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AAIA DIY Report


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Here are interesting facts from the AAIA (Automotive Industry Aftermarket Industry Association) 2012 Aftermarket Factbook, with regard to the typical DIY (Do-It-Yourself) consumer:
-Is a single male
-Between the ages of 50 and 59
-With some college education
-A white collar worker
-Has an anuual household income between $30,000 and $49,000
-Drives a car older than 15 years and has more than 150,000 miles on the odometer

Is this consistent to what you see?

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This is more of a statement of our entire nation, rather than just our industry. I'm 30 years old. I've grown up working on everything I can get my hands on ... house projects, electrical wiring, welding,car work, anything. This used to be normal for guys in our nation. Just about every 50-60 year old that I know does all this work himself. They build their own houses , do their own plumbing, and maintain their own engines. Not so much in my peer group of 30 year olds ... I know one or two that might tinker a bit with their engines or do some basic home maintenance ... but that is very much the minority. We've put white collar jobs on a pedestal and demonized anything involving dirt and grime. It's terrible for our nation ... but, I guess, great for our industry.

 

Mike Rowe (from Dirty Jobs and Ford F150 commercials) said it best in front of the US Congress. "America has a dysfunctional relationship with work." (click to watch the Youtube video ... he's got a great perspective)

Edited by Wes Daniel
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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most 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.
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