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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
How do you stop having a job and start having a business? It all begins with the foundation of core values. Don't 'thesaurus' your way to writing them down once on a piece of paper. Your core values are the essence of who you are and what you stand for. And guess what? Your company's core values involve your entire team too.
Watch Episode HERE
Aaron Woods, X-tra Mile Auto Care, Stillwater, OK. Listen to Aaron’s previous episodes HERE Judy Zimmerman Walter, Zimmerman’s Automotive, Mechanicsburg, PA. Listen to Judy’s other episodes HERE.
Show Notes:
It is not what we do, it's who we are at our very inner core. A core value provides that concrete foundation for us to be able to build people and build companies. You do things better when you know where you start, stand, and where you're starting from. Core values give that navigational beacon for everybody to be rowing in the same direction at the same speed. How do we know how to measure accountability without knowing what to measure it against? And what better thing to measure accountability against than the very core principles by which your company is founded How are you implementing core values? Quarterly conversations with each of your staff members- grade each other on the core value alignment. Meetings away from the business- getting away from the workplace, being away from the day-to-day activities and the distractions. Post your core values everywhere- forward facing. Empower your team.
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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Important Books
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Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
How do you truly empower your people? What does it take to be a strong leader of your business? How do you motivate and inspire your employees while avoiding burnout? We have an All-Star panel of industry peers willing to share their own experiences and learning curve as business owners.
Brian Sump, Avalon Motor Sports, and Urban Auto Care, CO. Brian's previous episodes HERE
Darrin Barney, VP of Operations, Elite Worldwide. President of Barney Brother’s Off-Road and Repair, Grand Junction, CO. Darrin’s previous episodes HERE
Andy Bizub, Midwest Performance Cars, Chicago and Northbrook, IL. Andy’s previous episodes HERE.
Jerry Kezhaya, The Auto Shop, Plano, TX. Jerry's previous episodes HERE.
AJ Nealey, Nealey Auto Service, Edgewater, MD. AJ’s previous episodes HERE
Show Notes:
They need to feel loved because it's the right thing to do (part of our Noblesse Oblige) - but some won't reciprocate what you pour into them.... why? They need to have autonomy, but with that autonomy must come extreme clarity on what, why, and how They need to be held accountable - mediocrity doesn't help anyone - but you must establish the criteria as to why they are not accomplishing what you require of them; do they know how, can they and do they want to? Trustworthiness - high integrity, truthfulness, transparency, good stewardshipLoyalty - showing up early, staying late, attending company functions, asserting themselves to honor the company and its people, being a brand ambassador, saying, "tell me what needs to be done, and I'll do it" People WANT strong leadership - top-performing companies have strong leaders. Strong leaders help to create more leaders, not followers. One of the dichotomies of leadership Implementing EOS- empower your employees to solve issues on their own People come to work for people, not companies. The 5 Love Languages
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:
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
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
We are back at Tom Sciortino's Total Automotive for a special Field Trip! Tracy learns how to change the oil on her car for the first time, from the guidance of automotive intern, Jay Mack. Join Tracy Capriotto as she accelerates her learning curve within the automotive industry.
Tom Sciortino, Total Automotive, Buffalo, NY. Tom’s previous episodes HERE
Key Talking Points
Maintenance service vs oil change Why oil changes are important How to change the oil Checking tires
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 partner:
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
Click to go to the Podcast on Remarkable Results Radio
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