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Build Your Labor Rate From The Ground Up [THA 276]


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How much do you value your time? Your employee's time? Are you making your decision on your labor rate based on data? My expert panel breaks down a mathematical and strategic way to understand the labor rate that delivers your profit goal.  To view the charts and presentations my guests have prepared, make sure you head to my carm capriotto youtube channel or find the link on the show notes. Once you see the math your decision to set a profitable labor rate will be smarter and easier.

 

Dave Kusa, owner of AutoTrend Diagnostics in Campbell, CA. Listen to Dave’s other episodes HERE.

 

Bill Haas, Owner of Haas Performance Consulting, Listen to Bill’s previous episodes HERE.

 

  • Key Talking Points
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  • Your labor rate is an expression of how much you value your time.
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  • Raising my labor rate was the worst decision I ever made. Said no one ever!
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  • Productivity and profitability per technician
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  • Make decisions based on data
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  • Prove that your labor rate is right
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  • Does your team understand where the money goes? “If you don’t share, they don’t care”
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Important Books

 

Check out today's partners:

 

 

More Time. More Profit. Shop-Ware Shop Management getshopware.com

 

Click to go to the Podcast on Remarkable Results Radio

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  • 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.
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