Battin' a Thousand - - - take a swing at diagnostics before changing parts
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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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Upcoming Events
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March 24, 2023 01:00 PM Until 09:00 PM
0Hi all,
AutoLeap is hosting Amplify 2023, a virtual auto repair conference for shop owners, on March 24. We have 22 incredible speakers, and 13 industry associations and training institutes participating in this virtual event. The conference is free of cost.
You can book your complimentary, virtual seat today using this link: https://bit.ly/3EXvfWY
Amplify 2023 speakers include: Joe Marconi, Co-Owner AutoShopOwner and Elite Business Coach @Joe Marconi Aaron Stokes, ShopFix Academy Cecil Bullard, The Institute for Automotive Business Excellence Chris Cotton, AutoFix Auto Shop Coaching Darrin Barney, Elite “G” Jerry Truglia, Automotive Technician Training Services Greg Bunch, Transformers Institute Jeremy O'Neal, AdvisorFix The conference will cover essential topics such as:
Navigating through the current industry challenges Tackling the technician shortage through employee retention Creating memorable customer experiences Growing & expanding your business in 2023 Financial planning & KPIs to measure And that’s not all.
The interactive, dynamic conference also offers live networking opportunities, and fun games and prizes.
You can book your complimentary, virtual seat today using this link: https://bit.ly/3EXvfWY
#AutoLeapAmplify23
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Similar Topics
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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
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
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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
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By carmcapriotto
For my 5th episode with Paul ‘Scanner’ Danner, we sat in the ASTE studio and caught up on his life, his world. There are some great pictures if you watch the video version of the episode of him in 1994 and now. He reminisces about his Dodge Power Wagon, his family, and the Scanner Danner Brand. Paul was at ASTE to learn and continue to hone his craft. Paul has his son working with him in the creative process to keep ‘Scanner Danner’ relevant and up to date. Paul Danner, ScannerDanner. Listen to Paul’s previous episodes HERE. Key Talking Points
When you teach you learn and you have to continue to learn Ask yourself why when you come across problems as a technician and learn the answer Video editing- 40 hours for 4-hour video Started filming for his students that would reinforce the topic of his training ScannerDanner- one of his female students called him that from having scanner in his hands Teaching at Rosedale Technical College- he is a substitute and guest speaker Interested in teaching? The industry needs enthusiastic and young trainers to teach the younger generation. If you are burned out, teaching isn’t for you Paul works out of his brother’s shop- the original shop owners opened in 1993, and it was the first shop paul worked for. A year later, Paul got his brother a job at the shop. Now his brother is the owner. In 1994 Paul had a dodge power wagon- found another one, and now has his ‘old girlfriend back’ and is enjoying taking rides down memory lane with his wife
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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