How a sloppy shop leads to increased comebacks, low profits and a decrease in customer satisfaction
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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
For all the veteran shop owners who have been around the block a few times, and have experienced the roller-coasted rides of being an auto repair shop owner, what advice could you give those shop owners just starting out or planning to go into their own business?
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By Joe Marconi
AUTOMOTIVE BUSINESS OWNERS! Want to experience the most powerful Shop Management Course on the planet? Join Kevin Vaught and me, Joe Marconi, in San Diego as we present the Elite Fly with the Eagles!
The course will be held Feb 7th to 9th, and you have our promise; you will come back reenergized and ready to take your business to another level!
Improve your skills in time management, leadership, and goal setting
· Fully understand your shop's financials and key performance indicators
· Find and hire superstar service advisors and technicians
· Turn your existing employees into self-motivated superstars
· Fill your bays with the right kind of customers through new marketing programs
· Utilize your step-by-step Action Plan to ensure your ongoing success
Elite clients can attend at no charge. To enroll and to get more information:
eliteworldwide.com/eagles
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By carmcapriotto
Live from the 2022 Transformer's Summit, keynote speaker John Dijulius categorizes the automotive industry as a 'grudge buy' for customers when they are at their most vulnerable. How is this an opportunity for your business to be the 'hero?' How do you make price irrelevant? John Dijulius, John Robert’s Spa, The DiJulius Group. John's had the privilege of working with world class companies like the Ritz-Carlton, Lexus, Starbucks, Nordstrom, Nestle, Marriott Hotel, Pricewaterhouse Coopers, Cheesecake Factory, Bausch & Lomb, Progressive Insurance, Harley Davidson, State Farm, Chick-fil-A, Entrepreneurs Organization, YPO, Aveda, and many more. Listen to John's previous episodes HERE Show Notes
Drove for UPS- his wife was a hairdresser, and they opened a salon. John started getting involved in the business. “We aren’t going to be the best salon, we will be the best experience of your day.” Chambers of commerce businesses started asking John for business consulting. 20 years ago John’s first book came out and took him to the next level Business and Artistry Pengeleum Making price irrelevant- based on the experience your brand consistently delivers, your customers shouldn't have an idea what your competitors charge because they aren’t window shoppers. Who is more expensive? Why are they? “We do $10 haircuts” vs “We fix $10 haircuts.” Give the experience before you charge for it and justify it -“What does a $1,000 haircut look like? What is that greeting like? How is the massage during shampoo? What does a $1,000,000 keynote speech look and sound like?” Grudge buy and losing time- automotive repairs. When you can come to the rescue when a customer is at their most vulnerable, there is an emotional connection and memory made. Customers asking about price- opportunity The biggest cause of anxiety is uncertainty- no update update for customers Level 1 through 10 hairdressers based on expertise “Discounting is the tax you pay for being average.” Things that make a brand something customers can’t live without- the quality of work, consistency, employee evangelism (educate vs sell), how do you make me feel, Capitalize the ‘C’ in Customer to show the emphasis in your policies and procedures Building relationships with FORD- family, occupation, recreation, dreams Disney- know your role and be ‘on’ when you’re on, leave your problems at the door The Customer Service Revolution: Overthrow Conventional Business, Inspire Employees, and Change the World- John Djulius The Relationship Economy: Building Stronger Customer Connections in the Digital Age - John Dijulius
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: Learn more about NAPA AutoCare and the benefits of being part of the NAPA family by visiting www.NAPAAutoCare.com
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Guest hosts and shop tour with Bob and May Patterson, Bob's Automotive, Panama City Beach, FL. With encouragement from his wife May, Bob opened his own shop 8 years ago. Hiring technicians has been a challenge; find out why they patiently wait for the right fit for their shop culture. Watch Episode HERE Bob and May Patterson, Bob's Automotive, Panama City Beach, FL.
Show Notes:
Opened 8 years ago (3rd location since original) Bob was a shop foreman, his wife May saw his potential and wanted him to open his own shop Been without a technician for over 6 months- just hired new technician. Hiring has been the challenge for the business- it’s all about the fit in the shop culture DVI- educating customers on preventative maintenance
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:
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
Click to go to the Podcast on Remarkable Results Radio
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