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Got your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
By Joe Marconi
By Changing The Industry
Episode 151 - A Shop Owner's Guide to Consolidation and Exit Strategies
Navigating the Impact of Technician Shortages on Auto Repair Shop Productivity and Revenue [E151] - Chris Cotton Weekly BlitzBy carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
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In this podcast episode, Coach Chris Cotton from Auto Fix Auto Shop Coaching addresses the critical issue of technician shortages in the auto repair industry. He discusses how this shortage affects shop productivity and revenue, with shops struggling to keep up with the demand due to a lack of skilled technicians. Cotton cites a Tech Force Foundation report predicting a significant need for technicians by 2024. He explores reasons behind the shortage, such as retirements, low female representation, high turnover among young workers, and fewer automotive program graduates. Cotton concludes with strategies for attracting and retaining talent, including better work schedules, compensation, career development, and educaTechnician Productivity (00:01:11) Discussion on the impact of technician shortage on shop productivity and revenue.
Vehicles per Bay (00:02:33) Explanation of the increase in vehicles per bay and its impact on repair orders. Attracting Technicians (00:03:52) Importance of attracting and retaining technicians to maximize shop capacity and revenue. Technician Supply and Demand (00:05:52) Insights from the 2022 Tech Force Foundation report on the shortage of technicians and its impact on the industry. Impact of Technician Shortage (00:08:15) Calculation of revenue loss due to technician shortage and its impact on service capacity. Challenges in Attracting Technicians (00:11:43) Discussion on the reasons for the shortage of technicians and the challenges in attracting new talent to the industry. Remedies for Technician Shortage (00:16:34) Suggestions for addressing the barriers in attracting and retaining technicians, including training and career development. Technicians' Work Schedule (00:20:59) Discussion about adjusting technicians' work schedules to attract and retain them. Outdated Mindset (00:21:30) Encouragement to adapt to the changing times and make necessary adjustments in the auto repair industry. Acknowledgment of Listeners and Sponsor (00:22:20) Expressing gratitude to the listeners and acknowledging the sponsor, Shop Marketing Pros, for their support.
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#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros
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Through role playing exercises, our panel demonstrates different approaches to selling and communicating with customers. They emphasize the importance of understanding customer needs, building rapport, and being direct when necessary. The discussion covers the significance of tone, trust-building, technical knowledge, and authenticity in customer interactions. The episode concludes with a focus on continuous learning and the value of a supportive work environment. Rena Rennebohm, CEO and Creator of Empowered Advisor. Rena’s previous episodes HERE. Matt Bellinger, Service Plus, Watertown, NY Ali Norton, Rozema’s Car Care in Hudsonville, MI. Lee Fleming, SA Coach with Empowered Advisor Megan Dineff, Ervine’s Auto Repair and Grand Rapids Hybrid, Grand Rapids, MI Show Notes: Previous Service Advisor Role Play Episodes Megan's role-play (00:03:31) Megan, as the "friendship advisor," interacts with a customer and presents service recommendations. Discussion on customer buying style (00:06:48) Analysis of Megan's approach as a "friendship advisor" and its relevance to customer interactions. Matt's role-play (00:09:44) Matt, as the service advisor, interacts with a direct dominant customer and presents service recommendations. Discussion and feedback on Matt's role-play (00:11:37) Feedback and analysis of Matt's role-play, focusing on adapting to the direct dominant customer's buying style. Discussion on adapting to customer style (00:13:06) Importance of reading and adapting to the customer's communication style and preferences. Ali's role-play (00:17:50) Ali, as the service advisor, interacts with a technical customer and engages in initial conversation. Technical training impact (00:21:48) Discussion on the impact of technical training on service advisors and its potential misuse. Adapting to customer buying style (00:25:20) Advisors discuss the importance of adapting to the customer's buying style and the need to gauge their interest in technical information. Reading customer tone and style (00:27:26) Advisors share experiences and techniques for reading and adapting to customer tone and buying style. Building trust with new clients (00:33:44) Strategies for building trust and relationships with new clients, focusing on value proposition and setting expectations. Providing the Best Customer Experience (00:36:30) Tips on how to communicate to customers that they will receive the best experience at the auto repair shop. Empowering Customers to Ask Questions (00:37:23) Encouragement for customers to ask questions and for service advisors to be open to asking technicians for information. Being Authentic with Customers (00:38:19) The importance of being authentic with customers and ensuring that correct information is provided, even if it means putting them on hold. Learning from Customers (00:40:23) The value of learning from customers and the impact of technical training on the industry.
Thanks to our Partner, NAPA TRACS 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 http://napatracs.com/ Connect with the Podcast -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter (X): https://twitter.com/RResultsBiz -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections
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