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Ever wonder how automotive shops across the country set their labor rates? It's not just about matching the shop down the road. It's about achieving your profit goals. Tom Ham discusses the labor rate tracker tool, which can be found on the Automotive Management Network. The conversation includes the variability of labor rates among different types of automotive shops and across states and the influence of location and shop type on rates. Tom shares that the tracker has grown to 3,000 shops reporting their rates, providing a more comprehensive view of the market. The episode also covers the importance of having a labor rate that reflects a shop's quality and customer trust. Find out why the labor rate tracker is a valuable tool for both shop owners and industry coaches to gauge market rates and inform business strategies. Tom Ham, Automotive Management Network. Tom’s previous episodes HERE.

Show Notes

  • Labor Rate Tracker
  • The labor rate tracker tool (00:01:42) Discussion of the labor rate tracker tool, its development, and its purpose in the automotive industry.
  • Setting labor rates based on profit goals (00:03:18) Importance of setting labor rates based on individual profit goals and the process of determining labor rates.
  • Feedback from members of the Automotive Management Network (00:08:14) Positive feedback from members of the Automotive Management Network regarding the labor rate tracker tool.
  • Different labor rates across various types of automotive shops (00:12:32) Discussion of the variation in labor rates across different types of automotive shops, such as RV shops, franchises, transmission shops, and more.
  • Variations in labor rates across different states (00:15:50) Observations on the differences in labor rates across states, including the correlation between labor rates and political affiliations.
  • Mobile Repair Rates (00:17:01) Discussion about the lower labor rates for mobile repair services and the impact of weather on their business.
  • Membership and Data Privacy (00:19:40) Details about accessing the labor rate tracker tool, membership requirements, and the privacy of members' data.
  • Profit Structure and Labor Rates (00:21:08) Consideration of the potential value in understanding a shop's profit structure based on their labor rate and the implications for success.
  • Cost Factors and Labor Rates (00:23:29) Discussion about the impact of rising costs, including healthcare and insurance, on the setting of labor rates.
  • Snowbirds and Florida (00:25:22) Conversation about the history of Florida's popularity as a winter destination and the influx of seasonal residents.
  • Future Developments of Labor Rate Tracker (00:26:48) Discussion about the planned enhancements and future developments for the labor rate tracker tool.

Thanks to our Partners, AAPEX and NAPA TRACS Set your sights on Las Vegas in 2024. Mark your calendar now … November 5th-7th, 2024. AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at http://AAPEXSHOW.COM/WEBINAR 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/ Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -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 NAPA-TRACS-Call-To-Action-Graphic-1.png       ARN-Website-Banner-July-2022-1200x400-1.png

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  • Have you checked out Joe's Latest 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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