totalautocare

How do you train your advisors and your technicians on time management?

We're a small shop (2 bays, 1 advisor, 1 tech and myself who doesn't wrench). I was asked today if we could call in an additional technician to help with the extra work tomorrow. I asked them how much work is on the schedule, they said hours of inspections and diags. I told them to inspect and diag everything in the morning and schedule out the repairs with the client from there. "Diag in the morning, repair in the afternoon" as I've heard it said and that always made sense to me. My little crew is willing to go the extra mile to get things done but don't seem to have the tools of time/scheduling management to do this as effectively as I'd like to see.

Is there a resource out there to help teach the fundamentals of scheduling? 

Thanks.

Read something that got me revved up!

A discussion regarding the laborforce shortage. Here are some of my thoughts to create a win/win for a better experience in our trade for employees, employers and the general public.

I'd love to hear your ideas as well.

1. Employers and employees can both conduct themselves in a more professional manner to increase the perceived value of the public.

2. Less technical, more "people oriented" sales and leadership staff.

3. Simple and fair performance based pay structures. Ex. Fair hourly + good production incentive.

4. Work/Life balance. Labor force goes home at 5. Saturday's optional. No Sundays, ever.

5. Cut the heads off the premadonna's in the shop! Teamwork makes the dream work and if you have a problematic high performer killing the shop culture.. Give everyone else the gift of a better place to work and let that turkey go!

6. "Make them hate you on the front end". Be up front about everything! Then there's nothing to hide and no counter negotiations to deal with. This is what we do and how we'll do it and What it means for you mr. Customer.

7. Train in your clients: "This is how we do it here" and help them understand what to expect and sign for it. Ex. Mr. Customer, we'll need to run tests to determine the probable causes, the cost of these tests will be x. If you accept, please sign here. Now nobody has to ask the tech to take one for the team to get the sale.

7. Everybody needs to adopt the philosophy: "No gimmicks, games or drama! Don't deal it, don't accept it."

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I'm going through reciepts to double check profitability. I am stumbling across instances where I am finding Joe Blow off the street getting better prices than us spending $2k per week.

This is what i believe happens when a parts house knows "You're comfortable" like Ken was.

Over time, if someone is paid commission's on sale (not gp) it is the natural course of what happens. You're comfortable, it's convenient, it's a product of the system. My realtor will "negotiate" for me but how intensely? If I'm asking them to take a pay cut to make a lower offer how enthusiastic will they be? Not very. Product of the system.

On another example

I was quoted 3 prices today for gas tank straps on a '98 Tahoe. $130, $133 and $54. I did the extra calling because no place could get it for a week. I'm glad I am not to comfortable.

I'm not mad. It is what it is, they all do this and is not because I'm not just "doggedly loyal" to one vendor.

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There are many CRM companies out there both automotive industry specific and broad based. I heard Fredrick is gaining traction. There is also Mitchell CRM and MechanicNet I think. There are a bunch. I used DemandForce years ago and I hated them. 

Who uses this in aftermarket world?

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Good afternoon gentlemen,

Who on here has experience with the software product called "DemandForce" and what has it achieved for you? 

What else is it comparable to in the marketplace right now?

I'll check it out and give you feedback.

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I've been criticized recently for efforts to increase our exposure, perceived value in our product/service offerings and strategies to increase ARO.

The question I'm met with is "Don't you think you're making too much $ on every job?"

These individuals saying this don't comprehend that the basic principles of business. When McDonald's began asking "would you like fries and a coke with that?" there bottom line as a company tripled over night and there customers were perfectly happy overall.

There is nothing wrong with upselling. There is nothing wrong with adding convenience, quality, exposure and/or decreasing non-value adding/unnecessary costs.

Go determine your business model & pricing system, be honest and go make as much money as possible with integrity!

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I'm fortunate enough to have a large enough operation to have checks and balances that most shops don't have. My bookkeeper is on top of the numbers constantly and cracks the whip if anything is off. If an advisor does anything that doesn't make sense she sees it in the morning and calls them on it. Then her and I audit books once a month. My biggest exposure is the bookkeeper, so going over the books monthly limits my exposure as much as possible.

In an accounting class I took many years ago the instructor talked a bit about best practices. The one thing that stuck was that if someone wants to steal $100, three people should need to lose their job for it. It's hard to find three people who are willing to give up their job for $33 a piece. I'm not sure as independent repair shops we'll ever get to that point, but always keep it in mind whenever possible.

Does anyone have a link to this video?

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Try this for a read.

http://cloud.tapatalk.com/s/58d9b51da3c45/Percieved%20Value.pdf


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If you advertise "low prices" you're asking for those who are loyal to "low prices" and not loyal to you.

He did you a favor giving you this wake up call.

