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Posted

I have been talking about this since last night still trying to wrap my mind around it...

 

 

So I have 2 friends, 1 that owns a shop (SUPER mismanaged) and another friend that needed work done on his 1994 Toyota MR2. They both do not know each other. The MR2 was brought over to the shop 2+ years ago. My shop owner friend was hired to partially build an engine, transmission, modify the trunk to fit an intercooler and install the engine. The last piece of the puzzle was creating a wiring harness for an aftermarket engine management. Yes I know all work we cringe and turn away! Anyway, for one reason or another the car say for 2+ years waiting on parts at times or various other reasons. At no point was any price established. Recently the shop owner friend called it quits on the car said he couldn't finish the harness and he really needed the space (3 bay shop, 1 car taking a whole bay for 2 years). My MR2 friend went to pick up the car and all the while kept asking "do you have a price for me?" The response he got was, "Oh most of it is in storage fees." Keep in mind at no point was any price established. Well the car was released to the owner and towed out of the shop. After asking multiple times the bill was finally presented.... $12,500! Now I am sure the work was painstaking and took a ton of hours but how do you charge someone that kind of money without ever establishing any sort of pricing? Also you let the car go losing all your leverage! I don't know what the outcome will be but I just can't wrap my mind around how it got this far and how you can justify trying to charge $12,500 without ever establishing any pricing. Keep in mind, no paperwork was ever drawn up, nothing was ever signed, no verbal agreement was ever presented or reached.

 

I'd love to hear some comments, I am trying to not get involved but I can't stop thinking about what a shitshow this is.

Posted

What a nightmare. Looks like shop owner buddy is going to be looking for work soon. You hiring? Lol.

That's a real mess. One of the key reasons we stepped out of performance and custom work, the customer has his idea of what it's worth and the shop has their idea of the worth of the job. Neither are ever close. The shop always wants more and the vehicle owner always thinks it should be a "couple hundred".

 

Sent from my SCH-I605 using Tapatalk

 

 

Posted

The sad part is the guy works 10-10 Monday - Saturday all by himself 3 lifts. He works Sundays I think until 5 or 7. Been doing it for nearly 10 years or around there. Charges well below the average labor rate (last time I think it was $65) in Queens which is a borough of NYC. He also doesn't charge enough margins on parts as well as allows customers to bring their own parts. There is also a auto parts store on the corner where I've seen customers walk to the parts store and come back with a starter with my friend having no objections. Hes put 2 kids through private school by doing this but I have to imagine hes living on a shoe string.

 

Both are my friends so its a tough thing to give any advice out however being a shop owner (and a logical human being) I can say without a doubt my shop owner friend Effffff'd up big time by not establishing pricing and allowing the car to be released without getting payment.

Posted

You shop owner friend may know cars but he doesn't have a clue about running a business. He needs to have some business management training. $65 and hour in Queens when we are $87 in Indiana.

 

Tried to tell him many times...

Posted

Hit the nail on the head Joe.

 

You have to recognize when you need help and also where to seek it. I have offered to pay for a 1 day class just to open his eyes on the possibility. He and his wife are wrapped up that they don't even feel like they can give up a day to go to the class!

 

Its a sad story.

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  • Have you checked out Joe's Latest Blog?

         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.
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