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Biggest Automotive Shop Expenses

Joe Marconi
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hancock18 Explorer

hancock18

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Yes insurance and rent are also our biggest expense. The rent at the older shop is much higher than the the mortgage at the new shop. We pay rent to a family member who still owns the property and so when we are having a difficult time the family member give us a break when she can. Our payroll expense included uniforms which we provide and the usual benefits such as paid sick days and vacations. We still can't afford health insurance but are working toward that goal for our employees. We pay all of our techs and service writers hourly. We cut back on advertising a few years back except for the sports and ROTC fundraising programs we sponsor at the local high school and elementary school. We find most advertising is a waste of money and so work harder in word of mouth from our loyal customers. We had a recent price increase in labor and parts that has helped and has hardly been noticed by our customers that helped. There really is not anything we can cut back on that we haven't already. The end of 2012 was really bad and so improvement on our old building have had to wait.

williamballard Newbie

williamballard

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I have found that your broker will not always try as hard as they can to get you the best price for your insurances. This year I reduced my workers comp cost $3000 and my pollution insurance down over $4000 by going out and getting another quote. Don't get to comfortable with the same broker year after year, they too are in business to make money.

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    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

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      Delivering an exceptional customer experience is another key focus of the episode. Coach Cotton points out that while having the latest tools and offering competitive prices are important, they are not the sole determinants of success. Instead, he argues that true excellence is achieved when every employee is committed to maintaining high standards and consistently exceeding customer expectations. This dedication to quality service helps build a strong reputation and encourages repeat business.
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      Introduction to the Episode (00:00:18)
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      Chris highlights other podcasts on the aftermarket radio network worth checking out.
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      Phone: 940.400.1008
      www.autoshopcoaching.com
      Facebook: https://www.facebook.com/
      AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae


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