Carm Capriotto’s Friday Town Hall Academy #265 streamed live February 25, 2022. The subject was “Coaches Lab: Turn Around a Struggling Shop” with guests Chris Cotton, YNR’s own Brian Gillis, and Murray Voth.
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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
- 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
Our own Brian Gillis recently returned to Remarkable Results Radio’s Town Hall Academy show. He took part part in an all star panel discussing the topic “Stop Selling from Your Own Wallet”.
Key Talking Points:
- The panel played a game on how much each of them would spend on certain items:
- Gym Membership
- Dress Shoes or Boots
- Birthday Gift for a Good Friend
- Surround Sound System
- Laptop Computer
- Family Pet
- Bottle of Wine
- It’s not a matter of how much disposable income someone has, so we can’t look at a customer and just start making decisions on pricing.
- Technician recommendation vs Invoice… ask the advisor why didn’t you recommend the repairs
- Don’t think for the customer
- Don’t be a bleeding heart for customers
- Having sympathy for older customers… can cost you
- Have empathy, but don’t give away the shops money
- Don’t think “wow, this is gonna cost a lot of money”
- Push that thought to the side
- If not, you will be limiting your potential
- “Wisdom Credits” for seniors, emotional attachment
- Is there sentimental value to the car
- Be tough on coupons
- Guidance for the boomer generation
- Have senior or military discounts pre-established in your books
- Have discounts across the board so you’re prepared for it $$
- Don’t put money ahead of safety
- People play the poverty story all the time
- Don’t compromise the safety of a vehicle over money
- If they are truly down on their luck financially, you can…
- Prioritize the repairs in an effort to help the customer
- The power of understanding the profit and loss
- Knowing what the parts costs
- Having an understanding of the overhead costs
- Teach your service advisors these costs
- The goals for average work order can result in a loss of sales
- Don’t just hit the goal, work beyond that
- Don’t get complacent in the afternoon if you’ve had a good morning
- Final Words
- Run out there and run this game
- The help from Brian with my advisors is amazing
- It’s always about training, about getting better
- Always identify the next training needs
- Too many times we think about our own money tolerance instead of the customer needs
- We think what others believe is a lot of money
- We have different lines in the sand, you’ll limit yourself to and your potential
- Don’t make the customer decision for them
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.
Interested in learning more?
Organized systems are crucial to a successful automotive business. You Net Results is a coaching group that helps you navigate and apply these processes. Why not schedule a FREE business strategy session with Brian? You’ve got nothing to lose, so sign up today!
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.
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!