An Excellant Quote To Run Your Shop By
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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.
By ASOG Podcast
Opening a Shop? Don't Make This Critical Mistake!
By ASOG Podcast
Make This Change In Your Trade Business for 2023
Join 3 shop owners as they share some great stories and wisdom about what works and what doesn't when talking about pay. Can you show how to earn the pay they want? How can you bring the team together when there are earning discrepancies?
Chris Lawson, TechnicianFind.Com. Chris' previous episodes HERE Mehrdad Avar, Haven Auto Repair, Rancho Cucamonga, CA Shawn Gilfillan, Automotive Magic, Kenvil and Lake Hopatcong, NJ. Shawn’s previous episodes HERE
When in doubt about what to list as pay in an ad, look at your top compensated tech and use that as a benchmark. Commitment to training- investment, not a liability, not a cost. It’s always best to put your best foot forward with respect to salary in an ad. “What’s the highest pay level you feel comfortable having a conversation about?” In other words, “If you were sitting across your desk from a tech and they asked for that salary/compensation, do you feel comfortable having a conversation where you show them how they can earn that level of income?” (production and efficiency levels needed + salary, bonuses, profit sharing, etc.) Changing the perception of your technicians not wanting to hire another. Asked, “Did your income get better or worse?” Sharing profit and loss, where and how the shop will continue to grow. Make sure your salaries and job titles match up and are in alignment with market rates.(you can verify this on Indeed Hiring Insights) As the owner- look at yourself from the inside out. Make yourself worthy of the top employees. What is the perception of your business from the outside? Your business is a reflection of yourself. Interviewing technicians- you will spend more time at work than at home. Is 1-hour interview worthy of a ‘marriage?’ Listen closely to the interviewee’s questions. Get your team involved in the process, and consider a trial period. Comebacks- learning experiences with the whole team, quality control employee Zero sum decision making- knowing what you know now, would you make the investment in XYZ, if you wouldn't make that decision again, move on.
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Check out today's partners:
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
Click to go to the Podcast on Remarkable Results Radio
By Joe Marconi
A friend of mine who owns a 6-bay shop in New York recently hired a tech. He was short a tech for months and was desperate. Without getting into details, the newly-hired tech lasted two weeks. Between his work ethic, bad attitude, and comebacks, it was a costly mistake.
Have you hired the wrong person in the past? I know you need to fill an important decision, but is hiring anyone the right move, hoping that things will work out?
By ASOG Podcast
Getting Older As A Business Owner Makes You Realize This One Thing
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