Beware Of Second Opinions
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By Joe Marconi in Joe's BlogMost shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.
Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
By Ruben Van Zenden
Today, we simply cannot ignore social media, everyone is using it whether you are a fan or not. Personally, I think it has its negative and positive sides.
I have been looking at 100+ car repair shops and noticed that only a hand full are using social media marketing, for example, Facebook advertising.
Why are so few car repair shops making use of this, in my opinion, great opportunity to increase car count?
By ASOG Podcast
Opening a Shop? Don't Make This Critical Mistake!
During Today's episode #104 The crew from SMP and I Talk About:
What is a Chicken Flicker? Behind-the-scenes dirt on Kim & Brian from SMP What's the best part of your work day? What's the difference between a successful client and one that isn't? What would your advice be for a shop starting out that isn't able to hire someone like SMP? How cute is Dutton? Favorite Cartoon Character? What did you want to be when you grew up? What book are you reading now, if any?
This episode is sponsored by AutoLeap. AutoLeap is a cloud-based all-in-one automotive invoice software that helps you supercharge your mechanic shop. Their customers have experienced:
30% increase in revenue by improving transparency and trust 50% reduction in time spent researching and ordering parts 10% increase in profit margins through robust reporting
Click here to learn more about AutoLeap and schedule a demo: http://bit.ly/3GRgO88
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Click to go to the Podcast on Remarkable Results Radio
Will diagnostic work overtake remove and replace work? How will you position and present your shop as a technologically advanced repair center? What training will our employees need? How will artificial intelligence impact our industry? Will we be prepared? Join Jake Sorensen, Chris Chesney and Derek Kaufman as they discuss the shop of the future. Jake Sorensen, 2019 NAPA ASE Technician of the Year and 2019 Ratchet + Wrench All-Star technician of the year. Shop manager and diagnostic technician at McNeil’s Auto Care in Sandy, UT Listen to Jake’s previous episodes HERE
Chris Chesney, Training and Organizational Development, Repairify. Chris’ previous episodes HERE
Derek Kaufman, Managing Partner, Schwartz Advisors, President of C3 Network. Listen to Derek’s previous episodes HERE
Looking up and reading service procedures is already a must, but even more so as technology advances. Example: ADAS systems now require calibrations when performing repairs like an alignment or bumper cover removal. If you change a headlight assembly that requires bumper R&R, you may need to perform a radar calibration. The only way to know for sure is to read service information. Reading technical information/technical reading skills- much different than reading newspaper or Facebook posts, a book etc. Evelyn Wood speed reading course- reading with purpose An explosion of information- computing power for all industries 2022 captures over a trillion data points that will be aggregated to provide insights AI- mining data for trends Diffusion of innovation curve- 17+ years for EV’s We have expected Technicians to be masters of everything. Many better diagnostic technicians are inefficient at R&R and do not enjoy it. Shift mindset to a technology industry Even today, electric vehicles account for 18% of new vehicles sold, and those won't be in our bays tomorrow. By 2030 the population of vehicles in operations, over 300 million, and only 8% will be electrified. Get ready, or some other service industry will beat you to the punch How are you presenting your shop to the public?
Thanks to our Partners Shop-Ware and Delphi Technologies Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com
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Click to go to the Podcast on Remarkable Results Radio
Looking to sell a hunter RM 8000 lb alignment rack I have, with Model 611 alignment machine. Its loaded up on a trailer and ready to go, will deliver in the Hudson Valley area if you have a way to unload it. Asking $6,000 for the whole setup.
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