What do you charge for bolt holes you have to tap?
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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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Upcoming Events
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March 24, 2023 01:00 PM Until 09:00 PM
0Hi all,
AutoLeap is hosting Amplify 2023, a virtual auto repair conference for shop owners, on March 24. We have 22 incredible speakers, and 13 industry associations and training institutes participating in this virtual event. The conference is free of cost.
You can book your complimentary, virtual seat today using this link: https://bit.ly/3EXvfWY
Amplify 2023 speakers include: Joe Marconi, Co-Owner AutoShopOwner and Elite Business Coach @Joe Marconi Aaron Stokes, ShopFix Academy Cecil Bullard, The Institute for Automotive Business Excellence Chris Cotton, AutoFix Auto Shop Coaching Darrin Barney, Elite “G” Jerry Truglia, Automotive Technician Training Services Greg Bunch, Transformers Institute Jeremy O'Neal, AdvisorFix The conference will cover essential topics such as:
Navigating through the current industry challenges Tackling the technician shortage through employee retention Creating memorable customer experiences Growing & expanding your business in 2023 Financial planning & KPIs to measure And that’s not all.
The interactive, dynamic conference also offers live networking opportunities, and fun games and prizes.
You can book your complimentary, virtual seat today using this link: https://bit.ly/3EXvfWY
#AutoLeapAmplify23
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Similar Topics
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By Joe Marconi
I don't think there is anyone that does not appreciate time off, especially during the holidays. However, balancing staff hours and time off does present a problem during the Christmas and New Years holidays.
Some shops close down the entire shop from Christmas to New Year, other shops have extended days off, and some rotate staff.
What has worked for you OR NOT worked for you?
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By carmcapriotto
Derek Kaufman is constantly scanning future trends in vehicle design and aftermarket challenges, including how recent events in electric vehicles are affecting our near-term and longer-term futures. This is your podcast resource, committed to bringing the future and forward-looking information you can use to inform and map your road ahead. Derek Kaufman, Managing Partner at Schwartz Advisors, President of C3 Network. Listen to Derek’s previous episodes HERE.
Key Talking Points
BEVs are running about 5.6% of new car sales in the second quarter of 2022 – that’s up from 2.7% in the second quarter of 2021. Challenges- recession, price of battery materials/broken supply chain, Inflation Reduction Act China controls 60-80% of the powders associated with battery anodes and cathodes and the lithium transfer medium 80-90% of all BEV vehicles do not qualify for the Inflation Reduction Act- – it only applies to BEV cars that are under $55,000, it only applies to people making less than a certain amount depending on their marital status Autonomous Neighborhood Electric Vehicle (AV NEV)- AV NEVs are package delivery pods and people shuttles traveling in dedicated lanes in urban centers at less than 30 mph. The Federal Government is allocating about $5B of our tax money to install another 500,000 chargers – but if we are going to get anywhere close to their desired sales of BEVs we are going to need over 2 million chargers to keep those cars running. Estimated 5% BEV share of new car sales this year growing to 20% in 2030 and 35% in 2035 – by 2050 we have BEVs at around 50% of 2050
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More Time. More Profit. Transform your shop at getshopware.com/carm
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