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Driving to work yesterday was like driving through a road that was recently shelled with bombs. Because of the severe winter, potholes and damaged roads are a big problem. But let’s face it, there are a lot of other people that are driving on these road. And, a lot of them are our customers. In fact, unless someone’s car was parked for the last 2 months, just about every car will need to get inspected for winter-related damage.

 

Now, I don’t want to sound like Dr. Evil and wish bad things on anyone, but the fact is that we are already seeing pothole-related damaged cars. Damaged tires, wheels, suspension, steering, wheel alignment and other damage.

 

If your shop suffered through 2 rotten months of bad weather, do yourself and your customer a favor and inspect each car for winter-related damage. The opportunities are there.

 

You owe it to your customer and to your bottom line!

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We have been seeing that around here a lot lately. It's time for the infrastructure to start crumbling. Job security when it comes to the automotive business. We are called the Orange Barrel State.

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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most 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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