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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
This shop is too slow. This shop is too busy. This shop doesn’t know either way. It wasn’t long ago that we heard a good bit of chatter regarding shops who were experiencing slow days but most recently we have experienced shops on the other end of the spectrum. They’re too busy and have mentioned pausing their marketing. In this episode, we discuss what shops can do to shift their marketing instead of stopping all together.
Talking Points
The too-busy shop trend - sound crazy, but true. Mistake: stop marketing. Busy today does not mean busy tomorrow. Stopping all marketing creates a roller coaster effect Everything is great until one day it isn’t Do you own a business or do you own a job? It’s time to grow up. Never stop marketing; pivot instead. Change messaging to less sales/promotion and more culture Start hiring Focus on brand building Messaging Shift to: More company culture Brand awareness Great Place to work Customer Acquisition Ads Community Relations Social Media SEO Customer Retention Emails Texting Social Media
Thanks to our partner, RepairPal. Visit the Web HERE
How To Get In Touch
Website - https://independentautodieselrepair.com/
Facebook - https://www.facebook.com/IndependentAutoandDieselRepair
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]
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By carmcapriotto
It's time to shift your mindset on comebacks! Consider comebacks as a second opportunity to learn, make it right with the customer, have a training moment with your employees, and document and discover ways to improve your quality control. Aaron Woods, X-tra Mile Auto Care, Stillwater, OK. Listen to Aaron’s previous episodes HERE
Clint White, Service Advisor Coach & Shop Consultant with CWI and currently holds multiple ASE certifications. Clint’s previous episodes HERE
Jim Fleischman, Automotive Alley, Arcade, NY. Listen to Jim’s previous episodes HERE. Deidre Parker, Chloe's Auto Repair, Woodstock, GA.
Show Notes:
It's your second opportunity! Address the issue promptly: When a customer returns with a complaint or problem, the repair shop should address the issue promptly and efficiently. This includes communicating clearly with the customer about the problem and what steps will be taken to resolve it. Re-diagnose as a Team: The original technician and another technician/manager/Forman should thoroughly verify and diagnose the issue TOGETHER to determine the cause of the problem and the appropriate solution. Another misdiagnosis or underdiagnosis will damage the repair shop's reputation and further destroy the client’s trust. Prioritize the repair: Comebacks should be prioritized over other work to ensure the customer's vehicle is repaired immediately. This demonstrates the repair shop's commitment to customer satisfaction. Analyze the root cause: When a comeback occurs, the repair shop should analyze the root cause of the problem to identify any areas for improvement. This includes reviewing the repair process, technician training, and parts selection. Implementing changes to address the root cause can help prevent future comebacks. It may not be your fault, but it is your problem- empathy, resolve, and quickness. Evidence will be the evidence, but there is an opportunity to have integrity. Establish a healthy culture of accountability. Assume derived from the individual, but what about your processes? Communication error? What is your definition of a comeback at your shop? Documentation of the initial visit What is the greatest prevention tool? Final QC process “Cherish the Customer” allowance for customers Aaron Woods: We define comebacks as any reason a customer has to return due to an error in communication or workmanship. Each technician is responsible for ensuring their comebacks are at or below 2% of their total car count. We display each technician's scorecard at our weekly Monday morning production meeting and discuss all numbers as a group. This also helps establish peer-to-peer accountability as well. Hunt Demarest- Accounting for Internal and Warranty Work
QC CHECKLIST:
Test drive the vehicle and verify that the PRIMARY CONCERN has been resolved. Visually check that all other work has been completed according to the repair order. Inspect the vehicle to ensure that there are no new scratches, dents, or other new damage (See Intake Pictures in the DVI for reference) Verify that the vehicle has been cleaned and is free of any debris or grease marks/stains. Verify that all peripheral components that were removed during the repair have been reinstalled and are functioning correctly (i.e. Engine Covers, Air Filter Box, Oil Caps, Lids, etc) Check that all fluids have been topped off to the correct levels whether they were serviced or not. NO FLUID LEAVES LOW Inspect the tires to ensure they have been properly inflated. Manually retorque lug nuts if wheels were removed for any reason. Check that all warning lights and error codes have been cleared and are not displaying unless previously declined by the customer. VERIFY ALL MONITORS HAVE RUN/PASSED Verify the LOF sticker is present and ACCURATE Reset the Oil Life Monitor -or- Maintence/Service Reminder. Vacuum floors, clean windshield inside and out, and refresh wipers if not replaced. Park vehicle in Launch Pad, remove seat cover & floor mat and place “gift” for customer on the dash or in plain sight.
