-
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.
-
-
Similar Topics
-
By carmcapriotto
On Record with Tom Ham from the Automotive Management Network. Tom discusses a recent survey from his website about the stress level at work, reasons why someone would reject a technician application, health insurance and more! These results may surprise you!
Tom Ham, Automotive Management Network. Tom’s previous episodes HERE. Show Notes:
AMNSHOP.com laborratetracker.com - lowest labor rate so far is $50 and highest is $297 Management Help Polls: 130 types Why techs avoid working at some shops- low pay, dark/lack of lighting, dirty, disorganized Job applicants for possible reasons they might be rejected: 70% driver license issues, 68% frequent job changes, 66% negative comments about past employers, 64% know it all, 60% questionable attitude, 60% excessive demands. 59% inconsistent information, 58% late for interview, 55% listens poorly, 53% sloppy appearance, 53$ incomplete application, 51% lack of manners Pay portion of health insurance- 35% pay nothing, 19% pay full health insurance. Stress level at your shop ranked 1 to 10, 10 is maximum stress level- 40% rank their stress level at 8+, 81% say their stress level is average or above average, only 19% say their stress level is ranked 4 or less. “What do we do here that is not as clear as it could be, a bit confusing?” Service advisor responsibilities (are these regular tasks of your service advisor)- estimating, collect vehicle information, parts ordering and returns, labor claims, operation/management, quality control, assist technicians, pickup/deliver customer or parts (porter). None of these should be the service advisor responsibilities! Consider hiring an estimator/parts person Service Advisor Overload [THA 305] Service Advisor Overload: Part 2 [THA 312]
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:
Aftermarket Radio Network
Subscribe on YouTube
Visit us on the Web
Follow on Facebook
Become an Insider
Buy me a coffee
Important Books
Check out today's partner:
Click to go to the Podcast on Remarkable Results Radio
-
-
By carmcapriotto
How can 10 hours bridge the gap between the classroom and the workplace? Sue Dickson created an internship program called 'Give Me 10' that provides 10 hours at a local shop spread out over 5 days. It allows both the shop owner and student to see if the automotive industry is the right career path. This program currently serves 75 students and has collected over 458K in grants. It starts with an idea and passion for connecting students to the automotive industry.
Sue Dickson, Closs Tire & Auto Repair Inc, Waukegan, IL
Ken Mall, Managing Director, EDSI (Educational Data Systems INC)
Jack Wilson, Automotive Service Instructor, Lake County Tech Campus
Show Notes
“Give Me 10” Internship Program – Sue Dickson [RR 689]: https://remarkableresults.biz/remarkable-results-radio-podcast/e689/ https://www.givemeten.org/ "Mission: To provide a work-based learning model that any industry can utilize to bridge the skills gap. Combining classroom instruction with on the job work based learning opportunities. This program integrates the classroom with employers to create an introduction to a career path of the student's choice." "What Our Program Provides: The program simplifies the relationship between an industry lead business and vocational education that can lead into a career path. We ask for no money. Our “ask” is for your time. Time to integrate a student into your business to create a career fit. It starts with 10 hours and can grow into a new employee. Can you “Give Me Ten?”" Started 5 years ago-serviced 75 students, in 17 different shops, collected 450K in grand money that goes directly to students. Perkins Grants and Perkins are national grants. You need a dedicated instructor that believes in work-based learning Students don’t know what they don’t know Bridge from the classroom into the workplace Partnering with local independent shops, and all businesses in all industries Goal is to create this seamless pipeline system from the school to the workplaces It gives the shop the opportunity to try that student on for size to look at their soft skills versus their hard skills "We want to be stronger in numbers than the dealership." “Give Me 10” Internship Program- 10 hours broken up 2 hours for 5 days. Job shadowing 2 hours the first day, after that they will be working for the remaining 8 hours. The whole concept of the student starts off if with everything from a tour to introductions, to safety. Depending upon what the business does say in a traditional shop, they could spend one day with a tech, one day with a service writer, one day in parts etc. Each day they see something a little bit different. Community awareness- “Tech Campus Intern” on the storefront with sticker
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 www.NAPAAutoCare.com Connect with the Podcast: Aftermarket Radio Network Subscribe on YouTube Visit us on the Web Follow on Facebook Become an Insider Buy me a coffee Important Books
Click to go to the Podcast on Remarkable Results Radio
-
By carmcapriotto
Insights to the Vision Hi-Tech & Expo Class "Which Scan Tool Should I Buy?" Saturday, March 4th 8:45 am-11:45 am with Scott Shotton, Scot Manna, Tanner Brandt, Keith Perkins, and Sean Tipping.
Scott Shotton, The Driveability Guys. Scott’s previous episodes HERE. Tanner Brandt, Autodiag Clinic. Tanner's previous episodes HERE. Scot Manna, Trainer, ACDelco Technician of the Millennium. Scot's previous episodes HERE. Watch Full Video Episode HERE Show Notes:
"Which Tool Should I Buy?" Saturday March 4th 8:45am-11:45am with Scott Shotton, Scot Manna, Tanner Brandt, Keith Perkins and Sean Tipping Register Here For Vision 2023 Q&A- shop owners/managers included Shop owners may or may not know the functionality of scan tools Raffles
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:
Aftermarket Radio Network
Subscribe on YouTube
Visit us on the Web
Follow on Facebook
Become an Insider
Buy me a coffee
Important Books
Check out today's partner:
Click to go to the Podcast on Remarkable Results Radio
-
By Transmission Repair
Premium Member Content
This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.
-
-
-
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