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Wheelingauto last won the day on May 24

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About Wheelingauto

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  1. If I had to do it today I would figure out how to do it electronically but we have been doing it so long until I find a bullet proof way I will not change. Everyone walks in and punches in on a time card for work. That is how we capture available time. When they start working on a job they punch in on the written work order. When they are done or waiting they punch out. When the advisor is writing the ticket up they calculate the actual time and put it in the software. Sold time is calculated when the job is estimated. The guys/gals will be resistant at first but you have to sell them on the fact this will let you improve things and in the end it will make them more. They automatically think it will be punishment. I have a lube tech, 1 apprentice, 1 b tech and 2 lead techs. While my productivity numbers are not the best< I still know where we are as a group. Because I have a large facility we have very good efficiency numbers. You dont really have to worry about who you stack up to or against, you only need to improve against yourself and everybody wins. If you dont measure you cant diagnose and fix it or improve it.
  2. Funny or sad the discussion stopped here?
  3. This is an interesting discussion for those it could help and the tools they need to achieve them. In order to manage a business we need the correct tools. The smaller the business the less tools we need. But as a business grows, more tools and measurements must be used to diagnose problems within the business. Tech time management as originally taught by RL O Connor refers to 3 different measurements. Sold, actual and available time. Sold time is the amount of time you allot to the technician to get a specific labor function completed. The dollars and cents do not matter for this calculation. Only tech gets one hour to hang said part on car. Actual time is the time it actually takes the tech to hang said part. Available time is the time the tech is onsite ready and able to perform job duties. Why do we need to track all 3 instead of some sort of hybrid. To diagnose problems. Tech Efficiency The technician for the most part is responsible for this. IF he/she focuses on the job at hand, properly tooled and trained should be able to bill out many more hours than actually working on cars. Sold divided by actual = Efficiency. A good tech can easily be 150% efficiency. Productivity The business is mostly responsible for productivity. If the tech runs out of cars to work on he can not be productive. We are all human and need a few minutes throughout the day for non productive functions such as piss breaks but if we have enough cars and jobs get sold correctly, we can be 90% productive. We CANNOT BE MORE THAN 100% PRODUCTIVE. 8 hours worked vs 8 hours actually working on cars. Actual divided by available is productivity. 90% is a high mark IMO. RLO used to have non productive categories for a tech to punch in and out of when not working on cars in order for us to measure unproductive time. If a tech was on the phone calling parts stores he is not productive. Now, of you want to talk dollars, like how many dollars for diag procedures or how few dollars for an oil change we are talking about effective labor rate. At the end of any day take all the labor dollars for completed work and divide by total available hours and you have effective labor rate. This is solely a management function and the tech has not control over this. But I am off subject. Why do we need to track these metrics, to properly diagnose a malfunction. You may think you know by gut or watching, can be very effective for smaller businesses, but truth is in a larger business metrics dont lie. We have all heard at one time someone bellyaching we're not making money, all my techs are slow, dont know what their doing etc. Then we go look at the layout of the building and find out to do one job the tech has to walk to both ends of the shop to retrieve something he needs frequently, or does not have the tools he needs with him and back and forth to the box which is 3 bays away. Of has to go to the parts room to get the only scan tool for whatever reason. OR..... the tech is always being interrupted to do something other than fix cars. Tell boss I dont have an oil filter in stock but boss is busy talking to wife about weekend plans (or customer or whatever) and tech grabs a smoke break and a phone and calls Ed down at the parts house, after 10 minutes of BS finally order the oil filter that should have been in stock but was not there. Or take a customer home because management could not do it. Waits for the last part to fix that car and there are no more cars to work on or no more bays to work in. If you measure and monitor these figures and then spend the time to make corrections as necessary you will achieve the net profit goals discussed by some gurus. It is easily attainable. I can go on and on about it but it's time to go home. I hope this benefits someone.
  4. I'm confident we don't define productivity the same. As KPI referred to productivity as I understand it is time available for a tech (at shop for 8 hours) vs time actually doing work (think piss breaks). This figure cannot be over 100% it is an impossibility.
  5. This is where this discussion becomes lost. This discussion needs definition of efficiency, productivity and other terms being thrown around so those who need to understand it better might. Instead it scares some who dont feel they can get to some numbers and others who are well above. For instance, a seasoned tech with plenty of space should be significantly above 120% efficient. Overall a shop needs to consider the talent they employ before they can assess a goal for efficiency and productivity. Above 90% productive, incredibly hard to do and even harder to do consistently. This is by my known definitions of the terms though.
  6. Wheelingauto


