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So after a long story I won't bore you with we have our current financial information in hand for the last 6 months. Previous information is so incorrect its not even useful.

 

There's a very disturbing trend that may break me if I don't handle things correctly, hence why I'm asking the most experienced folks I know.

 

Our labor sales are low low low. We hadn't been charging for diag, just a base rate of one hour, likewise we had been using the labor guide and not billing a second more regardless of condition bit its still to low to be resolved with these fixes. Many weeks I could sell more labor but shop space and the fact I'm the only true technician limits our ability to sell more when figured with slow weeks it really throws the daily labor sold to a disgusting 2 hours. With high expenses that's even more disheartening because we're surviving on the cogs profits. No chance for real profit in the big picture. Some weeks we could sell 4 a day but it concerns me that we would loose our quality and workflow procedures that I've worked so hard to implement. Between answering the phone and doing the paperwork.

 

 

Currently I need 3.7 hours a day at $65 to cover codb. I see the options below as viable solutions.

 

1: wait 6 months and re-evaluate the data with the implemented changes before price increase or drastic changes.

 

2: increase labor from 65 to 75 or 80 per hour at the end of the month and re-evaluate in 6 months.

 

3: try and increase sales with advertising and push much harder and work more hours (major concern here is customer satisfaction and quality control)

 

4: throw in the towel and go work elsewhere.

 

5: make dramatic cuts in expenses and eliminate some key business needs and bring them back after long term liabilities have been reduced.

 

From my experience reacting to negative situations often results in over reacting I've considered raising prices, focusing on selling what hours I could and trying to be more efficient and let profit from cogs carry us until we have better data and we're more financially stable. I've got my helper calling shops and pricing labor and odd jobs to give me an idea of the market around us and I'll post with this later.

Thanks in advance for the advice. Don't worry about me being offended. I'd rather hear I'm up the creek, near the dam and no paddle in sight if that's the case. For years everyone told me what I wanted to hear including my accountant.

Sent from my DROID RAZR using Tapatalk 2

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I’m dammed sure this is the same IV unit that was here yesterday! So why in the world do you need to come in and scan the serial number twice a day?!”  I don’t think I came off as his next best pal by a long shot. Eventually, the day came to get out of the hospital.  One the happiest days of my new life. Me and my IV had to part ways, and no, I didn’t tell the inventory guy. Home at last          When you finally get to be home, start your rehab schedule, and try to reassemble your now broken apart life, you begin to reevaluate what is most important for your future. Walking is your foremost concern. I had a routine I would do and set a goal each day a bit farther than the previous day.  Oh, I’d push it too far, and the wife or my son would have to come haul the emotionally incoherent old guy off of our hilly driveway more than once. It does get better, but it does take time.           You soon learn new routines, things like coughing and sneezing should only be done if your heart pillow or Teddy bear are close by.  Squeezing the pillow (or bear) against your chest prevents you from popping your sternum open. You also learn how to stand up and roll over without using your upper body as much as you previously did. Sleeping in a bed is out, at least for a month or so (if not longer) you’ll have to learn how to be comfortable in a recliner 24-7. Breathing, talking, walking, and bathing, etc… all their problems that you’ll need to overcome. And, probably the most important thing or the most annoying... (Your interpretation may vary) is the now-and-for-ever-more medications you’ll be on. Family and friends take precedence over work and bills.  The realization that life is all about a beginning and an end and that you’ve been given a chance to change your life’s conclusion differently than what it could have been.  Not that you need a lightning bolt to drop out of the sky to tell you to change your life…but a heart attack and open heart surgery is close enough to the same thing. So heed the warning, do yourself a favor. Except it for what it is, and discover what is more important.  Not a lot of people get this second chance. For some, it’s as sudden and as unexpected as a car crash. I feel there’s reason for every action and reaction.  It’s how you cope and/or do with those actions and reactions that make a difference.   Putting it all into perspective           Life is what you make of it.  There is no perfect solution, there is no golden key, it’s up to you to make it a difference. It’s not money or fame… just you.  As we’ve all heard before, “If you don’t have your health, you don’t have much at all.” True to some extent, but not always true and not always is your health something that you can have the way you’d like it to be. What is possible is living life to the fullest no matter what the odds.  I for one, love to hear stories of people who have found out they have some sort of rare disease and decided to fill their bucket list of personal accomplishments until their time has expired. I commend them and hope I can do the same. So even though my stamina and strength may not be equal to what it was of years past, I’m still able to experience all there is out there. For me, I’d like to think I still can try. Maybe it’s not all about the challenges, maybe it’s not all about solutions, perhaps it’s just about the adventure.  Becoming a member of the Zipper Club isn’t the end… it’s a new beginning.             
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      By Gonzo, in AutoShopOwner Articles

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    • Article: Flash or Pass --- Modern mechanics have more tasks to do than previous generations of mechanics ever had to do.

