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Leadership sometimes feels like a seesaw. I believe completely in the concept of leading by example but it can be frustrating and deflating when you lead the horse to water but it just wont drink. I do my very best to set a positive and professional example for my employees. I communicate my vision for our company, have meetings setting expectations and the results are up and down. I'm also trying to be as consistent as possible in the ever changing environment of the auto repair shop. What's wrong with people today?

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Agreed with what Mspec has said. I also understand what you are saying, Bob K. I've had a 2 employees that were a huge help to my business at times, but generally were just not the right people to have working in my business. It hurt to let them go, but both parties understood why it had to happen. Like Mspec said, if you are doing everything right and still not getting the results, maybe it's time to look for new help. I've now got 2 GREAT employees who I would have a tough time forcing to leave my business. It takes time and maybe even some luck to find the right people, but when you do, you will know it.

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  • Have you checked out Joe's Latest Blog?

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      Auto 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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