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Auto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.
As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.
But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.
Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit.
Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good.
Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership.
The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production.
"AutoTechIQ helps car and truck owners identify problems their vehicles are having. We provide proven auto repair work that has solved similar issues thousands of vehicle owners have faced. We also recommend auto repair shops in your area based on trust, customer education, and quality of work. These shops inspect your car using a courtesy Digital Vehicle Health Inspection and create a state of health report with symptom information and necessary fixes." Frank Scandura and Krista Erickson discuss how AutoTechIQ aims to bridge the gap between shops and customers by creating better relationships through technology and transparency. The goal is to empower customers with knowledge and build trust. Frank Scandura, Frank’s European Service, Las Vegas, NV. VP of Certified Shop Relations and Member of the Board of Directors, AutoTechIQ. Frank’s previous episodes HERE. Kirsta Erickson, VP of Client Services and Marketing, AutoTechIQ Show Notes
AutoTechIQ: https://www.autotechiq.com/ Transparency is the New Trust (00:01:02) Discussion on the importance of transparency in building trust with customers and how it relates to online reviews and consumer behavior. Using Data to Inform Customers (00:03:52) Explanation of how AutoTechIQ utilizes data from repair shops to provide customers with relevant information and help them make informed decisions about their automotive repairs. The Power and Carefulness of AI (00:08:55) Exploration of AI as a smart algorithm and a powerful search engine that requires careful questioning to avoid getting incorrect answers. Transparency and Expertise in Automotive Services (00:10:33) Explanation of how AutoTechIQ aims to connect customers with expert shops that provide transparency, digital inspections, and communicate in a language that customers understand. The disruptors (00:15:16) Discussion on the impact of disruptors in various industries and the need for new solutions. Vetting process for certified shops (00:16:30) Explaining the requirements and process for certifying shops, including reputation, online reviews, and digital inspections. Driving consumers to shops (00:17:54) The importance of bringing consumers to shops through technology and creating a bridge between customers and shops. The digital vehicle inspection revolution (00:23:06) Discussion on the importance of digital vehicle inspections and the need to educate shops and customers about its benefits. The percentage of shops doing digital vehicle inspections (00:23:33) Exploration of the industry-wide adoption of digital vehicle inspections and the varying definitions of what constitutes a digital inspection. Disrupting business directories with transparency (00:25:22) The potential impact of AutoTechIQ on business directories, focusing on transparency and high-quality service. Thanks to our Partner, NAPA Auto Care Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -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
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Re-Defining Value in Auto Repair: Why Pricing Right is a Win-Win-Win for All [E136] - Chris Cotton Weekly BlitzBy carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private facebook group go here:https://www.facebook.com/groups/autorepairmarketingmastermind
In this episode of the "Weekly Blitz" podcast, host Coach Chris Cotton discusses the concept of value in the auto repair business. He emphasizes that value goes beyond price, encompassing quality service, skilled labor, genuine parts, and transparency. Cotton debunks the myth that being the cheapest shop guarantees success, instead advocating for a balance between price, quality, and value. He also highlights the link between staff compensation and value, stating that a well-compensated team is more motivated and productive, enhancing the overall customer experience.
The concept of value and self-esteem [00:01:02] Discusses the importance of shop owners valuing themselves and their businesses in order to show value to customers and potential employees.
Defining value from a customer's perspective [00:02:14] Explains how customers perceive value as the total package of quality service, skilled labor, genuine parts, transparency, and other benefits.
The balance of price, quality, and value [00:03:20] Highlights the importance of striking the right balance between price and quality to provide real value to customers, debunking the myth that the cheapest prices are always the best.
Connect with Chris:
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #autoops #onlinebooking #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix
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In this episode of the Auto Repair Marketing Podcast, host Brian Walker welcomes Coach Nate Bailey as his guest. They discuss "what do you really want?" and the importance of understanding one's desires beyond career goals. They delve into the challenges of identifying what one wants, the impact of societal stigmas, and the need for clarity and support in the process. Coach Nate shares his personal experience of admitting their desire for six-pack abs and the deeper motivations behind it. They also discuss the mindset of being a business owner and the potential for growth and success. Coach Nate emphasizes the power of shared experiences, pushing oneself to overcome challenges and the importance of self-care and self-awareness for leaders.
