Have you checked out Joe's Latest Blog?
As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.
But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.
Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit.
Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good.
Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership.
The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production.
By Joe Marconi
In this episode of the Auto Repair Marketing Podcast, host Brian Walker welcomes Coach Nate Bailey as his guest. They discuss "what do you really want?" and the importance of understanding one's desires beyond career goals. They delve into the challenges of identifying what one wants, the impact of societal stigmas, and the need for clarity and support in the process. Coach Nate shares his personal experience of admitting their desire for six-pack abs and the deeper motivations behind it. They also discuss the mindset of being a business owner and the potential for growth and success. Coach Nate emphasizes the power of shared experiences, pushing oneself to overcome challenges and the importance of self-care and self-awareness for leaders.
Thank you to RepairPal for sponsoring The Auto Repair Marketing Podcast. Learn more about RepairPal at https://repairpal.com/shops
Show Notes with Timestamps
The theme of the episode (00:00:10) Introduction to the episode and the topic of "What do you really want?" with guest Coach Nate Bailey. The challenges of knowing what you want (00:01:49) Discussion on how people often know what they don't want rather than what they do want and the impact of the fast-paced, reactive nature of life. The importance of being honest about what you want (00:04:23) Exploration of the tendency to lie to oneself about desires and the need to stop complaining and take ownership of choices. Admitting the Desire for Six Pack Abs (00:06:05) Coach Nate discusses the difficulty of admitting the desire for six pack abs due to societal stigmas and the importance of being honest with oneself. The Journey to Achieving Six Pack Abs (00:07:08) Coach Nate emphasizes the hard work, discipline, and dedication required to achieve six pack abs and how it can translate to success in other areas of life. Celebrating Others' Success and Allowing Yourself to Succeed (00:10:43) Brian and Coach Nate discuss the insecurity and jealousy that can prevent people from admitting their desires and celebrating others' success and how changing this mindset can lead to personal success and support from others. The importance of clarity (00:12:25) The significance of having clarity in order to have a clear path towards achieving goals. Overcoming fear and past traumas (00:13:34) The difficulties of opening up and thinking big due to past traumas and failures, and emphasizes the need to let go and grow. Staying true to yourself and not worrying about others' opinions (00:15:25) Coach Nate discusses the challenge of staying true to oneself and not being influenced by societal expectations or other people's desires. The importance of profitability (00:18:32) Brian and Coach Nate the significance of being profitable as a business owner and the potential to serve more people and expand the business. Building a team and reducing stress (00:20:08) Exploration of the benefits of having a team to run the business, reducing the workload and stress on the owner. The process of growth and creating a plan (00:22:37) Encouragement to take the process of growth step by step, giving oneself grace and permission to take time to build a team and achieve goals. Realizing Your Potential through Team Building (00:24:19) The power of going through difficult experiences together as a team, forming strong bonds, and realizing one's true potential. The Importance of Self-care for Leaders (00:25:08) The importance of self-care for leaders, highlighting that taking care of oneself first is essential to showing up as a powerful leader for others. Connecting with Coach Nate Bailey (00:26:28) How listeners can connect. Coach Nate provides his website and social media channels as the best ways to reach out to him.
Lagniappe (Books, Links, Other Podcasts, etc)
Coach Nate Bailey - https://natebailey.org/
Unleash the Leader - https://natebailey.org/ulw-experience/
How To Get In Touch
Group - Auto Repair Marketing Mastermind
Website - shopmarketingpros.com
Facebook - facebook.com/shopmarketingpros
Get the Book - shopmarketingpros.com/book
Instagram - @shopmarketingpros
Questions/Ideas - [email protected]
Aftermarket Radio Network
Click to go to the Podcast on Remarkable Results Radio
By Changing The Industry
Episode 129 - Can Good Technicians Be Matched With Great Shops? With Joelle Pollack & Amy Gerardi