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By Joe Marconi in Joe's BlogGot your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
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By Joe Marconi
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By Transmission Repair
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By carmcapriotto
In this episode, Hunt sits down with Jay Huh, a down-to-earth auto repair shop owner from North Carolina who's also a skilled public speaker, coach at Shop Fix, and even a pilot. Jay spills the beans on how he landed a speaking gig at the VISION Hi-Tech Training Expo with just a month's notice and why he's all in on making the auto repair industry better for everyone. His real talk and practical advice are not just about fixing cars but fixing the business side of things too.
Here's a quick rundown of what Jay shares:
• Passion Over Profit: Jay opens up about his journey from the brink of personal and professional disaster to finding his purpose in the auto repair world. He's all about giving back, stressing that making a profit shouldn't be a taboo topic.
• Work-Life Balance: He dives into how he restructured his business to not only be more profitable but to also have time for what matters most — family. Jay is proof that you can have your cake and eat it too, running a successful shop without sacrificing every waking moment at work.
• Financial Savviness: With a straightforward chat about managing finances, from rebate checks to navigating economic uncertainty, Jay offers his two cents on keeping your shop afloat and thriving, no matter what the market throws at you.
Thanks to our partners, NAPA TRACS and Promotive
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.com
It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: [email protected]
Get a copy of my Book: Download Here
Aftermarket Radio Network
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
"Individuals who have made outstanding career contributions to the mobile A/C and heat transfer industry are recognized for their work with the Mobile Air Climate Systems Pioneer Award." Recorded Live at the 2024 MACS (Mobile Air Climate Systems) Training Event & Trade Show, Carm Capriotto discusses the automotive air conditioning industry with Peter Coll and Pioneer Award Winners Larry Hays, and Tom Massey. They explore the evolution of air conditioning systems, the importance of collaboration, and the role of MACS in advancing the industry. Larry Hays' career in automotive service began in high school when his shop teacher got him a job at an independent garage. Shortly thereafter, and while still in high school, Larry took a work/study job starting at 80 cent an hour and stayed there for 5 years before moving to Dallas Smith Transport. There he got his first taste of the A/C life learning to install factory A/C in a 1962 Buick and rebuild A6 compressors at the GM Training center in El Paso, TX. After three years, Larry found his forever home at Tony M. Coury Buick in Mesa, AZ where he would go on to spend the next 40 years. In 1966 Harrison Radiator introduced their own automatic A/C system and often visited Larry from the GM Proving ground due to his close proximity. The visits led to friendships, networking and, eventually an introduction to the likes of Paul Weissler, Jim Resutek, Ward Atkinson, and many others. In 1976, Tom Massey, an ASE certified Master Technician, started his own shop in Sioux Falls, SD. Doing A/C in South Dakota in the 1980’s, Tom was frustrated because the one fitting that was needed for the job was not available locally so, Tom started stocking A/C fittings, A/C units and other parts to be available on demand. When other shops found out that he had inventory, the business progressed to add wholesale parts & distribution. He was a distributor for ARA, AIR & later for the company that became Global Parts Distributors. Tom’s passion for A/C drew him to heat of Las Vegas in 1993 when he started Auto Air & More Inc. selling A/C parts to consumers, fleets, dealerships, and competitors as well as servicing vehicles. Show Notes: Pioneer award winners and their contributions (00:01:00) Recognition of industry pioneers and their significant contributions, including the first board member who was a technician. Challenges in automotive air conditioning systems (00:03:49) Discussion about the challenges and innovations in air conditioning systems, particularly in the context of specialized vehicles like limousines. Impact of temperature on air conditioning systems (00:06:35) Explanation of the impact of high temperatures on air conditioning systems, including the need for specialized designs and heat exchange. Differences in customer expectations between dealerships and independent shops (00:08:27) Comparison of customer expectations and concerns between dealership and independent shop environments. Effect of climate on air conditioning systems (00:09:21) Discussion about the influence of climate, particularly humidity, on the functioning of air conditioning systems. Collaboration between manufacturers and technicians (00:12:00) Importance of collaboration between manufacturers and technicians in diagnosing and addressing technical issues in air conditioning systems. Role of MACS in industry collaboration (00:15:04) The significance of MACS in providing a platform for industry professionals to engage with manufacturers and address technical challenges. The history of automotive air conditioning (00:16:56) Discusses the early development of automotive air conditioning systems and the valuable feedback provided by technicians. Collaboration and learning at MACS (00:17:34) Highlights the importance of collaboration between manufacturers and technicians at MACS and the exchange of knowledge between different automotive brands. Shop management systems (00:18:10) Emphasizes the importance of selecting the right shop management system and the benefits of customization and support. Comparing equipment and industry expansion (00:19:21) Discusses the comparison of different equipment, the entry of new suppliers into the US market, and the perspective gained from evaluating different machines. Challenges of retrofitting air conditioning systems (00:22:54) Addresses the challenges and potential issues associated with retrofitting air conditioning systems. Testing and innovations at GM proving ground (00:26:07) Describes the testing procedures and innovations at the General Motors proving ground. Industry relationships and contributions (00:28:43) Explores the relationships and contributions of industry figures, including the impact of technical bulletins and the role of influential individuals in the automotive industry. Innovations and intellectual property (00:30:19) Discusses the development and sharing of innovative tools and the challenges of patenting and profiting from inventions. Supplier relationships and cost savings (00:33:02) Addresses the exchange of information and prototypes with suppliers and the challenges of providing valuable input without significant compensation. Innovative Ideas for Tools (00:35:11) Exploration of the search for innovative tools in the industry and the rarity of finding them. Early Air Conditioning Systems (00:35:23) Anecdotes about early air conditioning systems in vintage cars, including unique features and challenges. Friendship and Collaboration (00:36:42) Stories of friendship and collaboration within the air conditioning industry, emphasizing the importance of knowledge sharing. Respect for Industry Professionals (00:38:13) Reflections on the respect and admiration for industry professionals, highlighting the impact of their expertise. Challenges in the Industry (00:40:32) Discussion on the challenges and limited number of specialists in the air conditioning industry. Parts Distribution and Inventory (00:43:38) Insights into the evolution of parts distribution and inventory management in the air conditioning industry. Business Transition and Negotiation (00:45:39) Brief discussion about the possibility of business transition and negotiation in the industry.
Thanks to our Partner, NAPA TRACS NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Connect with the Podcast -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -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 (X): 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 Joe Marconi
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