Quantcast
Jump to content


Recommended Posts

Posted

I am in the process of starting to track important figures or 'key performance indicators'. Since I am a small growing shop, one of the easiest things to track is simply Gross Sales. I have been rewarding my employees (3) with going out to dinner at a restaurant of their choice any time we have a record month. My first question is, does anyone see a problem with this reward?

 

My second question is, how do you go about setting goals for KPIs? I know there will be different methods when comparing individual tech efficiency goals to gross sales goals, but how do you handle each one. How about shop productivity? Do you simply use industry bench marks or base your goals off your personal history?

Posted

Joe, would you have any recommendations for a shop management course for shop owners. Most I see are 1 day workshops designed to get you to sign up for coaching which I don't think a lot of business are willing to do or can afford. WorldPac was putting on some nice classes for service advisors that touched some of those subjects. I rather liked the WP classes since there is not pitch for more sales.

Posted

Joe, would you have any recommendations for a shop management course for shop owners. Most I see are 1 day workshops designed to get you to sign up for coaching which I don't think a lot of business are willing to do or can afford. WorldPac was putting on some nice classes for service advisors that touched some of those subjects. I rather liked the WP classes since there is not pitch for more sales.

I was wondering the same thing. I'm not sure I need or can afford the 1 on 1 training/coaching that some of these companies want to offer. I started another thread asking about RLO training. I'm also curious about WorldPac, AMI, Elite, and a few others. Any input would be appreciated.

Posted

I was wondering the same thing. I'm not sure I need or can afford the 1 on 1 training/coaching that some of these companies want to offer. I started another thread asking about RLO training. I'm also curious about WorldPac, AMI, Elite, and a few others. Any input would be appreciated.

 

I can only comment on WP training. I ran through their Service Advisor Class years ago and it was great. It gave me a lot of insight on something I had no idea about. Even a seasoned service advisor/owner can get a lot of out refreshing on the material. IMO one of the best parts is the whole workshop/class is not meant to be a giant sales pitch on further services. I would love to go to some of their other offers however none ever seem to be in my area.

Posted

I wouldn't put too much stock in gross sales. ARO and margins tell you more about how your business is performing. If your advisor's incentives are based solely on sales, you have to watch that they aren't discounting to make sales. A few years back, we saw our sales numbers increasing, but our margins stunk, so we started working on margins and ARO and sales actually dropped, but we ended up taking more home. Once we felt we had a handle on the fundamentals we started pushing car count.

  • Like 1
  • 1 year later...
Posted

I really have no clue what KPI's to chase. Absolutely clueless however, this is what I've done shooting from the hip and so far it's been working.

 

MARGINS

  • Advisor get's paid on part margins, inspections and diagnostic sales.
    • The retail price is pre-established by a 52% margin from napa prolink's pricing to us (they're the highest priced aftermarket vendor in our area).
    • We then call the other local vendors to ask them for there best price on product X and shop around amongst local vendors to beat it and we get dramatic price drops from online (sometimes finding the products for an additional 20-30% cheaper) so if the advisor takes the extra time to source it, he can dramatically increase his pay without becoming out of this world overpriced.

We've been doing this for the past 3 yrs and haven't burned any relationships as that's the first question I'm asked after I'm told that takes way to much time (do the #'s, 20-30% is huge).

  • Technicians get paid on hours (If the variance goes outside 10% of our estimating guide, we want to know why).

I don't know what else to really do.

CSI SCORE

  • Not really even a legitimate one, if the client is ecstatic with our service, we ask them to get online and write a review on FB and Google. 4.8 avg minimum or I get ornery.
  • Afraid of it becoming a leveraging system of clients over staff. Don't know how others have successfully approached that.

 

ARO

  • Without a minimum requirement or a push, we've always approached it with this mentality: Would you rather see 30 cars to make $3,000 or would you rather see 3? Which one would be less frustrating?

CAR COUNT

  • I've been afraid to chase this one as the immediate thought goes to "couponing" or something. Does anyone have any suggestions for this?

 

That probably sums up my KPI's because that's all I know. Any suggestions? (Please refrain from insults and negative insinuations, I'm being transparent hoping that I'm asking questions others have but are afraid to ask for fear of looking silly.)

Posted

I really have no clue what KPI's to chase. Absolutely clueless however, this is what I've done shooting from the hip and so far it's been working.

 

MARGINS

  • Advisor get's paid on part margins, inspections and diagnostic sales.
    • The retail price is pre-established by a 52% margin from napa prolink's pricing to us (they're the highest priced aftermarket vendor in our area).
    • We then call the other local vendors to ask them for there best price on product X and shop around amongst local vendors to beat it and we get dramatic price drops from online (sometimes finding the products for an additional 20-30% cheaper) so if the advisor takes the extra time to source it, he can dramatically increase his pay without becoming out of this world overpriced.

We've been doing this for the past 3 yrs and haven't burned any relationships as that's the first question I'm asked after I'm told that takes way to much time (do the #'s, 20-30% is huge).

  • Technicians get paid on hours (If the variance goes outside 10% of our estimating guide, we want to know why).

I don't know what else to really do.

CSI SCORE

  • Not really even a legitimate one, if the client is ecstatic with our service, we ask them to get online and write a review on FB and Google. 4.8 avg minimum or I get ornery.
  • Afraid of it becoming a leveraging system of clients over staff. Don't know how others have successfully approached that.

 

ARO

  • Without a minimum requirement or a push, we've always approached it with this mentality: Would you rather see 30 cars to make $3,000 or would you rather see 3? Which one would be less frustrating?

CAR COUNT

  • I've been afraid to chase this one as the immediate thought goes to "couponing" or something. Does anyone have any suggestions for this?

