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Everything posted by pfseeley442
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Business has slowed a bit for us, so I decided to look at me. I have gotten lax in making sure our processes are being followed. The techs have slowed a bit in getting their next jobs, they got a little lazy in the vehicle inspections and documentation. (A missed low brake measurement is a big deal.) So I wrote a new SOP for documentation while working on a vehicle, it includes road test expectations, post job discussion with the front office, etc. We just need to get better at finding and selling work. It was all on me, the boss.
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Years ago I figured out what cards cost and added the proper amount to my labor rate. Very easy. I have a friend who owns a shop and did the cash discount or pay a fee on the credit card. His first month he had three bounced checks. I asked him how did that work out for you ? LOL Customers just want the bottom line. All the extra fees agravate me, IE: $10 fuel charge to deliver oil.
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I have to tell you this last year has been tough, never in my life did I think that I would have to pay a state inspector so much. never mind technicians. I have been thinking about this topic and we may have to specialize just to stay in business. The lack of skilled help avaliable is unnerving. I think the days of a technician being able to do it all are coming to a close. I had a technician working for me for six years, I had a shop owner steal him away by talking to him through one of his freinds, he promised him the world. My pointt to saying that is that is whet we have become. We will need to find technicians with the skill sets we need to perform work that is profitable and may be very specialized. The problem occurs when you are lacking in work for that tech and only have work that they cannot do. so proffits will drop. Small shops will end up with the biggest challenges in this area. No easy answers, no easy solutions.
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As a shop owner I understand the need for growth and keeping up with new technologies. My biggest struggle is getting employees that have the capabilities to meet these challenges. I am finding that techs seem to be staying put , the last one that I spoke with told me that he feels secure in his current job and did not want to take a chance right now in moving jobs with the current economy. I have a young crew that relies to much on me for diagnostic issues. I have been in looking for the right employee but have been unable to fill to void. So that makes me put the brakes on incorporating new tech here and adding services such as EV work. I really want to invest in these areas, but afraid that there will be no ROI with out the right team in place. Maybe putting the cart before the horse will be the way to go.
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My shop is air conditioned. It adds approximately $250 per month in the summer to the electric bill. When the heating system was replaced it added about $6500 to the cost. My previous shops were not air conditioned, we did try the swamp coolers, fans etc. When it gets hot like it has been some days we saw a 50% loss in productivity, normal hot days maybe 15 to 20% loss. Now we have no loss in productivity, we have happy employees, a happy boss and a happy wallet. To see the employees happy not complaining and productive really is priceless.
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For me the most difficult one is Failure to Adapt to Market Changes , While running the shop day to day it is difficult to look down the road 3 months, 6 months or longer. We tend to make adjustments reactionary not proactive, : OMG its busy lets hire a tech, OMG were dead, lay off a tech. So I have learned to have about 30k in the bank for winter just to be safe. Proper planning is the key. I will always remember a story about a toy store that would have a line of credit to make it through the summer, then pay it off during the holiday season. The problem was a couple of slow holiday seasons and they could not repay the loans and lost their business. so save money for the slow times and it helps to keep the cash flowing.
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Want to End Your Technician Shortage? Focus on Retention!
pfseeley442 commented on Joe Marconi's blog entry in Joe's Blog
If you are on any social media you see the trend today is to move jobs. Watch and listen as they explain why, todays employee feel the only way to advance is to constantly seek out new employment, pit employer against employer and leverage the best deals. They talk constant about how employers do not value the employee, there are sights where employees go to rate the employer and share pay rates. Our trade is no different. We don't provide clear career paths, pay increase, benefits etc. Long gone are the days when employees stayed at one place for their career. They take 401k and head for the door. No easy answer, make your little part of the world the best you can and carry on. -
Alignment Machine Jan 2024
pfseeley442 replied to Hands On's topic in Automotive Shop Tools & Equipment
I bought the smart aligner by RAV America, Had my last one for about 12 years, this one also will work on a two post lift. Check alternatives before spending 85K. -
Slow or Non-Paying Customers
pfseeley442 replied to BNC173's topic in Credit Cards, Payments, Financing
I had a boss that had a Christmas Tree in the front room. He warned those that owed him money that their bills would be hanging on the tree, and if they wanted them off just come down and pay. It worked for most. -
WHY is there a auto tech shortage in 2023!?
pfseeley442 replied to Transmission Repair's topic in Human Resources, Employees
I can tell you how I solved my issue with technicians. I was always looking to pay as low as possible. If I could get a guy in for $20 per hour I was happy. That happiness was always short lived. I finally sat down to figure out why I had big time turn over of help. The problem was me and how I thought about the value of a tech and the service writer. I know the value of these rolls but never put the right dollar amount on them. Also a $20 an hour tech is just that. When I finaly ran my business corectly, priced my labor rate and parts where they needed to be, hired qualified techs and service writers: holy crap what a differance. I went from an average of 600K per year to now averaging 1.6million per year (the last four years, out of thirteen) I also have pay of 250K per year for myself. My techs get about 70K plus per year. . Front room gets about 65K per year. All salary, no pay plans, no games, just pay. With health care, 401k ect. I have four bays, one of them is an inspection bay. Good AC good heat, and very little turn over of help. So as an industry we know why there is a tech shortage, and the reasons for it. We just need to fix us first. -
My two cents: The last couple of years were an anomaly. There were a lot of items that contributed to a couple of great years for us. Lack of cars to purchase, extra money from the government, etc. This year will be different , people are paying huge electric, heat and food bills. We as business owners need to adjust accordingly. I believe we will still see good car counts but lower ARO's. We really need to keep an eye on our profit margins. We need to hold the line and stay profitable to stay in business.