    We bought 2 Fujitsu fi-6130 scanners about 8 years ago. We scan 100% of everything and have a 2tb drive in our server which is also backs up into the cloud. We currently have 51 gig's of data. Neither scanner have given us any issues. We created and use a windows folder system which works for us. I can retrieve any document from my computer, the scan computer or my bookkeepers computer. The advisors can look up old notes, invoices and parts receipts from their work stations. If we did not have this system we would have at least 10 filing cabinets. My bookkeeper scans for maybe 15-20 minutes a day when she finishes her paperwork. I would be happy to share more if needed.
  7. Yeah, but I can make Florida to the Bahamas and back a day trip.......
  8. I should have known you were a ragbagger I have a fuel habit I need to support...
  9. It appears as if I was not clear. 20% plus add backs equals 500k not 500k plus 20%. Got it on the profit on income taxes. Good luck in your search.
  10. My 20% net number is high? In most places I guess you're right. Interesting fomula and one that does not clearly make sense to me. Profit on income taxes??? I have heard 2-3 times EBItDA Earnings before interest, tax, depreciation and amortization. Using this formula and from what I've heard the bigger the organization the higher the multiplier. Take a company that is doing 2 mil at 20% net. That means 400k profit plus the addbacks which easily can be a total of 500k (most likely more). If that can be substantiated the purchase price should exceed 1.5 mil. agreed or am I still not thinking right? Ignore the attachment
  11. Define SDE. 2 million sales with 20% net = 400k plus add backs such as depreciation. 400k x 3 = 1.2 mil and that would be low considering what it takes to run at that level again IMO. Where do you get 400k - 600k purchase number?
  12. I agree with Anderson on this one. Shops that are doing 2 Mil are usually well run and have a good grasp on the numbers. To add to Anderson's questions what would you expect to pay for a business the generates 2 mil in gross sales and nets industry benchmark 20% ? Or are you looking for a shop that does 2 mil with almost no net and basing an offer on that and hoping to improve on it. I think if it's the latter it would be near impossible to find common ground. No one who has built sales to that level would agree there is not much value (IMO) but in reality there really is not much value only blue sky.
  13. Wheelingauto


    Since no one has responded I will toss in my $.02. I joined a BNI group about 15 years ago. The group remained as a group for a good 10 years in different forms. As you said, you are the easiest referral in the room because everyone has a car and they all want to be ACTIVE so to refer themselves to you is the cost of an oil change and they can come back saying how wonderful you are (whether they believe it true or not). Having been in business for over 30 years I thought I had my own referral group and would not be able to connect with that many. I ended up making a lot of very good customers and friends. That being said if you are not truly a genuine person (others in the group not you) people will see right through it and will not follow through with being referred or at least not have the built up trust one should have with a genuine referral. Even in a BNI group real referrals are done because someone believes in you. The best way to get this across from the referrer to the referral is in ones own words, not a script. While you need to have somewhat of an elevator speech when you first meet someone in a networking environment, I was always like Hi, I'm Dave, I fix cars. It always got a laugh and people found me approachable. Remember, as the car guy you are just a dumb mechanic anyhow....it's not like you are a real businessman. (perception) What was great was when they got to know me they realized I was one of the better business minds in the group. Good luck with it.
  14. Wheelingauto

    Oil vendors & pricing?

    Jeffrey, I understand what you are saying. What you also have to recognize as a shop owner buying right allows proper pricing and proper profitability. While service is what we are all about and what differentiates us COGS is something that NEEDS to be monitored closely and as the owner you need to make sure you are not overpaying which will cause you to unnecessarily price too high. If you wish to use Amsoil and tout it's benefits thats fine. If you can buy it for $50 a gallon from Napa or order it shipped in for $30 a gallon would you care? I hope so! i did not see this as a cheap discussion as much as a COGS discussion. Whether you offer Amsoil or Full Synthetic oil really does not matter. While you have a one man operation and can educate one person at a time others have 10 or 20 man operations that cater to a much larger niche than you do and therefore may not be able to educate on the level you do and/or do not have the faith in the same products you do yet still wish to offer quality products.
  15. Wheelingauto

    Oil vendors & pricing?

    Unfortunately I cannot identify with your issues. We are a much larger facility and I do not have the time to shop for specials at various stores. I recently fell out of contract with Valvoline and after reading posts by Anderson Auto and his strategy of inexpensive synthetic oil changes to drive car count, we decided to shop around to see if we could effectively bring down the price of a full synthetic oil change to increase value to our customers and then make the move to "5k service intervals" and then building a service package around them (LOF, rotate, inspection). There is a company out of Missouri called Keltners distribution who sells Dexos approved full synthetic oils for less than $2 per quart by the case. I used to order that in various weights by the pallet. I think minimum order is like $600. They sell a lot of other things that might make it doable for a smaller shop and you can mix and match. Recently we found a local supplier where we can buy dexos approved in bulk at $7.10 per gallon....so we no longer use or offer conventional oils. While we dont advertise cheap full synthetic oil changes we are exclusively using synthetics for only a couple of dollars more than we used to charge for conventional.