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Expenses going up! Another reason to revisit your prices

Joe Marconi
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dfrisby Collaborator

dfrisby

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Just got my accounting caught up and first year ever I've been running at a loss, even though gross sales are up.  Just raised shop rate from $90/hr to $100/hr with plan to raise monthly to $120 an hour by October 1st.  Cost of labor is up 30% from last year and it's been everything I can do to attract and retain employees.  I've known for years that techs were not making what they should, but I'm nervous about pricing myself out of the market around here as other shops in the area are at a much lower hourly rate still.  Anyways, I'm going to pay my techs what they deserve and keep afloat or I'm going to go under trying.  All their expenses have gone up as well and it's time.

 

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's Blog
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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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