Unlocking Technician Earning Potential [RR 842]
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By Joe Marconi in Joe's Blog0 commentsIt 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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By Zenoo
Hi my name is Zenas and I am 26 years old from Alberta, Canada. I started my own automotive repair shop in December 2023. After running it for 1 year I made a little bit of profit. I needed some advice on how I could increase it. Its a 3 bay shop with two 2 post hoists and one 4 post hoist with alignment. I am the only mechanic in the shop as I can't afford to hire anyone at this point. I am charging about $120 per hour for the labor and very minimal mark up on parts. The shop had no customer base when I got it so it took me sometime to build returning customers. If I try to increase the prices on parts the customers run away. Seems like they are calling around the city and going to the cheapest person. My monthly over head cost is about $7000. Whatever I make in a month goes back into next month's rent. Any advices on how to manage this properly from other shop owners?
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By carmcapriotto
Thanks to our partners, NAPA TRACS and Promotive
Running low on cash? Before panic sets in, it’s time to get strategic. In this episode of Business by the Numbers, Hunt explores practical steps to manage cash flow challenges, cut expenses wisely, and secure financing without sinking your business. Learn what options are available and how to make informed decisions to keep your shop running smoothly.
Understand the root causes of cash flow issues to avoid repeating mistakes. Learn why preserving cash strategically is more effective than slashing every expense. Discover how to leverage credit lines, loans, and alternative financing options safely. Avoid common pitfalls, like cutting critical expenses, that can worsen financial struggles. Develop a plan to stabilize and grow your cash reserves for long-term success.
Thanks to our partner, NAPA TRACS
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.com
Thanks to our partner, Promotive
It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: [email protected]
Download a Copy of My Books Here:
Wrenches to Write-Offs Your Perfect Shop
The Aftermarket Radio Network: https://aftermarketradionetwork.com/
Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/
Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/
Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/
The Auto Repair Marketing Podcast with Kim and Brian Walker https://autorepairmarketing.captivate.fm/
The Weekly Blitz with Chris Cotton https://chriscotton.captivate.fm/
Speak Up! Effective Communication with Craig O'Neill https://craigoneill.captivate.fm/
Click to go to the Podcast on Remarkable Results Radio
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By Changing The Industry
Episode 196 - Navigating Tax Deductions and Investments With Derick Van Ness of Big Life Financial
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By Changing The Industry
The Importance of Planning for Life's Unexpected Turns #podcast #automotivebusiness
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By carmcapriotto
The Weekly Blitz is brought to you by our friends over at Shop Marketing Pros. If you want to take your shop to the next level, you need great marketing. Shop Marketing Pros does top-tier marketing for top-tier shops.
Click here to learn more about Top Tier Marketing by Shop Marketing Pros and schedule a demo:https://shopmarketingpros.com/chris/
Check out their podcast here: https://autorepairmarketing.captivate.fm/
If you would like to join their private Facebook group go here: https://www.facebook.com/groups/autorepairmarketingmastermind
In this episode of "The Weekly Blitz," Coach Chris Cotton takes center stage to expertly guide aspiring auto repair technicians through the intricate financial essentials necessary for launching a successful auto repair business. With his wealth of experience and knowledge, Chris delves into critical topics that form the backbone of a thriving business, such as budgeting, labor rates, and operating expenses. He offers a wealth of practical tips and real-life examples, ensuring that listeners can easily grasp and apply these concepts to their own ventures.
Chris places a strong emphasis on the importance of maintaining a clear separation between personal and business finances, a fundamental practice that can prevent future financial complications and ensure the business's financial health. He also discusses the necessity of setting appropriate labor rates, a crucial factor that directly impacts profitability and competitiveness in the market. Understanding and managing costs is another key area Chris covers, providing insights into how technicians can effectively control expenses to maximize their business's financial performance.
In addition to these financial fundamentals, Chris highlights the critical role of marketing in the success of an auto repair business. He promotes Shop Marketing Pros, a company renowned for its specialized services tailored to the needs of auto repair shops, underscoring the importance of leveraging expert marketing strategies to attract and retain customers.
Overall, this episode serves as a comprehensive financial roadmap for technicians who aspire to transition into successful shop owners. With Chris Cotton's expert guidance, listeners are equipped with the knowledge and tools needed to navigate the financial landscape of the auto repair industry confidently.
Introduction and Sponsorship (00:00:05)
Coach Chris Cotton introduces the podcast and promotes Shop Marketing Pros for auto repair business marketing.
Post-Thanksgiving Reflections (00:01:05)
Chris shares insights on the light business week before Thanksgiving and discusses consultations with aspiring shop owners.
Identifying Budgeting Challenges (00:02:09)
He addresses the common struggles of technicians transitioning to shop ownership, particularly with budgeting and resources.
Building a Blueprint for Success (00:02:45)
Chris outlines the plan to create a financial blueprint for a potential shop owner, focusing on sales and budgeting.
Location Considerations (00:03:06)
He emphasizes the importance of choosing a proper location for the shop to avoid community issues.
Financial Planning for Owners (00:04:10)
Discussion on how aspiring owners can sustain their income and manage cash flow during absences.
Understanding Business Expenses (00:05:06)
Chris highlights the various expenses involved in running a shop, including utilities and licensing fees.
Starting with a Budget (00:06:17)
He discusses the importance of having a financial cushion and outlines options for starting on a budget.
Labor Rate Calculation (00:07:24)
Chris explains how to determine the labor rate based on current earnings and benefits.
Estimating Weekly Labor Sales (00:11:02)
He calculates potential labor sales for a week based on the established labor rate and hours worked.
Operating Expenses Breakdown (00:15:10)
Chris discusses how to calculate operating expenses needed to run the shop effectively.
Importance of Sales Tax (00:16:30)
He warns about the significance of managing sales tax correctly to avoid issues with state authorities.
Final Thoughts and Call to Action (00:17:34)
Chris encourages potential shop owners to reach out for tailored advice and reiterates the sponsor's importance.
Connect with Chris:
[email protected]
Phone: 940.400.1008
www.autoshopcoaching.com
Facebook: https://www.facebook.com/
AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae
#autofixautoshopcoaching #autofixbeautofixing #autoshopprofits #autoshopprofit #autoshopprofitsfirst #autoshopleadership #autoshopmanagement #autorepairshopcoaching #autorepairshopconsulting #autorepairshoptraining #autorepairshop #autorepair #serviceadvisor #serviceadvisorefficiency #autorepairshopmarketing #theweeklyblitz #autofix #shopmarketingpros #autofixautoshopcoachingbook
Click to go to the Podcast on Remarkable Results Radio
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