Shopcat

Nick, all these guys make great points. Another way to look at it is to figure what you want to make for yourself, then add in all of your fixed expenses, rent, insurance, utilities, etc. Figure what it will take to make it happen in total sales dollars (with good profit margins) for a year. Divide it into work days to see how much you will need in daily sales. Take that number and figure .80 parts to 1.00 labor , or about 50/50 for an estimate. Lets say you need $ 2000.00 in sales per day, that's about $ 1000.00 in billable labor. Divide that by your labor rate, lets say $ 80.00. You will need to produce 12.5 hours of billable labor per work day. There is a number you can work with as a starting point. From there you can figure you will need about 4 cars per day at 3.0 hours each. This will also let you see what kind of staff you might need. I hope this helps, and good luck!

Maybe its a regional thing. The thing is the south seems to be it takes so long to get the essential information. Everyone has a story to tell, and they wander off point with something else, then back to the situation, but so slowly! Meanwhile the phone will not stop, parts are being delivered, it feels like some of these folks are poking along at 5 mph on the freeway of life.

Great article Gonzo! The DIY crowd can be a challenge. When they finally call a shop they are frustrated and usually emotionally and financially invested in a "repair" that has not repaired anything at all. This is a bad starting point to say the least. Open ended questions are a good strategy to get some actual facts. Its always like an interrogation with these guys!

Great post Joe. We should never think we will be successful simply because we have the necessary components. The leadership is the catalyst that can make it happen.

I was wondering what is your best interview question? I know the collective mind of ASO is full of wisdom and great ideas. Maybe the best interview question you SHOULD have asked. I figure by the end of this thread we will all have a few fresh questions for that next applicant.

KMS, keep us posted on the results. I think it will be a winner. I like the strategy of previous recommendations because those seeds are planted, and the discount just starts them thinking about those items all over again.

Look into an ionic air purifier. It uses an electrical charge to enhance air filtration. They also offer filters for these machines that specifically target smoke. They are small , quiet and very effective. These machines work great. Just a little tongue in cheek here, but maybe get a snack machine too! LOL.

Perception is reality for customers. If you do a few of the small labor jobs at no charge, you are looking out for them. Its a matter of having long term business vision. Your customers develop affinity if they stop by their regular shop with a problem and leave feeling like you are looking out for them, not just charging for every single thing. This will pay off a lot more than the couple of tenths labor you could have charged.

Another great one Gonzo. I laughed out loud again ! I thought the U.S. Army had a lot of acronyms, but this business may have more. I've had customers ask me " We're you and that technician talking about a car ?" Hilarious. Thanks for an awesome article!

Great observations all around. Bstewart is spot on that this should have been dealt with a long time ago. The shop owner talks a good game, but he will tell you he avoids confrontation. I personally think side work is fine for family, and even friends. However if side work morphs into an income stream for the technician, that's where the line is crossed. Then he no longer holds the job as a primary obligation and crosses over into being your competition. The challenge is crafting a company policy that make it clear and definitive.

I have the pre employment questionnaires ready to send. I will be emailing them today. If you would like one, and have not contacted me yet, just sent me your email address. Thanks

I would be glad to provide this quiz to anyone that wants one. E-mail me and I'll send one to you. Thanks

I set up a shop that had no previous key control program that works well to this day. Its based on the last number of the repair order. Get a 4 foot by 4 foot piece of thin plywood, mount in a convenient place and evenly space cup hooks from left to right with numbers 1thru zero above them, do 4 or 5 rows from left to right descending down the board leaving room for a set of keys in between.

1 2 3 4 5 6 7 8 9 0

* * * * * * * * * *

* * * * * * * * * *

The rule is the keys are hung on the board before dispatching, and returned to the service advisor when done, and he will return them to the correct hook. Anyone on your staff can find keys in a jiffy. Low buck, effective and professional.

Local shops are preferred by the motoring public because they are more accommodating and reasonably priced. If you have a brand, work it. If you do not have a brand, develop one. Think outside the box, be unique and you will not have to worry about the dealers.

