By Ron Ipach
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By [email protected]
OK. Not to start another parts markup thread but I would like to look at this from another angle. What percentages do you aim when marking up parts when you look at the part categories?
Just an example below:
Maintenance, etc ,etc
The reason I ask is because even a standard parts pricing matrix can blow certain items out of reasonable sale price. I am aware that less expensive items can net larger profits, which also makes up for more expensive items but I am trying to see a base line of what parts markup looks like with these categories.
By Ron Ipach
This is something that I'm hearing from shop owners constantly when we're talking about car count levels in their auto repair shop:
"Car count is down in my shop because cars are made better."
If I've heard it once, I've heard it a thousand times, and chances are you've probably said it yourself. Look, I'm not going to tell you cars aren't made better because that would be sheer stupidity.
The fact is that cars are made better. Cars are made to last much, much longer than they used to.
But... That's not the reason why car count is down in shops.
How do I know that? Well, a recent study came out that said the average car on American roadways is over 14 years old.
Let me say that again... The average car is over 14 years old. That's not a new car. The average. That means for every brand new car out there, in order to have an average of fourteen years, that means there's a car that's 28 years old. There is a balance there.
If the average car is 14 years old, those are the cars you work on. Right? 14 years ago the cars weren't made as good as they are now, and even if they were, they're 14 years old right now, odds are that they're going to need a lot of maintenance now or in the near future. It's important to make your shop available for those repairs.
Don't get caught up in the thinking that the car count is down simply because cars are made better. Those cars that are made better are not your business. Those aren't the ones that are going to give you more cars in your bays and increase your profitability. The most of a shop owner's profits is going to come from the cars that are older, and the average car is much older than it used to be.
Clear the "cars are just made better" excuse out from your mind, understand that there are plenty cars out there, it's just up to you to go focus on your marketing and attract more customers to your shop.
-- Ron Ipach (a.k.a Captain Car Count)
President/Founder of Repair Shop Coach More articles and content like this and originated through Ron Ipach's Car Count Daily campaign Auto Repair Shop Owners, Managers, and Automotive Industry Professionals are invited to join 'Car Count Daily Boosters' LinkedIn group to provide resources and gain insight on boosting car count DAILY and filling up the bays in their shops.
By Elon Block
As a result of the some of the recent changes, I'm preparing to hold a special webinar just for Goodyear tire dealers.
Please send me a private message if you would like to be notified when this has been scheduled.
By Joe Marconi
Legendary College basketball coach John Wooden, would always preach to his players that it’s the details of the game that matters most. That worrying about the score was futile if the execution and the details of the game were not performed with consistency and to the best of everyone’s abilities. In other words, the score will take care of itself and the wins will come if every detail of the game is consistently executed properly.
In the shop environment, only worrying about getting the car done, without performing all the steps properly will lead to an eventual breakdown in your workflow system. It will lead to higher comebacks, lower profits and poor customer satisfaction.
To have a properly working workflow system, that minimizes comebacks, improves overall quality and improves customer satisfaction, requires paying attention to the details of the workflow process in a consistent manner.
Is the customer write up process done properly each time? Are the technicians following the workflow process and every checklist done properly every time? Are the technicians short-cutting the process in an attempt to book hours? And, perhaps the main killer of the shop environment and workflow: a sloppy shop.
Yes, a sloppy shop leads to a breakdown in the system. Disorder in the shop equals disorder in the workflow, which equals increased comebacks, increased chances of people getting hurt, unhappy customers and lower profits. Time is wasted finding tools and equipment. People tend not to care enough about the condition of the customer’s car because the shop does not put an emphasis on neatness and order in the shop. Cars will leave with grease marks, dirty floor mats and job details forgotten.
The first step in any process is the shop environment and that means shop organization. You cannot have an efficient workflow until you have shop order. Everyone must be held accountable for keeping order. And it starts with the tech’s work space.
Want to improve production, profits and customer satisfaction? Pay attention to the details, focus on quality, create a well-defined workflow process and maintain order in the shop.