Quantcast
Jump to content

Biggest Automotive Shop Expenses

Joe Marconi
 Share

Recommended Posts

hancock18 Explorer

hancock18

Posted
Posted

Yes insurance and rent are also our biggest expense. The rent at the older shop is much higher than the the mortgage at the new shop. We pay rent to a family member who still owns the property and so when we are having a difficult time the family member give us a break when she can. Our payroll expense included uniforms which we provide and the usual benefits such as paid sick days and vacations. We still can't afford health insurance but are working toward that goal for our employees. We pay all of our techs and service writers hourly. We cut back on advertising a few years back except for the sports and ROTC fundraising programs we sponsor at the local high school and elementary school. We find most advertising is a waste of money and so work harder in word of mouth from our loyal customers. We had a recent price increase in labor and parts that has helped and has hardly been noticed by our customers that helped. There really is not anything we can cut back on that we haven't already. The end of 2012 was really bad and so improvement on our old building have had to wait.

williamballard Newbie

williamballard

Posted
Posted

I have found that your broker will not always try as hard as they can to get you the best price for your insurances. This year I reduced my workers comp cost $3000 and my pollution insurance down over $4000 by going out and getting another quote. Don't get to comfortable with the same broker year after year, they too are in business to make money.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing

  • Available Subscriptions

    See all Subscription Plans

  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's 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.

  • Similar Topics

    • Changing The Industry
      Achieve Your Shop Goals With The Power of Intentional Planning #podcast #autorepairbusiness
      By Changing The Industry
      Achieve Your Shop Goals With The Power of Intentional Planning #podcast #autorepairbusiness
    • Changing The Industry
      Coping with Business Stress After Opening a Shop
      By Changing The Industry
      Coping with Business Stress After Opening a Shop
    • carmcapriotto
      Unstoppable Framework for Auto Shop Owners Part 2: Mastering Your Finances [RRR 1004]
      By carmcapriotto
      Thanks to our Partner, NAPA Auto Care Part 2 of the "Unstoppable" series, the episode focuses on "Mastering Your Finances." Maryann Croce emphasizes the importance of understanding financial statements, calculating profit margins, and managing cash flow. She shares practical advice on building financial reserves and separating personal and business finances. The conversation aims to empower shop owners with financial literacy, enabling them to make informed decisions and ensure business sustainability. Maryann, Small Biz Vantage. Maryann’s previous episodes HERE. Show Notes Watch Full Video Episode Unstoppable Framework for Auto Shop Owners Part 1: Core Values and Vision [RR 997]: https://remarkableresults.biz/remarkable-results-radio-podcast/e997/ Here is the link to the worksheet for Episode 2: Mastering Your Finances https://bit.ly/3BBCOnb Mastering Your Finances (00:01:19) Understanding Financials (00:02:10) Importance of Healthy Profits (00:03:24) Mastering Financial Dashboard (00:05:04) Calculating Profit Margins (00:07:02) Industry Benchmarking (00:09:11) Understanding True Profit (00:10:08) Cash Flow Management (00:12:42) Personal Story on Cash Flow (00:13:49) Invoicing Best Practices (00:17:51) Emotional Aspects of Money (00:19:45) Cash Flow Management (00:20:02) Expense Control Strategies (00:21:06) Personal vs. Business Accounts (00:22:16) Normalizing Profit and Loss Statements (00:22:18) Building Financial Reserves (00:24:21) Cash Reserve Calculation (00:25:36) Strategic Decision-Making (00:26:28) Financial Literacy Development (00:28:45) Learning Financial Concepts (00:30:09) Building Cash Flow Confidence (00:31:20) Encouragement to Seek Help (00:32:21)
      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 -Special episode collections: https://remarkableresults.biz/collections The Aftermarket Radio Network: https://aftermarketradionetwork.com/ Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/ Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/ Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/ The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/ The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/ Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/         Click to go to the Podcast on Remarkable Results Radio
    • carmcapriotto
      How Will the 2024 Presidential Election Impact Auto Repair Shop Owners? [E189] - Chris Cotton Weekly Blitz
      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 delves into the potential impact of the 2024 presidential election on auto repair shop owners, offering a comprehensive analysis of the key issues that could shape the industry's future. He begins by examining the implications of small business support policies, highlighting how different candidates' approaches could influence access to funding, tax incentives, and overall business growth opportunities.


      Coach Chris then shifts focus to workforce development, emphasizing the importance of training programs and educational initiatives that could be introduced or expanded depending on the election results. He stresses that a skilled workforce is crucial for shop owners to remain competitive and meet the evolving demands of the automotive industry.


      Infrastructure spending is another critical topic discussed, as Coach Chris outlines how increased investment in roads, bridges, and transportation networks could lead to more business for repair shops due to higher vehicle usage. He also touches on the potential for regulatory changes, noting that shifts in environmental and safety regulations could affect shop operations and compliance requirements.


      The discussion moves to minimum wage and labor laws, where Coach Chris analyzes how potential changes could impact labor costs and staffing strategies. He advises shop owners to stay informed about legislative developments and consider proactive measures to manage payroll expenses effectively.


      Supply chain challenges are also on the agenda, with Coach Chris exploring how global economic policies and trade agreements resulting from the election could affect parts availability and pricing. He encourages shop owners to build strong relationships with suppliers and consider diversifying their sourcing strategies to mitigate risks.


