-
Have you checked out Joe's Latest Blog?
-
.thumb.jpg.2b345efc275b9df0af2bbb306a10a78a.jpg)
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.
-
-
Similar Topics
-
By TTP
Premium Member Content
This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.
-
By carmcapriotto
We are with Jimmy Lea from Kukui at ASTE 2022 with another important Google Update. We are always keeping you in the know as it relates to mother Google. Google is now giving more credibility and weight to customer reviews. It goes beyond their ranked star review and dives into what they wrote, word for word, literally. What does that mean for your shop? Jimmy Lea, KUKUI Evangelist. Listen to Jimmy’s previous episodes HERE Key Talking Points
The Google algorithms have changed, and now they are giving more credibility and more weight to customer reviews Be an open book when we're asking for our reviews. You want five stars, but you also need three, two, and one in order to get the ranking right. Customers want to know how you handle mistakes. Recent reviews show a customer what they will expect. The good and the bad of Google Reviews are once you go on and leave a Google Review when you come back, you can revise the review, but you can't leave another standalone review The about us page is so important. You must have employee testimonials, customer testimonials, and what makes your shop unique Do short videos on your about page from the customers and technicians The power of blogs. Google gives more credibility to the blog, and they need to be consistent
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
-
By bantar
I attended my first ever industry management conference. What a great experience. If you've never gone, I would encourage you to add it to your do-now bucket list. There was a lot of open and detailed sharing. For example, in a work session talking about bay efficiency analysis, they used real numbers from the audience. Monthly Overhead, Gross Profit Percentage, desired bottom line profit. It showed multiple paths to success that were immediately relatable.
None of the presentations were about perfection. As a matter of fact, most presenters shared information about how they did things stating that this may or may not apply to your situation. No one told you what to do, but rather offer tools for analyzing your own situation. None of the presenters were making sales pitches.
In other sessions, real shop owners share tips and techniques on a number of topics that we see here. Being a live event, these were more dynamic conversations.
I've returned from the conference with a renewed sense of urgency analyzing my numbers to see where we had success and where we need to improve. I do expect to make real changes, but don't yet know exactly what changes I'm going to make. Got to crunch some numbers first.
I signed up for the conference when it was first published, but sat on the CC screen for a while debating the value of this conference. Should I go, or should I stay? I reluctantly pushed the GO button. However, looking back, I should have enthusiastically smashed that GO button!
The next one is in Denver. I recommend that you consider attending.
A side benefit is that I got to meet Joe Marconi and in a session that we jointly attended, I overheard Joe say that he was mentored by Jerry Holcom. Later in the conference, I had the pleasure of talking with Jerry as well. In the many networking sessions, we met many different shop owners and had great conversations.
--brian
-
-
By carmcapriotto
How often are you checking on the overall health of your business with your team members involved? Are you identifying and working on the strengths, weaknesses, opportunities, and threats, known as SWOT? How do you start a SWOT analysis? What are the benefits? How do you find your blindspots? Does knowing your SWOT give you a competitive advantage? My panel takes a deep dive into the value of SWOT and shares their own experiences. Watch the Episode on YouTube Brian Bates, Eagle Automotive Service, Littleton, CO, 9 locations. Brian's previous episodes HERE Michael Smith, Managing Partner, Herzberg Smith and Co, Michael Smith's previous episodes HERE Bill Van Hoose, General Manager, Eagle Automotive Service, Littleton, CO, 5 locations Key Talking Points
SWOT Analysis is just one component of a comprehensive approach to continuously reassessing and improving a company's structure, performance & results over time. SWOT is Step #1 in a 5-step value building cycle - As-Is discovery, To-Be future, gap analysis, gap closure, and begin again. Strengths & Weaknesses are INTERNALLY-focused and Opportunities & Threats are EXTERNALLY-focused. Path to Mastery - Achieving mastery requires continuous assessment & development; SWOT plays a crucial role A comprehensive (breadth) SWOT analysis examines ALL value-levers & business functions. A deep-dive (depth) SWOT analysis includes an alignment-assessment for each lever & function, from vision down through deliverables & success metrics. People do business with people Consider doing a SWOT post Covid Starting- pick 1 problem area first, you will uncover other problem areas naturally. Remove your arrogance during the process. Add humility. Ensure your team is aligned with your culture, business and SWOT. It is a collaborative effort to improve, you are not assigning blame. Implementing SWOT with a qualified moderator to dig deep, unveil blindspots and ask the hard questions “What’s your legacy? What is your exit strategy?” Have the end in mind. What is your value proposition?
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: More Time. More Profit. Shop-Ware Shop Management getshopware.com
Click to go to the Podcast on Remarkable Results Radio
-
-
-
Our Sponsors
.png.670cdba7e1e29bc28f538a6796dc62e3.png)
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now