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comparing with other shops.


adamf

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I see some shops are comparing their shops with others in their area, How do you go about this? Anonymous phone calls? Or do you have this close of a relationship. Appreciate all the help.

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You could try the anonymous route if you are looking to get information on their labor rate. One thing to consider is why compare? Set your goals and your pricing structure based on what sort of numbers you want to achieve after careful market consideration. I would explore the information on here and iatn as well as the articles written by Joe and others on here and ratchet and wrench. Here are a couple of articles for thought on how to become profitable :

 

http://www.motor.com/article.asp?article_ID=1880

 

http://www.autoinc.org/archives/2013/aug2013/manage.html

 

 

http://www.autosphere.ca/carcarebusiness/category/greenwoods-blog/

 

You can't discount your way to prosperity, not suggesting you are, but this is perhaps the best article on the subject of discounting:

 

http://www.searchautoparts.com/aftermarket-business/training/thinking-dollars-not-percentages

 

These two are pretty good as well

http://www.searchautoparts.com/motorage/financial/crunching-numbers?cid=95883

 

http://www.searchautoparts.com/motorage/financial/more-making-informed-clients

Edited by Sean
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We actually do it to make sure we aren't charging to little. Many times we put a quote together based on our labor rate and parts matrix then find out we are still undercharging.

 

I don't think there is anything wrong know what your competition charges. Being in sales it's very effective to well aware.

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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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