Shop space and helpers.
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By Joe Marconi in Joe's BlogMost 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.
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By carmcapriotto
California is mandating 100% of new cars and light trucks sold will be zero-emission vehicles by 2035. How will electric vehicles change the composition of our industry? What are the service opportunities? Should you start working on hybrids if you haven't already? Hear from the perspectives of 3 California shop owners that are ready and prepared for the future. John Gustafson, Gustafson Brothers, Huntington Beach, CA. John’s previous episodes HERE Dave Kusa, AutoTrend Diagnostics in Campbell, CA. Listen to Dave’s other episodes HERE John Eppstein, John’s Automotive Care, San Diego, CA. Listen to John’s other episodes HERE
Show Notes:
California non pretrolium zero emission no sales 2035 Start working on hybrids- EV is a hybrid without a gas motor What are the service opportunities on EVs? Preventative maintenance package, component replacement, and programming. Where will you plug your car in? At home? Infrastructure? Staying in contact with customers on a consistent basis will be more important than it is now- visit per customer dropping but ARO going up Range anxiety Fleet average age 12 years old Train service advisors- learn the language, get the trust of the EV customers As a shop, if you're not working on hybrids now, you need to start. You need to learn it. You need to get that training because an EV is simply a hybrid without a gas motor for all intents and purposes. If you understand and have experience with the hybrid aspects, the electric side of hybrid vehicles, EVs will just come naturally.
Thanks to our Partners Shop-Ware and Delphi Technologies Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com
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By carmcapriotto
"Keep a cool quarter of a million? Or give it away.... You’d think that was self-evident, but usually, companies are unintentionally giving it away. If you’re like most of our clients, you’ve got enough worries on your plate when it comes to making sure everything in the business is running smoothly. You don’t have the bandwidth to take on another project, especially one this large—that has the probability of costing the company thousands of dollars in repairs, overages, gas...the list goes on. Recently we helped a company drive down the cost per mile from 48 down to 36 cents per mile by showing them how they can run their vehicles longer for more mileage and reduce their total investment in that vehicle, therefore, lowering the cost per mile. They were replacing their vehicles every hundred thousand miles. We showed them how much they can save by extending the mileage to double and triple which...came out to a cool quarter of a million dollars. That’s where we come in. We help businesses just like yours run more smoothly with less breakdowns, less downtime, and more profit in their pocket at the end of the year." Bill Deboer
Bill DeBoer, DeBoer’s Auto Sales & Service. Listen to Bill’s podcast episodes HERE.
Show Notes
freefleetbook.com Growing with fleet and retail- had office space next to the current location, rezoned it highway commercial to be recycled and added 6 bays. RR 481: David Saline – Start or Grow Your Fleet Business Wrote the book to try to speak to those people so that we can acquire more fleets and bring people into their wheelhouse, but also help out those people that aren't to the point where needing a fleet management team, but they're just trying to survive on their own. Downloadable PDF- cost per mile, vehicle maintenance tracker spreadsheet etc "The fractional fleet management program, where they can hire us, we can manage their fleet for a fraction of the. Because we're doing it on a fractional-time basis, they don't need that full-time management. But at the same time, they get all the same perks and benefits." Get 30 vehicles collected with only one or two contact points. So now you're not making 30 individual calls; you're making one phone call. You get a good relationship going with the key stakeholders and the decision-makers in those fleets. Telematics- all that data gets pulled into our fleet management program as we set up these vehicles on the maintenance schedules as they hit their miles. Share it with their prospects for fleets
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: -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
Erich and Lauralee Schmidt went to a 4 day work week during COVID and haven't looked back. They also have an app for their shop with benefits to customers.
Erich and Lauralee Schmidt, Schmidt Auto Care, Springboro, OH Show Notes:
4 day work week- exhaustion during COVID, started cutting Fridays with three day weekends. Prefaced it as summer hours and would go back to 5 days in the fall. They never went back to 5 day work week. Revenue, productivity, and efficiency increased. 8-7 pm work hours. The check-in process includes 4 day work week schedule. 40 hours of training a year minimum- observing efficiency, open communication, partnering with employees with their training. Training is a requirement when hiring employees. “Where are your interests?” Service Advisor=Serice Specialist Free Schmidt Auto Care App- started 6 years, App Fueled is a customizable garage for clients and a bevy of services outside of just communication. Special pricing, birthday specials, loyalty touch points. 30% of the customer base has the app. Had ADAS for 3 years, one of the first in the area to get it. Program and calibration.
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
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By carmcapriotto
How has Matt Lachowitzer been able to expand his multi store business while maintaining the culture within it? How did his team support each other through the sudden passing of a key manager? It all starts with building better people. So how do you do that? How do you find those unicorns that want to grow with your company and lead better lives themselves? Matt Lachowitzer, Matt’s Automotive Service Center, Fargo-Moorhead, North Dakota and Minnesota. Listen to Matt’s previous episodes HERE Show Notes
Lost a key manager that passed away in the shop- 43 years old. Got the shop back together with the help of the other shop managers. Paid everybody for the day off for the funeral and for the day that they closed. Promoted within and already had potential employees in the wings- always be recruiting. A new hire must read 2 books (Customer Service Revolution- John DiJulius and Unstoppable- Dave Anderson) and will spend 30 days in training before they're really set loose. Multiple different layers of managers- district managers, store level managers, shop foreman, and a lead tech that oversees all the shop foremen. Don't just build better team members, but rather build better people. Focus on hospitality training. Rip off and duplicate- nothing's new, you just have to make it yours. FORD - family, occupation, recreation, and dreams. Acquisitions- owners retiring, consolidation. What is your exit strategy? Pay attention to Opportunities- little things that matter. Do research and homework on the company before investing in or buying them Advice if you want to grow to multi shops- have a phenomenal team before starting a new shop, people who want to grow with you. Share your goals with your team. Be transparent. Have your finances in order. Solid systems and processes. Keep the career path aligned so they're growing and seeing the value and the work they're putting in. Connect, build a relationship and have a coach. You learn from every interaction, every moment of everything you do if you allow yourself to be able to be open to it. Launched ‘Hammer Consulting’ Coaching
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
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