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By Joe Marconi in Joe's BlogAuto 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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By carmcapriotto
Join our panel as they discuss the use of deferred work as a sales growth tactic. They share their insights on the importance of effective communication, customer education, and creating a positive exit experience. They also highlight the role of CRM systems, DVI's, and proactive maintenance. Remember, the key to success in selling deferred work lies in discipline, process, and repetition. Tom Schearer, Schearer’s Sales and Service, Allentown, PA. Tom's previous episodes HERE Bill Greeno, Quality Automotive Servicing, Truckee, CA. Bill’s previous episodes HERE Jaron Kleber, Repair Shop of Tomorrow, National Sales Manager. Jaron’s previous episodes HERE Show Notes: The discovery conversation and setting expectations (00:04:03) The importance of having a conversation with clients to set expectations about the service process and timeline. The exit experience and creating a positive lasting impression (00:04:49) The significance of providing a positive exit experience for customers to encourage repeat business and referrals. Bringing back the personal touch after the touchless experience (00:06:57) The need to reintroduce personal interactions with customers after the touchless experience during the COVID-19 pandemic. The importance of asking questions (00:08:49) The importance of having a conversation with customers and asking them questions to understand their concerns and needs. Deferred work as a liability (00:10:16) The potential risks of deferred work, emphasizing that shop owners are responsible for ensuring the safety of customers' vehicles and can be held liable for any accidents or issues related to deferred maintenance. Transitioning to proactive maintenance (00:13:39) The need for shops to transition from a reactive mindset to a proactive maintenance approach, using digital inspections and technology to educate customers about the maintenance needs of their vehicles. The importance of vehicle inspections and customer involvement (00:18:30) Discusses the significance of conducting vehicle inspections and involving customers in understanding how they use their vehicles. Managing and leading deferred work (00:21:39) Explores strategies for managing and leading deferred work, including the frequency of contacting customers and offering incentives to schedule repairs. The importance of CRM and phone calls (00:26:07) Discussing the effectiveness of CRM systems and the percentage of customers responding to phone calls and utilizing coupons. Building trust and scheduling future appointments (00:30:10) The significance of human interaction in building trust and the potential for scheduling future appointments based on client history and vehicle data. The importance of complete inspections (00:35:01) Discusses the significance of providing a complete inspection to customers and educating them on its importance. Consequences of not addressing issues (00:36:00) Talks about the consequences that customers may face if they don't address the issues in a timely fashion. Setting expectations and building relationships (00:36:54) Highlights the importance of reminding customers that they are valued clients and explaining how the shop operates, including follow-ups and addressing deferred work. Thanks to our Partners Shop-Ware and Delphi Technologies Shop-Ware: More Time. More Profit. Shop-Ware Shop Management https://getshopware.com/ Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. http://DelphiAftermarket.com Connect with the Podcast -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -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
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Thank you to RepairPal for sponsoring The Auto Repair Marketing Podcast. Learn more about RepairPal at https://repairpal.com/shops
How To Get In Touch
Group - Auto Repair Marketing Mastermind
Website - shopmarketingpros.com
Facebook - facebook.com/shopmarketingpros
Get the Book - shopmarketingpros.com/book
Instagram - @shopmarketingpros
Questions/Ideas - [email protected]
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Jaron Kleber, National Sales Manager of Repair Shop of Tomorrow, discusses the importance of maintaining a healthy work-life balance and maximizing one's potential. Jaron explains the negative effects of hitting the snooze button and shares his personal routine for starting the day off right. The conversation then shifts to investing in personal goals and well-being, and the importance of treating employees like family. It's crucial to take a step back from the daily grind and ask oneself what should be done right, rather than focusing on what is being done wrong.