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I'd highly recommend RLO as a more cost effective alternative. I've already set up another member on this board with RLO, so if you'd like, you can PM me and I'd be happy to talk about it more with you 
*Not in any way a knock against Elite. I've taken some of their courses, actively read their new letters, and participate in their free webinars. Great company with very talented people and valuable insight

I'd highly recommend RLO as a more cost effective alternative. I've already set up another member on this board with RLO, so if you'd like, you can PM me and I'd be happy to talk about it more with you 
*Not in any way a knock against Elite. I've taken some of their courses, actively read their new letters, and participate in their free webinars. Great company with very talented people and valuable insight

I'd highly recommend RLO as a more cost effective alternative. I've already set up another member on this board with RLO, so if you'd like, you can PM me and I'd be happy to talk about it more with you 
*Not in any way a knock against Elite. I've taken some of their courses, actively read their new letters, and participate in their free webinars. Great company with very talented people and valuable insight

What is the best places you've found for shop equipment?

For me, I've found.

1.bestbuyautoequipment.com

2.gregsmithequipment.com

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Jay,
Owning the real estate is where you will make easy money. In my opinion there are two basic schools of thought when it comes to owning or leasing the real estate. They are both applicable in various situations and I could see using a combination of both strategies to your advantage. 
1. It is a drag on your balance because of the capital required to purchase  The asset is appreciating over time so it's a longer term investment with a stable return.
2. Leasing allows you to expand rapidly with less cash. In many cases you can lease a building and get 1-3 months discounted or even at no charge to ease cash flow on start ups.
I prefer to own the properties in a separate company and lease to buildings and equipment to the operating companies. Part of that strategy is then I can set a reasonable (high cap rate) lease rate for the store which the manager can see and make them responsible for the entire P&L of the company. I don't run any type of personal expenses to his store, I do it through the property company. That way we have clean books in the operating companies and the managers don't feel like I am "stealing" profits from their company that they are responsible for operating. Any type of rebates, gift cards, or cash that is given to me for the store, gets handed to the center manager. This is so that they understand I am not taking anything from their company and I expect the same level of integrity from them. 
A couple of items to note is a number of owners run a great deal of personal expenses through their company and then wonder why they are not making any money. When you go to sell or think about selling you have dirty financials and the sales price will be discounted. All those personal expenses that you ran through the company ends up costing you much more than the actual benefit. I try to run financials as if I was going to sell the business today.  Some of it is also physiological as I hear owner talk about how hard they work and that they are not making money yet the business is paying for all their toys, vacations and entertainment. They then cry to employees about how they are not making any money which hurts morale.
By setting a higher lease rate then you can run your expenses through the property company which typically have very few expenses and it makes it much easier to value the operating company because you can make an easy adjustment to what you "overcharged" on the lease. 
My disclaimer is that I am not a CPA, Tax Attorney, Financial Advisory or anything of the sort, and you should consult with professionals before making any decisions affecting your future. 

Is there an email? You might get more help from others to do it.

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Does Mitchell have an option or a work around to track declined services? If not, what software out there does?

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Sort of off topic a bit - have problems with financial end like most here do - but we are a two person shop - one in the shop and one in the office. Another huge issue we have is friends/acquaintances who think nothing of stopping by during the day to have us "just take a quick look" at something or stopping over to chat. I don't stop at your place of work and interrupt your day/work - why is okay for you to do it to us?!?!
I wind up being the b*&^h in the office because many days I am stressed out and trying to move my other half along to get stuff out the door and someone comesup strolling in and I sometimes wind up being out and out rude or give them the silent treatment while I fume inside.
The other half can't say no or be rude no matter how pissed he is - so sometimes a huge amount of time is lost. Makes me insane. I am tempted to stop by their office one day or show up on their job site and return the favor.
We have a fenced in facility that we have taken to keeping the gates shut and even locked and they sit outside the fence and blow the phone up or yell over the fence. Some even open the gate when we have it "fake" locked! I would NEVER open someones locked/shut gate. WTH!
Friend of ours has a body shop around the corner and goes thru the same thing. He has given up and winds up starting his work at 7pm after all the traffic has died down and he can work in peace. But then some jackass sees the light on....
Sorry just venting and would ask for advice on how to handle but know most will just say you have to lay down the law with them and explain you don't have time, etc. - easier said then done.

Very true. Rest of my crew are kind of slow to jump on board with complete inspections. Sometimes my new guys find so much stuff that my advisors don't end up letting the customers know everything.

Perhaps having "badges" or pins for specific achievements that anyone can win at any time.

For example a pin for somebody who achieves $500 ARO.

It may not seem like much at first but once one guy gets it, the others will start to want it. After guys achieve it, you could create a pin for $600 ARO.

I personally would have my competitions be centered around my total average dollar value of discovered services for techs and ARO + booked back appts for advisors.

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Does anyone on here do business with 1-800-Radiator? 

 
Major litigation I foresee if that ever happens. Who knows who will win. Dealers and car makers have deep pockets...

Couldn't agree more with Mspec. Have your pricing, terms and plans ready for discussion, go find out who the decision makers are in the organizations are that you're targeting and go get em!