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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 carmcapriotto
What is a Master Technician? Value of ASE Practical Testing? Charging to support a Master Technician
Thanks to our Parnter, NAPA AUTOTECH napaautotech.com
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By Joe Marconi
Check Out Our NEW Series on YouTube, and See WHY You Should Team Up With The Top Shops In America!
In The Vault with Darrin Barney - A New Series!
We're so excited to release the first interview clip from our new YouTube series, "In The Vault with Darrin Barney" !
This series follows Elite President and Shop Owner Darrin Barney interviewing fellow shop owners, managers, and service advisors at our AMI-Accredited Fly With The Eagles 3-day Shop Management course.
In this interview, Scott Schmid of Archer's Auto Repair in Idaho talks about the career changes that led to his beginnings with Elite, the immediate results he saw, and the business values that he holds dear.
Watch now, and subscribe to our channel so you never miss an upload of shop tips, webinars, interviews, vault clips, and more!
Watch Now! Are you looking for a more successful shop and a healthier work/life balance?
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Did you know that after spending only 90 days in Top Shop 360, our clients AVERAGE more than a 4 to 1 return on investment? And, we're one of the only companies that requires NO CONTRACTS with our coaching?
There's a reason Elite's Top Shop 360 is number one. All our coaches are working to give back, and elevate the industry that we love.
We know every shop is different, which is why our Business Development Master Plan outlines YOUR goals and every step to reach them, and coaching is tailored to exactly what you want to accomplish.
Learn more about how our shop-specific approach can help you uplevel your business TODAY!
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By carmcapriotto
Dashboards are a valuable tool for businesses as they provide a quick and easy way to visualize and analyze key data and metrics in real time. Hear from two shop owners as they discuss how dashboards improve decision making, increase productivity, and enhance collaboration and accountability with your team. Jimmy Alauria, 3A Automotive and Diesel Repair, Phoenix, AZ. Jimmy’s previous episodes HERE
Brent Fleischman, Yocum Automotive, Republic, MO
Show Notes:
Numbers without dimensions are hard to analyze. Line graphs show trends as a picture. Where does there need to be more improvement? What caused a ‘dip?’ Using statistics helps find the right "WHY" when looking to solve a problem. Competitive nature for employees Creating a graph for daily production on completed hours for technicians Examples of what to watch: Gross income, the value of services delivered (closed repairs), ARO, gross profit dollars, new customers, number of inspections, quality inspection, ARO, average repair estimates, and close percentage (60-75%). Be careful having the close rate too high/too low. New customers- you need front office staff to have a proper orientation for a new customer. Growth mode- as growth increases, also increase your marketing.
Thanks to our Partners Shop-Ware and Delphi Technologies Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com
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Watch the Video! Complimentary Webinar by Joe Marconi - Grow Your Company With Effective Delegation!By Joe Marconi
IF YOU MISSED THE WEBINAR, HERE IS A LINK TO THE RECORDING: https://youtu.be/zgGld3MzxwI
Do you feel as if you don't have enough time in the day to get everything done? Is your task list growing to a point where it's getting unmanageable? Well, you're not alone.
As your company grows, so do your responsibilities and task list. However, attempting to perform all the required tasks in the day-to-day operations can backfire and make you ineffective as a leader. It also increases stress and reduces your overall performance.
The solution? Delegation!
Delegation is not dumping off your responsibilities. Instead, it is a shift from doing to leading. Delegating helps you become more efficient with your time. It also benefits your employees by enhancing their skills and making them an essential part of your company's overall mission.
Join Joe Marconi on February 21st at 10AM PST for this 45-minute webinar, and learn the strategies for delegating and how it improves time management and shop production. Also, discover why delegation is a critical component in your company's future success and the development of your employees.
Joe will reserve time for Q&A and give you a few key next steps to get you started on learning the art of delegation - Register below!
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