American dream is to go to a four-year college and not have a manual job. For a while it was a not a problem because there was no shortage. Now, there is a big shortage, and people with a bachelor’s degree are just not interested in those jobs. There is a stigma connected to manual labor that is very hard to break,” said Gad Levanon, chief economist at The Conference Board. The report says the shortage will be most visible in transportation, production, health-care support, food services, cleaning and maintenance occupations.
To help bridge this gap of available workers, Icahn Automotive, with brands like AAMCO and Pep Boys, recently launched its “Race to 2026” program, to invest in and support future automotive technicians and students who might have an interest in the trade. The program will offer scholarships, tuition reimbursement and apprenticeship programs, along with job placement and continuing education opportunities in partnering with schools like Lincoln Tech and Universal Technical Institute.
Part of the message is that this isn’t the blue-collar work of years past.
“I think there’s a stigma around, you know, the type of work and it’s still this old, kind of get-your-hands-dirty, greasy job. But as you look around, there’s been dramatic change in the way that a shop looks. And today’s shop is really more of a house of technology where students today should be thinking about that role as really a STEM career,” said Brian Kaner, Icahn Automotive Service and Real Estate president.
While the median salary for auto service technicians and mechanics was around $40,000 a year in 2017, those with experience and more advanced certifications can potentially earn six-figure salaries during their career. The Conference Board study points out that continued tightness in the labor market, while frustrating for employers, can actually be a boon for workers: They are more likely to find good-paying jobs and experience rapid wage growth. For technicians like Gerhart, it can also foster a passion.
“It’s been great doing this — I raised a family on this. It’s a challenging field to get into, but at the end of the day, I think it’s worth it. As long as you can keep up with the technology that’s out there and you’re given a chance to use it, it can be a very rewarding career,” he said.
By Joe Marconi
National Pearl Harbor Remembrance Day, which is annually on December 7, commemorates the Japanese attack on Pearl Harbor, in Hawaii. Many American service men and women lost their lives or were injured on December 7, 1941. National Pearl Harbor Remembrance Day is also referred to as Pearl Harbor Remembrance Day or Pearl Harbor Day.
By Ron Ipach
Let me ask you a few questions about your year to this point…
Has 2018 been the killer breakout year that you hoped for? Are you still tired of not having enough quality car count in your shop every day? Are you wondering why you’re working so hard, yet not making the money you should be making? Is the endless ‘feast or famine’ of this business driving you nuts? Are you frustrated with running around your shop all day putting out fires – instead of getting any ‘real’ work done? Are you ready to get a proven plan handed to you on a silver platter that will help you attract an endless supply of customers, crank up your profits, and get your shop running in tip-top shape – while working fewer hours than you’ve ever worked before? If so, you’ll want to do everything humanly possible to clear your schedule and join us at the upcoming High Performance Workshop (August 18th & 19th)
- UPDATE: EVENT HAS PASSED. CLICK HERE TO WATCH AN EXCLUSIVE SALES TRAINING
You’ll be exposed to the TRUTH about what it takes to be successful in today’s environment from an actual million dollar shop owner.
This workshop is a 2-Day LIVE intensive training where we take you by the hand and walk you through every step of what it takes to run a KICK-BUTT, smooth running, and HIGHLY PROFITABLE repair shop!
Click here to learn more and register today!