When it comes to Part Margins, We are in the wrong business
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By Joe Marconi in Joe's BlogMost 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 Hands On
Tekmetric re-designed the appearance and I can not stand it. I refuse to pay $399 a month for software that gives me a headache to look at. Anyone have a good alternative to tekmetric with all the same functionality that either has a tiered pricing schedule that makes sense for smaller shops, or is less then $399 a month, or looks like tekmetric used to and costs about the same?
The only integrations I use from tekmetric are parts ordering and the built in labor catalog, I do not use any of the marketing features so those are not important to me.
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By Beep
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By Joe Marconi
Check Out Our NEW Series on YouTube, and See WHY You Should Team Up With The Top Shops In America!
In The Vault with Darrin Barney - A New Series!
We're so excited to release the first interview clip from our new YouTube series, "In The Vault with Darrin Barney" !
This series follows Elite President and Shop Owner Darrin Barney interviewing fellow shop owners, managers, and service advisors at our AMI-Accredited Fly With The Eagles 3-day Shop Management course.
In this interview, Scott Schmid of Archer's Auto Repair in Idaho talks about the career changes that led to his beginnings with Elite, the immediate results he saw, and the business values that he holds dear.
Watch now, and subscribe to our channel so you never miss an upload of shop tips, webinars, interviews, vault clips, and more!
Watch Now! Are you looking for a more successful shop and a healthier work/life balance?
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Did you know that after spending only 90 days in Top Shop 360, our clients AVERAGE more than a 4 to 1 return on investment? And, we're one of the only companies that requires NO CONTRACTS with our coaching?
There's a reason Elite's Top Shop 360 is number one. All our coaches are working to give back, and elevate the industry that we love.
We know every shop is different, which is why our Business Development Master Plan outlines YOUR goals and every step to reach them, and coaching is tailored to exactly what you want to accomplish.
Learn more about how our shop-specific approach can help you uplevel your business TODAY!
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By Joe Marconi
I was talking to a shop owner at the Elite Fly with the Eagles course this past week, and said that he feels that his service advisors do too much, and sales are suffering. Between answering phones, scheduling customers, checking in customers, building estimates, finding the parts, car delivery, on and on, it's a whirlwind of tasks.
I tend to agree. I know is may be hard to do, but how can we get the help the advisor needs, or redefine the position?
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By carmcapriotto
Insights to the Vision Hi-Tech & Expo Class "Which Scan Tool Should I Buy?" Saturday, March 4th 8:45 am-11:45 am with Scott Shotton, Scot Manna, Tanner Brandt, Keith Perkins, and Sean Tipping.
Scott Shotton, The Driveability Guys. Scott’s previous episodes HERE. Tanner Brandt, Autodiag Clinic. Tanner's previous episodes HERE. Scot Manna, Trainer, ACDelco Technician of the Millennium. Scot's previous episodes HERE. Watch Full Video Episode HERE Show Notes:
"Which Tool Should I Buy?" Saturday March 4th 8:45am-11:45am with Scott Shotton, Scot Manna, Tanner Brandt, Keith Perkins and Sean Tipping Register Here For Vision 2023 Q&A- shop owners/managers included Shop owners may or may not know the functionality of scan tools Raffles
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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