joecval
Forum Replies Created
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If I’m in pain I don’t care how good my doctor is I’m going to find a doctor who can remove my pain as quickly as possible. When a customers car breaks they are in pain. Sure they may call you first and schedule it for later next week but then perhaps look around to see if they have other options. If they see a shop that is comparable or one they even perceive as better, they call. If that shop can get then in a few days sooner they will probably go there.
If you are carrying even close to 40 hours over into the next week it’s time for another technician. If your technicians are not at least 80% productive (hours billed divided by hours in the building) you need to figure out why. We are living in a world that loves convenience and speed That goes for the services we choose as well 😊
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As an owner our decisions attract dollars to our business or repel dollars from our business. Did you do the math on what not talking to this tech could cost you?
55 hours billed per week x ELR of $115 = $6325 in labor revenue.
If your parts labor split is 50/50 that’s $12,650 of weekly revenue.
At 57% GP that’s $7,210 in GP dollars per week x 4.33 weeks in a month = $31,219 per month in gross profit dollars. If that doesn’t sting the $374,628 of yearly GP dollars that will go toward overhead and then add to your net income really will.
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[postquote quote=121121]
Very difficult to toss out any candidate? Unless he’s 30 minutes late to an interview 🙂Sorry Tom, I couldn’t help myself.
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Tom, I’m sorry but this is horrible advice. With all the good qualities on this candidate that alone should justify an interview. An interview is nothing more than an intentional conversation and tells you a lot more about a person than being late to an interview will. I get the spirit behind be on time for an interview but to say you’re late and goodbye without interviewing him is cutting off your nose to spite your face in this hiring climate.
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David,
Congrats on the growth! Certainly an exciting time I’m sure 🙂 We supply techs with uniforms, and since we are located in Wisconsin summer here is only 2 weeks long so heat isn’t much of an issue, but I have heard of shop providing T-shirts during the really hot days. I would offer that, I would also state the purpose of the uniforms (professional appearance, clean set everyday, you don’t have to worry about cleaning them etc.) I would discuss with him that they are important to you (the owner) and are required.As far as cell phones go, a good portion of my techs pay is based on performance ie billed hours. So that really helps keep the phone use to a minimum. I don’t require the phones to be locked away, my guys use there phones for some work related tasks, they stream music at their tool boxes with them so asking them to go w/o them would be a hill I wouldn’t want to die on. Perhaps investing some time in developing an employee handbook that outlines your expectations and policies on matters of uniforms and phone use as well as sick days, time clock reporting, vacation time, holiday pay and the list can go on. In doing so these things are dealt with consistently and early before they become a larger issue. The only caveat is that you must refer to it and adhere to it and hold your staff accountable on it. -
We charge a percentage on just labor. 4.75% with a max of $39.21, we also have a minimum charge of .75
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Tom,
What else can you do? It appears as though you have set yourself apart very well. Maybe focus on the parking lot, redo your businesses parking spaces. The problem just may be that people don’t pay enough attention. We have a similar set up however we share the showroom, office and waiting room space and the entrance with another business. We just completely redid our front desk space to set us apart. Complete with new flooring, desks and clear signage, A digital menu board offering our services. There is nothing the same about the appearance of my business space and the other, – people still don’t get it. My problem is now on the path to resolved since the neighboring business is out of business. And since I hold the lease it will have to be a very lucrative deal for me to lease the space out again.
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We are in a current search for an experienced technician, as of this posting I haven’t hired anyone but here is what we are doing to meet this need.