I like the guys that are saving money by fixing their car on their own. The story goes like this, my uncle had a car doing the same thing as mine was and injectors fixed it, so I replaced my injectors myself to save some money but it was doing the same thing. So I did some research on the internet and decided to replace the fuel pump, but it still does not run. Now I need you to give me a worst case estimate on the phone because I don't know if I can afford diagnostics or the repair for that matter. I just spent $ 1400.00 dollars saving money!!!

xrac is right, hang on to your wallet ! The best customers, even good customers do not tell you "I'm a good customer". I also like the guy ncautoshop had that informed him he was a "was just a working man and we needed to do something about the price". Really? Welcome to the club!

I was wondering what policy shops are using for side work? I know of a shop that is losing its lead tech because he is going into business for himself. Can't fault someone for trying to better themselves, right? Then I got the rest of the story. You see this tech has been doing a great deal of side work. For example it was recently discovered the shop he works for has lost more than a few clients to him. This tech has also been enlisting the help of a junior tech from the same shop to work in the evenings for cash. Needless to say those two are under producing at the shop during the day. I get a tech helping out family and friends, but to me this guy is poaching customers and has become toxic to the shop.

Since your tech is good and motivated by money, there is a lot of potential . Take a look at the money he wants and set the bar at 60 billed hours, then reverse engineer it to what he makes now in the 40 hour/100 percent area. I do not know your numbers, but I'll demonstrate the idea.

00-40 hours $15.00

41-50 hours $ 20.00

51-60 hours $ 25.00

61-+ hours $ 30.00

With his pay as an percentage of production, you CAN afford to pay him. Make the rate retroactive to all hours, so a 53 hour week would be $25.00 x 53 = $1325.00 gross. And lets say your at $95.00 hour, this would be 26 percent unloaded cost of labor for this tech. Look at what he wants money wise and put that carrot where its attainable for him and affordable to you. Maybe put the hourly he really wants at the 61 hour plus slot. Like I said, I do not know the numbers. But this tech sounds like he's worth trying to work with. I hope this helps. There are infinite ways to build a pay plan, find one that benefits both of you. Great techs are very hard to find.

Gonzo, insanity is in the eye of the beholder. Its all about the individual reference point. I'll share a story with someone and they say "that's crazy", and I say naw..that's just Tuesday. Loved the article, as always.

It may be "fast food" type burn out. Olive Garden now has an $8.00 lunch menu, and its easy to spend that at Mickey D's or B.K. Where are you going for lunch? There is a lesson in this for great independent shops everywhere.

5 star, I developed a pre employment questionnaire for a client that asks specifically about their experience with the following scale.

1. no experience

2. not frequently performed

3. need help performing

4.. need little help

5. no help needed

Next I have questions about 20 plus tasks routinely done at this shop. Then a technician tool inventory , ASE Certs, 20 ASE style questions that indicate specific skills for this shop. This is filled out with the application on site and never leaves the shop.

The following admonishment is listed at the top :" Failure to answer the following questions truthfully could result in reduced wages or termination if you are hired and it is discovered you were not truthful" .

This has help the shop enormously, After reviewing a few of these you will interview ONLY the great applicants .

The package deal is the way to go. Show your clients you care with a complete inspection and service package. This only works if your shop has processes that keeps the information from the inspection flowing from an astute technician to a talented service advisor that does the presentation and has a good closing ratio. Xrac nailed it with "Free rotations attract people who care about their cars. It is one of the best moves I have ever made". I works!

Jimbob661, what motivates your technicians? Money? not always! Sometimes its benefits, or flex time. What do you want from your techs? Better inspections? Better accuracy? I say the process starts with you deciding exactly what you need to take your shop in the direction you envision. Next, think about what you need from each tech. Not just the numbers, but career development. For one example consider a $ 1.00 hour raise for each new ASE certification . Leading your team means getting them to achieve their goals while getting you to your goals at the same time. I can be a lot of fun, and you will get to learn a lot more about your team.

I think its difficult to turn down any opportunity for business. That said, you must let your business model be your guide. Are you a quick lube? If not who is your client? Waiters are just that, waiters and their primary goal is the shortest possible time until their vehicle is done. Have vision when running your business. The Pareto principal says roughly 80% of your clients are 20% of your problems, and 20% of your clients produce 80% of your income. My point is the waiter on the fly probably is not your best prospect. If a great client needs something on the fly, do it! But be selective and run your shop with vision.

Here is a very good article in Ratchet + Wrench about having loaner cars. Check it out.

http://www.ratchetandwrench.com/RatchetWrench/August-2014/Managing-a-Fleet-of-Loaner-Vehicles/