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Get rid of the bad apple and improve morale

 

I am a firm believer that the head of any organization is responsible for the culture of the company. And that culture will determine the morale of the organization. It’s no different for shop owners. If we walk around miserable, the whole shop will be miserable. If we convey an attitude of enthusiasm and maintain a positive attitude, morale improves and production goes up. Yes, that responsibility starts at the top.

 

I am also a firm believer that employing the wrong person can undo any good the boss or manager does and can kill morale. It’s that old saying, “one bad apple can spoil the whole bunch.” You know the type; we’ve all had them at our shops. The employee that’s always in a bad mood, who complains about each and every job you give them, never wants to help his fellow employees, talks about everyone behind their back and thinks that boss does everything all wrong and that if he were in charge, things would run much better.

 

Sound familiar? You have one those? Do yourself a favor, get rid of him or her. I recently had to make that choice, and I am kicking myself for not doing it sooner.

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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most 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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