It's Alive! It's Alive! - - Dr. Frankenstein vs a mechanic -- same but different
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By Joe Marconi in Joe's BlogAuto 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
Recorded Live at AAPEX 2023, our panel dives into the progress of the Right to Repair bill that could potentially reshape our industry. Without the Right to Repair Act, our industry could face a staggering $93 billion hit by 2035. Kathleen Callahan, who testified in front of Congress, shared her experience and the momentum it created for the bill. It's crucial for industry professionals to understand the bill, advocate for it, and engage with their communities and legislators. Dwayne Myers, Dynamic Automotive, 6 locations, Maryland. Dwayne’s previous episodes HERE. Jennifer Keaton, Director of Government Affairs, Auto Care Association Kathleen Callahan, Xpertech Auto Repair, Englewood, FL Show Notes
IDC Hearing: "Proposals To Enhance Product Safety And Transparency For Americans: https://www.youtube.com/live/AU1vg7Xsw88?feature=shared The testimony before Congress (00:02:01) Kathleen Callahan's testimony in front of a congressional subcommittee and her experience preparing for it. Magic Johnson's keynote speech (00:04:38) Discussion about Magic Johnson's speech at the event, his support for small businesses, and the request for his support for right to repair. Getting a bill in front of Congress (00:08:13) The process and hard work involved in getting a bill, specifically the Repair Act (HR 906), in front of Congress. The legislative process and subcommittee hearing (00:08:36) Discussion about advancing a bill through the legislative process, the importance of the subcommittee hearing, and the next steps of getting the bill to a markup. The significance of markup (00:09:35) Explaining what markup means in the legislative process and how it signifies that the bill is moving forward. The importance of right to repair legislation (00:12:53) Highlighting the potential impact of not passing right to repair legislation, including the loss of market share and the negative consequences for the industry and consumers. Kathleen's Confident Testimony (00:17:27) Kathleen's confident and professional testimony, her preparation, and the positive feedback received. The Importance of Questions (00:17:59) The importance of paying attention to the questions asked during testimony and the impact of facial expressions. Strategic Selection of Kathleen (00:20:05) The strategic selection of Kathleen as the only woman shop owner from Florida to represent the industry. The importance of marketing and being active in advocacy (00:25:49) Dwayne emphasizes the importance of continuous marketing efforts and being proactive in advocating for the industry. Telematics as the new right to repair (00:26:24) Tthe significance of telematics and the potential challenges it poses for gaining access to vehicle data. Equitable access to repair and diagnostic data (00:26:47) Kathleen highlights the need for repair shops to have equal access to repair and diagnostic data as dealerships, and the importance of showing legislators the impact of the industry. Thanks to our Partners, AAPEX and NAPA TRACS Set your sights on Las Vegas in 2024. Mark your calendar now … November 5th-7th, 2024. AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at http://AAPEXSHOW.COM/WEBINAR NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections
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By carmcapriotto
Recorded Live at AAPEX 2023, Bill Hanvey and Paul McCarthy give insights into Right to Repair, what it takes to put on a massive show encompassing 2,600 exhibitors, and 46,000 buyers, and a recap of Magic Johnson's engaging keynote. In a recent study, by 2035 there could be a 54% decline in market share due to repair restrictions, translating to $92 Billion lost by the independent aftermarket. This issue is not just about the industry, but also about the consumers who rely on affordable and accessible auto services. Bill Hanvey, President and CEO of the Auto Care Association. Find Bill’s other episodes HERE. Paul McCarthy, President and CEO of MEMA (Motor & Equipment Manufacturers Association). Find Paul’s other episodes HERE. Show Notes
The impact of Right to Repair (00:02:58) Bill Hanvey and Paul McCarthy discuss a study by Roland Berger that predicts a decline in market share for the independent aftermarket due to repair restrictions. The importance of grassroots efforts in right to repair (00:04:51) The role of grassroots efforts and listener engagement in gaining support for the Right to Repair bill. Exceeding pre-COVID numbers at AAPEX 2023 (00:11:42) Conversation about the number of exhibitors and buyers at AAPEX, and positive feedback received. The technology-driven automotive industry (00:12:46) Exploration of the automotive industry's shift towards technology, the importance of data, and the excitement and opportunities it brings. The breakfast panel for next year (00:19:10) Discussion about planning for the next year's breakfast panel and the constant effort to innovate the show. The larger show for next year (00:19:33) Announcement of a larger show for the next year with more space and exciting new technology and innovations. Magic Johnson's appearance (00:20:22) Conversation about how Magic Johnson was chosen as a speaker and his impressive presence and interactions with the audience. 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 Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections
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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 the "Weekly Blitz" podcast, host Coach Chris Cotton discusses the concept of value in the auto repair business. He emphasizes that value goes beyond price, encompassing quality service, skilled labor, genuine parts, and transparency. Cotton debunks the myth that being the cheapest shop guarantees success, instead advocating for a balance between price, quality, and value. He also highlights the link between staff compensation and value, stating that a well-compensated team is more motivated and productive, enhancing the overall customer experience.