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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By carmcapriotto
Kim + Tracy Capriotto spend time in this episode laughing, chatting, and sharing about key moments in the industry, career transitions, and working with family. Tracy shares her battle with an internal dialogue.
Thank you to our friends at RepairPal for providing you this episode. RepairPal is the key that unlocks more business for your repair shop. Learn More at RepairPal.com/shops
Talking Points
Working with family. You’re either crazy or an angel. I think it’s an angel. What’s your top tip for working with family? what was it like watching your dad take on the automotive world with his podcast? at what point did you think you wanted in on that? what has the transition like for you joining your dad? let's chat about your Women in Auto Care involvement - what are your favorite events? what are you doing in that group? Your greatest lesson? your favorite podcast episode you've done so far funniest edits + bloopers
Lagniappe (Books, Links, Other Podcasts, etc)
Tracy’s Women in Auto Care Podcast Carm’s Podcast Episode about their Adoption Story
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]
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Recorded Live at the 2023 Institute Summit, Michael Smith, Jason Brennan and Mike Simard discuss leadership, growth, culture and the resilience needed to commit to succeed in your business. Michael Smith, Managing Partner, Herzberg Smith and Co, Michael Smith’s previous episodes HERE
Jason Brennan, Fine Tune Auto Service, Lansing, IL and Hobart, IN.
Mike Simard, Simard Automotive, 4 locations, Fairbanks, AK. Show Notes
The pace of change- OEM incentivized to make changes (autonomous alternative drive drains, connectivity, shared mobility) How do we participate today to be successful down the road? And what would that look like? Mindset- the power of belief, the challenge of solving something difficult. When somebody gets stuck any time of the year and needs help, there are so many people, they can pick up the phone and call. Be fearless and be fearless together. Your resilience- your people need to see that you're there committed to succeeding. People are either running toward opportunity or running away from something. Serve people first. Think outside the box, never give up. Competitive advantage- USP unique selling proposition, UVP unique value proposition is embedded in all of that is the word unique. SWOT analysis. Once you get to be a great journeyperson and you move into mastery, and you're solving all the problems that you and others couldn't solve before, what comes after that? Once you achieve a high level of mastery, you start to think about how does this fit into the bigger picture and how do other things work? When you get to that level, now you start attracting high-performance cultures. The competitive advantage is the experience that you have, and that comes from the people and the values that they share. Core Values: ‘Idea” - integrity, dependability, excellence, empathy, and attentiveness. Your systems and processes should embody what you believe. The best doctors at a doctor’s office- explained the process, transparent about results, explained what is to come next and why it’s needed, and asked if you had any questions. If you truly care about people, you’ll do the right thing, and the money will come . We're not selling stuff, we're stewarding the investment of their vehicle, which is a depreciating asset. Communicating with your employees regularly. Goal alignment Stop interviewing for yourself- get other team members involved. Where could you go? Where do you want to go? What are your personal goals and your career development path? How do they align with the company's purpose and goals? Provide more opportunities for employees. It's all about knowing each other and the more familiar we are. The less unknown there is, the easier it is for us to have an honest connection with each other.
Thanks to our Partner, NAPA AUTO CARE Learn more about NAPA AUTO CARE and the benefits of being part of the NAPA family by visiting www.NAPAAutoCare.com Connect with the Podcast: Aftermarket Radio Network Subscribe on YouTube Visit us on the Web Follow on Facebook Become an Insider Buy me a coffee Important Books
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