Shopcat

Jay Huh, How is it working out with the tow truck?

I would like to hear from shop owners that have decided to buy a tow truck.  Did that became a healthy additional source of income? Was it worth the investment? What advice could you offer a shop owner considering buying a tow truck?

A good way to price your labor rate is to take your most expensive tech's pay rate, then add in uniforms, benefit costs, FICA, workers comp, etc until you have the loaded cost of having a technician. From there multiply that number by 2.5 to get to a 60% profit margin. For example a $30.00 tech probably costs you about $39.00 per hour, times 2.5 is about $98.00 per hour labor rate, at the least.  

Thanks for your insight PAPShop. I think you will agree, females are relationship buyers. If your shop builds a relationship with them, they are amazingly loyal. Women can quickly go from customer, to client and then become advocates.

There is an ever increasing percentage of women that are decision makers in where the family funster goes for repairs. The Automotive Aftermarket Industry Association discovered in a recent study, almost 90% of women are now involved in the decision process for their vehicle’s repair and maintenance, 68% of them take the vehicle to the shop themselves, 45% are solely responsible for their auto repair and service decisions.  That is amazing.  Do you have 60% or 70% female clients? What do you do to adapt to this changing dynamic?

It is up to us to police our industry. Most frightening words in the world? "I'm from the government and I am here to help".  We  should have regular training, a defined career path, apprenticeship programs, etc to build technicians. A lot of owners simply wait until they need, say an A tech, then are surprised when they are hard to find.

I was wondering how many shops charge for everything that goes into a repair? For example, zip ties, dielectric grease, clamps, bulbs, fuses, heat shrink , butt connectors, etc. It seems to me some shops have a "shop supplies" charge and let it go at that. Other shops do a great job of getting everything on the invoice and then also have a "job supplies" ( not shop supplies, because it is for the job, not shop ) to cover consumables.  Of the shops that are getting everything on the invoice, what is your advice on making that happen? How do you do it?

Awesome results Framingham Auto !  It is a win, win.  Your customers are getting all the information on their vehicles, and a 20% increase in sales is amazing.

I agree with xrac, Get your feet solidly on the ground and be able to rise to the challenges at a more reasonable pace. Too many balls in the air could be a real problem in the near future. Just my opinion with fairly limited information.

I bought 10X by Grant Cardone based on Shumsauto recommendation, and its AWESOME so far!

M-Spec, you have a great point. Providing all the information puts you in the position of letting your customer decide based on the facts about their vehicle. I am sure everyone has had to make a buying decision based on vague or missing information, and that is a very bad feeling. Your shop develops great affinity giving your customer ALL the information needed...like you said you become the consultant.

Nice! Sounds like a great deal for all involved. I really like that you share the information, not"sell".

Jay Huh,  How did that impact your customer satisfaction, ARO, etc?  

I am looking for shops that implemented or improved their inspection process. What made you decide to take action? How did you make the change? What result were achieved? There are so many shops that think they need more car count, when what they really need is to MAKE the cars count.

Another good one is The 21 Irrefutable Laws Of Leadership by John C. Maxwell

Alan, I recently read an article in Ratchet and Wrench about a shop owner that has done what you are thinking about. Specialization is a good idea, I also agree with xrac that you do not necessarily have to close the door on your current customers. You may want to give this article a read and possibly reach out to this shop owner. Just a thought! Good luck. Here is the link!!

https://www.ratchetandwrench.com/articles/3284-carving-aa-s-niche

ADP is right on it, its all about the wording, or presentation. Less detail, to a point is less to argue about. I think all sublet needs to be marked up. It costs time and money to set up towing, or sublet work, then pay for it and wait for your money. Also I recommend the phrase "job supplies" over shop supplies. The customer is more willing to pay for stuff you use on his vehicle, shop supplies sounds like he may be sponsoring supplies for the shop. I also like to type in some itms used on the particular ticket, like dielectric grease, m.a.f. cleaner, convoluted tubing., etc. This meets with no arguements, or resistance.

I agree that Saturdays are a case by case basis. If its busy AND profitable, it may be worth it. But if only a few low buck deals come in, it is way better to close and concentrate on making money during the week with a full compliment of well rested staff.

Awesome story. The fabric of America.

I am looking to see if I understand this. Your problem tech is getting paid $ 16.00 per hour for attendance and an additional $10.00 per billable hour produced? If he is not up to par explain it to him in counseling sessions, and get his signature on the counseling form each and every time. Document, document, document. Then be sure that you are on solid ground thru the State of Texas or your employee leasing company before you fire him.

xrac, you are spot on. I believe people need their dignity. Capitalism works great, supply and demand. If there is a need, and a supply to satisfy the need, we have commerce. If we leave it to government, they subsidize ideas that do not work, like Amtrak, USPS, Solyndra, shrimp on treadmills, water skiing squirrels and a bazillion other "good ideas". If an idea or concept can not survive in the free market system, it is NOT a good idea. This is also a repugnant and foreign idea to many of todays special snowflakes who have yet to experience anything outside their parents basement.

Harry is spot on. Those that are uninformed of of our national history are bound to repeat it, and they are easy to steer with rhetoric. Besides not teaching mush civics, American history, etc. we also do not teach analytical thinking. Common sense used to be...common, then it became uncommon, and I believe it is almost a superpower at this point. The next generation has no resolve. Look at the emotional snowflakes after Trump won on election night. God help the USA.

You must beat the bushes, and find them. Here are a few things fleets want...

1. minimal down time, top priority when they are in for work.

2. regular inspections, and keep them abreast of all areas of concern on each unit.

3. easily accessible fleet maintenance records and recent recommendations.

4. competitive prices, convenient processes.

there are always other concerns, but if you market with these things presented to fleet managers, you will get clients.

Just a thought. It has worked for me in the past to select someone that is currently a technician and shows the potential for leadership. That would mean grooming someone into exactly what you are looking for. Then replace them with a regular technician. You typically get someone that is a great fit because they already know how the shop functions, what is important, etc.

M-Spec, I am referring to shops that specialize in suspension, steering, brakes, etc. I know many types of specialty shops have worked their way toward being full service. I know a radiator and a/c shop that had to do the same thing. Radiator repair is now more expensive than many new radiators have become and a/c is something that most other shops at least dabble in.