Productivity

[ncautoshop]

What type of productivity is seen in indy shops? I know we're small and with one person doing the book work, writing and repairing the cars I shouldn't expect much but I'm seeing claims from other folks to have 19 techs, each turning 10-15 hours each day. That's a little disheartening when some days we do 8-10 others 4 and some 2. What's should I look for as a goal?

 

Thanks for you're suggestions in advance.

 

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[Jeff]

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[HarrytheCarGeek]

Take everything you hear with a grain of salt. Not to be a cynic, but I don't believe what anyone says until I have given some analytic thought to their words.

 

Keep in mind: There are only 24 hours in the day, and 7 days per week, etc.

 

Bigger is not always better or more profitable. You have to find the sweet spot to everything, and that takes work and experience.

 

Guys that claim they are running those kind of numbers are usually full of bunk, those that really do tend to be humble and keep their mouth shut for fear of giving the keys to the kingdom away.

 

Plan your work and work your plan, that way you can avoid the sew saw of randomness. Plan for a full schedule but prepare to run at 50%. Once you master that, plan for 200% and see if you can keep up at 100% of your facility output, you will find out that you cannot since there are always glitches, be it parts, staffing, or personal problems.

 

But the make it a main point, always try to have fun, even though some customers out there are very abusive.

 

As for numbers, here are some, 1 master tech, 1 R& I tech, 1 lube/tire, 1 manager and 1 service writer, 1 bookkeeper/secretary and 1 owner, revenues of $1.2 Mil, 6 bays, 3500'sq. ft. running at 96% with 6 days operating 56 hours a week.

[ncautoshop]

Thanks for the input guys! Makes me feel like I'm not doing so bad! I do have one somewhat unrelated question. For instance today I did (more like started lol) a rear wheel bearing on an explorer. It killed book time. It was very rusty and the toe link and upper ball joint fought every step of the way. It took hours just to get apart and ended up ruining the link and ball joint boots and will likely replace the joints. How do you address this problem in regards to billing? I typically stay with book hour and don't bill more time and often find myself paying for the parts to keep happy customers. This time I told the customer I was upping the time 1.8hr and ended up charging regular price on the parts. I was amazed that he didn't give me the third degree? How do you guys handle this? If I don't start charging more I won't be able to continue.

For instance this job had no indicators until partially disassembled that it would require more parts and labor, and even then I could begin to guess the degree to which this would occur!

 

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[phynny]

Thanks for the input guys! Makes me feel like I'm not doing so bad! I do have one somewhat unrelated question. For instance today I did (more like started lol) a rear wheel bearing on an explorer. It killed book time. It was very rusty and the toe link and upper ball joint fought every step of the way. It took hours just to get apart and ended up ruining the link and ball joint boots and will likely replace the joints. How do you address this problem in regards to billing? I typically stay with book hour and don't bill more time and often find myself paying for the parts to keep happy customers. This time I told the customer I was upping the time 1.8hr and ended up charging regular price on the parts. I was amazed that he didn't give me the third degree? How do you guys handle this? If I don't start charging more I won't be able to continue.

For instance this job had no indicators until partially disassembled that it would require more parts and labor, and even then I could begin to guess the degree to which this would occur!

 

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It's a fine line and one that we struggle with. The way I see it there are 2 options. The first being pay closer attention when you price it out and quote them a higher price which could cost you jobs if people are price shopping or charge them after. We have starting telling people that we charge for rust or broken parts and have had very little backlash. We are even planning on putting some signage up in the office talking about rust and billing.

 

Remember this, every time you give a "price" on a job it's an ESTIMATE.

[nmikmik]

Thanks for the input guys! Makes me feel like I'm not doing so bad! I do have one somewhat unrelated question. For instance today I did (more like started lol) a rear wheel bearing on an explorer. It killed book time. It was very rusty and the toe link and upper ball joint fought every step of the way. It took hours just to get apart and ended up ruining the link and ball joint boots and will likely replace the joints. How do you address this problem in regards to billing? I typically stay with book hour and don't bill more time and often find myself paying for the parts to keep happy customers. This time I told the customer I was upping the time 1.8hr and ended up charging regular price on the parts. I was amazed that he didn't give me the third degree? How do you guys handle this? If I don't start charging more I won't be able to continue.

For instance this job had no indicators until partially disassembled that it would require more parts and labor, and even then I could begin to guess the degree to which this would occur!

 

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Me too, very surprised your customer did not bock at increased billing. His mind must have been preoccupied with something else....

The reason i am saying this is because customers subconsciously read your ques and if you think they are going to "give you a third degree", they will. Works both, on the phone and in person, more in person imo.

Now, if you send him a no-nonsense thank you card and call him in few days to see how is he doing and ASK for referral, there is a chance he will refer someone just like him i.e. - no third degree, and on and on and on

[ncautoshop]

Me too, very surprised your customer did not bock at increased billing. His mind must have been preoccupied with something else....

The reason i am saying this is because customers subconsciously read your ques and if you think they are going to "give you a third degree", they will.  Works both, on the phone and in person, more in person imo.

Now, if you send him a no-nonsense thank you card and call him in few days to see how is he doing and ASK for referral, there is a chance he will refer someone just like him i.e. - no third degree, and on and on and on

So your both suggesting upping the confidence level and charging accordingly?

How do you determine how much more to charge? By the hour? Thanks for the input!!!

 

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[nmikmik]

Yes, be fair to the client and don't give him a perception that he is been ripped off.

Here you have a panel of people a lot more experienced than me, they can answer your specific question related to a situations similar to the one you described.

If you pick up the phone and give them a call, letting them know what's going on, as soon as you see the amount of mess you have to deal with, it will give you a lot more credibility imo.

If you let them know upfront that there is a possibility of things braking (rust whatever), needing more/better parts etc. this will make it more of (like phynny said) an estimate. Just don't let yourself convince you that you have to discount/give away services to stay competitive. Most of the time it's not the price you are competing on.

[ATSAutomotive]

A lot of good information above, I would also include experience. I have dealt with that exact same car before and do I know how it feels. I warn my customers if we know that we typically have problems with this sort of vehicle and to expect a phone call.

 

Do keep in mind that a labor guide is a suggestion based on an average. Does not take in to account rust and broken bolts or weather for that matter.

Edited September 10, 2013 by ATSAutomotive