Shop Owners Need To Define Themselves
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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.
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By carmcapriotto
Recorded Live at Vision 2023, we are with 3 trainers that describe training as a lifestyle, not a job. Today's technicians must have an engineering mindset in order to repair vehicles and that requires a continuous commitment to learning, improving, and teaching for both the trainers and attendees.
Ryne Thomason, NAPA Trainer
Bill Weaver, NAPA Trainer. Listen to Bill's previous episodes HERE
Curt Eigenberger. NAPA Trainer
Show Notes
"Job of a trainer isn't a job, it's a lifestyle." Knowledge is sort of a burden, once you've accumulated it, it's your burden to distribute that back out to the field. Daytime training generally works better given the time in the environment as far as you can do things more hands-on than in the evenings Invest in training, keep a training resume. Teaching or taking, it doesn't matter. You're always learning something new if you have an open mind. If you come back after training and you show me you've improved your skills and your profitability, then everybody wins. If you can teach somebody else a skill that you have, you have mastered that skill Connect and interact when you're teaching in class Make a commitment right now for the rest of this year, you're gonna put your guys out in training and give them opportunities. Measure it after an entire year If you're spending time, money, and the investment to grow your technician, but then not allowing the technician to grow, that's a management problem. Your technician has to be an expert in fluid dynamics, thermodynamics and an IT expert to diagnose and repair a modern vehicle. To be an automotive technician now, you need an engineering mind. And you have to develop your own way of understanding critical thinking because you have to blend the real world of mechanical, with the engineering world of electronics that's in there.
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: -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 carmcapriotto
A surprise taping of a tribute to the eight years since starting the service aftermarket’s premier podcast. We also want to express gratitude to the hundreds of guests that have enriched over 1,100 episodes of the collection of Remarkable Results Radio, the Town Hall Academy, and Aftermarket Weekly podcasts. We thank them for sharing their wisdom so we all rise to new levels of success. We will continue to provide the industry's widest range of topics, both in audio and video formats. And along with the 1 ½-year-old Aftermarket Radio Network, we are there for every aftermarket professional to Advance the Aftermarket.
Featuring:
Rena Rennebaum Tracy Capriotto Bill Nalu Chris Cloutier Chris Cotton Clint White Brian Walker Kim Walker Matt Fanslow Aaron Woods Dwayne Myers Cecil Bullard Hunt Demarest Tim Shaffer
Episodes for all Aftermarket Radio Network Shows:
Remarkable Results Radio HERE. This includes the Town Hall Academy, Aftermarket Weekly and CarmCast’s Matt Fanslow HERE. Diagnosing the Aftermarket A to Z Hunt Demarest HERE. Business by the Numbers Chris Cotton HERE. The Weekly Blitz Kim and Brian Walker HERE. The Auto Repair Marketing Podcast
Connect with the show:
Aftermarket Radio Network
Subscribe on YouTube
Visit us on the Web
Follow on Facebook
Become an Insider
Buy me a coffee
Important Books
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Live from the 2022 Transformer's Summit, keynote speaker John Dijulius categorizes the automotive industry as a 'grudge buy' for customers when they are at their most vulnerable. How is this an opportunity for your business to be the 'hero?' How do you make price irrelevant? John Dijulius, John Robert’s Spa, The DiJulius Group. John's had the privilege of working with world class companies like the Ritz-Carlton, Lexus, Starbucks, Nordstrom, Nestle, Marriott Hotel, Pricewaterhouse Coopers, Cheesecake Factory, Bausch & Lomb, Progressive Insurance, Harley Davidson, State Farm, Chick-fil-A, Entrepreneurs Organization, YPO, Aveda, and many more. Listen to John's previous episodes HERE Show Notes
Drove for UPS- his wife was a hairdresser, and they opened a salon. John started getting involved in the business. “We aren’t going to be the best salon, we will be the best experience of your day.” Chambers of commerce businesses started asking John for business consulting. 20 years ago John’s first book came out and took him to the next level Business and Artistry Pengeleum Making price irrelevant- based on the experience your brand consistently delivers, your customers shouldn't have an idea what your competitors charge because they aren’t window shoppers. Who is more expensive? Why are they? “We do $10 haircuts” vs “We fix $10 haircuts.” Give the experience before you charge for it and justify it -“What does a $1,000 haircut look like? What is that greeting like? How is the massage during shampoo? What does a $1,000,000 keynote speech look and sound like?” Grudge buy and losing time- automotive repairs. When you can come to the rescue when a customer is at their most vulnerable, there is an emotional connection and memory made. Customers asking about price- opportunity The biggest cause of anxiety is uncertainty- no update update for customers Level 1 through 10 hairdressers based on expertise “Discounting is the tax you pay for being average.” Things that make a brand something customers can’t live without- the quality of work, consistency, employee evangelism (educate vs sell), how do you make me feel, Capitalize the ‘C’ in Customer to show the emphasis in your policies and procedures Building relationships with FORD- family, occupation, recreation, dreams Disney- know your role and be ‘on’ when you’re on, leave your problems at the door The Customer Service Revolution: Overthrow Conventional Business, Inspire Employees, and Change the World- John Djulius The Relationship Economy: Building Stronger Customer Connections in the Digital Age - John Dijulius
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 Check out today's partner: Learn more about NAPA AutoCare and the benefits of being part of the NAPA family by visiting www.NAPAAutoCare.com
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Guest hosts and shop tour with Bob and May Patterson, Bob's Automotive, Panama City Beach, FL. With encouragement from his wife May, Bob opened his own shop 8 years ago. Hiring technicians has been a challenge; find out why they patiently wait for the right fit for their shop culture. Watch Episode HERE Bob and May Patterson, Bob's Automotive, Panama City Beach, FL.
Show Notes:
Opened 8 years ago (3rd location since original) Bob was a shop foreman, his wife May saw his potential and wanted him to open his own shop Been without a technician for over 6 months- just hired new technician. Hiring has been the challenge for the business- it’s all about the fit in the shop culture DVI- educating customers on preventative maintenance
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
Check out today's partner:
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
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Do you spend your work day putting out fires left and right, but you still make it through the day? Are you treading with your head just above the water, metaphorically gasping for air? Have you been there for so long that you don’t even realize your business is slowly drowning you? Together with my guest John Burkhauser, Director of Education at Bolton Technology, we tackle the gasping for air issue. John Burkhauser, Director of Education at Bolton Technology. Listen to John's previous episodes HERE Key Talking Points
Drowning- panicking and putting out fires but still making it through the day. Will they reach for the ‘pole’ for extraction? They still need to grab it, but if they stop what they are doing, they will go ‘underwater.’ Don't be afraid to swallow some water Slow down to speed up The only obstacle in your way is yourself- face your fears and move past them
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 Check out today's partners: Set your sights on Las Vegas in 2022. Mark your calendar now … November 1-3, 2022, AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at AAPEXSHOW.COM/WEBINAR. Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com
Click to go to the Podcast on Remarkable Results Radio
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