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Buisiness; Hot and Cold after a Tough Winter


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It's been a long tough winter for many shops. Now that we are in spring, some shops are doing good, and for others, not so good. It's hard to determine if there are any trends. Usually after a tough winter, business rebounds and sales are up.

 

How are you finding business so far this spring? And what are your thoughts about business and the economy?

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This last winter was extremely busy for us, mostly snow tire installs and maintenance issues. Come the end of February and beginning of March and it was as if someone hit the off switch. No tires, no oil changes, nothing. We made it through 2 weeks of no phone calls by luck, a couple transmission jobs came in which took up the time. (Normally we don't do tranny r&r's but any work is better than no work) You could play hockey on the road in front of the shop, nobody was doing anything except trying to keep warm. Propane shot up to $5 a gallon. Then like the switch turned back on we are backed up 5-7 days again, phones ringing off the hook. The story is the same with other shops in my area. Feast or famine for all of us. I'm optimistic for 2014 as a whole.

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We have had a terrible winter. April was a little better but we are already off almost 50k from what we were this time last year. Car count way off. Doing everything that I can to get cars in but not feeling very optomistic even about staying in business this year :(

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March was amazing for us. We picked up several engine jobs from people not keeping antifreeze in their engine over the cold winter.

 

April was slow. We barely broke even.

 

May is picking up, but not nearly what i want it to be. Still too much standing around time and doing jobs i don't want to do.

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March was amazing for us. We picked up several engine jobs from people not keeping antifreeze in their engine over the cold winter.

 

April was slow. We barely broke even.

 

May is picking up, but not nearly what i want it to be. Still too much standing around time and doing jobs i don't want to do.

March was real slow for us. April was up 40% from last April and now customers are lined up out the door!

 

Sent from my SCH-I605 using Tapatalk 2

 

 

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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most 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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