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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.
Get a behind-the-scenes look at shop owner Tom Sciortino's new ADAS unit. Find out why he waited until now to purchase it, the learning curve with service information, why it is important to educate both the customers and local shops, and a step-by-step guide to how it works.
Tom Sciortino, Total Automotive, Buffalo, NY. Tom’s previous episodes HERE
Show Notes: Autel 900- ADAS unit plus it's an alignment machine We have to educate not only the consumers but the other shops, because any change in geometry, any change in the vehicle, you should at least confirm that it's in calibration. It may not always set a trouble code. Learning curve to find service information You have to be able to read service information and be able to follow procedures. Static and dynamic calibration Use the scan tool for the calibration process to access the computer system, scan the vehicle, and also communicate with the equipment to move the equipment up, down, and go ahead and do the adjustments There's also a screen up mounted high, so you can rotate that towards the car. It's a touchscreen so you don't have to keep coming behind the unit. The software walks you through the process step by step. It tells you what targets to set up, what steps to do on the equipment, what adjustments to make on the equipment, and walks you through it step by step. Documentation is huge because of the liability involved if someone gets into an accident. Digitally attach reports to work orders and take pictures with a tablet. Organize targets in cabinets with labels Lighting is crucial- changing the entire shop to LED and painting the ceiling
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
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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?
In this episode, consultant David Fisher gives you a chance to understand OSHA and keep you compliant. This is a must listen episode. The information could save your business. Regarding workplace safety and HR compliance, 85 - 90% are not compliant across America. To be non-compliant could cost your business. OSHA will interview your employees. Are you inspecting your lifts yearly? Does your team have access to SDS sheets (Safety Data Sheets). Are you giving all your employees access to your safety program? OSHA is ramping up stricter enforcement procedures. Invest in an annual walk of your shop from an OSHA consultant and get the accountability you need to prevent huge fines.
California Employer’s Services. OSHA & Labor Law Experts. Dave's previous episodes HERE
OSHA - will now interview your employees while inspecting your job site Ignorance is not an excuse anymore OSHA has determined that they want safety in the workplace. Compliance is like a picture painted by numbers. The more numbers you have filled in, the better off you're gonna be. OSHA is looking for, among others is your safety program, safety training, documentation, workers' compensation You've got 72 hours to a week at the most to get it back to them with your reply. After they get your reply, they're gonna review it, and then they're gonna assess the fines and fine you accordingly. No matter what state you do business in, you must meet the basic OSHA standards. Every year, you must have your lifts certified/inspected. You can certify them yourself if you installed them. The company that sold them can certify them. But if you install them, the state feels you have the wherewithal to inspect them and certify them. Be careful. There is no easy button for safety or HR compliance. The one thing you do have to be aware of is that if you name a safety officer in your business, they're gonna be tied into any potential lawsuit that arises out of a safety act or an accident in the workplace. OSHA knows that we, as a group of consultants, have more authority and more power over employers than they do When a company has paid money for a safety consultant, they know that the shop has an accountability partner, If you're gonna get with an HR services company, make sure they're working with actual attorneys. Make sure that these attorneys are gonna be there for your clients. You can have a perfectly legal employee handbook that covers the policies adequately. But you may not be able to take that employee handbook into court because when you go to court, there are certain things that the judge is gonna look at to make sure is in certain places of your employee handbook. If it's not in those places, you're gonna have two strikes against you in the eyes of the judge before you even start One is your at-will status between page one and page three Number two is your sexual harassment policy. Is it between pages three and page five? Does your sexual harassment policy include bullying in the workplace and all the other things that have now been dovetailed into that policy? You need to understand your policy and how a termination, not done correctly, can hurt a suit from a former employee. This three strikes you're out is a joke. There is no effort to rehabilitate the employee in most companies. Some companies are very progressive, and that's a good thing. Create a very positive workplace culture. Compliance is always cheaper than the fines and the hassle Link to handout David spoke about: HERE.
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 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 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 Check out today's partners:
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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?
By ASOG Podcast
Do We Regret Starting Our Auto Repair Business?
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