Quantcast
Jump to content


Charge Administrative Fees!


Recommended Posts

Stop subsidising other industries and charge your administrative fees!

 

For example if you do towing and you have to write out a check to pay towing fees to other providers, charge an administrative fee.

 

Data entry, getting all details correctly and chasing down paper costs money. We charge a $25 to $35 fee depending how much time the clerk has to spend working on the case.

 

You should have a line on your billing system so your clerk automatically ads the admin fee when they process the payout to the other service provider.

Edited by HarrytheCarGeek
  • Like 1
Link to comment
Share on other sites



We charge a standard mark up on towing or any other sublet work. The way I see it not to sound rude, but I don't do anything for free (of course we do free inspections and some diag time is free, but you get what i'm saying). If I have to put my money out there (sometimes 30-60 days with some company's) and wait for you to pay me back then I'm going to add a fee to this. If I'm not making a profit on it I don't see any reason in waisting my time messing with it.

Link to comment
Share on other sites

We charge a standard mark up on towing or any other sublet work. The way I see it not to sound rude, but I don't do anything for free (of course we do free inspections and some diag time is free, but you get what i'm saying). If I have to put my money out there (sometimes 30-60 days with some company's) and wait for you to pay me back then I'm going to add a fee to this. If I'm not making a profit on it I don't see any reason in waisting my time messing with it.

 

Doing complementary work is not a problem, but it has to be understood that it is complementary and it does cost money as it draws from revenue generating time. I am 100% with you there.

Link to comment
Share on other sites

We mark up local tows from $10 to $25. Longer tows we add $40 or more. I don't own a tow truck, but with my phone I call Tow #1, occasionally Tow #2, and seldomly Tow #3. As far as the Admin fee goes, I would rather work it into the repair order. That way "No questions asked." Usually. Arranging towing can be a pain sometimes, so I charge for it accordingly.

 

When I enter my weekly data into my sales grid, I look for a pleasing profit on sublet work. IE, I sent a truck dealership diesel tech on a service call last week. I was charged $619, so I charged $889, and have already been paid. If it makes sense to me, then it makes sense. It helps the bottom line.

Link to comment
Share on other sites

We charge a nominal shop supplies fee. A percentage of labor that caps at $10.00. How many of you guys flash update controllers? We do a bunch. I usually charge a data fee per flash update, but I was wondering if it wouldn't be better to charge a small data fee to every repair ticket, akin to the shop supply fee. Thoughts?

Link to comment
Share on other sites

We charge a flat fee of $15 shop supplies fee to every ticket that has a part on it. Now the nature of a Diesel Shop differes though. Our Average RO is $1,250 so I don't think we have ever been questioned about the shop supplies. On tickets under say $50 (very rare for us) I would wave the shop supplies. We also flash update controllers. Again it's just a flat fee of $100 to update a controller. I don't see the need in breaking it down to a data fee and a flash fee. Leaves room for customer to question why he's being charged X dollars for a data fee. When at the end of the day he doesn't mind paying the $100 it's just a matter of wording.

Link to comment
Share on other sites

ADP is right on it, its all about the wording, or presentation. Less detail, to a point is less to argue about. I think all sublet needs to be marked up. It costs time and money to set up towing, or sublet work, then pay for it and wait for your money. Also I recommend the phrase "job supplies" over shop supplies. The customer is more willing to pay for stuff you use on his vehicle, shop supplies sounds like he may be sponsoring supplies for the shop. I also like to type in some itms used on the particular ticket, like dielectric grease, m.a.f. cleaner, convoluted tubing., etc. This meets with no arguements, or resistance.

Link to comment
Share on other sites

We charge 5% of labor for shop supplies with no cap. I asked my guys today if they ever remember a customer complaint and they replied no. As far as sublet, we divide by .75 for a 25% GP. Sublet would include mobile reflashing, towing, wheel repairs, windshields, and machine shop labor.

Link to comment
Share on other sites

  • 4 weeks later...

We call the same company for all our tows and pay them on time no matter what. In return they give me a discount. The cost to the customer is the same. It's a win/win/win for everyone.

 

In the end everything you do for your customers needs to be billed. Even charities take a cut.

Link to comment
Share on other sites

  • 1 year later...
On 2/6/2017 at 4:27 AM, alfredauto said:

We call the same company for all our tows and pay them on time no matter what. In return they give me a discount. The cost to the customer is the same. It's a win/win/win for everyone.

In the end everything you do for your customers needs to be billed. Even charities take a cut.

This is a smart way to do business, negotiate a volume discount with vendor, charge customer the "normal retail" price, pocket the difference, or even give the customer a small discount and pocket most of the difference.

Vendors love volume, and it's worth it to them to give discounts to keep you coming back, not to mention they give premium service and other perks to larger accounts.