Thank you to RepairPal for sponsoring The Auto Repair Marketing Podcast. Learn more about RepairPal at https://repairpal.com/shops
Show Notes with Timestamps
The theme of the episode (00:00:10) Introduction to the episode and the topic of "What do you really want?" with guest Coach Nate Bailey. The challenges of knowing what you want (00:01:49) Discussion on how people often know what they don't want rather than what they do want and the impact of the fast-paced, reactive nature of life. The importance of being honest about what you want (00:04:23) Exploration of the tendency to lie to oneself about desires and the need to stop complaining and take ownership of choices. Admitting the Desire for Six Pack Abs (00:06:05) Coach Nate discusses the difficulty of admitting the desire for six pack abs due to societal stigmas and the importance of being honest with oneself. The Journey to Achieving Six Pack Abs (00:07:08) Coach Nate emphasizes the hard work, discipline, and dedication required to achieve six pack abs and how it can translate to success in other areas of life. Celebrating Others' Success and Allowing Yourself to Succeed (00:10:43) Brian and Coach Nate discuss the insecurity and jealousy that can prevent people from admitting their desires and celebrating others' success and how changing this mindset can lead to personal success and support from others. The importance of clarity (00:12:25) The significance of having clarity in order to have a clear path towards achieving goals. Overcoming fear and past traumas (00:13:34) The difficulties of opening up and thinking big due to past traumas and failures, and emphasizes the need to let go and grow. Staying true to yourself and not worrying about others' opinions (00:15:25) Coach Nate discusses the challenge of staying true to oneself and not being influenced by societal expectations or other people's desires. The importance of profitability (00:18:32) Brian and Coach Nate the significance of being profitable as a business owner and the potential to serve more people and expand the business. Building a team and reducing stress (00:20:08) Exploration of the benefits of having a team to run the business, reducing the workload and stress on the owner. The process of growth and creating a plan (00:22:37) Encouragement to take the process of growth step by step, giving oneself grace and permission to take time to build a team and achieve goals. Realizing Your Potential through Team Building (00:24:19) The power of going through difficult experiences together as a team, forming strong bonds, and realizing one's true potential. The Importance of Self-care for Leaders (00:25:08) The importance of self-care for leaders, highlighting that taking care of oneself first is essential to showing up as a powerful leader for others. Connecting with Coach Nate Bailey (00:26:28) How listeners can connect. Coach Nate provides his website and social media channels as the best ways to reach out to him.
Lagniappe (Books, Links, Other Podcasts, etc)
Coach Nate Bailey - https://natebailey.org/
Unleash the Leader - https://natebailey.org/ulw-experience/
How To Get In Touch
Group - Auto Repair Marketing Mastermind
Website - shopmarketingpros.com
Facebook - facebook.com/shopmarketingpros
Get the Book - shopmarketingpros.com/book
Instagram - @shopmarketingpros
Questions/Ideas - [email protected]
Aftermarket Radio Network
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Pete McNeil discusses the changing needs of employees in the post-COVID workplace, particularly focusing on Gen Z employees. He talks about the importance of providing a positive customer experience and adapting to the preferences and attention span of Gen Z employees. He also discusses the challenges of hiring and retaining Gen Z employees, including the need for benefits, learning opportunities, and potential pay advantages.
Pete McNeil, McNeil’s Auto Care, Sandy and Riverton, UT. Pete’s previous episodes HERE
The Legacy of Old Car Repair Tools (00:01:39) Discussion about displaying old car repair tools in the waiting room to showcase the evolution of automotive technology. The Importance of Customer Experience (00:07:21) Highlighting the exceptional service provided by a server at a restaurant and the need to recruit service advisors from industries with a focus on customer experience. Understanding Gen Z Employees (00:08:47) Exploring the characteristics and preferences of Gen Z employees, including their shorter attention span and the need for clear direction and guidance. Gen Z Challenges in the Workplace (00:09:18) Discussion on the challenges faced by Gen Z employees entering the workplace without prior working experience. Adapting to Gen Z Preferences (00:12:19) Exploring the changing expectations of Gen Z employees during job interviews, including flexible work schedules and work-life balance. Creating Hybrid Pay Programs (00:16:38) The need for customized pay programs to meet the diverse needs and preferences of employees, with examples of different pay structures. Valuing Diagnostic Technicians (00:19:31) The need to compensate diagnostic technicians accordingly. Specialization and Rewarding Expertise (00:21:31) Highlighting the importance of specialized technicians in areas like transmissions, electrical, and HVAC, and the need to reward their knowledge and time investment. The importance of involving families in social events (00:26:34) Discussion on the significance of including employees' families in non-work related special events. Creating a positive work culture through various events (00:27:29) Exploration of different events, such as boating trips and casino nights, that the company organizes to foster camaraderie and teamwork among employees. The communication preferences of Gen Z employees (00:29:40) Insights into the communication preferences of Gen Z employees, including their preference for face-to-face interactions and the low reliance on social media for communication. The changing needs of employees (00:35:23) Discussion about the need for a new way of connecting and learning with the new age employees. Adding on to the Riverton store (00:35:47) Updates on the expansion of McNeil's Auto Care in Riverton, Utah, including adding six bays and a warehouse. Appreciation for Carm Capriotto (00:36:17) Expressing gratitude for Carm Capriotto's contributions to the automotive industry and the podcast. Thanks to our Partner, Dorman Products.
Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
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
By Joe Marconi