Linc
Forum Replies Created
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It depends on who you ask. Typically most shops do not bill properly, may not account for or recognize all overhead expenses, and they generally review financial info only at tax time.
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Sales up 43.01 %
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We account for tires a part as well as the weights and stems required. These ” parts ” are accounted for separately because the GP% benchmarks we use as goals are different for tires, parts and labor.
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At our shop, in the event of a request for the installation of customer supplied parts and or customer supplied aftermarket accessories our service advisors are instructed to determine the gross profit lost on the part sale which is then added to the normal retail labor charge.
If the request is for an aftermarket accessory part whose retail price we are unsure of, the service advisor can apply our shop’s parts to labor ratio of approx. 90%-95% to the installation labor charge and then to apply our average GP % of 48-50% thereby computing the added retail charge for this part sale loss.
Of course, the RO contains a standard statement advising the customer that in the event the part fails on the road test there is no labor warranty.
In the event that the customer supplied part is the incorrect part, the customer will be charged the original charges quoted to reassemble the vehicle so our shop bay and or lift is not decommissioned. -
Our shop has had a Hoffman for at least 10 years and it has been trouble free and reliable. Don’t remember the pricing difference but there must have been a material difference. We had been using a Hunter for years and had them quote us but Hoffman won out. Since then we cant complain.
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We will never tell a customer no. We will install customer supplied parts. We will assist every customer in any way including bringing a vehicle to the dealer for warranty work or recalls. We will charge customers for any and all services we provide and generally our customers are happy and willing to get and pay for our services.
However, when customers supply their own parts our SOP is that on the repair order it is clearly spelled out
( with a canned job ) that our shop does not offer, nor does the customer have, any warranty on labor for a customer supplied part failure. The reasons are many, we all know them and you can tell the customer if they ask why no warranty.In addition, our service advisers will determine the lost gross profit on a customer supplied part and those dollars and cents will be added to the labor charge for that customer supplied part installation. So the bottom line is the shop is not harmed by customer supplied parts.
You can always allow the SAs to discount that gross profit surcharge so at least the customer is aware they got a discount and management is allowed to track discount costs to insure they remain within the metric allowed.
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I am surprised by the responsess with respect to loaning company owned vehicles as loaners. I was always concerned and advised that the required coverage was difficult to get and expensive. Our shop has for man y years provided loaners through Enterprise.
I believe this solution to the loaner challenge is the cleanest, safest, and cheapest answer.
LINC
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We are an 8000 sq ft 10 employee repair facility and a AAA Approved Auto Repairer for almost 10 years.
I would not support BBB because of the following :
We had a complaint filed with BBB by a customer who felt our estimate for repair was too high. The customer never had the recommended work done but nonetheless felt a disservice had been cast upon him. We responded to BBB and received a letter within a couple of weeks confirming the non-issue with respect to this compliant.
Upon receipt of their letter I contacted the BBB manager and asked ” will this compliant be removed from our file ” they answered no. The compliant would stay, however, be listed as resolved. That was unacceptable for us. Further attempts to BBB’s next level management was unsuccessful.
I do not believe BBB serves any useful purpose.
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Our shop challenge has always been to better all communications between customer and tech. S/As are required to describe the customer’s compliant while beginning every RO with Customer States: This statement is verbatim from the customer. The S/A will then analyze that statement, clarify and restate, and explain what preliminary service or diag will be necessary to begin the repair. I believe that Cheryl has a better chance than most S/As because unless SHE is convinced an additional story is required. Cheryl, do not learn too much technically and require your husband or any techs to write a detailed description of the problem and the parts they require for that repair. You will find labor times in your guides and you should order parts. Keep techs on twisting wrenches and describing causes, and recommended services.
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Our business had started as a mechanical only repair shop until 1990 when I took over. At that time I felt better use of our sq footage could be put to use as a complimentary service to the mechanical repair. The premise is a good one for all the reasons already mentioned ie. one stop and departmental synergy however the start up was longer than I anticipated. That said if you have the cash flow to help support an under performing department I believe that it is a good idea. One possibility to help shorten the start up would be to sell your soul to the used car dealers around you as they are always looking for discounted paint and body work. Do this only for the first one or two years and focus on converting existing mechanical customers into body repairs. It will happen but will take time.
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Jim Murphy as previously mentioned is an individual I have been mentored by in the past and would strongly urge you to tap into his experience and insight.
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Keith a lot of great comments have already been made. However, I believe that a repair shop management group would be your best return on dollars invested. One was mentioned in this thread already and I would suggest you look on line (Google) the Bottom Line Impact Groups and The Elite management group for cost effective support and training. I have personally participated in these programs and would say without the procedures, support, and training I learned over a ten year period I would not be in business today.
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sales gross dollars have gone up however, parts GP% down, discounts to sales up 1 %, total GP same. working harder to keep avg ticket $ even. Advise….stay the course and do continue the procedures which made you successful before, concentrate on fixing the customer ( their needs ) and continue to encourage your internal customers ie. the employees with an upbeat leadership attitude and SMILE !!
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We began to use tele-check several years ago. That is we will accept a personal check if it is able to be processed electronically. The burden of a good check is shifted to telecheck and we remain neutral and nonjudgmental. The cost is about the same as a credit card discount rate….. FWIT.
