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Joe Marconi

Who is responsible for tech productivity? Motor age video

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  • Similar Topics

    • By JustTheBest
      Welcome!
      Thought it would be a good conversation to understand how your shop is doing through the COVID-19 pandemic. Thought the best way to get a grip on it all would be to get your response to these 3 questions.
      1- How was your shop doing in early March - pre-pandemic? Were your numbers better, worse or about the same as last year.
      2- What’s the biggest challenge you faced when the pandemic spread?
      3- What’s your forecast for your shop moving forward?
      Is business getting better? About the same - like nothing has happened? Or are you struggling to get customers through the door? 
      Look forward to hearing your BEFORE-DURING-AND AFTER to understand where the industry is at. Hope this generates a better “picture” of what’s going on. 
      Matthew
      “The Car Count Fixer”
      P.S.: Join my on YouTube at Car Count Hackers
      Grabbed this shot of a crazy 68 Camaro (with wild Mickey Thompsons!) at a car show last week! Thought I would share it to help you remember "where we came from!" - Enjoy!

    • By Alex
      Coronavirus has helped streamline video messaging, video conferencing, and just overall the act of watching video on various platforms. Large companies are creating weekly videos to message their employees and customers these days. Some of you may even be doing the something similar, and if not recording and sharing video, maybe at least communicating more through video. I was on linkedin and thought this video posted by @ncautoshop from L&N Performance Auto Repair was worth a share. 😁

    • By Joe Marconi
      Has any signed up or know of this product? "Truvideo"
      BG has partnered with a company called Truvideo.  The process allows you to take a short video of the car and document any issues. The video is then sent to the customer, either thru a text message or email. The tech or service advisor narrates the video.  The customer can see on video things like worn brakes, worn tires, a leaking hose, etc.  
      I think that this has its place in the multipoint process. Below is a link for more information.
      Your thoughts?
      https://www.bgprod.com/programs/truvideo/
       
    • By Elite Worldwide Inc.
      By Bob Cooper
      If you speak with most shop owners they’ll tell you that they think their shop is worth x amount of money. Ask them how they came up with that number, and they’ll tell you it’s based on what they heard another shop sold for, or it’s predicated on their annual sales. But if you really want to know what your shop is worth, first of all, forget everything you’ve heard about “goodwill” and the fact that you have thousands of names in your database. That’s icing on the cake, but it’s not something a buyer can take to the bank. And although there is some value associated with some franchise names, there are two things that are most important to a buyer: the “tangible assets” and the “income history.”

      Tangible assets are things like real estate, cash in the bank, secured receivables, inventory and equipment. To put it another way, these are the assets that buyers could turn into cash if they had to. When you’re establishing the value of your inventory and equipment, bear in mind that the actual appraised value may very well be far less than what you originally paid. So tangible assets are always number one. 

      In regard to “income history”, we all know that past performance is no guarantee of future performance, yet the substantiated income history of a company is what buyers can use to forecast earnings. And don’t forget: The amount of money the “company” made does not include any income you’ve drawn out of the company as a salary. The company’s income is the amount remaining after all expenses, including your salary, have been considered.

      So imagine you’re looking to buy a shop, and let’s say the tangible assets are worth $400,000. In addition, let’s say the shop has a history of generating $100,000 in annual income after all expenses, and let’s say the owner has been drawing a salary of $80,000. So if you were to buy that shop, how much would you be willing to invest? Well, only you can answer that question, but I hope you take these 6 points into consideration:

      1. If you were to liquidate after you purchased, how much could you sell the assets for? I call this the “street value” of assets.
      2. How long has the company been in business, how long have the key employees been with the business, and what’s the probability that these key employees will stay on once you buy?
      3. What is the probability of the company continuing to earn the same $100,000 in annual profits, and for how long?
      4. In regard to the $80,000 salary the owner was taking, would you be willing to do what he or she does for the company for the same amount? Or will you be able to hire someone to do that job for the same or less?
      5. If you were to invest the same amount of money in any other business or investment vehicle, would you receive a better return?
      6. What are the terms of the purchase price? You may be better off to pay a higher price in return for a lower down payment, good financing rates and a non-compete.

      So, how do you establish the value of your business? Not by the icing (goodwill and number of names in your database), but by looking at it through the eyes of both a banker and a buyer.
      Since 1990, Bob Cooper has been the president of Elite, a company that strives to help shop owners reach their goals and live happier lives, while elevating the industry at the same time. The company offers coaching and training from the industry’s top shop owners, service advisor training, peer groups, along with online and in-class sales, marketing and shop management courses. You can learn more about Elite by visiting www.EliteWorldwide.com, or calling 800-204-3548.

      View full article
    • By CAautogroup
      Hello all,
       
      Just wanted some general feed back from a few automotive repair shops regarding Yelp.
       
      We have been contacted by a sales rep from Yelp for quite sometime now regarding paid advertisement, though we have declined. We have noticed a few negative reviews, and many positive reviews though they are not being displayed.
       
      Is it worth it to "pay" Yelp and see what the outcome would be?
       
