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By Joe Marconi in Joe's Blog13 commentsMost 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 Ruben Van Zenden
Today, we simply cannot ignore social media, everyone is using it whether you are a fan or not. Personally, I think it has its negative and positive sides.
I have been looking at 100+ car repair shops and noticed that only a hand full are using social media marketing, for example, Facebook advertising.
Why are so few car repair shops making use of this, in my opinion, great opportunity to increase car count?
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By carmcapriotto
It's time to shift your mindset on comebacks! Consider comebacks as a second opportunity to learn, make it right with the customer, have a training moment with your employees, and document and discover ways to improve your quality control. Aaron Woods, X-tra Mile Auto Care, Stillwater, OK. Listen to Aaron’s previous episodes HERE
Clint White, Service Advisor Coach & Shop Consultant with CWI and currently holds multiple ASE certifications. Clint’s previous episodes HERE
Jim Fleischman, Automotive Alley, Arcade, NY. Listen to Jim’s previous episodes HERE. Deidre Parker, Chloe's Auto Repair, Woodstock, GA.
Show Notes:
It's your second opportunity! Address the issue promptly: When a customer returns with a complaint or problem, the repair shop should address the issue promptly and efficiently. This includes communicating clearly with the customer about the problem and what steps will be taken to resolve it. Re-diagnose as a Team: The original technician and another technician/manager/Forman should thoroughly verify and diagnose the issue TOGETHER to determine the cause of the problem and the appropriate solution. Another misdiagnosis or underdiagnosis will damage the repair shop's reputation and further destroy the client’s trust. Prioritize the repair: Comebacks should be prioritized over other work to ensure the customer's vehicle is repaired immediately. This demonstrates the repair shop's commitment to customer satisfaction. Analyze the root cause: When a comeback occurs, the repair shop should analyze the root cause of the problem to identify any areas for improvement. This includes reviewing the repair process, technician training, and parts selection. Implementing changes to address the root cause can help prevent future comebacks. It may not be your fault, but it is your problem- empathy, resolve, and quickness. Evidence will be the evidence, but there is an opportunity to have integrity. Establish a healthy culture of accountability. Assume derived from the individual, but what about your processes? Communication error? What is your definition of a comeback at your shop? Documentation of the initial visit What is the greatest prevention tool? Final QC process “Cherish the Customer” allowance for customers Aaron Woods: We define comebacks as any reason a customer has to return due to an error in communication or workmanship. Each technician is responsible for ensuring their comebacks are at or below 2% of their total car count. We display each technician's scorecard at our weekly Monday morning production meeting and discuss all numbers as a group. This also helps establish peer-to-peer accountability as well. Hunt Demarest- Accounting for Internal and Warranty Work
QC CHECKLIST:
Test drive the vehicle and verify that the PRIMARY CONCERN has been resolved. Visually check that all other work has been completed according to the repair order. Inspect the vehicle to ensure that there are no new scratches, dents, or other new damage (See Intake Pictures in the DVI for reference) Verify that the vehicle has been cleaned and is free of any debris or grease marks/stains. Verify that all peripheral components that were removed during the repair have been reinstalled and are functioning correctly (i.e. Engine Covers, Air Filter Box, Oil Caps, Lids, etc) Check that all fluids have been topped off to the correct levels whether they were serviced or not. NO FLUID LEAVES LOW Inspect the tires to ensure they have been properly inflated. Manually retorque lug nuts if wheels were removed for any reason. Check that all warning lights and error codes have been cleared and are not displaying unless previously declined by the customer. VERIFY ALL MONITORS HAVE RUN/PASSED Verify the LOF sticker is present and ACCURATE Reset the Oil Life Monitor -or- Maintence/Service Reminder. Vacuum floors, clean windshield inside and out, and refresh wipers if not replaced. Park vehicle in Launch Pad, remove seat cover & floor mat and place “gift” for customer on the dash or in plain sight.
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 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!
Watch Now! Are you looking for a more successful shop and a healthier work/life balance?
Top Shop 360 is your answer.
Did you know that after spending only 90 days in Top Shop 360, our clients AVERAGE more than a 4 to 1 return on investment? And, we're one of the only companies that requires NO CONTRACTS with our coaching?
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!
See How We Help! -
By carmcapriotto
What is Egocentric bias ? Underlying Cause of Bias Gratitude for Health AND Success (even though Matt doesn't even know what success means)
The show is sponsored by NAPA Auto Care napaautocare.com
NAPA Benefits Center: napabenefitscenter.com
NAPA Member Site: member.napaautocare.com
Email Matt: [email protected]
Diagnosing the Aftermarket A - Z YouTube Channel HERE
Click to go to the Podcast on Remarkable Results Radio
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