1. We have an employment page on our website which allows us to always be looking whether we need someone or not. We have an very short online application that just gives some basic info and opens the door to further questions.2. We link this Employment page to every online ad we list. It would be great if through this employment page an applicant could attach their resume (We’ll have to work on that)3. Posted on Craigslist of course, but also out of my main market area (which those markets do not yet have the $25 fee) I have received some activity from outside my market so it may be worth a shot.4. Job Center of Wisconsin, which allows me to post for free. Perhaps your state will have something similar.5. List of online directories to post your job opening here: Online Directory for Automotive Job Posting Sites6. I created and posted at the parts delivery area in our shop a big REWARD Sign for any information that leads us to a successful hire. How it works is offer a cash reward to anyone who refers our company info to an individual that is seeking. Make it what ever dollar amount you think is appropriate and pay it out as 1/2 when the person is hired and 1/2 after 30 days.7. I personally called all my parts vendors and asked if they know of anybody that would be a good fit. Mention the reward you are offering if you want, but basically you are just getting the word out that you are looking. How many techs may come in on the weekends and get parts and visit with the counter guys, that small talk could lead them to you.8. I called the company that does the evening training for our techs and asked if they know of anyone who would be a good fit. I really like this idea as the techs I’m interested in are ones that are committed to continued training.9. I posted to our shop facebook page and shared it on my personal facebook page, with a link of course to our employment page on our website.10. I asked my current staff if they know of anyone who would be a good fit.11. Tool Truck guys, use the same REWARD program for them as well.If nothing else I know we are doing our best to look as broadly as possible and if I get a few leads a week I know it will just be a matter of time before we find and hire the right guy. -
We went with a VoIP (Voice Over Internet Protocol) company a few years ago because of the massive amounts of features and the overall cost was way less then an elaborate phone system. The company we went with was 8X8 and have been pretty happy with the service.
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We generally take lunch at the same time 12 -1 pm. We schedule around the lunch hour, I really enjoy using the lunch hour to eat with my staff whenever I can…which is almost every day.
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I only have used one for Advisor Training
Advisor Fix: 8
I have attended several training sessions through AutoWares over the years for Service Advisors, but the training we received from Advisor Fix was more one on one. It was well worth the cost and I am very happy with the results. Avg RO has been on the climb along with my CSI rating. I gave Advisor Fix an 8 out of 10 because it is a fairly new company that tends to get stretched thin at times, especially in the administration and communication side of the business. To be fair this need is being addressed as I post and I trust Jeremy to eliminate this as an issue in the very near future.
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Perhaps it’s more of an issue of MOD clashing with nexpart as we have just transitioned to Manager SE.
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Quick Survey – What is your standard warranty?
_____ Less than 1 year, 12,000 miles_____ 1 year, 12,000 miles_____ 1 year, unlimited miles__X___ 2 year, 24,000 miles_____ 2 year, unlimited miles_____ 3 year, 36,000 miles_____ 3 year, unlimited miles_____ More than 3 year, 36,000 milesJust upped it this year from 12/12 -
Dennis,
We have had more turnover with staff than I would like in my 9 years of business, but looking at resumes as we hire it seems to be trending that a lot of techs will stay the longest at there first place of employment and then shorter duration at the next place(s) I wish I could share some great tips for finding a good mechanic, but really I have found that patience pays off and just being thorough in the interview process. I tend to focus more on attitude, desire and overall how they will fit into our team. I am not expecting perfect but I do want to see techs as well as other staff progress and get better and have made it a point to support and encourage this growth with paying for training. Even if the tech isn’t where you want him to be now – can you train him to get there? An employee that needs cash advances may be a red flag that they lack financial discipline. If you need a great diagnostic tech it may mean stepping up and paying him and/or offering a work place environment that makes him WANT to work for you. -
Everybody looks at things through some sort of preconceived lens. I would agree completely that if the SA or Owner doesn’t believe enough in the the PM they are going to have a hard time selling it to the customer. The lens of acting proactively or reactive plays a big role in how you address PM. How many people go to the dentist for cleanings once or twice a year (Proactive) How many go only when something hurts (Reactive) I want an SA, and myself to look through the lens of being proactive. If PM has no value to you how can you explain it your customers?
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My Top 5
__X___ Customers – finding new ones- I would add to this finding the right customer is just as important___X__ Parts – getting the right one delivered quickly- Delivery time is hit and miss from several suppliers. Getting the right part the first time – we are working on it as it has been a problem. I am surprised how many times it’s the catalog that gives poor info or lack of info to make the right choice.
