Auto Repair Shop Money Management might be an uncomfortable topic, but we need to cover it! Gary Gunn quizzes our YNR panel of automotive shop owners on how they can better manage their finances.

Repair shop maney management - not an easy automotive topicDefining Money – Repair Shop Money Management

Gary starts off with an unusual question for our panel of shop owners. “How do you define money?” It may seem silly to ask a question like this. However, when we get to the root of what money really is, we can take a deeper dive into repair shop money management.

When Pam replies, she defines money as an item we exchange in lieu of barter. We have assigned a value to it, so it drives commodities in our markets.

Fred measures money in time. Customers pay us for our employees’ time when they perform automotive repair services. We then pay those employees for their time. Finally, we pay ourselves for the time we put in guiding our team and steering the ship.

Joe adds that the government assigns money a value based on the gold that backs it. We can then exchange that valuable paper for a good or service. Jerry then uses the analogy of money as a fuel for an engine. That engine exists to move our business or personal life forward. Money management is how we fine tune that engine.

Gary’s Response

Gary makes the point that we can run out of the “gas” that is money and end up stuck on the proverbial freeway. Sometimes our business’s cash on hand can ebb and flow. However, our repair shop money management skills will determine will determine if we reach our long term destination.

Learn More – Get Your FREE Strategy Session

Do lack direction on repair shop money management? Perhaps your business plan has stalled out, and you need an experienced automotive industry coach to help you. Then why not schedule a FREE business strategy session with Brian? You’ve got nothing to lose, so sign up today!

Gary Gunn polls our YNR group on Repair Shop Staff Roles. What should we expect from our people? How do we make that clear, and what must we do to help them meet our expectations?

Repair Shop Staff Roles - auto repair mechanicsDefining People – Repair Shop Staff Roles

This clip from our Leadership Process opens up with Gary requesting class members to define “people”. Broad? Maybe. Simple? Definitely not.

Pam believes all people are created by God for specific purposes. She also believes it is impossible to actually “manage people”. Fred adds that people are just “impossible” altogether! A good manager’s role is to identify each staff member’s strengths and weaknesses and help them fit in, if possible. Managers manage the systems, and the systems manage the people.

Are you an owner or manager who hates dealing with customers? Then you don’t need to take on the repair shop staff roles of Service Writer or Service Advisor! A good manager can also recognize what their own best role is. Maybe it’s in the back helping train technicians.

Different Viewpoints on Auto Repair Shop Staff Roles

Joe made the point that two people can observe the same object or concept and see completely different things. Mike points out that this is because those two people have different worldviews and agendas. Every repair shop hire may bring their own baggage in. Likewise, an astute leader can recognize said baggage.

Gary reminds us that we as auto repair shop owners and managers are all people ourselves! Like it or not, we are all in the people business. Whether you work with customers at the front counter or technicians in the back of the house, it’s up to you to recognize your systems and how to help staff run them.

Learn More – Get Your FREE Strategy Session

Does your auto repair shop lack direction? Perhaps your business plan has stalled out, so you need an experienced automotive industry coach to help you. Then why not schedule a FREE business strategy session with Brian? You’ve got nothing to lose, so sign up today!

Daily Operations Process

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Shop Owners Who Take Action…

0519- SOP Action Flow Charts Review

  • What do we charge for inspections discussion?
  • So that you can lead with Processes and UP
  • Your communications for a more productive shop
  • That leads to increased sales and profit.

Action Flow Chart Story….

  • Mr. Jones tells the Service Advisor something…
  • Then the Service Advisor tells the Technician something…
  • Then the Technician tells the Service Advisor something…
  • Then the Service Advisor tells Mr. Jones something…
  • Then the Service Advisor tells the Technician something…

Downloads

Powerpoint PDF

 

Are your auto repair staff members just order takers? Or are they truly difference makers for your customers? Technicians and Service Writers must work together in order to educate customers on their vehicles’ needs. Only then can automotive repair employees make a difference for your shop’s finances, as well as your customers’ safety and vehicle life.

