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Help! New to shop management


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Hello guys,

 

First I want to say thanks to all that post such great thoughts and ideas! I just recently(within the last few months) took over my dads shop. He started a dealership about ten years ago and started the shop mainly to service his vehicles. We have had several people run the shop with absolutely no success. I am very new to the shop business. I currently farm with my brother and also buy cars for the dealership so I can't put all my time into the shop. I just have a few questions and would appreciate any and all advice!

 

First off, what is decent pay for a tech? I have two flag hour techs that I think I pay very well. One gets 22.50 and the other gets

$25 per hour, plus they get a 15% raise if they flag so many hours. What do you think? I also have an hourly guy (who is the best bang for the buck!) and a service writer/ shop manager who takes care of the daily shop business.

 

Secondly, I've been reading about policies and procedures, which this shop has never had, and I was wondering where would be a good place to start.

 

I guess I'll leave it at that for now. Thanks

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Sounds like you are well grounded in the business. We went the other way and started a shop them added the car lot. I would strongly advise getting some business coaching. You can learn the fine points the hard way or have a coach tell you what is working well for other shops. Attending training with other shop owners is a real eye-opener.

 

For technicians' pay, you need a system that lets you retain your labor margin if they go into overtime. This has been by far the most complex issue we have faced in our ongoing education.

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I appreciate the response. Does anyone have any recommendations on some good shop training? I've also been thinking about some training for my service advisor/ manager. Any recommendations on a program that would work well for both of us? Thanks for any and all input!

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AVI out of Ft Meyers Florida has a number of DVD and/or on-line training courses for both techs and service advisers. Check with the local parts suppliers for training they might have available locally. NAPA provides a very comprehensive on line library for their Auto Care Centers.

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  • Have you checked out Joe's Latest Blog?

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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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