__X___ Sales numbers- the ups and downs- feast or famine
__X___ Servicing cars quickly and efficiently- we are working on it, but room for improvement.
__X___ Shop – keeping it full of work -
I’ll update mine, since we moved in Dec 2013
5 Lifts
Clean up stall
3,450 sq. feet Shop Space
1100 sq. feet Mezzanine
1,500 sq. feet in Offices, Conference room, Service counter and customer area
approx. 6,000 sq. feet total
I currently rent out another 1800 sq. feet portion of shop space in my building to another business and some office space as well.
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I see them in the back jacking around and goofing off and have to go out there every 30 mins to check on them. And get them “in gear”.
Even if they are paid on an incentive pay plan they still need to have the desire to work. Goofing off, or just lazy is a bad habit and just because they make more if they work more doesn’t mean it will fix the underlying issue.
I mean these guys hired me on to turn this place around and I see why now it was the way it was…
Why not discuss your expectations with them, let them know the production numbers you have personally been apart of and offer to help them get there. Ask how can we help you (the techs) be more productive? Maybe they will have some good ideas. Seek out training for them, commit to helping them, give them an opportunity to learn how it should be done, how to work hard and efficient. If they are receptive -GREAT encourage and praise them for it. If they buck the changes well…you know what needs to be done.
Set weekly goals, use a white board and post hours produced by each tech each week- publicly praise and reward Improvement- reward should be public in a staff meeting -hand out cash -or candy – or whatever they are always munching/sucking down throughout the day. Throw in a bonus for quality work or as we call it in our shop the OTT award (Over The Top) going above and beyond. Add a shop goal where the team benefits if it is reached (we have a sales goal and if we hit it I buy lunch the next Friday)
They key is getting them onboard and watching for improvement- gradual steps in the right direction.
My problem is I know I could let go of two of the three guys I have and replace them within two weeks with Certified Techs and turn the shop around.
Working through the process above will sort the wheat from the chaff and reveal who should stay and who should go. Maybe there is a “ring leader” that has a strong pull on everyone else, if you turn him or release him it may improve the bunch. I have a hard time just pulling the trigger without working through a process and knowing at the end of the day I gave them what they needed to succeed…but that’s just me.
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Tom, caught two or three episodes this weekend. Awesome show!!
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“I felt good about fixing her vehicle to their satisfaction,But I was also upset at the other shops. If I had recommended a strut change and it didn’t fix the original reason the struts were replaced I would feel obligated to find and fix the original problem.”
I would feel obligated as well.
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I would give it a try if I could. We are not not zoned properly to sell cars we can only fix them. I would think selling cars would be a good match for a repair shop IMO.
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We schedule our meetings every Monday morning for 8am. We do schedule them meaning we don’t take any appointments until 8:30 on Mondays to allow time for the meeting. I like doing the meeting every week as it allows them to move quicker with less information to share week to week verses month to month. We go over the KPI numbers as a shop and compare to our goals. We also worked through as a shop our SOP (Standard Operation Procedure) manual a page at a time. We also discuss the previous weeks positives as well as the negatives, with a mindset of always improving. The next step to implement will be meeting with the SA’s with more sales focus and also a separate meeting for Techs with more technical focus in addition to our weekly shop meeting. Sometimes I really feel the need to take extra time to focus on the individual positions and people.
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Business Summary Reviewed in Weekly Shop meeting to include:
Avg RO, Car Count, Gross Sales and Tech Hours vs. Clocked Hours- Compare these to our goals.
I personally review every week:
GP Parts,
GP Labor, Total GP, Effective Labor Rate,
Reconcile Tech Pay: With Labor Sales, Reconcile SA Pay: With Gross Sales, RO Count, LOF Count, New Customer Count, Parts Sales by Vendor: Check for missed cost input on RO’s. -
How many government inspection visits have you had at your shop during the past year?
_____ Federal
__1___ State
_____ Local
We had the Department of Natural Resources (DNR) visit us in the spring of 2012 to investigate a report that we were dumping waste oil down the drain….completely ridiculous, I get good money for my waste oil why in the world would I dump it into the sewer. I heard of a shop down the road a year prior getting checked out for the same thing. I did confirm with the 2 agents that came in they did receive an anonymous phone call that we were dumping waste oil down the drain. Of course we passed the inspection with flying colors, my guess as to who the anonymous tipper was, most likely a competitor. The DNR did ask for a years worth of receipts indicating who was taking our waste oil which we furnished without a problem. We did not receive any fines for this or for anything else either which was a relief.
