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By Joe Marconi in Joe's Blog0 commentsAuto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.
As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.
But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.
Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit.
Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good.
Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership.
The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production.
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By 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.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private facebook group go here:https://www.facebook.com/groups/autorepairmarketingmastermind
In this episode of the "Weekly Blitz" podcast, host Coach Chris Cotton discusses the concept of value in the auto repair business. He emphasizes that value goes beyond price, encompassing quality service, skilled labor, genuine parts, and transparency. Cotton debunks the myth that being the cheapest shop guarantees success, instead advocating for a balance between price, quality, and value. He also highlights the link between staff compensation and value, stating that a well-compensated team is more motivated and productive, enhancing the overall customer experience.
The concept of value and self-esteem [00:01:02] Discusses the importance of shop owners valuing themselves and their businesses in order to show value to customers and potential employees.
Defining value from a customer's perspective [00:02:14] Explains how customers perceive value as the total package of quality service, skilled labor, genuine parts, transparency, and other benefits.
The balance of price, quality, and value [00:03:20] Highlights the importance of striking the right balance between price and quality to provide real value to customers, debunking the myth that the cheapest prices are always the best.
Connect with Chris:
[email protected]
Phone: 940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/
AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #autoops #onlinebooking #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Thank you to RepairPal for sponsoring The Auto Repair Marketing Podcast. Learn more about RepairPal at https://repairpal.com/shops
How To Get In Touch
Group - Auto Repair Marketing Mastermind
Website - shopmarketingpros.com
Facebook - facebook.com/shopmarketingpros
Get the Book - shopmarketingpros.com/book
Instagram - @shopmarketingpros
Questions/Ideas - [email protected]
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Our panel discusses the topic of language and terminology changes in the automotive aftermarket service industry. It's important to use clear and professional language with employees and customers, as well as the significance of honesty and trust in communication. They also touch on the distinction between "technician" and "mechanic" and the need for ongoing training and teamwork. We hope that our discussion will inspire you to reflect on your own communication practices and make necessary improvements.
Chris Cloutier is co-owner of Golden Rule Auto Care in Dallas Texas and CEO of Autoflow. Chris’s previous episodes HERE
Shawn Gilfillan, Automotive Magic, Kenvil and Lake Hopatcong, NJ. Shawn’s previous episodes HERE Jon Kloosterman, Director of Operations, WestSide Service, Zeeland, MI. Jon’s previous episodes HERE Show Notes:
Industry Terminology: It’s Time to Change it. Can You Get Behind This? [RR 571] The mindset shift (00:02:07) Discussion on the importance of mindset in implementing changes and improvements in the automotive business. Rock star or not? (00:03:38) Exploration of the language used to describe employees, specifically the term "rock star" and its potential negative connotations. Customers or clients? (00:06:06) The significance of referring to customers as clients and the impact it has on the professionalism and relationship-building within the business. The value of language in communication (00:07:54) Discussion on the importance of language in communication with clients and staff, and the use of terms like service writer, service advisor, and service consultant. The shift from mechanic to technician (00:11:08) Exploration of the evolving role of automotive professionals from mechanics to technicians due to advancements in technology and the need for specialized skills. Developing teamwork and efficiency (00:16:09) The benefits of pairing young technicians with experienced ones to boost efficiency and create a sense of teamwork in the shop. Using inclusive language and emphasizing teamwork (00:17:16) They talk about the importance of using inclusive language like "team members" instead of "employees" and how it fosters a sense of unity and common goals. Being mindful of communication and emotions (00:19:47) The conversation shifts to the significance of being aware of one's emotions and communication style, especially when dealing with employees, and the impact it has on team dynamics and employee retention. The importance of language and communication (00:23:28) Discussion about the need for patience and grace with young employees, the importance of using positive language with customers, and the impact of words on customer experience. Empathy towards customers (00:24:20) Emphasizing the importance of empathy and understanding towards customers, recognizing that they may be going through difficult situations, and the role of service teams as counselors. The power of effective communication (00:26:21) Highlighting the art of effective communication, the significance of practicing communication skills, and the introduction of Remarkable Results Toastmasters group for leaders in the automotive aftermarket. Creating an Identity (00:31:16) Discussion on turning actions into identities and empowering employees to take action. Affirmations and Positive Thinking (00:32:05) The importance of affirming ourselves and using positive language to combat negative thoughts. Standardizing Terminology (00:36:39) The need to standardize industry terminology and eliminate confusing acronyms when communicating with customers. The invoice vs. work order discussion (00:38:25) The hosts discuss the terminology used in the automotive industry, specifically the difference between using the terms "invoice" and "work order" when interacting with customers. Understanding AI and big data models (00:40:09) The topic of artificial intelligence (AI) and the role of big data models in shaping AI responses and interpretations. The importance of effective communication (00:44:21) The significance of effective communication within teams and with clients, highlighting the impact of words on professionalism and everyday interactions. Thanks to our Partners Shop-Ware and Delphi Technologies
Shop-Ware: More Time. More Profit. Shop-Ware Shop Management https://getshopware.com/
Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. http://DelphiAftermarket.com
Connect with the Podcast
-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
Click to go to the Podcast on Remarkable Results Radio
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By Joe Marconi
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