A different take micromanagement
-
Have you checked out Joe's Latest Blog?
-
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.
-
-
Similar Topics
-
By carmcapriotto
Dashboards are a valuable tool for businesses as they provide a quick and easy way to visualize and analyze key data and metrics in real time. Hear from two shop owners as they discuss how dashboards improve decision making, increase productivity, and enhance collaboration and accountability with your team. Jimmy Alauria, 3A Automotive and Diesel Repair, Phoenix, AZ. Jimmy’s previous episodes HERE
Brent Fleischman, Yocum Automotive, Republic, MO
Show Notes:
Numbers without dimensions are hard to analyze. Line graphs show trends as a picture. Where does there need to be more improvement? What caused a ‘dip?’ Using statistics helps find the right "WHY" when looking to solve a problem. Competitive nature for employees Creating a graph for daily production on completed hours for technicians Examples of what to watch: Gross income, the value of services delivered (closed repairs), ARO, gross profit dollars, new customers, number of inspections, quality inspection, ARO, average repair estimates, and close percentage (60-75%). Be careful having the close rate too high/too low. New customers- you need front office staff to have a proper orientation for a new customer. Growth mode- as growth increases, also increase your marketing.
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
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
Support our partners:
Click to go to the Podcast on Remarkable Results Radio
-
By Beep
Premium Member Content
This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.
-
By Transmission Repair
Premium Member Content
This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.
-
By Transmission Repair
Premium Member Content
This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.
-
By Transmission Repair
Premium Member Content
This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.
-
-
-
Our Sponsors
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now