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tyrguy last won the day on April 27

tyrguy had the most liked content!

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About tyrguy

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    955 Singletary Drive, Streetsboro, Ohio, 44241
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  1. We have always referred to productivity as hours billed to hours available. I see that in another above post the writer refers to this metric as utilization. However, I would say that to achieve high productivity numbers it starts even before shop setup, tooling and such. It actually starts with marketing because no matter how good the techs, if you don't have the work, you can't bill the hours. We had a 15 year run where our productivity numbers averaged 96-97% year after year with 1 year [2004] that we hit 101% [6511 hr/6440 hrs] with 3 techs. Then the recession hit, coupled with 5 car dealerships opening up within a 1/2 mile and we saw those numbers decline to 72% in 2015. In 2016 1 tech retired and with 2 techs I've been able to get that number back up to 83% last year. Lastly, although I agree with charging a full and proper rate for diagnostics, the "rate" has nothing to do with the productivity number. It's just the fact that you charging the "time" that affects productivity.

    Define "top dollar".

    Sorry about the double post but I wanted to fix a few spelling errors and I couldn't find the edit button on my first post. The industry has been recommending best on the rear for probably 15 years or more. If a customer requests otherwise we will do it with a big disclaimer on the invoice. Plus, I keep a lot of articles under the counter from Road and Track, etc that stress the point. I did a track day in Texas with Continental where they had us go thru water in a turn with 1/2 worn tires on the front and then the back. With the 1/2 worn tires on the front you would feel the car start to understeer causing you to get off the throttle, this would cause a weight transfer to the front helping you regain control. With the half worn tires on the rear, the car would go into oversteer causing you to get off the throttle, which would transfer weight to the front making the oversteer worse and causing a spin. This happened to everybody even though they knew to expect it. Understeer is much safer for the average driver than oversteer. That's why car manufacturers build understeer in most cars. Also why most oval track race cars dial a bit of understeer in.
  4. Tire prices

    Every tire we sell includes lifetime rotations, re-balancing, flat repair and road hazard in the price. We will match any competitor's price as long as they are offering the same package. Usually by the time they add their lifetime services in, we are't that far off. Even with Tire Rack who doesn't offer the free rotations and re-balancing. Speaking of Tire Rack, online retailers are going to take a big hit this summer when the SCOTUS rules on sales tax.
  5. Price Negotiations

    I would double check that. I believe that the confusion is it used to be true that you couldn't charge more for credit card use, so giving a discount for cash would seem to do exactly that. But at that time it was how it was presented. If your "stated" price was a cash discount price and you charged more for credit cards, that indeed was illegal. But if your stated price was for any type payment you could indeed discount it for cash. However, the laws have pretty much changed so that you can now have a stated price and charge more for credit card use so that is a mute point. I don't believe cash discounts are illegal anywhere. And if they were, how could they prove what the discount is for?
  6. If you read my post closer, you'll see that those productivity numbers were in a galaxy a long time ago and far far away. We haven't seen numbers above 90% since 2011. Last year we ended at 82.73%, 3483.83 billed versus 4211.0 worked. However, that's with just 2 techs versus 3 techs previously so our actual hours billed are down 2300+ from 2011 when we billed 5842/6331 or 92.27%. I'd be interested to hear what productivity numbers others are running. Straight calculation, hours billed/hours worked. We will finish the 1st Quarter at about 76%, 830.0/1094.0. Anybody else?
  7. Anyone have a repair plate ?

    39 years doing this and I have no idea what you are referring to?
  8. Employees get cost on everything.
  9. I don't agree with those numbers. Most shops I know doing 1.0M to 1.5M have at least 8 employees. We hit close to 1.5M a few years ago with 8 employess. Myself, 2 advisors, 3 techs, and 2 tire changers. Since the 5 car dealerships opened across the street we have declined to 1.1M with 7 employees when my first tech hired in '79 retired in '16. When we were doing the 1.5M my techs were billing over 95% of their hours so there wasn't much more capacity to gain. However, we have since raise our parts matrix and hourly rate but even with that our sales would only increase to 1.7M if we were still billing the hours we used to. When I read shop profiles in the trade mags it appears that any shop doing over 2M has 10-12+ employees. 4M would need at least 15- 20+.
  10. Damage to customers vehicle

    So I talked to the insurance company today. They left it up to me. They said if you feel responsible we'll pay the claim. As much as I wanted to say that I didn't see how in the world it could fall off after 2k miles, I said I just couldn't see any other explanation other than vandalism which I doubted. So I guess they'll be paying for everything except the oil change on the used engine.
  11. Damage to customers vehicle

    Going to handle it. Called my insurance agent and he said it's covered....maybe. If they deem it could indeed be our fault it's covered. If they say we aren't responsible they won't. So it's a catch 22. I'll be happy if they say there is no way it's our fault but then I take the hit. In that case it will really make me look like a hero. On the other hand, if they say it could be our fault and they cover us, it makes us look incompetent.
  12. Damage to customers vehicle

    When it rains it pours. Has anybody ever had an oil filter fall off 2000 miles after an oil change? Yesterday a good customer's car was towed in. His daughter was driving it and she started to smell something "hot". She thought it was overheating so she pulled into another shop. They racked it and found the oil filter was gone and there was no oil left. They put a new filter on and filled with it oil but of course now there is a rod knock. My tech of 36 years just can't believe it could happen after 2k miles. I tend to believe him but I don't see any other option but to put an engine in it at no charge. Comments?
  13. Damage to customers vehicle

    This happened this week. A customer had their vehicle towed in...cranks but no start. They didn't call in advance or leave a note. We just find this 09 Caliber in our lot, unlocked with the keys in the ignition. My service manager goes out to the car and opens the door to get the mileage and such. Unfortunately, the guy had a door hinge problem that would only allow the door to open partially. When my service manager opened the door fully, the front of the door and the back of the front fender had a disagreement. Damage done, our fault according to the customer. I told him to get an estimate and we'd work something out. Probably be covered by insurance less the deductible. Since the hinge will be repaired as well I'm debating making him pay something.
  14. No real health issues but it's only 4 months.
  15. Damage to customers vehicle

    Negotiate. They needed a windshield before it ever came to you and he admits that.. The guy was going to need to replace it anyway so have the job done for him and have him pay 1/2 the retail price. He should be pleased as punch about that.