Will Technology Create Specialization in Auto Repair Shop Industry?
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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 carmcapriotto
California is mandating 100% of new cars and light trucks sold will be zero-emission vehicles by 2035. How will electric vehicles change the composition of our industry? What are the service opportunities? Should you start working on hybrids if you haven't already? Hear from the perspectives of 3 California shop owners that are ready and prepared for the future. John Gustafson, Gustafson Brothers, Huntington Beach, CA. John’s previous episodes HERE Dave Kusa, AutoTrend Diagnostics in Campbell, CA. Listen to Dave’s other episodes HERE John Eppstein, John’s Automotive Care, San Diego, CA. Listen to John’s other episodes HERE
Show Notes:
California non pretrolium zero emission no sales 2035 Start working on hybrids- EV is a hybrid without a gas motor What are the service opportunities on EVs? Preventative maintenance package, component replacement, and programming. Where will you plug your car in? At home? Infrastructure? Staying in contact with customers on a consistent basis will be more important than it is now- visit per customer dropping but ARO going up Range anxiety Fleet average age 12 years old Train service advisors- learn the language, get the trust of the EV customers As a shop, if you're not working on hybrids now, you need to start. You need to learn it. You need to get that training because an EV is simply a hybrid without a gas motor for all intents and purposes. If you understand and have experience with the hybrid aspects, the electric side of hybrid vehicles, EVs will just come naturally.
Thanks to our Partners Shop-Ware and Delphi Technologies Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com
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By carmcapriotto
Servers, network, VOIP phones, and security, oh my! Recorded live at the 2023 Institute Summit, Jeff Matt and David Boyd discuss phone skills, IT support and identifying inefficiencies and technology risks with your business.
Jeff Matt, Victory Auto Service, 11 Locations, MN and FL. Jeff’s previous episodes HERE
David Boyd, Inbound INC.
Show Notes
VOIP (voice over IP)- recording phone conversations, ‘replay booth,’ specific workspace with a particular service advisor for incoming and outgoing, and time of phone calls for training purposes. The entire conversation with a customer happens over multiple phone calls. Phone skills- undervalued when it comes to your business’ success. Check with your State rules for recorded phone calls. IT support- safety net, systems, network, firewalls, servers, cameras. Identifying inefficiency and technology risks. Jeff Matt’s security camera caught the burglar at his shop. Your local IT person might not have the capabilities to handle what your business needs- talk to fellow shop owners/business owners. Search business management consulting, six sigma, engineering. Disrupter- moving away from cable and DSL providers. Identifying server issues with cables, job satisfaction continues to grow. Video phones- visual face to face conversations. Customized recording and limited access for employees (permissions). Technology, network, systems, and software- understand the how and why Callinbound.com
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
Click to go to the Podcast on Remarkable Results Radio
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By carmcapriotto
Will diagnostic work overtake remove and replace work? How will you position and present your shop as a technologically advanced repair center? What training will our employees need? How will artificial intelligence impact our industry? Will we be prepared? Join Jake Sorensen, Chris Chesney and Derek Kaufman as they discuss the shop of the future. Jake Sorensen, 2019 NAPA ASE Technician of the Year and 2019 Ratchet + Wrench All-Star technician of the year. Shop manager and diagnostic technician at McNeil’s Auto Care in Sandy, UT Listen to Jake’s previous episodes HERE
Chris Chesney, Training and Organizational Development, Repairify. Chris’ previous episodes HERE
Derek Kaufman, Managing Partner, Schwartz Advisors, President of C3 Network. Listen to Derek’s previous episodes HERE
Show Notes:
Looking up and reading service procedures is already a must, but even more so as technology advances. Example: ADAS systems now require calibrations when performing repairs like an alignment or bumper cover removal. If you change a headlight assembly that requires bumper R&R, you may need to perform a radar calibration. The only way to know for sure is to read service information. Reading technical information/technical reading skills- much different than reading newspaper or Facebook posts, a book etc. Evelyn Wood speed reading course- reading with purpose An explosion of information- computing power for all industries 2022 captures over a trillion data points that will be aggregated to provide insights AI- mining data for trends Diffusion of innovation curve- 17+ years for EV’s We have expected Technicians to be masters of everything. Many better diagnostic technicians are inefficient at R&R and do not enjoy it. Shift mindset to a technology industry Even today, electric vehicles account for 18% of new vehicles sold, and those won't be in our bays tomorrow. By 2030 the population of vehicles in operations, over 300 million, and only 8% will be electrified. Get ready, or some other service industry will beat you to the punch How are you presenting your shop to the public?
Thanks to our Partners Shop-Ware and Delphi Technologies Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com
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Click to go to the Podcast on Remarkable Results Radio
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By Joe Marconi
As an "old timer" who got his start during the muscle car era, this is hard to accept. Am I too sensitive?
The Associated Press covered some of the driveway mechanics and enthusiasts who are converting classic cars into electric restomods.
This includes some business owners like Sean Moudry, co-owner of InspireEV near Denver. He recently restored a 1965 Ford Mustang with an electric powertrain. The project cost upwards of $100,000.
Read the article in Ratchet and Wrench:
https://www.ratchetandwrench.com/site-placement/latest-news/article/11461897/ev-restorations-booming
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By Joe Marconi
Check Out Our NEW Series on YouTube, and See WHY You Should Team Up With The Top Shops In America!
In The Vault with Darrin Barney - A New Series!
We're so excited to release the first interview clip from our new YouTube series, "In The Vault with Darrin Barney" !
This series follows Elite President and Shop Owner Darrin Barney interviewing fellow shop owners, managers, and service advisors at our AMI-Accredited Fly With The Eagles 3-day Shop Management course.
In this interview, Scott Schmid of Archer's Auto Repair in Idaho talks about the career changes that led to his beginnings with Elite, the immediate results he saw, and the business values that he holds dear.
Watch now, and subscribe to our channel so you never miss an upload of shop tips, webinars, interviews, vault clips, and more!
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There's a reason Elite's Top Shop 360 is number one. All our coaches are working to give back, and elevate the industry that we love.
We know every shop is different, which is why our Business Development Master Plan outlines YOUR goals and every step to reach them, and coaching is tailored to exactly what you want to accomplish.
Learn more about how our shop-specific approach can help you uplevel your business TODAY!
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