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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 Joe Marconi
When I was in business, each year for 41 years, we experienced a slow down in February. The reasons are many, but by the second week of March, things went back to normal.
However, from what I am hearing from some shop owners, they are concerned. They point to riding this wave of business since coming out of COVID, and fear that the wave may become a trickle.
What is your opinion? Good times are still here? Should we be concerned?
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By carmcapriotto
Chris Lawson is back for Part 2 of our discussion about finding technicians in our industry. This episode focuses on the advanced strategies for finding technicians on Indeed and Facebook. Do you require a resume on Indeed? Find out why you shouldn't! Chris Lawson, TechnicianFind.Com. Chris' previous episodes HERE Show Notes
If you’re looking to hire an experienced technician with a job, throwing more money at job boards is a losing strategy. You need to go where techs hang out online, and that’s social media. Building a connection- ask questions, find out what they are trying to accomplish in their career 2 weeks notice- it’s a dangerous time, follow up with value (shorten the time period, putting in a touch point with communication, remind them why they said yes to the offer). Consider creating a 2 week orientation to keep them engaged. Always be recruiting- ask for referrals. Respond to comments and questions on ads Spend time on good headlines and good ads Why you shouldn’t require a resume on Indeed- do technicians have an updated resume to apply? Get them on the phone! Hiring Insights on Indeed- free tool, the automotive technicians are extremely competitive,
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 partners: Set your sights on Las Vegas in 2023. Mark your calendar now … October 31 - Nov 2, 2023, AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at AAPEXSHOW.COM 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 NAPATRACS.com
Click to go to the Podcast on Remarkable Results Radio
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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?
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