Auto repair staff exist to make a difference in customers' lives.How Can Your Auto Repair Staff Make a Difference?

Brian begins by presenting us with a customer entering the shop. Their vehicle is not riding smoothly enough, so we sell them a new set of sway bars. Big deal! Think of a waitress who only sells a chicken dinner to you. She doesn’t suggest a cocktail, an appetizer, or a dessert. Those items may have just brought our dining experience from good to great!

Just like the waitress in that story, the service advisor hasn’t made much of an impact. That auto repair staff member is just an order taker. They are not doing the most they can to help the customer, and they certainly aren’t making a difference in your shop’s bottom line.

If your auto repair staff want to be difference makers, they educate themselves about the make and model of the customers’ vehicle. They also take notes about the status of the customer’s car or truck. When they do this, they can inform the customer of necessary repairs they might not have even known they needed. Demonstrating the knowledge, then showing concern, is what gains a customer’s confidence. Only then can you rack up those “yes” answers, and earn the trust of a lifelong customer.

Learn More – Get Your FREE Strategy Session

Does your auto repair staff lack direction? Perhaps your business plan has stalled out, and you need an experienced automotive industry coach to help you. Then why not schedule a FREE business strategy session with Brian? You’ve got nothing to lose, so sign up today!

Auto Repair Shop Owners need help dealing with the silent thieves in their automotive business. Determining how they are losing money.

By Adobe Photo Stock

Lack of employee motivation, poor inventory strategies, and accounting snafus might not seem like they have much in common. However, they can all be silent thieves in your auto repair shop. By that, we mean that they can all lead to big problems when they’re not managed properly.

In this blog post, we’ll show you how to recover from these three silent thieves in your auto repair shop so that you can keep your business running smoothly.

Thieves Identified #1: Lack of Employee Motivation

One of the most common silent thieves in auto repair shops is employee motivation. When employees aren’t motivated, it can lead to all sorts of problems. Poor performance, low morale, and high turnover are all examples.

If you want to recover from this silent thief, there are a few things you can do:

First, try to get to the root of the problem. Why aren’t your employees motivated? Perhaps you have not challenged them enough. Is it because they don’t feel like their work is meaningful, or is it something else entirely? Once you know the problem, then you can start addressing it.

Second, try to create a more motivating workplace environment. This might mean providing more employee training and development opportunities, or offering incentives for meeting certain goals. Whatever you do, make sure you’re proactive about addressing employee motivation; otherwise, it will continue to be a silent thief in your shop.

Thief #2: Poor Inventory Strategies

Another common silent thief in auto repair shops is loss due to poor inventory strategies. You may have a bad handle on your inventory. If you’re overstocking certain items, or understocking others, it can eventually lead to big financial losses.

Start your recovery by closely examining your inventory strategies. Are there any areas where you could improve? Are there any changes you could make to reduce losses? Once you’ve identified some potential improvements, implement them as soon as possible.

#3: Simple Accounting Issues

The third and final silent thief we’ll discuss is simple accounting issues. Believe it or not, even a small error in your monthly financial statements can lead to big problems for your business.

To recover from this thief, review your financial statements carefully each month and correct any errors immediately. You should also consider automation tools that can help reduce errors and save time (and money) in the long run. 

These are just a few of the most common silent thieves in auto repair shops, but they’re certainly not the only ones out there. To protect your business from these thieves (and many others), it’s important to be aware of them and take steps to prevent them from causing damage.

You Net Results Can Help!

Contact You Net Results and we will guide you through the process of identifying, itemizing, and neutralizing your silent thieves today! Book a complimentary consultation. Brian Gillis and his team will help you build your leadership foundation.  Plug into a vast network of auto repair shops, working together to strengthen the industry! Let’s make this the best month of your business life!

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