Jaron Kleber, Repair Shop of Tomorrow, National Sales Manager. Jaron’s previous episodes HERE
Show Notes:
Watch Full Video The importance of work-life balance [00:03:23] Discussion on the societal pressure to constantly work and hustle, and the need for a healthy work-life balance. The role of coaching and mentorship [00:05:01] Exploration of the benefits of having a coach or mentor to guide and reassure shop owners in their journey to success. The significance of consistency and processes [00:06:22] The importance of implementing consistent processes in both business and personal life to achieve success and prevent burnout. The science behind hitting the snooze button [00:08:14] Explains the sleep cycles and how hitting the snooze button affects the quality of sleep. Sleep inertia and its impact on the morning [00:09:08] Discusses the concept of sleep inertia and how it can negatively affect the first four hours of the day. Starting the day off right for personal and professional success [00:11:01] Emphasizes the importance of starting the day off in a positive state to have more good days than bad days and achieve personal and professional success. The importance of self-care [00:15:38] The importance of setting up a morning routine and taking care of one's physical and mental well-being. The power of music [00:16:38] How music can change one's disposition and attitude, and explores the effects of music on dopamine levels in the brain. Investing in employee well-being [00:19:38] The conversation shifts to the topic of successful shop owners investing in their employees' personal goals and well-being, beyond just technical training. Personal Goals and Work-Life Balance [00:23:54] Discussion on setting personal goals, struggling with work-life balance, and the importance of separating personal and professional life. Creating a Positive Work Environment [00:24:53] Exploring the significance of creating a positive work environment, building a sense of community, and holding employees accountable for work-life balance. Importance of Accountability and Mentoring [00:28:28] Highlighting the value of having a mentor or coach to hold oneself accountable, improve leadership skills, and achieve personal and professional goals. The importance of continuous improvement [00:33:01] Discussion on the need for professionals in the industry to strive for continuous improvement and overcome the fear of exposing weaknesses. Transitioning from a fixed mindset to a growth mindset [00:34:23] Exploration of the difference between a fixed mindset and a growth mindset, and the importance of adopting a growth mindset for personal and professional development. 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:
-Join our Insider List: https://remarkableresults.biz/insider
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-Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom
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-The Aftermarket Radio Network: https://aftermarketradionetwork.com
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By carmcapriotto
Matt Fanslow is with Chad Austin, the owner of Austin Automotive in Canon City, Colorado. They discuss Chad's background as a mechanic and the challenges and successes of running a shop. They also discuss the importance of having the right tools for the job, the challenges of working on electronic modules, and the benefits of using digital tools in automotive repair. They touch on air conditioning systems, diagnostic techniques, and the future of AC system repairs in electric vehicles. Overall, they provide valuable insights into the automotive repair industry.
Also:
Types of vehicles worked on at Austin Automotive Weather conditions in Canon City, Colorado Challenges of programming and dealing with different vehicle modules Frustration with the lack of access to software and tools for electronic module repair Importance of having the right tools in the shop
Thanks to our Partner, NAPA Autotech napaautotech.com
Email Matt: [email protected]
Diagnosing the Aftermarket A - Z YouTube Channel HERE
Aftermarket Radio Network: https://aftermarketradionetwork.com/
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Dan Taylor discusses various aspects of running a successful automotive repair business. He emphasizes the importance of having a roadmap to success, repackaging information to resonate with different people, utilizing reliable shop management systems, client and employee retention, effective marketing strategies, well-defined processes and procedures, and artificial intelligence in the industry. The episode concludes with a discussion on the importance of making money in the automotive repair industry and the need for a paradigm shift towards maintenance and customer service. Dan Taylor, Senior Business Advisor, Transformers Institute. Dan’s previous episodes HERE
Show Notes
Retention: Keeping Top Employees [THA 327] Is Your Company Culture Holding You Back? [RR 864] The roadmap to success (00:01:17) Discussion on the importance of having a roadmap to success, both personally and for your team. Repackaging and giving things in a different light (00:02:22) Exploration of how repackaging messages can resonate differently with people and lead to success. Major components for success (00:03:16) Introduction of seven major components that can guarantee success if followed, along with the need to reassess and upgrade strategies. Retention and Point of Sale Systems (00:10:04) Discussion on the challenges of retaining customers and the limitations of point of sale systems. Marketing and Client Retention (00:11:01) Importance of marketing efforts for client retention and the impact on business growth. Team Retention and Processes (00:14:44) The significance of team retention, the need for processes and procedures, and the constant improvement of organizational systems. The importance of presenting all information to clients (00:19:57) Explains how some shops present all the necessary repairs to clients and allow them to decide what to prioritize. Challenges in service maintenance and inspections (00:20:56) Discusses the challenge of inspecting and recommending services that have already been done or are not needed. Utilizing data and technology to improve operations (00:22:05) Highlights the importance of integrating data and technology to streamline operations, improve customer service, and gain trust and credibility. Sales and Relationship Building (00:29:45) The importance of sales and building relationships with clients in the automotive industry, and the need to educate clients about the value of maintenance. Operations and Productive Technicians (00:36:37) The need for productive technicians and efficient operations in order to maximize profitability and provide quality assurance to customers. The forgotten child (00:39:54) Discussion about the importance of the admin role in a shop, including timely financials and prompt paperwork. Monitoring KPIs (00:40:35) Exploration of key performance indicators (KPIs) such as opportunities, closed rate, and client retention.
Thanks to our Partners, AAPEX and NAPA TRACS.
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 http://AAPEXSHOW.COM/WEBINAR
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 http://napatracs.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
Click to go to the Podcast on Remarkable Results Radio
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