      Throughout the episode, Coach Chris emphasizes the importance of adaptability, urging shop owners to prepare for potential changes by reviewing their operations, budgeting for increased costs, and focusing on marketing efforts to attract and retain customers. He reassures listeners that maintaining strong customer relationships and operational efficiency will be key to navigating the evolving economic landscape, regardless of the election outcome. By staying informed and proactive, auto repair shop owners can position themselves for success in a dynamic and uncertain future.


      Election Discussion Begins (00:01:11)
      Chris highlights the importance of the upcoming 2024 presidential election for auto repair shop owners.
      Pros and Cons of the Election (00:02:13)
      A breakdown of potential advantages and disadvantages for auto repair businesses due to the election.
      Support for Small Businesses (00:03:17)
      Discussion on potential small business tax credits and health insurance reforms from candidates.
      Workforce Development Challenges (00:03:17)
      Focus on addressing the tech shortage through vocational training initiatives for the auto repair industry.
      Infrastructure Spending Impact (00:03:17)
      How increased infrastructure spending can lead to more vehicle repairs due to wear and tear.
      Potential Regulatory Changes (00:04:26)
      Concerns about new environmental regulations affecting business operations post-election.
      Minimum Wage and Labor Laws (00:04:26)
      The impact of potential minimum wage increases and labor law changes on shop budgets.
      Supply Chain Issues (00:05:28)
      Discussion on how international trade policies could affect parts pricing and availability.
      Adaptability of Shop Owners (00:07:34)
      Emphasizing the importance of adaptability in business operations amidst changing political landscapes.
      Preparing for Future Changes (00:08:31)
      Advice on budgeting and marketing strategies to navigate potential upcoming changes.
      Customer Loyalty and Community Focus (00:08:31)
      The significance of building strong community ties and customer relationships during uncertain times.
      Conclusion and Encouragement (00:09:38)
      Chris reassures listeners that challenges can be managed and encourages steady focus on business operations.




      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
    • carmcapriotto
      To Your Health [THA 405]
      By carmcapriotto
      Thanks to our Partners, NAPA TRACS, Auto-Fix Auto Shop Coaching, and Today's Class Dive deep into the importance of health and wellness in the automotive aftermarket industry. This episode features insights from panelists Andy Bizub, Brian Walker, and Jaron Kleber, who discuss maintaining health through diet and exercise, the role of coaching and accountability, and the benefits of personalized nutrition. The conversation covers practical tips for keeping fitness routines while traveling, the connection between discipline and success in life and business, and the transformative effects of mindful dietary choices. Together, they underscore the crucial role of health in achieving personal and professional success, encouraging listeners to prioritize wellness amidst the demands of the industry. Tune in to discover sustainable, healthy practices to enhance your quality of life. Andy Bizub, Midwest Performance Cars, Chicago and Northbrook, IL.  Andy’s previous episodes HERE. Jaron Kleber, Repair Shop of Tomorrow, Jaron’s previous episodes HERE Brian Walker, Shop Marketing Pros, Auto Repair Marketing Podcast Show Notes Watch Full Video Episode Brian's Health Journey (00:04:17) Andy on Passion for Health (00:06:30) Jaron's Tracking and Goal Setting (00:08:03) Dietary Focus and Accountability (00:13:33) Eating Real Food (00:15:57) Keto Diet Insights (00:18:26) Personal Health Goals (00:19:20) Healthy Snacking Tips (00:23:38) Accountability in Health (00:24:51) Coaching for Success (00:25:12) Traveling and Workouts (00:31:18) Restaurant Accommodations (00:34:02) Hormonal Health and Its Impact (00:35:46) Health's Influence on Business Success (00:37:19) Discipline Over Motivation (00:39:47) Final Thoughts on Health and Success (00:41:42)
      Thanks to our Partner, NAPA TRACS 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/ Thanks to our Partner, Auto-Fix Auto Shop Coaching Proven Auto Shop Coaching with Results. Over 61 Million in ROI with an Average ROI of 9x. Find Coach Chris Cotton at AutoFix Auto Shop Coaching on the Web at https://autoshopcoaching.com/ Thanks to our Partner, Today's Class Optimize training with Today's Class: In just 5 minutes daily, boost knowledge retention and improve team performance. Find Today's Class on the web at https://www.todaysclass.com/ Connect with the Podcast: -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters -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 X: 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 -Special episode collections: https://remarkableresults.biz/collections The Aftermarket Radio Network: https://aftermarketradionetwork.com/ Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/ Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/ Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/ The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/ The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/ Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/                       Click to go to the Podcast on Remarkable Results Radio


  •
    Joe Marconi

    Money Isn’t The Motivator We Think It Is

    By Joe Marconi, in Automotive Management,

    0 comments 89 views
    Joe Marconi

    Isn’t It Time We Rethink What a Master Level Technician Is?

    By Joe Marconi, in Automotive Industry,

    1 comment 125 views
    Joe Marconi

    Five Proven Tips to Improve Your Bottom Line

    By Joe Marconi, in Selling Automotive Repair,

    0 comments 109 views

  • Our Sponsors



Main Sections

More Sections

Discussion Forums

×
×
  • Create New...