-
Have you checked out Joe's Latest Blog?
-
.thumb.jpg.2b345efc275b9df0af2bbb306a10a78a.jpg)
By Joe Marconi in Joe's Blog13 commentsMost 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.
-
-
Upcoming Events
-
March 24, 2023 01:00 PM Until 09:00 PM
0Hi all,
AutoLeap is hosting Amplify 2023, a virtual auto repair conference for shop owners, on March 24. We have 22 incredible speakers, and 13 industry associations and training institutes participating in this virtual event. The conference is free of cost.
You can book your complimentary, virtual seat today using this link: https://bit.ly/3EXvfWY
Amplify 2023 speakers include: Joe Marconi, Co-Owner AutoShopOwner and Elite Business Coach @Joe Marconi Aaron Stokes, ShopFix Academy Cecil Bullard, The Institute for Automotive Business Excellence Chris Cotton, AutoFix Auto Shop Coaching Darrin Barney, Elite “G” Jerry Truglia, Automotive Technician Training Services Greg Bunch, Transformers Institute Jeremy O'Neal, AdvisorFix The conference will cover essential topics such as:
Navigating through the current industry challenges Tackling the technician shortage through employee retention Creating memorable customer experiences Growing & expanding your business in 2023 Financial planning & KPIs to measure And that’s not all.
The interactive, dynamic conference also offers live networking opportunities, and fun games and prizes.
You can book your complimentary, virtual seat today using this link: https://bit.ly/3EXvfWY
#AutoLeapAmplify23
-
-
Similar Topics
-
-
-
By Joe Marconi
There are many benefits to growing a company so that it runs smoothly and efficiently without the shop owner. Building systems and procedures to get the entire team on the same page is essential to any successful business. In addition, an auto repair shop will grow more successful, and worth more if the shop owner, is not needed in the day-to day operations.
However, the question is: Should you become an absentee owner? This is not an easy question to answer, since it really depends on the size of your shop, your role in the business and how you feel about your business. For example, if you run a 4-bay shop, with four employees, that is vastly different from a company that has three locations with 25 employees. And also, you may really enjoy going to work and being involved.
The bottom line is this: Build your company so that it can run without you, but know when to step back in when needed. Great leaders know when to get out of the way, and when to step back in and make course corrections. Ultimately, your business is your business, and the responsibility for its success rests largely on your shoulders.
-
By Joe Marconi
For all the veteran shop owners who have been around the block a few times, and have experienced the roller-coasted rides of being an auto repair shop owner, what advice could you give those shop owners just starting out or planning to go into their own business?
-
By Joe Marconi
When I started my repair shop in 1980, we mainly worked on three car lines: GM, Ford, and Chrysler. Through the decades, technology has dramatically changed the average automobile. Plus, today, we have many more car models to worry about, then add EVs, hybrids, and who knows what else car makers will throw at us.
Is it time to rethink our business model? Can we really be that shop that works on All Makes, All Models?
-
-
-
Our Sponsors
.png.670cdba7e1e29bc28f538a6796dc62e3.png)
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now