 

That probably sums up my KPI's because that's all I know. Any suggestions? (Please refrain from insults and negative insinuations, I'm being transparent hoping that I'm asking questions others have but are afraid to ask for fear of looking silly.)

 

 

Margins:

 

Parts profit margin and labor profit margin is good to track. Seems like you have the parts profit margin down. Ultimately a total profit margin combining parts and labor is what you want to to see to get your GROSS profit margin. Industry target standard is 60% combined.

 

For technician labor hours you want to track productivity and efficiency. Productivity is the amount of time they spend actually working during the hours they are in the building/clocked in for. For instance a person that is very diligent in an 8 hour day might spend 7.2 hours out of that work day working being productive opposed to another person only being productive 4 hours our of 8. We have to count bathroom and personal breaks but what you want is a high productivity % from your techs. Efficiency is how fast a tech can get their work done as per how much they are getting paid for the job. If you are paying salary then dividing the hours turned vs their day will produce the efficiency %. If they are flat rate then substitute their day with all the hours of their job that day. Both are good metrics to track but you will have to have your techs clock in and out of jobs to do so effectively.

 

 

CSI Score:

 

Best way to track CSI is to actually poll your customers. We don't to be transparent.

 

We do solicit for reviews regularly. It is kind of an art in the way you communicate with customers and the feeling you get from them. Due to the damage reviews can do to your online reputation you have to tread carefully. If we provided a great service and or they are a returning customer and they have not given us a review we tell them how much we appreciate their trust in us and we would be so grateful for a 5 star review so we can attract more great clients like themselves. This is why reviews arent the greatest way to get a true CSI score.

 

 

ARO:

 

A high ARO is a great way to indicate if your service advisers are selling additional needed services and if they are selling more hours. Speaking of hours, Hours per RO is another good way to track if your service advisers are doing their job well. What also coincides with ARO/HPRO is technician discovered work. If you want to have high tickets you have to have a lot of discovered work to sell. If you track what your tech's are discovering you can then calculate other metrics such as closing ratio.

 

 

Car Count:

 

Car count is a good measure of how well your marketing and CRM are performing. Of course more importantly is getting the right customers through the door however if your car count is constantly in a state of flux, that would be a good indication on focusing on your retention marketing as well as new customer marketing. We all battle with the highs and low to get it to smooth out as much as possible when it comes to car count.

Posted

These are the things I struggle with immensely as a single person shop. I try to implement them all but being pulled in so many directions means I usually forget.

  • Like 1

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
  • Available Subscriptions

  • 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.
  • Similar Topics

    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By Transmission Repair

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By Changing The Industry
      Revolutionizing the Automotive Industry With Leadership And Performance #podcast
    • 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
      **Podcast Episode Summary: The Weekly Blitz with Coach Chris Cotton**
      In this engaging episode of "The Weekly Blitz," Coach Chris Cotton, a renowned auto repair business coach, delves into the essential elements that contribute to becoming the premier auto repair shop in your community. Coach Cotton begins by emphasizing the significance of establishing a culture of accountability within the workplace. He explains that when each team member takes responsibility for their actions and outcomes, it creates a foundation for success and continuous improvement.
      Furthermore, Coach Cotton discusses the importance of fostering teamwork among employees. He suggests that a collaborative environment not only enhances efficiency and productivity but also boosts morale and job satisfaction. By encouraging open communication and mutual support, team members are more likely to work together towards common goals, ultimately benefiting the business as a whole.
      Delivering an exceptional customer experience is another key focus of the episode. Coach Cotton points out that while having the latest tools and offering competitive prices are important, they are not the sole determinants of success. Instead, he argues that true excellence is achieved when every employee is committed to maintaining high standards and consistently exceeding customer expectations. This dedication to quality service helps build a strong reputation and encourages repeat business.
      Coach Cotton also highlights the critical role of leadership in cultivating a positive and productive workplace culture. Effective leaders set the tone for the organization, modeling the behaviors and attitudes they wish to see in their team. By providing clear direction, support, and recognition, leaders can inspire their employees to strive for excellence in every aspect of their work.
      Finally, Coach Cotton underscores the importance of building trust and loyalty with customers. He explains that every interaction with a customer is an opportunity to reinforce their confidence in the business. By consistently delivering on promises and addressing any concerns promptly and professionally, auto repair shops can establish long-lasting relationships with their clients, ensuring sustained success in a competitive market.


      Introduction to the Episode (00:00:18)
      Coach Chris Cotton introduces the podcast and its focus on supercharging auto repair businesses.
      Podcast Recommendations (00:01:23)
      Chris highlights other podcasts on the aftermarket radio network worth checking out.
      Inspiration from Previous Episode (00:02:38)
      Chris discusses insights gained from a previous episode with Cecil Bullard about being the best shop.
      Creating a Culture of Accountability (00:03:56)
      The importance of fostering accountability among employees to achieve the goal of being the best shop.
      Defining the Best Shop (00:04:54)
      Being the best shop is a commitment reflected in every operational aspect, not just tools or prices.
      Employee Engagement and Culture (00:06:02)
      The significance of a positive culture where employees thrive and contribute to customer experience.
      The Role of Accountability (00:07:20)
      Accountability is essential; employees must hold themselves to high standards for the shop's reputation.
      Steps to Accountability (00:08:25)
      Chris outlines practical steps for employees to demonstrate accountability in their roles.
      Building a Standard of Excellence (00:09:31)
      Establishing a standard of excellence leads to a desirable workplace and loyal customers.
      Legacy of Excellence (00:10:29)
      Being the best shop is about building a legacy and creating growth opportunities for employees.
      Closing Remarks (00:11:33)
      Chris thanks listeners and emphasizes the importance of a positive mindset in the auto repair business.


      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


  • Our Sponsors

×
×
  • Create New...