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Bob Greenwood

Brian recently appeared on Remarkable Results Radio to discuss his involvement in the group CAMP (Coalition of Automotive Management Professionals).

Key Talking Points

  • CAMP- Coalition of Automotive Management Professionals started with a brainstorm two years ago, which was a casual get together with trainers at Vision 2019.
  • Shops should spend time with like-minded people, peer network with each other- coaches need the same
  • As of March 2021 – Legal entity
  • Group of like-minded individuals that want to move the industry forward- find the shops that need help and make sure they receive help
  • Keep the consistency of message in the industry
  • Business coaches also need to be adapting and improving

Important takeaways

  • Multi-shop ownership vs single shop ownership – you don’t need multiple shops to be successful to stay relevant or a victim of consolidation
  • Have a life outside of the business
  • Average of 5 bay shop- missing between $25-30,000K net profit per bay per year
  • Having a coach doesn’t mean you’re out of the business- owners want to be able to enjoy working on their business and still being a part of it
  • Why are we afraid to help others? There is no secret, it’s time to help people move forward

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Recently, our own Brian Gillis appeared on the Remarkable Results Radio podcast Town Hall Academy. This show features a roundtable discussion amongst automotive industry experts on a single topic. Carm Capriotto and Bob Greenwood discussed all of the ins and outs of labor rates with Brian on this special episode.

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!

 

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