The concept of value and self-esteem [00:01:02] Discusses the importance of shop owners valuing themselves and their businesses in order to show value to customers and potential employees.
Defining value from a customer's perspective [00:02:14] Explains how customers perceive value as the total package of quality service, skilled labor, genuine parts, transparency, and other benefits.
The balance of price, quality, and value [00:03:20] Highlights the importance of striking the right balance between price and quality to provide real value to customers, debunking the myth that the cheapest prices are always the best.
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 #autoops #onlinebooking #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Gary Gunn discusses how mentoring differs from coaching and how it can benefit shop owners in defining their own success and implementing necessary changes in their businesses. Gary shares his experience as a mentor and offers tools and strategies for shop owners to implement new ideas and overcome challenges. He emphasizes the importance of working on the business and oneself, creating a scoreboard for business performance, and understanding the true cost of doing business. Gary also explains the role of a true mentor and the value of assessments in tailoring mentoring approaches. Carm and Gary believe that mentoring can enhance the value of coaching and help shop owners gain confidence and make informed decisions.
Gary Gunn, Auto Shop Showcase
Show Notes:
The importance of mentoring for shop owners (00:01:12) Gary Gunn discusses the concept of mentoring for shop owners and how it can benefit them in achieving better lives. Defining mentoring and its role in implementing change (00:05:56) Gary explains his definition of mentoring and how it involves helping shop owners implement changes that will lead to true freedom and success in their businesses. The role of a mentor in addressing specific struggles (00:07:03) Gary talks about how a mentor can assist with specific challenges such as hiring, budgeting, and determining financial goals, and how their role is to help mentees become self-sufficient in these areas. Implementing Ideas from Training (00:09:35) Discussion on the challenges shop owners face when trying to implement new ideas and how mentoring can help them overcome resistance and successfully implement changes. Using Tools for Implementation (00:11:32) Explanation of the five tools that shop owners can utilize to implement changes in their business, including staff training sessions and staff behavior sessions. Understanding the True Cost of Doing Business (00:15:02) Explanation of the concept of the true cost of doing business and how it can help shop owners analyze their financials and make informed decisions. The missing piece for shop owners (00:19:05) How mentoring can complement coaching and provide shop owners with additional value and guidance. Group mentoring and individual sessions (00:22:01) The different formats of mentoring, including group mentoring sessions and one-on-one sessions, based on the specific needs of the participants. The concept of mentoring in the automotive industry (00:26:50) Discussion on the importance of accepting the need for mentoring and the discrepancy between appearances and reality in the industry. The potential benefits of seeking a mentor (00:27:10) Highlighting the potential positive impact of finding a mentor to help individuals and businesses grow and improve. The role of a mentor as a supplement to coaching (00:28:45) Explaining how a mentor can work alongside existing coaching programs to provide additional support and guidance to shop owners. Thanks to our Partner, Dorman Products.
Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
Connect with the Podcast:
-Join our Insider List: https://remarkableresults.biz/insider
-All books mentioned on our podcasts: https://remarkableresults.biz/books
-Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom
-Buy Me a Coffee: https://www.buymeacoffee.com/carm
-The Aftermarket Radio Network: https://aftermarketradionetwork.com
-Special episode collections: https://remarkableresults.biz/collections
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By carmcapriotto
Dan Taylor and Rod Olson discuss leadership principles and creating a culture of recognition in the automotive industry. They emphasize the importance of recognizing and affirming people in the workplace, being sincere and specific in recognition, and creating a psychologically safe environment. They also discuss the impact of positive language, effective communication, and the role of coaches and leaders in helping individuals and teams reach their full potential. Remember, as leaders, our words have the power to inspire, motivate, and shape the culture of our organizations. Let's use them wisely!