      Thanks in advance for your thoughts.
       
      Nick
       


  • Similar Tagged Content

    • By Joe Marconi
      Not every shop pays flat rate; for many reasons.  So, many techs are on hourly pay.  There is nothing wrong with hourly pay, as long as you have an incentive program in place that promotes high production levels to avoid complacency.  For hourly paid employees I strongly urge you to have a pay plan that rewards production levels on a sliding scale.  
      As a business coach, I have seen too many times shops with low production levels and high tech payroll due to overtime pay. Overtime pay must not be used to get the jobs done with no regard to labor production.  Limit overtime and create a strategy that increases production and rewards techs with production bonuses.  By the way, there are many ways to incentivize techs, it's not all about money. 
      Overtime without high levels of production will eat into profits and if not controlled, with kill your business. 
      If your shop is an hourly paid shop, what incentives do you have in place to maintain production levels? 
    • By Joe Marconi
      Got your attention? Good! Before I start, let’s get something out of the way. Does technician aptitude or attitude affect the productivity of your shop? Absolutely. But this is the exception, not the rule. If your overall production levels are low, that is the sole responsibility of management. Let’s look at a few reasons for low production levels.
      The first area I want to address is billing. Many hours of labor go unbilled due to not understanding how to charge. This area is most prevalent with testing and inspecting. If your technicians are handed a work order, with no direction and not a clear process of what to do, or when to stop and ask for labor testing fees, there will be a ton of wasted labor hours, never to be recovered again.
      Next is training. Service advisor and technical training is a key component to high production levels. But let’s not forget in-house training. All policies and procedures must be reviewed often and refined if needed. Your team must follow a process. With no road map, labor dollars are lost. By the way, if you don’t have procedures in place, you need to make this top priority. Every successful organization has a detailed set of workflow guidelines.
      Let’s look at shop layout. How organized is your shop? Are shop tools and equipment readily accessible? Or do techs tend to wander around looking for the shop scanner or TPMS reset tool. Are stock items such as wiper blades and oil filters fully stocked and cataloged properly? Do technicians have separate access to technical information? Or are techs waiting to use the same computer station? Again, all these things kill labor production, which kills labor dollars.
      Next up is scheduling. There should be a structured approach to scheduling where the day is balanced with enough opportunity to make profitable sales. Have a process where vehicle history is reviewed before the customer arrives. Any previous service recommendations or notes is any opportunity to make a sale. But the key ingredient is in preparation. A customer that’s scheduled for an oil change may have forgotten that he or she received a recommendation for tires. Informing the customer at the time of scheduling and preparing for the work ahead of time, greatly improves productivity and overall efficiency.
      Another problem area is with service advisors and their workload. The service advisor, in many situations, handles the front counter, the phone, scheduling, helps with dispatch, part procurement and sales. All these tasks are critical to the daily operations. However, nothing happens in the shop until a sale is made. You need to look at your service staff. Are estimates getting processed quickly and upsells getting back to the technicians in a timely manner? If not, this is another area where production suffers. Carefully analyze your staff and run the numbers. More estimates processed means more sales and higher profits. Adding a service advisor or an assistant may be the missing link in a shop’s production problem.
      Knowing your numbers is another key component to attaining high production levels. I will refrain from giving you benchmark numbers, since all businesses models are different. With that said, you need to determine your breakeven and establish your labor goal for the week. Then knowing your labor goal, you need to calculate how many labor hours you need per technician. Then, you need to communicate this number to each technician. Having clear expectations and knowing the goals of one’s position is essential for hitting production goals.
      With regard to the technician’s responsibility, let’s remember one important fact; the technician has control over his or her efficiency. That’s it. If you dispatch a four-hour ticket to a tech, the ability of the tech to meet or beat that time depends on the technician’s skill, experience and training.
      There are a lot of other factors that influence production, such as the right pay plan and hiring the right people. But perhaps the most important influence is leadership. The shop owner or manager must study and look at the entire operations of the shop. Productivity goals must be established and then a system of monitoring production must be put into place. This includes sales goals, as well. Service advisors and technicians must get continuous feedback on their progress. Improvements in sales and in production, no matter how small, must be celebrated.
      The bottom line is this: If you’re not happy with your production level, you need to look at every aspect of your company that influences production. Improvements in key areas put technicians in a position to win. When they win, so do you.
      This story was originally published by Joe Marconi in Ratchet+Wrench on March 1st, 2019


      View full article
    • By Joe Marconi
      We allow visitors to read the first post of each topic. To read this post, please login or register for a membership. 
    • By Joe Marconi
      Shop production is a hot topic these days.  High production results in higher sales and profits.  But there seems to be so many obstacles to overcome to achieve high production levels.  
      I was discussing production with a few shop owners, and one shop owner mentioned that he recently hired a shop foreman; an “A” tech in his early 50’s.  The foreman uses his knowledge and skills to organize the work flow.  For younger techs, it’s even more important that they know how to work and keep productive.
      What are your thoughts?   Does anyone else have a foreman or similar position?  And how does this role affect production?
       
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