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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 carmcapriotto
During Today's episode #105 Brent and I Talk About:
Brent’s Favorite Super Hero Brent’s Shop Brent’s Coaching Style Brent’s Ideal Client
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
Don't forget to rate and review us!
Connect with Chris:
[email protected]
940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/AutoFixAutoShopCoaching
Youtube: https://bit.ly/3ClX0ae
Click to go to the Podcast on Remarkable Results Radio
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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:
Aftermarket Radio Network
Subscribe on YouTube
Visit us on the Web
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Buy me a coffee
Important Books
Check out today's partner:
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Dashboards are a valuable tool for businesses as they provide a quick and easy way to visualize and analyze key data and metrics in real time. Hear from two shop owners as they discuss how dashboards improve decision making, increase productivity, and enhance collaboration and accountability with your team. Jimmy Alauria, 3A Automotive and Diesel Repair, Phoenix, AZ. Jimmy’s previous episodes HERE
Brent Fleischman, Yocum Automotive, Republic, MO
Show Notes:
Numbers without dimensions are hard to analyze. Line graphs show trends as a picture. Where does there need to be more improvement? What caused a ‘dip?’ Using statistics helps find the right "WHY" when looking to solve a problem. Competitive nature for employees Creating a graph for daily production on completed hours for technicians Examples of what to watch: Gross income, the value of services delivered (closed repairs), ARO, gross profit dollars, new customers, number of inspections, quality inspection, ARO, average repair estimates, and close percentage (60-75%). Be careful having the close rate too high/too low. New customers- you need front office staff to have a proper orientation for a new customer. Growth mode- as growth increases, also increase your marketing.
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
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
Support our partners:
Click to go to the Podcast on Remarkable Results Radio
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By Joe Marconi
There are many benefits to growing a company so that it runs smoothly and efficiently without the shop owner. Building systems and procedures to get the entire team on the same page is essential to any successful business. In addition, an auto repair shop will grow more successful, and worth more if the shop owner, is not needed in the day-to day operations.
However, the question is: Should you become an absentee owner? This is not an easy question to answer, since it really depends on the size of your shop, your role in the business and how you feel about your business. For example, if you run a 4-bay shop, with four employees, that is vastly different from a company that has three locations with 25 employees. And also, you may really enjoy going to work and being involved.
The bottom line is this: Build your company so that it can run without you, but know when to step back in when needed. Great leaders know when to get out of the way, and when to step back in and make course corrections. Ultimately, your business is your business, and the responsibility for its success rests largely on your shoulders.
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