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We have one loaner vehicle, but probably could use one more.
No charge for the customer, just replace the gas used.
We have Wilson Mutual Insurance. We also use a rental agreement marked no charge.
We advertise it a lot in various media, the vehicle has our shop logo on it but is not a rolling billboard.
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Joe,
We have used customerlink for about 2.5 years, I’ve been happy with the results and they are great to deal with. I haven’t always heard the same about DF. I am sure any specific questions you could get answered by my account manager. Contact info below:
Blainey Peddie
Account Manager
p: 916.781.4344 ext 145| f: 866.230.1503
bpeddie@customerlink.com -
Cheryl,
We do pretty much the same as Tom. We notate the safety concern on the invoice, highlight it and explain it to the customer like this. “We are recommending that this vehicle not be driven due to the brakes not functioning properly and will not stop the vehicle. We suggest that you have the vehicle towed to move it and not drive it.”
In the end it’s their vehicle and their right to drive it we can only advise them. We have had a few vehicles leave with NO brakes due to blown brake lines, or caliper pistons ground into the rotors it’s scary but we can’t force them to fix it.
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Aziz,
Con’s :-
A) Expenses are A LOT
Have you sat down and made a spreadsheet of where every dollar goes? If you use quickbooks or some other accounting software that’s OK but really you need to go deeper than that. For example under the expense of “Marketing & Advertising” you will probably have a dozen or more expenses in that catergory ( business cards, website, vehicle lettering, signs, pens, trinkets, etc) breaking this down gives you a better handle on where it is all going and makes it’s easier to manage and most importantly for marketing is tracking what is working and dumping what is not. Also then you can create a budget for your shop – a preplanned guide to where and how to spend your money. It’s just a guide – it’s certainly not always set in stone but at least you have a set amount you plan on spending for “Marketing & Advertising” so it forces you to prioritize and be intentional and thoughtful with where you invest your dollars. I am by no means an expert on it but have learned through experience such as yours that this does help.
EXPENSE CUTS – This can be challenging, but if the work load (the sales, the production, the profits) don’t pay for all the expenses it’s time to trim. My initial thought on your situation is that you are over staffed for your work load. It may be time to look at trimming staff, and working with the staff that make the cut to be more productive- do more with less. Systems and organization as well as motivated staff are keys to efficiency. Chances are the reality of co-workers being let go will fuel the fire a little to improve.
Non-employee cuts – Try negotiating to save on your expenses, asking for the best deal and the best value. I have found that just being honest with the situation we are facing helps to negotiate a better rate, a better price, or discuss options with vendors to reduce costs. Sometimes a phone call and 45 minutes can result in saving money on your expenses. I’ve even had success negotiating my rent down due to economic conditions and comparable shop spaces that were available.
Do your due diligence, stay focused and positive. If you take no action the entire company will suffer and possibly everyone will be out of a job and you’ll be broke, but if you apply intentional pruning the pain will soon lead to stronger growth. Good Luck!
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Andy,
Over the last 2 years I have looked at leasing several spaces and on 2 of them I drew up a tiered lease that based the lease amount to our gross sales. I had a hard time selling it to the property owners. We just moved into our new location Jan 2nd of this year and for this place I did a tiered lease but with fixed amounts. I used the average $/sqft over the lease term and checked it against the estimated gross sales that we should be able to do, trying to keep the lease in the 4 – 7% range. With 2 years of “research” under my belt as I looked and priced several different locations and shops I felt comfortable moving and know that I am getting great value for the money.
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Hi Ollie,
I know we will optimize our website for various devices in the future. I track the number of mobile visits compared to non-mobile and we probably average 5 mobile visits per week. I’ve been on my website with my smartphone and it’s not too bad….but we will change over – just a matter of when.
