Shopcat

Jay Huh, How is it working out with the tow truck?

I would like to hear from shop owners that have decided to buy a tow truck. Did that became a healthy additional source of income? Was it worth the investment? What advice could you offer a shop owner considering buying a tow truck?

A good way to price your labor rate is to take your most expensive tech's pay rate, then add in uniforms, benefit costs, FICA, workers comp, etc until you have the loaded cost of having a technician. From there multiply that number by 2.5 to get to a 60% profit margin. For example a $30.00 tech probably costs you about $39.00 per hour, times 2.5 is about $98.00 per hour labor rate, at the least.

Thanks for your insight PAPShop. I think you will agree, females are relationship buyers. If your shop builds a relationship with them, they are amazingly loyal. Women can quickly go from customer, to client and then become advocates.

There is an ever increasing percentage of women that are decision makers in where the family funster goes for repairs. The Automotive Aftermarket Industry Association discovered in a recent study, almost 90% of women are now involved in the decision process for their vehicle’s repair and maintenance, 68% of them take the vehicle to the shop themselves, 45% are solely responsible for their auto repair and service decisions. That is amazing. Do you have 60% or 70% female clients? What do you do to adapt to this changing dynamic?

It is up to us to police our industry. Most frightening words in the world? "I'm from the government and I am here to help". We should have regular training, a defined career path, apprenticeship programs, etc to build technicians. A lot of owners simply wait until they need, say an A tech, then are surprised when they are hard to find.

I was wondering how many shops charge for everything that goes into a repair? For example, zip ties, dielectric grease, clamps, bulbs, fuses, heat shrink , butt connectors, etc. It seems to me some shops have a "shop supplies" charge and let it go at that. Other shops do a great job of getting everything on the invoice and then also have a "job supplies" ( not shop supplies, because it is for the job, not shop ) to cover consumables. Of the shops that are getting everything on the invoice, what is your advice on making that happen? How do you do it?

Awesome results Framingham Auto ! It is a win, win. Your customers are getting all the information on their vehicles, and a 20% increase in sales is amazing.

I agree with xrac, Get your feet solidly on the ground and be able to rise to the challenges at a more reasonable pace. Too many balls in the air could be a real problem in the near future. Just my opinion with fairly limited information.

I bought 10X by Grant Cardone based on Shumsauto recommendation, and its AWESOME so far!

M-Spec, you have a great point. Providing all the information puts you in the position of letting your customer decide based on the facts about their vehicle. I am sure everyone has had to make a buying decision based on vague or missing information, and that is a very bad feeling. Your shop develops great affinity giving your customer ALL the information needed...like you said you become the consultant.

Nice! Sounds like a great deal for all involved. I really like that you share the information, not"sell".

Jay Huh, How did that impact your customer satisfaction, ARO, etc?

I am looking for shops that implemented or improved their inspection process. What made you decide to take action? How did you make the change? What result were achieved? There are so many shops that think they need more car count, when what they really need is to MAKE the cars count.