-
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
Being a Black Technician The Inspiration to Become a Mechanic Changing Gears Marketing the Industry A Life Changing Vision 2022 Scholarship – Eric Dallas [RR 733]
The show is sponsored by NAPA Auto Care napaautocare.com
NAPA Benefits Center: napabenefitscenter.com
NAPA Member Site: member.napaautocare.com
Email Matt: [email protected]
Diagnosing the Aftermarket A - Z YouTube Channel HERE
Click to go to the Podcast on Remarkable Results Radio
-
By Joe Marconi
If you are going to Vision in March, please stop by the Elite booth and say hello to Kevin Vaught, Tom Amero and the new Owner of Elite, Darrin Barney!
Also, two great training sessions by Elite...
High Impact Service Advisor Sales Course - Tom Amero and Darrin Barney
March 2nd, 1:00 pm-5:00 pm
People buy from people, not companies. As a Service Advisor, what you say and HOW you say it has a huge impact on whether or not people move forward with doing business at your shop! In this class, we will help you generate higher profits through increased sales, more repeat business, and more referral business. We will talk about how to ethically build relationships with your customers and how you can help them view you as a trusted credible expert. This course will be led by Tom Amero, an Elite Certified Sales Trainer. With over a decade of sales, sales training, and leadership experience, he will help Service Advisors build their confidence and gain the tools they need to create more success. Come to this training and let's get your Advising skills to the next level!
The Care and Feeding of your Superstar Techs and Advisors - Darrin Barney
March 3rd, 8:00 am - 11:30 am
Everyone knows how important your team is for the success of your business. But in reality, how many people are able to find and most importantly, keep those superstars once they get them on their team? Darrin Barney will show you a road map that will allow you to find, keep and grow your most important asset.. Your employees. Darrin and his team have grown his shop to one of the largest independently owned auto repair facilities in North America, and they have customers, literally around the world. His unparalleled success quickly caught the attention of the industry, and it’s brought about his being featured in countless podcasts and nationally published articles, he’s been on the cover of Auto Inc. magazine, and he’s spoken at number of the industry’s largest events. He is also currently the President of Operations at Elite. Here are a few of the topics that Darrin will be discussing.
ELITE WORLDWIDE
-
By carmcapriotto
On Record with Keith Perkins. Keith has both a brick and mortar shop and mobile diagnostic vans. He discusses the future of mobile diagnostics and his perspective on our industry consolidating.
Keith Perkins, L1 Automotive Diagnostics and Program, L1 Automotive Training, Listen to Keith’s previous episode HERE. Show Notes:
Vision Hi-Tech Training & Expo: https://visionkc.com/ L1training.com- membership resource https://www.l1training.com/ Future of mobile technicians? As a mobile technician, you have to have experience and tooling/software available. 10K in investment to start. Consolidation- constant conversations. What do you want with your business? Is mobile going to be around forever? ChatGPT is not perfect!
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
-
-
-
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