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By Joe Marconi in Joe's Blog0 commentsAuto 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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By carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
In this episode of Auto Fix Auto Shop Coaching, Coach Chris Cotton discusses the potential signs of a recession and its impact on the auto repair industry. He highlights indicators such as rising unemployment rates, declining consumer spending, and stock market volatility. Cotton also discusses the mixed effects of a recession on the industry, including potential parts obsolescence and reduced cash flow. He advises listeners to prepare by diversifying services and increasing their online presence. The episode emphasizes the importance of preparedness and not panicking during economic downturns.
Recognizing the signs of a recession (00:01:06) The speaker discusses the topic of recognizing the signs of a recession and mentions a post in a shop owner group that sparked interest in the subject.
Rising unemployment rates (00:02:24) The speaker explains that rising unemployment rates can be a sign of financial trouble and shares their thoughts on the current unemployment situation.
Declining consumer spending (00:03:20) The speaker talks about how a dip in retail sales figures can indicate consumers tightening their belts and expresses concerns about maxed-out credit cards and defaults on payments.
The impact on the auto repair industry (00:09:40) Discussion on how recessions can have a mixed impact on the auto repair industry, with people potentially delaying buying new cars and needing to repair their existing vehicles.
Potential challenges during a recession (00:10:53) Exploration of potential challenges during a recession, such as parts obsolescence, reduced cash flow, and supply chain issues.
Actions to take to prepare for a recession (00:12:00) Advice on actions to take for auto repair businesses to prepare for a recession, including diversifying services, increasing online presence, stockpiling cash, improving efficiency, engaging with the community, and being adaptable and innovative.
Recognizing the signs of a recession Indicators of a recession: rising unemployment rates, declining consumer spending, stock market volatility, flattening or inverted yield curve Impact of government policies, global events, and consumer sentiment on the economy Importance of staying informed and not panicking Need for preparedness and taking action before a potential downturn Impact of a recession on the auto repair industry Delayed car purchases leading to increased need for repairs Concerns about parts obsolescence and availability Effects of a recession on the auto repair industry: reduced cash flow, less disposable income, supply chain issues, potential affordability of skilled labor compromising quality of work Actions to prepare for a recession in the auto repair industry: diversifying services, increasing online presence
Connect with Chris:
[email protected]
Phone: 940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/
AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix
Click to go to the Podcast on Remarkable Results Radio
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By Joe Marconi
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By carmcapriotto
Recorded Live at ASTE 2023 Scott Brown discusses the evolving technology of Advanced Driver Assistance Systems (ADAS). He dives into the challenges and benefits of calibrating ADAS systems in vehicles, the future of level five automation and importance of technicians staying updated on technology advancements.
Scott Brown, Founder of Diagnostic Network. Scott's previous episodes HERE. Show Notes
Advanced Driver Assistance Systems (ADAS) by Steve Zack, Kurt Shadbolt and Scott Brown The evolution of ADAS technology (00:01:17) Scott Brown discusses his early exploration of ADAS technology and how it has become more focused over the years. Understanding computer vision in ADAS (00:02:12) Scott Brown explains how computer vision works in ADAS systems and the importance of training cars to recognize objects in their environment. Advancements in camera technology (00:04:25) Scott Brown discusses the advancements in camera technology, including the ability to remove radar sensors and rely solely on cameras for functions like cruise control and pedestrian detection. The Lane Assist Experience (00:08:03) Discussion about lane assist technology and the adjustment to driving without it. Tesla's Shift to Vision System (00:08:40) Explanation of Tesla's decision to no longer use radar sensors and instead rely on their vision system for ADAS. Static calibration challenges (00:16:38) Increasing use of cameras for dynamic calibration (00:17:32) Benefits of backup cameras (00:18:20) The importance of technology in automotive education (00:25:18) The need for updated curriculums in automotive schools and the role of technology in education. The potential career opportunities for students in automotive technology (00:27:29) The Tesla's Full Self Drive Experience (00:32:16)
Thanks to our Partner, NAPA Auto Care
Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care
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Click to go to the Podcast on Remarkable Results Radio
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By Joe Marconi
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