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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
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
Thanks to our partner, RepairPal. Visit the Web HERE
Click to go to the Podcast on Remarkable Results Radio
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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 podcast episode, Brian Walker and Coach Chris Cotton discuss the importance of marketing in the auto repair business, particularly during slow times. They emphasize the need to address underlying issues in car count, average estimate, and average repair order before implementing marketing strategies. They stress the significance of consistent marketing throughout the year and suggest planning marketing activities on a yearly basis. They also discuss adjusting marketing strategies during peak and valley periods, investing in business growth, and the importance of timely communication with marketing teams. They highlight the benefits of time blocking and prioritizing marketing efforts, as well as the importance of self-care for business success.
Planning Your Marketing Calendar [00:08:46] Discussion on when to start planning your marketing for the following year and adjusting your marketing during peaks and valleys.
Knowing When You're Not Ready for Marketing [00:04:07] The importance of fixing business practices before focusing on marketing and how marketing isn't always the solution to business problems.
Marketing for Slow Times [00:02:30] Introduction to the topic of marketing for slower months and the importance of maximizing car count and repair order before implementing marketing strategies.
The importance of year-round marketing [00:10:51] Discussion on the significance of having a strong marketing strategy throughout the year, rather than relying on holiday marketing or slow times.
Lag time in marketing campaigns [00:13:20] Exploration of the lag time required for marketing efforts to yield results, typically a 60 to 90 day cycle.
Making time for communication with marketers [00:16:22] Emphasis on the need for shop owners to prioritize regular communication with their marketing team for optimal results.
Planning marketing for state fair [00:21:38] Discussion on how the state fair impacts business and the importance of planning marketing strategies around it.
Importance of time blocking and making a marketing plan [00:23:34] Emphasizing the need for shop owners to create a marketing calendar and plan ahead for events like state fair, Halloween, Thanksgiving, etc.
Incorporating workouts into work week [00:30:49] Highlighting the significance of including workouts as part of the workweek and how it can enhance productivity and creativity.
The importance of planning marketing in advance [00:33:31] The speaker emphasizes the need to plan marketing strategies well in advance to avoid being late.
Foundational marketing and business practices [00:35:27] The discussion focuses on the significance of having strong foundational marketing strategies and efficient business practices.
Continued commitment to learning and improvement [00:37:07] The speaker expresses gratitude towards the listeners' commitment to learning and improvement, and encourages them to continue seeking knowledge and growth in the auto repair industry.
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 Joe Marconi
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