Have you checked out Joe's Latest Blog?
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.
Retired 5+ years ago and spend half my time down here in Florida. Haven't been on the forum in a few years. When I am up home in Ohio the tire dealer that bought my business and rents my building from me takes good care of all my vehicle service needs. My Mini needs a few things and I'd like to hook up with someone from this forum close to me down here.
Belt is squealing so probably needs a new belt, tensioner and idler pulley. Also need a new right side window motor.
Anybody close to Fort Myers Beach?
Mark Defer 330-603-5127
Understanding Gross Profit per Hour: The Key to Efficiency, Pricing, and Financial Health [E148] - 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.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
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In this podcast episode, Chris Cotton from Auto Fix Auto Shop Coaching discusses the critical role of gross profit per hour as a performance indicator for auto repair shops. He explains how to calculate it and its importance in assessing efficiency, pricing, labor, training needs, and financial health. Chris also highlights its value in staying competitive. The episode includes a nod to the sponsor, Shop Marketing Pros, endorsing their services.
The importance of gross profit per hour (00:00:05) Chris discusses the significance of gross profit per hour as a key performance indicator for independent auto repair shops. Formula for calculating gross profit per hour (00:01:56) Chris explains the formula for calculating gross profit per hour and its role in pricing strategy and efficiency. Labor utilization and financial health (00:03:00) Chris emphasizes the importance of labor utilization and how gross profit per hour directly affects a shop's financial health. Calculating gross profit per hour (00:05:24) Chris provides examples of calculating gross profit per hour using a spreadsheet and discusses the importance of this metric. Measuring efficiency and pricing strategy (00:11:48) Chris explains how gross profit per hour helps measure efficiency, productivity, and pricing strategy in an auto repair shop. Competitive edge and conclusion (00:14:48) Chris discusses how a healthy gross profit per hour gives a competitive edge and concludes with a message about the podcast sponsor, Shop Marketing Pros.
Connect with Chris:
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros
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Can a break-up be the catalyst for an entrepreneurial leap? Find out during Shawn Gilfillan's 20 questions in 30 minutes episode! Shawn also discusses the importance of a strong business culture, mentorship, and the joy of hobbies like aviation. Shawn shares strategies for managing gross margins and the significance of client experience. Shawn Gilfillan, Automotive Magic, Kenvil and Lake Hopatcong, NJ. Shawn’s previous episodes HERE Show Notes
Automotive Magic (00:00:17) Shawn Gilfillan discusses the founding of Automotive Magic on April Fool's Day in 2003. Life Calibration (00:00:41) Shawn talks about his work with Chris Lawson and the high-performance team coaching program at Life Calibration. Life Calibration: From Burnout to Balance [THA 348]: https://remarkableresults.biz/remarkable-results-radio-podcast/a348/ Mentorship and Self-Development (00:04:54) Shawn discusses the impact of mentors and self-development in his journey as a shop owner. Hobbies (00:06:10) Shawn talks about his hobbies, including aviation. Motivation and Business Culture (00:07:46) Shawn shares his motivation for getting up in the morning and discusses how he creates opportunities for others to thrive and elevates their performance. Advice and Fear (00:11:49) Shawn shares advice on overcoming fear and empowering employees as an owner/CEO. Book Recommendation (00:13:13) Shawn recommends "Hero on a Mission" by Donald Miller and discusses its impact on his perspective as a business owner. Building Business Culture (00:14:50) Shawn discusses the challenges and importance of building a strong business culture from the top down. Culture and Team Dynamics (00:15:40) Discussion on creating a positive work culture and building a cohesive team. Leadership and Vision (00:16:29) The importance of establishing a vision and values from the start, and involving the team in maintaining the culture. Client Experience and Relationship Building (00:19:36) Strategies for understanding and meeting client needs, and building strong client relationships. Adaptability and Change (00:20:47) The significance of embracing change and adapting to business challenges. Leadership Crisis and Team Support (00:21:00) Dealing with unexpected managerial crises and the importance of team support. Personal Development and Skills (00:23:14) The desire for new skills and personal development, such as learning magic tricks. Business Management and Gross Margin (00:24:14) Strategies for managing gross margin and keeping front-end operations efficient. Car Count and Scheduling (00:25:35) Strategies for managing car count, scheduling, and maintaining workflow in the shop. Future Reservations and Client Commitment (00:27:21) The importance of setting future reservations and ensuring client commitment to scheduled appointments. Leadership Communication (00:29:17) Encouraging a shift in language and communication to emphasize the importance of future reservations. Hiring and Relationships (00:30:12) Discussion on hiring and relationships in the workplace, including the impact of personal relationships on work performance. Dream Car (00:31:37) Shawn's dream car and the enjoyment he derives from it. Opening a New Shop (00:32:11) The three important needs for opening a new shop: location, good people, and effective marketing. Marketing Strategy (00:32:33) The success of giving away the first hundred oil changes for free as a marketing strategy. Firing a Customer (00:33:52) A recent incident of firing a customer due to their attitude and behavior at the shop.
Thanks to our Partner, NAPA Auto Care Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -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: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -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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By Transmission Repair