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Can you ever make up for lost sales?


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I don't have a good answer for you Joe, when its busy we "make hay when the sun shines" and try to prepare for the worse. This year has been a roller coaster ride. January found us sweeping the floor while we had the highest grossing February on record. Last week we worked overtime every day, but today I'm looking at three cars on the schedule for next week. March is a high expense month for us too, we opened in march so insurance and everything renews and tax deadline is close.

 

Being in a rural college town feast or famine is a way of life. All our money is made September through May, excluding the winter and spring breaks. You can play hockey in the street in July, its a ghost town. I plan my budget and discretionary spending based on a 8 month year, if we have a good summer I squirrel it away.

 

If 2 weeks off is breaking you I would take a close look at payroll, maybe run a leaner crew if your customers will accept longer wait times. Maybe branch into used cars, detailing work or wrecker service to keep the cash flowing during slow times.

 

Maximizing profits is good, reducing expenses is easier to control.

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My issue is reality interferes with my business plan. I would love to do hub bearings and brakes all day, or put on 100 tires a day. No matter how much I advertise we still have to do low profit jobs to fill in the blanks. I've often thought about switching gears and installing jasper engines and transmissions. While the volume is much less big jobs keep the techs productive. A customer that wants a new $5000 engine to get another 5 years out of his car is probably a keeper.

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I utilize all the down time I get. There is always something that needs done. Lift inspections. New belts on the compressors. The flickering light in the bathroom. Leaking airlines etc. This might not work out for the flat rate techs. But my hourly guys are not standing around waiting on equipment to be repaired when the real work starts again.

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  • Have you checked out Joe's Latest Blog?

         3 comments
      Got your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
      At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
      I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
      Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
      With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
      Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
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