brian gillis

Photo courtesy Ben White on Unsplash

Have you ever played the game “Telephone”? You start by lining up a group. Then, you whisper a sentence into the first person’s ear. They then whisper the message to the next person. The game continues until the message gets to the final person in line, who announces out loud what sentence they heard. It is often much different from the original sentence. Quite the exercise in communication!

At You Net Results, we know this game shows what happens when messages, systems, and processes are undocumented. Just like in the game of “Telephone,” something can get lost in the telling. When you don’t write down instructions, client comments, or repair orders, this is inevitable.

Communication breakdown

In auto repair businesses, it happens like this:

The Customer tells the Service Advisor something. Time is short. The Service Advisor doesn’t write it down, but they repeat it verbally to the Technician. The Technician may also skip documenting it, so they present the Service Advisor with new information.

The Service Advisor then reports to the Customer via phone. More back and forth happens, and then the Customer picks up their vehicle. Later, the Service Advisor is surprised to read the Customer’s one-star review. Why? Communication was not clear. They lost something in the telling.

How can you avoid losing something in the telling?

Do you see how simply repeating verbal information can lose accuracy? It is obvious how the customer felt wronged. How can your team reduce miscommunication? How can they improve clarity?

The answer? Use transparent systems and processes to document all communication. Enter repair issues through DVI reports, notes in your CRM, text messages, recorded phone calls, and other exchanges. When you do, you will reduce your chance of poor reviews.

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Systems and processes podcast discussion

First of all, Brian gives host Carm Capriotto the low down on how to get started with SOPs. If you start out by organizing the systems you will need to run your business smoothly, that will save you headaches later on. Starting with the basic “SOP on how to create an SOP” will be a valuable to resource for you and your staff when you need to write new systems. Create a template with the key questions (how, what, when, where, why, and how) that the SOP will answer for your business. Store all of your documents in either Dropbox or Google Drive.  Then link all of your team members up to them for quick access.

Brian and Carm then go through a sample system, the Incoming Phone Call SOP. This process details who needs to answer the phone, as well as scripts they can use, depending on the customer’s needs.

Why are SOPs so important? Staff turnover is inevitable. Easily accessible documents can help both new recruits and employees changing positions to quickly learn. When your staff members know how to do tasks consistently, they improve their value. Down the line, this will also increase your business’s value to clients and potential investors.

This is how we do it! Get buy-in from your staff on documenting the systems and processes. Well defined and organized SOPs are the first step to create a culture of success and efficiency in your shop.

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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.