It's also very true about charities and non-profits. Their people still need to get paid just like anyone else, they just don't get the remove profits from the business at the end of the year.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Available Subscriptions

  • Have you checked out Joe's Latest Blog?

         0 comments
      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.
  • Similar Topics

    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By carmcapriotto
      Thanks to our Partners, Shop Boss, and 360 Payments Recorded at the 2024 Automotive Aftermarket Retailers of Ontario (AARO) Business Management and Lindertech Training Trade Show, Murray Voth explores the idea of transferable skills for automotive shop owners making the shift from technician to business owner. He highlights how their technical knowledge can be applied to efficiently use shop management software and offers strategies to overcome any intimidation they may feel. By adopting a structured approach to learning key performance indicators (KPIs) and generating business reports, shop owners can gain the confidence needed to manage their businesses. Voth encourages them to use their diagnostic abilities to analyze business metrics, ultimately improving their effectiveness in running their shops. Murray Voth, RPM Training. Listen to Murray’s previous episodes HERE. [email protected] Show Notes: Watch Full Video Episode Automotive Aftermarket Retailers of Ontario (AARO): https://www.aaro.ca/ Intimidation with Software (00:00:29) Shop Management Software Overview (00:02:08) Transferring Diagnostic Skills (00:03:36) Key Business Metrics (00:05:20)
      Thanks to our Partners, Shop Boss and 360 Payments Shop Boss – Shop Management Software built by shop owners for shop owners. It works the way you need it to, right out of the box. Find on the web at https://shopboss.net Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections The Aftermarket Radio Network Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/ Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/ Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/ The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/ The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/ Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/             Click to go to the Podcast on Remarkable Results Radio
    • Fast Free Shipping on All Orders Over $50
    • By carmcapriotto
      Thanks to our Partners, NAPA TRACS, Auto-Fix Auto Shop Coaching, and Today's Class Recorded at the 2024 ASTA Expo, Dewain DeGarmo from Black's Tire & Auto Service and David Boyes from Today's Class discuss the evolving landscape of training and education in the automotive repair industry. Dewain, overseeing training across 60 stores, shares the challenges of managing a large team while introducing innovative strategies to improve knowledge retention and performance. He also talks about his role as a "puzzle master," tackling complex technical problems and spearheading training programs, including a creative prize system to motivate teams. The discussion highlights how technology is driving improvements in training within the industry. Dewain DeGarmo from Black's Tire & Auto Service David Boyes, President of ‘Today’s Class”  An online learning organization that has been supporting the automotive industry for more than 20 years. David’s previous episodes HERE Show Notes Watch Full Video Episode ASTA EXPO: https://astaexpo.com/ Optimize training with Today's Class: In just 5 minutes daily, boost knowledge retention and improve team performance. Find Today's Class on the web at https://www.todaysclass.com/ Managing a Large Team (00:02:37) Challenges of Change (00:03:28) Joy in Team Development (00:04:14) Dwayne's Journey in the Industry (00:04:31) Becoming the Puzzle Master (00:06:05) Training Evolution (00:08:14) Competitive Training Environment (00:09:29) Unique Prizes in Training (00:11:05) Wrestling Belt as a Prize (00:11:21) Measuring Team Performance (00:12:05) Daily Training Consistency (00:14:06) Dashboard Insights (00:15:10) Building a Training Portal (00:16:02) Aggregating Training Resources (00:16:48) Challenges of Local Training Attendance (00:19:12) Balancing Work and Training (00:20:23) TPMS Training Insights (00:21:06) Generational Work Ethic Discussion (00:22:05) Microlearning for Team Training (00:22:21) Identifying Training Gaps (00:23:01) Investment in Training (00:24:25) Balancing Training Opportunities (00:26:15) Cultural Integration of Training (00:29:00) Importance of Communication Tools (00:32:45) Team Engagement Challenges (00:35:01) Culture of Continuous Learning (00:35:08) Incremental Improvement (00:36:14) Personal Ownership of Knowledge (00:36:29) User Motivation for Training (00:36:47) Boosting Training Scores (00:37:11) Conferences and Learning Retention (00:37:35) Custom Training Requests (00:39:58)
      Thanks to our Partner, NAPA TRACS NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Thanks to our Partner, Auto-Fix Auto Shop Coaching Proven Auto Shop Coaching with Results. Over 61 Million in ROI with an Average ROI of 9x. Find Coach Chris Cotton at AutoFix Auto Shop Coaching on the Web at https://autoshopcoaching.com/ Thanks to our Partner, Today's Class Optimize training with Today's Class: In just 5 minutes daily, boost knowledge retention and improve team performance. Find Today's Class on the web at https://www.todaysclass.com/ Connect with the Podcast: -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on X: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -Special episode collections: https://remarkableresults.biz/collections                       Click to go to the Podcast on Remarkable Results Radio


  • Our Sponsors



×
×
  • Create New...