Brian’s Know-How and Experiential
Go For No Breakthrough Training and Coaching Course
- Removing the Selling Stigma
- Your definitions of Failure and Success
- The Five Failure Levels
Labor Rates podcast discussion
Brian elaborates that shop owners want to look at the end goal result first. Shop owners must first know the true cost of doing business in order to arrive at their labor rate formula. In fact, as Bob states, it is important for you to employ not one, but at least three labor rate formulas. Today’s automotive industry is more diverse than ever. Thus, you need employ different rate formulas for maintenance, diagnostic, and reflash.
Bob then presents the cost per billed hour (CPBH) formula. Every dollar must have a name, and every expense needs to be accounted for in order to know rates that are right for your shop. Finally, you should net 20% of gross sales after paying yourself (first!) and your employees a professional wage.
Brian and Cam reiterated that you are in the labor business! Therefore, you must give special attention to your team’s rates. Bob then gave examples of the three door rates he mentioned earlier. He presented formulas for setting those door rates, which are based on competency rate and/or efficiency of business operation.
After discussing these key stats, Brian discusses the concept of labor matrixes, specifically accurately charging for the time that’s spent. Then, the hosts welcome shop owner Bill Nalu to discuss the emotional aspects that go along with the numbers. Courage, as well as knowing your worth as a technician, are essential.
Subscribe to the Remarkable Results Radio podcast for more valuable auto repair discussion.
Interested In Learning More?
This all may seem complicated, but you can do it! You Net Results is here to help! Why not schedule a FREE business strategy session with Brian? You’ve got nothing to lose, so sign up today!
- 0600 – SOP – Overall People Process
- 0601 – SOP – Recruiting
- 0518 – SOP – Answering Incoming Phone Calls
Downloads
Powerpoint PDF
SOP – Recruiting (YNR_061)
SOP – Overall People Process (YNR_0600)
SOP – Answering Incoming Phone Calls (YNR_0518)
Silent Thief
You have heard us speak about silent thieves before. You Net Results’ game plan starts with helping your auto repair shop identify which thief or thieves lurk in your midst. In this clip from our Daily Operations meeting, Brian quizzes members on their own experiences. Is your auto shop losing money, but you don’t know why? Then watch this video and find out!Auto shop losing money – silent thieves on the prowl
Brian opens up by explaining the concept of a silent thief, which is money leaking out of your shop undetected. He asks members what those thieves look like in their shops, starting with inventory.
Once Andy’s business started growing, he noticed that he started to lose track of inventory. His shop’s process of transporting waste oil for reuse, for instance, needed improvement. Therefore, he bit the bullet and invested in new equipment.
Joe’s parts were not properly being charged out, so he implemented a new process to keep track of this expense.
Then, Jim talks about the priorities of owners and managers. Whenever the boss doesn’t manage time well, silent thieves can creep in.
Next up, Leon mentions labor inventory. In his case, this is a huge chance to lose money. Because it can be hard to keep track of, labor rates may be a shop’s #1 money loser.
Finally, Brian discusses one thief we may not have thought of previously. Let’s say our advertising is on point, and customers are jamming your phone lines. If your service writers don’t know what to say to them to close the sale, then you may as well be throwing money out the window. This is why proper phone skills and scripts are crucial.
A few tidbits discussed afterward revealed the importance of taking notes on procedures, as well as being open to change. Surprisingly, many shop owners still use pen and paper instead of computers to keep up with shop supplies and tickets. Doubtless, these shops must update procedures and conquer their fear of change in order to survive.
Stop your silent thieves!
Do these problems sound familiar to you? By now, you might be wondering how you can solve these problems. We have your answer! Try one of our coaching groups for free. Each week, you can join fellow shop owners to identify your problems. Then, apply our systems to start turning record profits!
- Daily Operations Know-How with Brian
- Many tactics talked about
- 0501 – SOP – The Board Reviewed and Updated
