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Posted

Hey guys yoy all been a big help.I,m opening a new shop next month .Its a 2 bay shop and I don,t really know exactly how much I need to do to keep on top.Is ther a goal I could work towards ? I know every bodys over head will differ so this is real general And I don,t know all the expensies that I will occur every month So if I break it down I guess I,m asking what kinda paid outs do yuo occur and what would be your labor goals and how much profit on parts would you expect on that labor generally and if you recomrnd and report articals clases or counsolers?

Posted

Calculating your fixed costs and variable costs is the best way to start. You need to sit down and start doing some calculations to see what you need to break-even. This number is key because you goal is not to break-even but to make a profit.

 

I suggest sitting down with your accountant to project these costs. It is vital from the very start that you understand and know the numbers of the business. Also, I recommend tracking these numbers.

 

Because this is a start-up, you may not know what your sales will be. Do not fall into the trap of giving the farm away to attract business. This will only bring in the wrong kind of consumer. I do, however, recommend Grand Opening Specials at a discounted price.

 

Are you planning on having a Grand Opening Event? When I opened my new facility last year I had a big grand opening event which actually gave me momentum that lasted throughout the summer.

Can you give me some ideals for a grand opening and its specials?

Posted

Have you calculated what all of your fixed costs are: taxes, insurance, telephone, utilities, rent, etc. How much are wages, employment taxes, any health insurance, etc. What is the bare minium you need to have monthly to survive? As a rule of thumb you should be able to generate $10,000-$12,000 per bay per month with proper staffing.

When you say 10-12K out of each bay is that a gross? labor and parts? and rule to follow that may sugest how much part may be sold comaped to labor?

Posted

I average about 10-12 between my two bay garage. One side is the lift and the other side is my alignment machine. Of course, its just me so I am doing everything from answering the phone to talking to customers plus running for parts and everything else so I am very happy with that amount. Keeps my bills paid for now.

  • 2 weeks later...
Posted

I average about 10-12 between my two bay garage. One side is the lift and the other side is my alignment machine. Of course, its just me so I am doing everything from answering the phone to talking to customers plus running for parts and everything else so I am very happy with that amount. Keeps my bills paid for now.

 

 

I have to know why, why are you running for parts? As well could you afford at this point to have a flat rate tech that you can hire? And since it would be just you and potentially another flat rate tech, you could offer an incentive such as "If the job pays four hours, the two of us are both on it together for four hours, you'll still get paid for four hours, but keep in mind I may have to break away to answer phones, order parts, and etc... So plan on possibly doing most jobs by yourself, but as we grow so will your weekly hours, and may turn into salary, etc...."

 

I have one tech who keeps jobs moving along, anything he touches, or makes it possible for us to take on more work, or allows me to write repair orders etc... I'll pay him on. I do majority diagnostics, and oversee most technical and heavy jobs. But he is my life saver, I'm currently hoping to hire another tech or two, and soon promote Mark to a Service Manager or reward him someway for all his great work,effort, and spirit. He is worth every dime, and I find the shop making more money.

 

I am only hesitant on bring on another tech due to the fact of what happens if I run out of work for the two of them, and what happens when we get the next tsunami?

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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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      Connect with Chris:
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      Phone: 940.400.1008
      www.autoshopcoaching.com
      Facebook: https://www.facebook.com/
      AutoFixAutoShopCoachingYoutube: https://bit.ly/3ClX0ae


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