When is it time to cut your losses?
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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.
California is mandating 100% of new cars and light trucks sold will be zero-emission vehicles by 2035. How will electric vehicles change the composition of our industry? What are the service opportunities? Should you start working on hybrids if you haven't already? Hear from the perspectives of 3 California shop owners that are ready and prepared for the future. John Gustafson, Gustafson Brothers, Huntington Beach, CA. John’s previous episodes HERE Dave Kusa, AutoTrend Diagnostics in Campbell, CA. Listen to Dave’s other episodes HERE John Eppstein, John’s Automotive Care, San Diego, CA. Listen to John’s other episodes HERE
California non pretrolium zero emission no sales 2035 Start working on hybrids- EV is a hybrid without a gas motor What are the service opportunities on EVs? Preventative maintenance package, component replacement, and programming. Where will you plug your car in? At home? Infrastructure? Staying in contact with customers on a consistent basis will be more important than it is now- visit per customer dropping but ARO going up Range anxiety Fleet average age 12 years old Train service advisors- learn the language, get the trust of the EV customers As a shop, if you're not working on hybrids now, you need to start. You need to learn it. You need to get that training because an EV is simply a hybrid without a gas motor for all intents and purposes. If you understand and have experience with the hybrid aspects, the electric side of hybrid vehicles, EVs will just come naturally.
Thanks to our Partners Shop-Ware and Delphi Technologies Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com
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By Ruben Van Zenden
Today, we simply cannot ignore social media, everyone is using it whether you are a fan or not. Personally, I think it has its negative and positive sides.
I have been looking at 100+ car repair shops and noticed that only a hand full are using social media marketing, for example, Facebook advertising.
Why are so few car repair shops making use of this, in my opinion, great opportunity to increase car count?
A surprise taping of a tribute to the eight years since starting the service aftermarket’s premier podcast. We also want to express gratitude to the hundreds of guests that have enriched over 1,100 episodes of the collection of Remarkable Results Radio, the Town Hall Academy, and Aftermarket Weekly podcasts. We thank them for sharing their wisdom so we all rise to new levels of success. We will continue to provide the industry's widest range of topics, both in audio and video formats. And along with the 1 ½-year-old Aftermarket Radio Network, we are there for every aftermarket professional to Advance the Aftermarket.
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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?
By Transmission Repair
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