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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.
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By Joe Marconi
When I was in business, each year for 41 years, we experienced a slow down in February. The reasons are many, but by the second week of March, things went back to normal.
However, from what I am hearing from some shop owners, they are concerned. They point to riding this wave of business since coming out of COVID, and fear that the wave may become a trickle.
What is your opinion? Good times are still here? Should we be concerned?
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By carmcapriotto
Insights to the Vision Hi-Tech & Expo Class "Which Scan Tool Should I Buy?" Saturday, March 4th 8:45 am-11:45 am with Scott Shotton, Scot Manna, Tanner Brandt, Keith Perkins, and Sean Tipping.
Scott Shotton, The Driveability Guys. Scott’s previous episodes HERE. Tanner Brandt, Autodiag Clinic. Tanner's previous episodes HERE. Scot Manna, Trainer, ACDelco Technician of the Millennium. Scot's previous episodes HERE. Watch Full Video Episode HERE Show Notes:
"Which Tool Should I Buy?" Saturday March 4th 8:45am-11:45am with Scott Shotton, Scot Manna, Tanner Brandt, Keith Perkins and Sean Tipping Register Here For Vision 2023 Q&A- shop owners/managers included Shop owners may or may not know the functionality of scan tools Raffles
Thanks to our Partner, Dorman Products. 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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Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
There's an art to giving and receiving critical feedback properly. Join Dr. Dave Weiman as he dives into the psychological background of what happens when people feel criticized. He also explains common mistakes and practical tools to apply for an effective and efficient conversation. Dr. David Weiman is the president of Weiman Consulting, a leadership consulting firm in Philadelphia PA. Listen to David’s previous episodes HERE Show Notes
Common mistakes managers make- waiting too long to give the feedback, if you're letting things fester and stew, by the time you give the feedback, you're really angry, talking about things you didn't directly observe, loading up with several complaints at the same time, and talking too long at the beginning of the conversation Give positive feedback when it's fresh Are people conditioned and associate that good news is always followed by bad news with the 'sandwich technique?' Make it a conversation, not an event. What happens when people feel criticized? Stop listening as they plan how to defend themselves (as defensiveness goes up, listening goes down) Feel resentful. Can wonder why this wasn’t brought up before. Get angry in response. How to give effective critical feedback- mindset, be curious about what the other person’s response may be. Keep your “opening” short, no more than 3 sentences and no more than 10 words per sentence. Use the Situation-Behavior-Impact model from the Center for Creative Leadership: Situation- generally what was going on, “When you were taking the keys from that customer and they said they looked up the problem on google …” Behavior- “I noticed you rolled your eyes.” Impact- the customer said “I saw that!” asked to talk to the manager Interestingly, in studies of body language, we're the least aware of what's going on with our own face because we can't see it, the other person can. A lot of time when we're giving feedback, we're not putting ourselves in the shoes of the person who's receiving it. Be effective and be efficient, the goal is to get better at it, not to be perfect at the first time
Thanks to our Partners AAPEX and NAPA TRACS. Set your sights on Las Vegas in 2023. Mark your calendar now … October 31 - Nov 2, 2023, AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at AAPEXSHOW.COM NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at NAPATRACS.com 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:
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Recorded Live at the Transformers Summit with Aftermarket Radio Network host, Hunt Demarest, CPA at Paar Mellis and Associates and host of the Business by the Numbers Podcast. Hunt's firm specializes in automotive repair clients and he gives us an inside scoop on common new client questions and concerns as well as some behind the scenes about his podcast!
Hunt Demarest, CPA, Paar Mellis and Associates, Business by the Numbers Podcast
Show Notes
Finance and accounting with new clients- “I want to know more about my finances, but I don't understand them.” Clients have to see the value in their numbers themselves How do you want to make more money if you don't even know how much money you're making right now? You need to set up your financials in a way that makes sense to you. Profit is used to pay down debt. Profit is used for your distributions. Profit is used for you to buy inventory and equipment. Paar Melis gives you a report card at the end of the month. Focus on the red items and that's going to tell you everything that you need to know. Numbers don't lie, but they can be misleading Instead of charging credit card fees, instead, raise your labor rate, and raise your parts margin 3%. Now you're making that credit card fee on every person
Connect with the Podcast:
Aftermarket Radio NetworkSubscribe on YouTubeVisit us on the WebFollow on FacebookBecome an InsiderBuy me a coffeeImportant 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
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