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I have ran into this, I used cans and the single hose to fill the system, I diagnosed the system, then fill it with the cans.
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Zip allows you to look at resumes, also talk to tool truck drivers, unhappy techs love to vent to them Sent from my SM-G935V using Tapatalk
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How busy are you guys?
pfseeley442 replied to Framingham Auto Service's topic in Business Talk - How's your shop doing?
Sent from my SM-G935V using Tapatalk -
How busy are you guys?
pfseeley442 replied to Framingham Auto Service's topic in Business Talk - How's your shop doing?
I'm in Massachusetts, same here, everyone I talk to is slow. We have had shops lay of techs, and a clue have closed. Sent from my SM-G935V using Tapatalk -
My highest paid technician has been $60k per year. We average about $22 per hour. Our labor rate is $90 per hour. My two guys I have now at $20 per hour are averaging 32-35 hours per week. If you are paying that rate I would only go flat rate. That will cover you. If you are paying someone $1500 per week and it slows down that could drain the bank account very quickly.
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"My rear end's leaking" You need to make it right.
pfseeley442 replied to GENUINE's topic in Customer Experience & Reviews
I have developed a relationship with a local transmission Shop to refer this type of work to if you don't feel comfortable doing it. Our relationship agreement is that we don't steel work from each other and we discuss issues privately to avoid customer issues. My advise is to tell the customer you want to make it right, but you want to get a second opinion. I would then bring it to shop you trust. A pinion seal and bearing is replaceable. If the repairs are what you feel are justified I would eat the cost. I say this because you felt is was a mistake to do a used rear end. Then write it off as good will. Future advice : refer the job or do a rebuilt differential. Sent from my SM-G935V using Tapatalk -
It was not like that when I brought it in.
pfseeley442 replied to Hands On's topic in Customer Experience & Reviews
Need more info: was the estimate signed or acknowledged ? Any time we have engine damage I make sure the customer signs off on the potential for a bad engine. I also a bad experience and ended up losing on the job. No win either way. Sent from my iPhone using Tapatalk -
I have a help wanted out for a technician. A tech that I know applied for the job. He is a very nice person , ASE master, L1, and about 10 years of experience . He is a very smart and capable tech,His down fall is that he has had six different jobs , after a year or two his performance drops and he leaves. The reasons vary : performance, personal reasons etc. I have had very little response to my ad. Do I take a chance and get some time out of him or pass and keep looking? Thank you for any responses . Sent from my iPhone using Tapatalk
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I am of the same mind set that waiters are not good for business. For example even tire work: we had a customer make a waiting appointment for tires, the car comes in and has a bad tie rod end, needs an alignment. But the customer can't wait. So the car goes out with four new tires with a bad tie rod and we lost the job. And oil changes are tough to even up sell filters because of time restraints. So in my option waiters represent lost opportunity . Sent from my iPhone using Tapatalk
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To Do, or Not to Do: State Inspection
pfseeley442 replied to CarER's topic in Auto Repair Shop Management Help? Start Here
Inspections were a no brainer for me, in Massachusetts we get $35. Per sticker and keep $23.50. They take about 15 minutes each. We do 200 per month, with about a 8% fail rate. Average RO on failures is about $340. But another way to look at it is from a marketing stand point. We average 35 new customers per week, we capture their info and send them thank you cards. They stay on our mailer list and we get a 30% return rate. So it is great from a marketing stand point. We also need a dedicated bay, but I have four total. We also sell a lot of tires, bulbs, wipers etc. I feel that providing inspections kept my customers from going else where. Good luck with your decision . Sent from my iPhone using Tapatalk- 1 reply
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How to sale 30k , 60k , 90k services
pfseeley442 replied to lakesidetire's topic in General Automotive Discussion
The way I sell them is to tell the customer at the service prior to the 30,60,90 that is coming up . I generally print out what the service is and those costs associated with service so they can plan for it. This has worked very well for me. Another thing that I do is to sell items as a menu, I will say for example the services due are plugs, brakes fluid etc. and sell them like that. That makes you sound like less of a dealer. Sent from my iPhone using Tapatalk -
Drain Plug Gasket
pfseeley442 replied to 5 Star Auto Spa's topic in Auto Repair Shop Management Help? Start Here
I charge for them, $1.50, they are very expensive . And I do add them as a line item on the RO Sent from my iPhone using Tapatalk