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By Joe Marconi in Joe's Blog13 commentsMost 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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By carmcapriotto
Recorded Live at Vision 2023, Al Wright and Travis Troy discuss the benefits of joining MWACA's S.O.S. (Shop Owner's Support) Group. When we can support and learn from other shop owners, we continue Advancing the Aftermarket and raising the bar for the industry. Travis also gives us an overview of Vision's newest class for general service technicians.
Al Wright, John’s Automotive, Cedar Rapids, IA. Al’s previous episodes HERE
Travis Troy, Honest Wrenches, Akeny and Des Moines, IA. Listen to Travis’ other episodes HERE
Show Notes
Travis Troy- 21 team members attending Vision 2023 MWACA SOS Shop Owner’s Support- What is an S.O.S. Group? Think of it as your advisory board. Our S.O.S. Groups consist of no more than 10 shops that meet on a monthly basis. Meetings are similar to “twenty groups” without the intense financial focus or expensive monthly commitment. Groups meet monthly at a participating shop to discuss relevant issues, set and review goals, and evaluate the hosting shop. Be vulnerable, and be transparent, not as a business owner but as a friend. We are not each other’s competition. Learning from others, raising the bar for the Automotive industry FTI- failure to implement, the number one failure for shop owners. Debrief after the SOS meeting with a list of items to work on and change. Elevate before you grow. GSTA General Service Technician Academy - 2-day course. This program benefits the technician and the shop with increased efficiency, knowledge, and safety, as well as cost-savings by helping prevent beginning mistakes. Certifications will come from Tire Industry Association (TIA), Automotive Lift Institute (ALI), and Mobile Air Conditioning Society (MACS). GTSA will cover- Tire Safety – hands-on mounting and dismounting, repair procedures and balancing, Tire pressure monitoring basics, Lift safety – Including Information access for proper lift placement, OSHA and shop safety training, Alignment basics, Intro to Air Conditioning, Electricity Fundamentals, Introduction to Digital Vehicle Inspections - a systematic approach to test drives, inspections, photos and videos and the benefits to the tech and to the shop of performing the DVI. Surviving a Health Scare [THA 316]
Thanks to our Partners, AAPEX and NAPA TRACS. Set your sights on Las Vegas in 2023. Mark your calendar now … October 31 - Nov 2, 2023, AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at AAPEXSHOW.COM NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at NAPATRACS.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
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By Joe Marconi
For all the veteran shop owners who have been around the block a few times, and have experienced the roller-coasted rides of being an auto repair shop owner, what advice could you give those shop owners just starting out or planning to go into their own business?
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By carmcapriotto
Erich and Lauralee Schmidt went to a 4 day work week during COVID and haven't looked back. They also have an app for their shop with benefits to customers.
Erich and Lauralee Schmidt, Schmidt Auto Care, Springboro, OH Show Notes:
4 day work week- exhaustion during COVID, started cutting Fridays with three day weekends. Prefaced it as summer hours and would go back to 5 days in the fall. They never went back to 5 day work week. Revenue, productivity, and efficiency increased. 8-7 pm work hours. The check-in process includes 4 day work week schedule. 40 hours of training a year minimum- observing efficiency, open communication, partnering with employees with their training. Training is a requirement when hiring employees. “Where are your interests?” Service Advisor=Serice Specialist Free Schmidt Auto Care App- started 6 years, App Fueled is a customizable garage for clients and a bevy of services outside of just communication. Special pricing, birthday specials, loyalty touch points. 30% of the customer base has the app. Had ADAS for 3 years, one of the first in the area to get it. Program and calibration.
Thanks to our Partner, Dorman Products. Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
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By Joe Marconi
Is there are advantage for the service advisor starting the multipoint process, if at all possible? For example, the service advisor is writing up the car and performs a walk around, takes a few photos of the exterior, take a look a the tires, looks for damage, maybe an obvious torn wiper, etc.?
Would this speed up the process and build value? Again, this may be hard to do for some shops.
Thoughts and comments?
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By carmcapriotto
In this episode, consultant David Fisher gives you a chance to understand OSHA and keep you compliant. This is a must listen episode. The information could save your business. Regarding workplace safety and HR compliance, 85 - 90% are not compliant across America. To be non-compliant could cost your business. OSHA will interview your employees. Are you inspecting your lifts yearly? Does your team have access to SDS sheets (Safety Data Sheets). Are you giving all your employees access to your safety program? OSHA is ramping up stricter enforcement procedures. Invest in an annual walk of your shop from an OSHA consultant and get the accountability you need to prevent huge fines.
California Employer’s Services. OSHA & Labor Law Experts. Dave's previous episodes HERE
Show Notes
OSHA - will now interview your employees while inspecting your job site Ignorance is not an excuse anymore OSHA has determined that they want safety in the workplace. Compliance is like a picture painted by numbers. The more numbers you have filled in, the better off you're gonna be. OSHA is looking for, among others is your safety program, safety training, documentation, workers' compensation You've got 72 hours to a week at the most to get it back to them with your reply. After they get your reply, they're gonna review it, and then they're gonna assess the fines and fine you accordingly. No matter what state you do business in, you must meet the basic OSHA standards. Every year, you must have your lifts certified/inspected. You can certify them yourself if you installed them. The company that sold them can certify them. But if you install them, the state feels you have the wherewithal to inspect them and certify them. Be careful. There is no easy button for safety or HR compliance. The one thing you do have to be aware of is that if you name a safety officer in your business, they're gonna be tied into any potential lawsuit that arises out of a safety act or an accident in the workplace. OSHA knows that we, as a group of consultants, have more authority and more power over employers than they do When a company has paid money for a safety consultant, they know that the shop has an accountability partner, If you're gonna get with an HR services company, make sure they're working with actual attorneys. Make sure that these attorneys are gonna be there for your clients. You can have a perfectly legal employee handbook that covers the policies adequately. But you may not be able to take that employee handbook into court because when you go to court, there are certain things that the judge is gonna look at to make sure is in certain places of your employee handbook. If it's not in those places, you're gonna have two strikes against you in the eyes of the judge before you even start One is your at-will status between page one and page three Number two is your sexual harassment policy. Is it between pages three and page five? Does your sexual harassment policy include bullying in the workplace and all the other things that have now been dovetailed into that policy? You need to understand your policy and how a termination, not done correctly, can hurt a suit from a former employee. This three strikes you're out is a joke. There is no effort to rehabilitate the employee in most companies. Some companies are very progressive, and that's a good thing. Create a very positive workplace culture. Compliance is always cheaper than the fines and the hassle Link to handout David spoke about: HERE.
Thanks to our Partners AAPEX and NAPA TRACS. Set your sights on Las Vegas in 2023. Mark your calendar now … October 31 - Nov 2, 2023, AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at AAPEXSHOW.COM NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at NAPATRACS.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 Check out today's partners:
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