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Effective Language Shift For Shop Owners: From Labor Rate to Service Rate [RR 964]


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Thanks to our Partner, NAPA Auto Care Murray Voth, owner of RPM Training, discusses the importance of language in the automotive industry, advocating for a shift from "labor rate" to "service rate" to better reflect the value provided. He also dives into financial strategies for shops, emphasizing the significance of setting the right service rate and understanding gross profit to ensure business profitability. Murray Voth, RPM Training. Listen to Murray’s previous episodes HERE. [email protected] Show Notes

  • The breaks for breasts initiative (00:00:13) Discussion about the initiative started by two shop owners to raise funds for breast cancer research. https://brakesforbreasts.com
  • The rise of the mechanical and technology specialist (00:02:28) A language shift in the industry and the importance of recognizing the rise of mechanical and technology specialists. https://remarkableresults.biz/rise
  • Transitioning from diagnostics to testing (00:03:04) Discussion about the shift in terminology from diagnostics to testing to improve customer perception and willingness to pay.
  • Changing terminology from labor rate to service rate (00:04:09) The importance of changing the terminology from labor rate to service rate and its impact on customer perception.
  • Professionalism and perception in the industry (00:05:26) Discussion about the importance of professionalism and perception in the industry and its impact on customer behavior.
  • Showing the value of service rates (00:13:24) Strategies for showing the value of service rates to customers, beyond just raising prices.
  • Analogies for service rate and cost (00:14:25) Using analogies of fast food restaurants and steakhouses to explain the concept of service rate and cost.
  • NAPA Auto Care Apprentice Program (00:17:05) Information about the NAPA Auto Care apprentice program as a solution to the technician shortage.
  • Financial calculations and analysis (00:19:26) Murray Voth shares calculations and analysis of a shop's financial data, including occupancy costs, labor rates, and profit margins.
  • Determining the right service rate (00:22:05) Discussion on adjusting service rates, parts margin, and other expenses to optimize profitability while considering market competition.
  • Challenges and mindset shift (00:30:14) Exploration of the emotional and intellectual barriers shop owners face when making financial decisions and setting service rates.
  • Wages and effective proficiency (00:33:40) Analysis of technician wages and the impact of selling work properly on the effective service rate, setting goals for improvement.
  • Coaching Gross Profit (00:34:52) Murray discusses coaching gross profit, creating net profit, and making changes to increase revenue.
  • Back-End Sales Impact (00:35:48) The impact of service improvements on parts purchases, revenue, and margin.
  • Behavior Coaching (00:37:09) Murray talks about coaching to behavior, raising inspections, and the 100% rule for vehicle inspections.
  • Facility Service Rate Calculator (00:39:02) Murray offers a facility service rate calculator and discusses how to obtain it.
  • Odd Numbers and Service Rates (00:40:52) Murray explains the significance of odd numbers in service rates and how to use the calculator effectively.
  • Profit in the Estimate (00:44:39) Murray emphasizes the importance of the estimate in generating gross profit and providing value to clients.


Thanks to our Partner, NAPA Auto Care Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -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 Brakes-for-Breasts-Call-To-Action-Graphi ARN-Website-Banner-July-2022-1200x400-1.png Screenshot_340.png

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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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    • By carmcapriotto
      Thanks to our Partner, NAPA Auto Care "As shop owners and management, we want to be productive, we want to follow key metrics, we all need to be in business. We all got to meet our goals, our personal goals as shop owners and management. But at the end of the day, if you're not looking for moments of stress happening in your organization and what you can do from a resource point of view, that's what I see." Frank Leutz emphasizes a customer-centric approach, highlighting the value of simplicity, positive employee work culture, and community involvement. Frank Leutz, Desert Car Car, WrenchNationTV. Frank's previous episodes HERE Show Notes
      The Brakes for Breasts Initiative (00:00:15) An initiative by two shop owners to raise funds for a vaccine for triple negative breast cancer. https://brakesforbreasts.com Early Days of Desert Car Care (00:01:49) Frank Leutz discusses the history and relocation of Desert Car Care in Cave Creek, Arizona. Wrench Nation (00:02:49) Frank Leutz talks about the origins and evolution of Wrench Nation, an automotive lifestyle show. Customer-Centric Service Ideology (00:04:21) Frank Leutz discusses the importance of focusing on making the customer the hero of the service experience. Simplicity in Decision-Making (00:09:28) The significance of keeping business operations simple and the impact of simplicity on leadership and problem-solving. Managing Cynicism in the Industry (00:15:35) Frank Leutz addresses the issue of cynicism in the automotive industry and the importance of coaching and therapy to overcome it. The ideology of leaving a legacy (00:16:41) Discusses the importance of leaving a legacy within the industry and the impact of one's actions on future generations. The importance of attitude and aptitude (00:19:39) Emphasizes the significance of attitude and aptitude in maintaining a healthy work-life balance and the impact on business and personal life. The concept of "night school" and continuous learning (00:20:32) Discusses the idea of continuous learning, seeking training sessions, and the importance of personal and professional development. Fostering a supportive and community-oriented workplace (00:22:02) Highlights the importance of creating a supportive and community-oriented workplace, including team-building activities and supporting employees in personal challenges. Embracing a people-first approach (00:24:46) Stresses the importance of celebrating and supporting people within the organization, fostering a supportive and inclusive environment. Community involvement and giving back (00:28:13) Emphasizes the role of auto shops in the community, giving back, and supporting local initiatives, such as free oil changes for school teachers. The significance of networking and staying connected (00:31:39) Highlights the power of networking and staying connected with industry peers and mentors for personal and professional growth. Mutual Appreciation (00:36:03) Frank and Carm express mutual admiration for each other's contributions to the industry. Property Ownership (00:36:26) Frank shares his excitement about owning commercial real estate for his business, Desert Car Care.
      Thanks to our Partner, NAPA Auto Care Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -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
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    • By carmcapriotto
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      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 episode 171 of the podcast, Chris Cotton from Auto Fix Auto Shop Coaching introduces Murray Voth from RPM Training. They discuss the importance of using the term "service rate" instead of "labor rate" to enhance customer perception. Murray emphasizes the need for a business mindset among shop owners, highlighting the potential for profitability and the importance of accurate financial statements.
      They also address challenges like tax issues and the psychological aspects of investing. The episode concludes with a discussion on coaching approaches, financial management, and a mutual appreciation for their collaborative efforts in the automotive industry.
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      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
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      Click to go to the Podcast on Remarkable Results Radio
    • A-premium Auto Parts:Buy 2 or More Get 10% OFF wit
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      Thank you to RepairPal for sponsoring The Auto Repair Marketing Podcast. Learn more about RepairPal at https://repairpal.com/shops
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      Group - Auto Repair Marketing Mastermind
      Website - shopmarketingpros.com 
      Facebook - facebook.com/shopmarketingpros 
      Get the Book - shopmarketingpros.com/book
      Instagram - @shopmarketingpros 
      Questions/Ideas - [email protected]
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      Rena Rennebohm: [email protected]
      Website: empoweryouradvisor.com
      Click to go to the Podcast on Remarkable Results Radio


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