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Shop Owners: Business success is not determined by your tools, equipment or your ability


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Before you call me crazy, please read on.

 

Your tools, your technical ability and your equipment are all components of your business. And of course you cannot conduct business without these components. But, the real key to your success is who you hire and how you manage your employees.

 

In addition, morale has more to do with worker engagement than any other element of your business. And engaged workers are more productive, have less comebacks, take less sick days and contribute to the growth of your business.

 

We all know one undeniable fact: Happy workers create happy customers and happy customers put you in a position to win.

 

Think of it this way; what wins baseball games? Is the stadium? Is it the training equipment? Is the beautifully manicured field? The baseball bat? The baseball? These are elements of the game, but it’s the quality of the players, combined with their drive to be the best, that ultimately determines success and win games.

 

Hire the best talent, work real hard to keep morale up, and do all you can to bring out the best in all your employees. Do this, and the rest will fall into place.

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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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