Shopcat

xrac is right, hang on to your wallet ! The best customers, even good customers do not tell you "I'm a good customer". I also like the guy ncautoshop had that informed him he was a "was just a working man and we needed to do something about the price". Really? Welcome to the club!

I was wondering what policy shops are using for side work? I know of a shop that is losing its lead tech because he is going into business for himself. Can't fault someone for trying to better themselves, right? Then I got the rest of the story. You see this tech has been doing a great deal of side work. For example it was recently discovered the shop he works for has lost more than a few clients to him. This tech has also been enlisting the help of a junior tech from the same shop to work in the evenings for cash. Needless to say those two are under producing at the shop during the day. I get a tech helping out family and friends, but to me this guy is poaching customers and has become toxic to the shop.

Since your tech is good and motivated by money, there is a lot of potential . Take a look at the money he wants and set the bar at 60 billed hours, then reverse engineer it to what he makes now in the 40 hour/100 percent area. I do not know your numbers, but I'll demonstrate the idea. 00-40 hours $15.00 41-50 hours $ 20.00 51-60 hours $ 25.00 61-+ hours $ 30.00 With his pay as an percentage of production, you CAN afford to pay him. Make the rate retroactive to all hours, so a 53 hour week would be $25.00 x 53 = $1325.00 gross. And lets say your at $95.00 hour, this would be 26 percent unloaded cost of labor for this tech. Look at what he wants money wise and put that carrot where its attainable for him and affordable to you. Maybe put the hourly he really wants at the 61 hour plus slot. Like I said, I do not know the numbers. But this tech sounds like he's worth trying to work with. I hope this helps. There are infinite ways to build a pay plan, find one that benefits both of you. Great techs are very hard to find.

Gonzo, insanity is in the eye of the beholder. Its all about the individual reference point. I'll share a story with someone and they say "that's crazy", and I say naw..that's just Tuesday. Loved the article, as always.

It may be "fast food" type burn out. Olive Garden now has an $8.00 lunch menu, and its easy to spend that at Mickey D's or B.K. Where are you going for lunch? There is a lesson in this for great independent shops everywhere.

5 star, I developed a pre employment questionnaire for a client that asks specifically about their experience with the following scale. 1. no experience 2. not frequently performed 3. need help performing 4.. need little help 5. no help needed Next I have questions about 20 plus tasks routinely done at this shop. Then a technician tool inventory , ASE Certs, 20 ASE style questions that indicate specific skills for this shop. This is filled out with the application on site and never leaves the shop. The following admonishment is listed at the top :" Failure to answer the following questions truthfully could result in reduced wages or termination if you are hired and it is discovered you were not truthful" . This has help the shop enormously, After reviewing a few of these you will interview ONLY the great applicants .

The package deal is the way to go. Show your clients you care with a complete inspection and service package. This only works if your shop has processes that keeps the information from the inspection flowing from an astute technician to a talented service advisor that does the presentation and has a good closing ratio. Xrac nailed it with "Free rotations attract people who care about their cars. It is one of the best moves I have ever made". I works!

Jimbob661, what motivates your technicians? Money? not always! Sometimes its benefits, or flex time. What do you want from your techs? Better inspections? Better accuracy? I say the process starts with you deciding exactly what you need to take your shop in the direction you envision. Next, think about what you need from each tech. Not just the numbers, but career development. For one example consider a $ 1.00 hour raise for each new ASE certification . Leading your team means getting them to achieve their goals while getting you to your goals at the same time. I can be a lot of fun, and you will get to learn a lot more about your team.

I think its difficult to turn down any opportunity for business. That said, you must let your business model be your guide. Are you a quick lube? If not who is your client? Waiters are just that, waiters and their primary goal is the shortest possible time until their vehicle is done. Have vision when running your business. The Pareto principal says roughly 80% of your clients are 20% of your problems, and 20% of your clients produce 80% of your income. My point is the waiter on the fly probably is not your best prospect. If a great client needs something on the fly, do it! But be selective and run your shop with vision.

