Charging What We are Worth [THA 212]

[carmcapriotto]

 

Maylan Newton from ESI – Educational Seminars Institute is a business coach, trainer and industry speaker. Maylan is no stranger to the podcast having paid it forward many times. He is a much sought our speaker at industry events in the US. Find Maylan’s previous episodes HERE.

“He is ‘just a car guy’ with lots of knowledge and is brave enough to talk about it”. Maylan’s purpose is to educate leaders to be a better owner or service writer.

Carlo Sabucco, 2nd generation owner of Sil’s Complete Auto Care Centre. My father started the company September 1976, I joined in 1994 and succession of ownership in 2009. Company is now a 7000 square foot facility with 8 bays and 6 wonderful team members. I would never be here today without the team, the help of some amazing coaches, my peer group for the last 16 years, and lastly my wife Melanie. The last 2 years has been a steep learning curve of C Suite coaching, personal development, learning to be a better leader and focusing on where the industry will be in 5-10 years and preparing for it. Listen to Carlo’s other Episodes HERE.

Glenn Larson, Foothill Autoservice, Lake Forest, CA

 

Key Talking Points

•  Defining “what is worth”The value equivalent to that of someone or something under consideration
• The level at which someone or something deserves to be valued or rated
• We are here to push you to rethink your labor ratesBuild your customer base to people that want to pay your price to have you maintain their vehicles
• Weed out customers who don’t want to pay the rates
• 80/20 Rule - 80% of your profits come from 20% of your customers
• Successful yearReputation
• Word of mouth advertising
• Focus on your peopleCustomers
• Employees
• Emotion is a big driver in worth and what we charge
• 3 angles of worthWorth of the businessThe right tools
• The right technicians
• Do you believe in your employees
• Worth of the mathematicsFormulas
• Calculations
• Are you the owner-worthy?
• Does your facility warrant what you charge?Can you walk thru your place and say “I actually should be charging more?”
• Do I need to clean house here and change things around to make it look a little better?
• Do I need better tools?
• If you don’t look like you belong, no one will pay your ratesUse good parts
• Have certified technicians
• We get paid for our knowledge, not what we do
• The business is meant to work for us, we’re not there meant to work for it
• Every shop in every area is differentRaise labor rates 2% every quarter
• How to’s and why’s of figuring out what to chargeKnow that you have to charge more
• Know the value of your business
• The cost of doing business
• Running the business on “jingle factor” is not P&LFocus on net profit
• What net do you need?
• Why do you need net?
• Paralysis by Analysis
•  Final thoughtsGlennIf you have more self respect for yourself and realize what you’ve put into the industry and what your value is to this industry, this will help you charge what you’re worth
• Your customers want you and your team to take care of their car and they will pay what you charge
• CarloYou gotta make money because no one will be at your retirement party because you didn’t know how to run a business. If you don't make money, they’re not gonna be there to write you the check to take care of you in retirement.
• If your business goes under, it’s your fault
• MaylanWe have to understand our business
• Profit is not a bad word
• If something happens to you right now, how is this business gonna support your family with day to day expenses
• Your employees depend on you to make a profit so you can stay in business
• The value to your customer

Resources:

• A special thanks to Maylan Newton, Carlo Sabucco and Glenn Larson for his contribution to the aftermarket.
• Books Page HERE
• Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes.

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