Rod Olson is a coach known for his ability to help high-performing leaders see things others don’t see and find their ‘sweet spot’ as they lead and motivate others in the 21st century. He is the founder of the Coaches of Excellence Institute and the Coach O Consulting Group. Rod is also the author of three highly acclaimed leadership fables: The Legacy Builder, Wisdom Lunch Warrior and Greatest Motivational Tool. After nearly 20 years as a college football coach, Rod has spent the last decade-plus, working with elite teams and organizations while teaching, coaching, and mentoring some of our country’s top coaches and leaders. He is a nationally recognized speaker and leadership consultant specializing in high-level leadership coaching and culture development. Rod has clients in the corporate sector, professional and collegiate sports, and our United States military special forces. Rod is a husband, father, and coach. If you want more information on Rod, how to purchase his books, executive coaching & team consulting, or have him speak to your leaders, he can be reached at [email protected] or CoachOConsulting.org, or message him on Twitter https://twitter.com/CoachRodOlson Dan Taylor, Senior Business Advisor, Transformers Institute. Dan’s previous episodes HERE
Show Notes
Creating a Culture of Recognition (00:02:17) Discussion on the importance of recognizing and affirming employees in the workplace. The Importance of Specificity in Recognition (00:03:09) Exploration of the impact of being sincere and specific when recognizing someone's achievements. Using Different Recognition Styles (00:07:57) The significance of understanding individuals' love languages and using a variety of recognition styles to motivate and engage them. Expanding vocabulary and raising leadership level (00:12:40) Exploration of the negative implications of limited vocabulary and the need for leaders to improve their language skills. Destroying complacency without destroying confidence (00:15:30) The challenge of motivating employees to reach higher levels of performance without undermining their self-confidence. The importance of language and feedback (00:16:25) The speaker discusses the impact of language and feedback in coaching and leadership, emphasizing the use of positive language and avoiding negative words like "don't." Self-awareness and situational awareness in leadership (00:22:00) The need for leaders to have self-awareness and situational awareness, including knowing their own emotional state before giving feedback or critique. Leadership Principles and Critiquing (00:24:36) Discussion on the importance of critiquing as a leader and the need to balance encouragement and challenge. Recognizing Peers and Building a Culture (00:25:08) Exploration of how leaders can encourage peers to recognize each other and create a culture of recognition. Speaking Greatness and Coaching (00:29:27) The significance of speaking greatness into people, projecting their potential, and coaching them towards their future success. Teachable moments and timing (00:32:55) The importance of looking for teachable moments and having good timing when teaching and providing feedback. Speaking greatness and changing culture (00:38:02) The effects of speaking greatness on changing and maturing the culture within an organization or family. Feeling better as a leader (00:39:37) The positive impact of speaking greatness on a leader's inner joy, value, and sense of relevance. The importance of mentoring and building a legacy (00:40:03) The speaker emphasizes the importance of leaders mentoring their employees and building a legacy for the future. Creating a culture of recognition (00:40:38) The benefits of recruiting and hiring individuals who have grown up in a shop and know how to act, emphasizing the importance of creating a culture of recognition. Becoming an encourager and practicing self-awareness (00:41:03) How managers and leaders can celebrate the success of their employees, emphasizing the importance of self-awareness and practicing encouragement rather than criticism. Free Tip of the Day (00:48:07) Rod Olson encourages listeners to follow him on Twitter for a free tip of the day. https://twitter.com/CoachRodOlson
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
Connect with the Podcast:
-Join our Insider List: https://remarkableresults.biz/insider
-All books mentioned on our podcasts: https://remarkableresults.biz/books
-Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom
-Buy Me a Coffee: https://www.buymeacoffee.com/carm
-The Aftermarket Radio Network: https://aftermarketradionetwork.com
-Special episode collections: https://remarkableresults.biz/collections
Click to go to the Podcast on Remarkable Results Radio
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