Our last blog discussed looking at how your shop is doing using new eyes. After a complete evaluation of your shop operations you should have a good idea of what you would like to improve. Once that is decided, you will need an organized actionable plan to achieve the results you want. It is a fact that if you can't measure it, you can't manage it, so let's begin with the facts. Many shops feel the primary challenge they face is their car count is too low. If I just had more cars, I would have more business, and so more income. This could be the issue but normally is not. A little closer examination of the facts usually reveals that it's not the car count but not making the cars count. What I'm talking about is the average repair order. Look at your company history and find out what your average repair order figure is right now. Simply take your gross sales and divide it by the number of repair orders for the same period of time. I recommend looking at the same months from the previous year. For example next month is December, so figure last December, January, and February for your average repair order figures. These numbers are a good starting point because shops see the same trends thru the year. Next, set goals that are realistic. For example: If your average repair order is $250, you should start with a 20% improvement as your goal. You need to ask yourself, what do I need to do to increase my average repair order to about $300 per car? Now that we have decided what needs to be done, in the next Blog we will develop the nuts & bolts program that will get that 20% increase. A 20% increase in gross income would be a welcome improvement in any business. Your clients will be better served, your employees will benefit, and you will ACCELERATE YOUR SUCCESS !!!

Here is a very good article in Ratchet + Wrench about having loaner cars. Check it out. http://www.ratchetandwrench.com/RatchetWrench/August-2014/Managing-a-Fleet-of-Loaner-Vehicles/

Great post! Time is precious at trade shows. I goes all too fast and it can be expensive to attend. I look at exhibitors in advance, decide who I want to visit and what I want to see and learn. I attended SEMA/AAPEX and there was also a lot of training I wanted to attend as well, so I made my own schedule for each day. Its like running a shop, you have to plan the work and work the plan. Excellent blog post.

Changing from used to new tires is an adjustment, and it will probably take time. Steer your clients toward appointments. Tell them you want to give their vehicles the time and attention they deserve. Check out this article out of Ratchet+Wrench for some great ideas on that loaner fleet. http://www.ratchetandwrench.com/RatchetWrench/August-2014/Managing-a-Fleet-of-Loaner-Vehicles/

Both qualities are necessary to be effective. Leadership is the ability to inspire the people around you. To share a vision that creates common purpose. Leaders cause the people around them to improve & grow. Being a leader means being fair, firm, and consistent. Management is using the resources you have at your disposal to achieve you vision. This means having policies and procedures that work well toward the goals of your shop. Many shops have no clear vision of where the shop is going, and consequently no plan to get there. Before a shop can have any measurable improvement, there must be a vision of what you want to accomplish and then a detailed plan to achieve that vision. So, what's the answer? Your shop has good traffic Does quality work But there is no real progress or growth Take a few days and notice what goes on at your shop. Look at it with new eyes. How is the phone answered? Do your technicians stay busy? If not, find out why. Look at , key performance indicators like your average repair order, effective labor rate, gross profit margins, and individual technician efficiency. Take a look at your inspection sheets done on each vehicle. Does the car and it's mileage jive with the inspection results? If not, why? Is there one specific technician that never finds any problems with the cars he's working on? Be sure to take notes on what you discover. Keep in mind that what you decide to improve on must be measured before it can be managed. In the next blog we will take these ideas and craft them into an actionable plan that can be implemented into permanent improvement.

It takes a lot of candor and integrity for an employee to do that. It says a lot about them, and the fact that you have created an environment where you get all the news, not just the good stuff. Kudos on having such a good relationship with the folks that work for you.

Jeff, I was wondering what changed about your business? For example did you loose car count, or ARO? Maybe you can get back on track without extended hours. Obviously extended hours costs more in the immediate, and maybe just masking another symptom of slow business. I like the idea of 8-5 M-F. Extended hours may cause your team and yourself to suffer burn out quickly. We all need a break. I suggest make it work without spreading your assets any thinner.

caautogroup, It depends on if this is a first time client, or an established one and if its a scheduled appointment or a walk in. In the case of an appointment, I recommend getting all the pertinent information over the phone when they set the appointment and use it to start the repair order. When your client arrives you can do a quick review of contact info, and the problem statement, ask if anything additional needs to be checked and get them on their way. Doing this in advance means they have time to better answer those open ended questions that make for an excellent problem statement.

KMS is right that great ARO is much better for business than the chaos of slamming cars in and out with car count. Inspect everything on every vehicle and prioritize the recommendations for your clients. To answer the question ARO is much tougher to achieve. It requires processes, policies, and leadership. Car count can be done in chaos with a cheap oil change and filter.

Fit, You have the right idea. However leadership REQUIRES confrontation from time to time. Someone is going to be in charge and if you do not do it, the technicians will be running the show. You have to be fair, fire and most important, consistent. I have taken many a chaotic situations and developed structure. Letting this go on only encourages all your employees to do as they please. Tacit approval feeds the monster.