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By Joe Marconi in Joe's Blog13 commentsMost 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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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?
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By carmcapriotto
On Record with Tom Ham from the Automotive Management Network. Tom discusses a recent survey from his website about the stress level at work, reasons why someone would reject a technician application, health insurance and more! These results may surprise you!
Tom Ham, Automotive Management Network. Tom’s previous episodes HERE. Show Notes:
AMNSHOP.com laborratetracker.com - lowest labor rate so far is $50 and highest is $297 Management Help Polls: 130 types Why techs avoid working at some shops- low pay, dark/lack of lighting, dirty, disorganized Job applicants for possible reasons they might be rejected: 70% driver license issues, 68% frequent job changes, 66% negative comments about past employers, 64% know it all, 60% questionable attitude, 60% excessive demands. 59% inconsistent information, 58% late for interview, 55% listens poorly, 53% sloppy appearance, 53$ incomplete application, 51% lack of manners Pay portion of health insurance- 35% pay nothing, 19% pay full health insurance. Stress level at your shop ranked 1 to 10, 10 is maximum stress level- 40% rank their stress level at 8+, 81% say their stress level is average or above average, only 19% say their stress level is ranked 4 or less. “What do we do here that is not as clear as it could be, a bit confusing?” Service advisor responsibilities (are these regular tasks of your service advisor)- estimating, collect vehicle information, parts ordering and returns, labor claims, operation/management, quality control, assist technicians, pickup/deliver customer or parts (porter). None of these should be the service advisor responsibilities! Consider hiring an estimator/parts person Service Advisor Overload [THA 305] Service Advisor Overload: Part 2 [THA 312]
Thanks to our Partner, Dorman Products. Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
Connect with the Podcast:
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Important Books
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Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
During Today's episode #97 I’m going to be talking about: Chris’ recent doctor's visit, Kimberly’s Old rocking chair & Having value in what you do.
Chris, what are you talking about???? Kimberly’s Rocking Chair 89.00, 47 pictures, clear communication Recent Dr. Visit 2000.00 per hour, very concerned about how I would pay. If these people can charge that, so can you. Self Esteem Do it responsibly and with thought. We can’t just throw stuff against the wall.
To listen to more episodes make sure and go over to iTunes and or Spotify.
Don't forget to rate and review us!
Connect with Chris:
940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/AutoFixAutoShopCoaching
YouTube: https://bit.ly/3ClX0ae
Email Chris: [email protected]
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:
AutoLeap Link: http://bit.ly/3GRgO88
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
If you want to get a good fight started in the automotive industry, all you have to do is start a discussion about coupons or discounts. In this episode, we dig into the topic. Should you use coupons in your marketing strategy?
Thank you to our friends at RepairPal for providing you with this episode. As shop owners, we were part of RepairPal’s Certified network, and you can learn more at RepairPal.com/shops.
Talking Points
Should you use coupons in your marketing strategy? Will they bring you more clients? What type of client are you trying to attract? Are you good at converting “coupon customers” into lifelong customers? If you do use coupons, what are some promotions you can do? Can coupons be successful with high-end clients? If you don’t want to do discounts but do want to run promotions, what are some ideas?
Lagniappe (Books, Links, Other Podcasts, etc)
$100M Offers by Alex Hormozi
How To Get In Touch
Group - Auto Repair Marketing Mastermind
Website - shopmarketingpros.com
Facebook - facebook.com/shopmarketingpros
Get the Book - shopmarketingpros.com/book
Instagram - @shopmarketingpros
Questions/Ideas - [email protected]
Thanks to our partner, RepairPal. Visit the Web HERE
Click to go to the Podcast on Remarkable Results Radio
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