      Flash or Pass          A few decades ago cars were just . . . well, cars.  They had an engine, transmission, a starter, a heater, maybe an air conditioner, and all the usual accouterments that made them a car. Mechanics toiled away at replacing engines, rebuilding master cylinders, and fixing transmissions. Almost every component on the car was reworked to a like new condition and some parts may even have been rebuilt several times, before they were too worn out to go around the horn one more time.  Labor rates raised and fell with the economy, while parts suppliers kept up the demand for rebuild kits as a normal over-the-counter parts inventory. Then somewhere along the way something changed.              The era of the microchip followed right along with the era of plastics. Things were built not to “rebuild”, but to toss.  Thin plastic housings with hundreds and hundreds of micro circuits all wired into a microchip made up circuits that allowed the impossible to become the possible.  Some tasks became obsolete, like the telephone switch board operator, even bank tellers nearly went extinct when the ATM machine was developed. The world would never be the same with the microchip in every facet of modern life.           Machining tools could now process and manufacturer automotive parts at such close tolerance that less material was needed per component. The prices for some of these components fell to less than or equivalent to the rebuild kits. Rebuilding an automotive component was soon a thing of past generations. The skills of the mechanic were now overshadowed by the microchip’s ability to manufacture a part better and cheaper than he could repair the old one.         Soon, all this “toss-when-worn-out” reached the microchip itself.  Computer software started finding itself in the very same throwaway society.  Maybe not in the sense that we actually threw it away, but a new set of instructions or an updated program may be needed and flashed into a replacement processor.  This brings up a whole new problem for the mechanic.  Now those skills he developed in rebuilding a master cylinder have next to nothing to do with reprogramming an anti-lock brake module, and if he wants to stay in the business of repairing today’s cars he’s going to need to know how to program, or at least understand the need for and/or the process, rather than knowing the old school way of rebuilding a master cylinder. So as a mechanic, you have to ask yourself, “Do I flash, or do I pass?” Passing on the flash may mean you might not have the type of work in the shop that you can handle anymore. Luckily, there is a way around that problem.          These days nearly every car on the road has more than one type of computer device in the car, and there’s a very good chance that at some point something will need a software update or reflashed because a component has been changed or upgraded. In a way reflashing, programming, coding, or the other various software issues there are in the modern car are somewhat of today’s version of rebuilding that master cylinder to a like new condition.          Cars these days are lasting longer, running longer, and have different types of break downs than models from those early days.  That’s doesn’t mean changing brake pads or installing a reman transmission isn’t done on a daily basis, they most certainly are.  It’s the other side of the repair business, the computer updating and reflashing that’s an even bigger part of regular maintenance than ever before.           So, which type of repair shop are you?  Are you the shop that will do the mechanical work, but leave those electronic issues to someone else?  It’s something every shop owner, as well as technicians need to think about.  Of course, the amount of investment and the continual training involved can be overwhelming. Fortunately, there is a way to do the mechanical stuff and be a proficient repair shop without breaking the bank, and still service your customers’ electrical and software needs. The mobile diagnostic technician is the answer.         Seriously, I never dreamed there would come a day I would be saying this, but the mobile tech is a viable source of revenue and a vital source of technical skills that a shop without those skills should utilize.  Now, I’m not talking about those fly by night boys with a box of tools, I’m referring to the diagnostic scanner mobile tech who has the experience in dealing with all the websites, programming issues, and has the up to date information on how to perform such things as reflashing, key programming, and reloading of new software.            What’s happening in the automotive electronic world reminds me of how things were when manufacturers switched from points and condensers to electronic ignition systems. A lot of guys refused to learn the new systems and soon found themselves only working on older models, which eventually faded away.             Somewhere along the way of the electronic ignition systems, parts swapping became the norm.  Instead of testing or diagnosing a problem it was a lot easier to keep the various types of ignition modules in your tool box, and when a “no-start” came in it only took a few minutes to swap the ignition module with your test piece. It did save diagnostic time, and it did get results, but the microchip and new technology has struck back again.  The old school ways of parts swapping vs. in depth diagnostic with scopes and scanners has just about run its course.  Now, swapping components can lead to an even bigger problem than what the car originally came in for.           However, the general public is having a hard time comprehending the reason for these diagnostic costs.  It used to be that they would bring the car to the shop, the mechanic would do some fiddle greasy job that involved rebuilding some part or swapping the old ignition module, and he didn’t charge a diagnostic fee. If a part was suspected as bad, it could usually be swapped out without any worries. That’s just not car repair anymore. Now swapping components with integrated modules can lead a disaster.           On the other hand, those techs who pick up the pieces after one of these parts changers finish slapping parts should be commended. The aftermath of installing a processor without knowing the eventual outcome can be a brutal blow to the pocketbook.           Radar systems, infrared and optical systems, cameras and proximity sensors aren’t the kind of components easily rebuilt, if at all.  But, there’s a good chance you can reprogram most of it. Yes, we still have engines that need built and gears that need changed, but there seems to be a lot more in the mechanic field that involves electronics.  To be today’s top mechanics and a repair shop that can get the job done, a lot more emphasis has to be put on that little microchip than on a rebuild kit.  Flashing modules and loading computer software updates are just a part of the business now.            Programming ain't for everyone, and some shops and techs can get by without ever dealing with it.  But, when needed, utilize the expertise that is available to you.  Learn how to flash by attending a couple of classes or find someone that can do it for you.  Help your customer help you increase your bottom line.  Don't pass on the flash.  
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      By Gonzo, in AutoShopOwner Articles

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      • 463 views
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