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kingwoodshell Apprentice

kingwoodshell

Posted
Posted

Ok, I know there are some Elite customers on this website. I believe that Elite can no doubt help our shop, but my shop owner is very hesitant and is concerned that the coach we get will have us raise our prices which will drive away customers. He also is apprehensive about how much help Elite can provide for the one year commitment (the dollar vs. value). Truth be told I don't think he believes we need any help. We are a strong shop. We have really good car count and great gross sales, but we bleed from places I'm sure we don't even know about. What I'd like to know is if there are any shops represented here in the Houston area. If so I'd like to visit with you over the phone or preferably in person. Thank you in advance for your input.

mspecperformance Mentor

mspecperformance

Posted
Posted

Another suggestion is maybe you should join a 20 group? For the more mature shop a 20 group seems like a great thing to be apart of. If you are beyond the basics then being with a group of like minded shop owners looking to improve their business may just be the ticket

carolinahigear Collaborator

carolinahigear

Posted
Posted

Another suggestion is maybe you should join a 20 group? For the more mature shop a 20 group seems like a great thing to be apart of. If you are beyond the basics then being with a group of like minded shop owners looking to improve their business may just be the ticket

Please tell me what a "20 group" is. Thanks a lot!!

Elon Block Community Regular

Elon Block

Posted
Posted
From what you posted, it looks like you guys must be doing a lot of things right. Congratulations!


I checked out some of your reviews and one of them really stood out as a testimonial of how you're

perceived by your customers. There's nothing better than having customers talk about how trusting

they are of your customer service.



That doesn't happen by accident, so great job!


As for your questions about improving your profits...


Car count and gross sales are both required to have a profitable, successful auto repair business.


You mentioned you thought the business may be "bleeding from places I'm sure we don't even know about."


There are a number of ways to improve profits and your boss is smart in wanting to make sure

any changes to the way he's doing business now - do not drive away customers (or employees).


For example, making blanket labor and parts pricing changes is often suggested as a means of

quickly increasing profits. Sometimes, small changes to how you're currently doing things are what's needed...


But you have to keep your eye on the big picture - not just making sweeping changes without a really good reason.


That may have worked in the past, but today's customers have the exact same information you do meaning...

websites such as repairpal.com have changed the rules of the game because parts and labor

is all out in the open now.


Once the labor and parts formulas are tweaked, (if it actually makes sense for you and your marketplace...)


The very next place to look for more profits is by making sure the sales people are not missing

any legitimate opportunities.


There are many opinions on what that looks in the real world.


This is definitely an area you want to closely evaluate to make sure any recommended changes

are not going to upset your customers.


You also want to make sure the recommended sales methods are employee-friendly, meaning

your sales people can actually see themselves doing it, even if they're not natural born sales people.


Bottom-line, the sales methods need to be customer-friendly and employee-friendly.


The best way to evaluate this is to watch some videso of the trainers demonstrating how they sell jobs.


These are just some of the ways to evaluate if the training company philosophy matches how you folks

want to do business.


PS The same evaluation process also applies to joining a 20 group, just so you know.

mspecperformance Mentor

mspecperformance

Posted
Posted

there are several companies that have "20 groups". The ones i have looked into specifically were RLO and Elite. RLO calls their group offers the Bottomline Impact Group. Elite has a 20 group called Pro Service. Both are excellent companies. Most consulting and coaching companies offer some sort of 20 group. There is a screening process involved and they may recommend a coaching program before the 20 group.

  • Like 1
alfredauto Experienced

alfredauto

Posted
Posted

When I signed up as a NAPA center they gave me some great business tips, the most important is keeping track of income and expenses measured in percentages. If there are say 20 categories and your shop is making 5% net profit, saving 1% in 10 areas and increasing price 1% in 10 areas will net you 20% more profit. One percent is easy to accomplish, nobody will notice brake pads costs $1 more. Call your supplier and save 2% on oil, easy. Raise your labor rate 20% and people will notice!

 

This website is basically a 20 group, we don't have to suffer in silence. Businesses helping businesses in a non competitive way is good. Try talking with the shop next door about pricing and problems and it might not be so easy.

mspecperformance Mentor

mspecperformance

Posted
Posted

20 Groups train through comparison of policy and procedures, shop layouts, and of course numbers. As far as I know every 20 group works off a monthly financial composite of all the group members. The facilitator of the group whom is essentially the "coach" sets certain benchmarks such as Labor Profit Margin, Parts Profit Margin, Hours Per RO, etc and group members get to compare and contrast how they are doing against the benchmarks and also against group members. There are usually either a teleconference once month and also meetings 2-3 times a year.

 

 

BTW this is as far as I know with the research i have done. I have never been apart of any 20 groups.

Pjauto Enthusiast

Pjauto

Posted
Posted

Mspecperformance and I are in a Focus 2 group. Which means we just talk all the time and share ideas and numbers. 18 more of you are welcome to join our Voxer channel and BAM we have our own (albeit inexperienced) focus 20 group.

 

 

Sent from my iPhone using Tapatalk

  • Like 1
John Pearson Collaborator

John Pearson

Posted
Posted

Mspecperformance and I are in a Focus 2 group. Which means we just talk all the time and share ideas and numbers. 18 more of you are welcome to join our Voxer channel and BAM we have our own (albeit inexperienced) focus 20 group.

 

 

Sent from my iPhone using Tapatalk

 

I'll make it a Threesome.....

Bradley Apprentice

Bradley

Posted
Posted

We are located an hour an a half from the Houston area and have been working with Elite for several years. They have been instrumental in helping me grow my company. Very great group of people to work with. Feel free to message me your contact info and I would be glad to contact you. Maybe I can come shadow your shop in Kingwood.

 

 

Please share more info on the Focus 2 group. I would love to be a part.

Pjauto Enthusiast

Pjauto

Posted
Posted

Sorry, I have been very busy and have not checked this in a bit. Please download an app called Voxer and message me your username and I will add you. Make it a private message because I get those emailed to my phone and I will see it.

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Technician Shortage Is Our Fault, And It's Time We Own It
      By Joe Marconi in Joe's Blog
         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.

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    • carmcapriotto
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      Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care
      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/
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    • carmcapriotto
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      Jay encourages shop owners to download the free report to uncover blind spots and start meaningful conversations with their teams. The data show that technicians strongly prefer a four-day, 10-hour workweek with no weekends, along with proper equipment, paid vacation, retirement benefits, and paid training.
      While dealership technicians made up a larger share of respondents, independents stood out in workplace culture. 63% of independent technicians would recommend their shop to a friend, compared to 36% at dealerships, though dealerships scored higher in providing paid training. Across both groups, technicians favor an hourly wage plus bonus structure, which many feel better supports diagnosticians than traditional flat-rate systems.
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