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By Joe Marconi in Joe's BlogMost 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 Ruben Van Zenden
Today, we simply cannot ignore social media, everyone is using it whether you are a fan or not. Personally, I think it has its negative and positive sides.
I have been looking at 100+ car repair shops and noticed that only a hand full are using social media marketing, for example, Facebook advertising.
Why are so few car repair shops making use of this, in my opinion, great opportunity to increase car count?
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By Joe Marconi
As an "old timer" who got his start during the muscle car era, this is hard to accept. Am I too sensitive?
The Associated Press covered some of the driveway mechanics and enthusiasts who are converting classic cars into electric restomods.
This includes some business owners like Sean Moudry, co-owner of InspireEV near Denver. He recently restored a 1965 Ford Mustang with an electric powertrain. The project cost upwards of $100,000.
Read the article in Ratchet and Wrench:
https://www.ratchetandwrench.com/site-placement/latest-news/article/11461897/ev-restorations-booming
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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?
Top Shop 360 is your answer.
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!
See How We Help! -
By Joe Marconi
For all the veteran shop owners who have been around the block a few times, and have experienced the roller-coasted rides of being an auto repair shop owner, what advice could you give those shop owners just starting out or planning to go into their own business?
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By carmcapriotto
Erich and Lauralee Schmidt went to a 4 day work week during COVID and haven't looked back. They also have an app for their shop with benefits to customers.
Erich and Lauralee Schmidt, Schmidt Auto Care, Springboro, OH Show Notes:
4 day work week- exhaustion during COVID, started cutting Fridays with three day weekends. Prefaced it as summer hours and would go back to 5 days in the fall. They never went back to 5 day work week. Revenue, productivity, and efficiency increased. 8-7 pm work hours. The check-in process includes 4 day work week schedule. 40 hours of training a year minimum- observing efficiency, open communication, partnering with employees with their training. Training is a requirement when hiring employees. “Where are your interests?” Service Advisor=Serice Specialist Free Schmidt Auto Care App- started 6 years, App Fueled is a customizable garage for clients and a bevy of services outside of just communication. Special pricing, birthday specials, loyalty touch points. 30% of the customer base has the app. Had ADAS for 3 years, one of the first in the area to get it. Program and calibration.
Thanks to our Partner, Dorman Products. 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
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