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AutoZone Reports Fourth Quarter Results


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Still ... it doesn't mean I'm going to be buying parts from them. Profit or no profit,AutoZone parts have never been a product that I could endorse or bolt on a car.

 

Price still matters to the average consumer. I think they should relabel some of these parts as "get-ya-by" parts or "get-ya-to-buy" parts. Cause it seems price is still the preferred option on how to shop for car parts.

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Gonzo, this has been my objection to this form of marketing for years. AutoZone features the "Price", not the "Product". It's the Wall Mart strategy- advertising low price to the masses. Bring them in and sell them something. But, where is the Value????

 

What we do is different, we don't sell price, we sell value. And there is a difference. AutoZone, Advance and other discounters need to realize what we are all about. We have spent too many years not charging what we need to. And to try to compete with parts that the public perceives as the same, based only on price, will only damage the repair and service industry more.

It takes more than quality parts to keep customers in the shop. It also takes quality workmanship as well. These cheap parts suppliers just confuse the average consumer into thinking that the parts shouldn't cost so much. Then add the idea that a lot of these components can be changed with just a few hours (or minutes) of labor time. The thing they both don't take into consideration (cheap parts suppliers and consumers) that it might take longer to locate the fault than actually making the repair.

 

This is where our expertise is at its highest value.

 

When you have a cheap part, cheap repair shop, cheap customer all wrapped into one job there is going to be a problem. A BIG PROBLEM.

 

Which.... always ends up with the consumer making the assumption that "all" mechanics are bad, and that the cheap part got the job done even though they might have to change the same part over and over again... because by now... they've figured out the symptom they are having relates back to the same defective part. BUT, they hardly ever make the connection that it's the part that is the major let down.

 

It would be an awesome deal if a lot of the "good" shops got together and made a TV commercial stating what a good shop with quality parts can do, and informed the public the major differences in using a reputable shop and not just taking the word of some goof ball behind the counter at Auto Zone with a two-bit code reader.

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  • Have you checked out Joe's Latest Blog?

         0 comments
      Auto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.
      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.
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