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ncautoshop Proficient

ncautoshop

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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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HarrytheCarGeek Experienced

HarrytheCarGeek

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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.

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ncautoshop Proficient

ncautoshop

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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!

 

Sent from my DROID RAZR using Tapatalk 2

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phynny Community Regular

phynny

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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!

 

Sent from my DROID RAZR using Tapatalk 2

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. :)

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nmikmik Enthusiast

nmikmik

Posted
Posted

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!

 

Sent from my DROID RAZR using Tapatalk 2

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 Proficient

ncautoshop

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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 :)

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!!!

 

Sent from my DROID RAZR using Tapatalk 2

nmikmik Enthusiast

nmikmik

Posted
Posted

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.

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ATSAutomotive Collaborator

ATSAutomotive

Posted
Posted (edited)

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 by ATSAutomotive
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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Technician Shortage Is Our Fault, And It's Time We Own It
      By Joe Marconi in Joe's Blog
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      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
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      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
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      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
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      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
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      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.

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