Bobby Likis
Forum Replies Created
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1: Customers who cannot commute to work are more available to you.
2: Vehicles sitting in garages and driveways instead of at a place of work are more available to you.
3: Customer income is being maintained, however, customer spending is down. So, your customer has more available cash.
It’s perfect conditions for getting one’s car serviced.
Obviously, you aren’t up to date on income, unemployment and/or the mindset of consumers due to the Virus. With all due respect to the folks on this forum, I won’t share all my thoughts, but your statements make no sense whatsoever. While it’s accurate that more vehicles are parked in home driveways than ever, at a time like this, car owners really don’t care about maintaining their cars.
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There’s certainly nothing wrong with not having a shop supply charge at the end of your invoice. Instead, some shops itemize every little thing. In some areas, a supply charge at the end of the invoice might be illegal. But, are you taking advantage of what you are not doing? Do you have written in large capital letters near the bottom of your invoice:
***SHOP SUPPLIES – NO CHARGE***
Why not let everyone know that you are not tacking on extras at the end of their bill? Some people hate added items like that and will favor shops without that charge at the bottom – and tell their friends.
#autorepairshopsupplies
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Shop supplies…how to collect?
Many years ago, the State of Florida installed a surprising 25% Workman’s Comp rate increase one year followed by yet another 30% increase the following year [rate increases were not based on claims from my company], I felt compelled to pass such rate increases on to my customers.
The recovery of such outlandish rate increases was essential to the continued prosperity of our company and would determine whether or not we would continue to survive. Our goal was – as it has always been – to provide the highest level of Customer service, provide ongoing education for our service Teams to learn new technologies and stay the course. This year we’re celebrating our 48th year. Also, winning the area’s Best Awards 9 years in a row over all local independent, chain and new car service departments. More proudly, we were honored by the BBB in 2017 as Winner of the Torch Award for Ethics in Business for all (types) in two surrounding counties for a company our size.
Back to Shop Supplies:
I was exercising in the gym one morning and came up with what (I believed) a unique method to recover a portion of these rate increases while also providing my customers with the truth. So rather than add a few dollars to each parts invoice (as I’m sure most shop owners do), we created a line-item charge. This charge is listed as “InsAdjChg” and is shown at the bottom of every RO quoted [pre-sales-tax] and automatically figured within the quote created at 6.5% parts & labor limited to $200.
Whenever we have a customer ask about this charge, we are eager to explain that – just as Gulf Power adds its “Fuel Adjustment Charge” to our area’s monthly electric bill (based on daily energy-fuels costs), we wanted to be open [never hide such cost in parts or labor] to help them understand that these charges cover the essentials needed to maintain a clean facility, educate technicians, meet EPA requirement and, more importantly, ensure our company remains in the community so that the next time they need services, we’ll be there for them.
On occasion, we have credited part of these charges (if the job is unexpectedly higher than estimated), but given that we quote each and every job total “Out-The-Door,” we have very few inquires and are always eager to explain why we chose not to hide such costs.
Since November 2017, we have accumulated more than 500 5-Star reviews and are enjoying an average of 46% gain in car count…all due to three marketing initiatives. For those of you who doubt these facts, we have 156 months management meetings and all data re the operation of our company.
We are not afraid to swim upstream. As Einstein stated, Insanity is…
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Shop supplies…how to collect? Many years ago, the State of Florida installed a surprising 25% Workman’s Comp rate increase one year followed by yet another 30% increase the following year [rate increases were not based on claims from my company], I felt compelled to pass such rate increases on to my customers. The recovery of such outlandish rate increases was essential to the continued prosperity of our company and would determine whether or not we would continue to survive. Our goal was – as it has always been – to provide the highest level of Customer service, provide ongoing education for our service Teams to learn new technologies and stay the course. This year we’re celebrating our 48th year. Also, winning the area’s Best Awards 9 years in a row over all local independent, chain and new car service departments. More proudly, we were honored by the BBB in 2017 as Winner of the Torch Award for Ethics in Business for all (types) in two surrounding counties for a company our size. Back to Shop Supplies: I was exercising in the gym one morning and came up with what (I believed) a unique method to recover a portion of these rate increases while also providing my customers with the truth. So rather than add a few dollars to each parts invoice (as I’m sure most shop owners do), we created a line-item charge. This charge is listed as “InsAdjChg” and is shown at the bottom of every RO quoted [pre-sales-tax] and automatically figured within the quote created at 6.5% parts & labor limited to $200. Whenever we have a customer ask about this charge, we are eager to explain that – just as Gulf Power adds its “Fuel Adjustment Charge” to our area’s monthly electric bill (based on daily energy-fuels costs), we wanted to be open [never hide such cost in parts or labor] to help them understand that these charges cover the essentials needed to maintain a clean facility, educate technicians, meet EPA requirement and, more importantly, ensure our company remains in the community so that the next time they need services, we’ll be there for them. On occasion, we have credited part of these charges (if the job is unexpectedly higher than estimated), but given that we quote each and every job total “Out-The-Door,” we have very few inquires and are always eager to explain why we chose not to hide such costs. Since November 2017, we have accumulated more than 500 5-Star reviews and are enjoying an average of 46% gain in car count…all due to three marketing initiatives. For those of you who doubt these facts, we have 156 months management meetings and all data re the operation of our company. We are not afraid to swim upstream. As Einstein stated, Insanity is…
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After 45 years in the business, I learned it best to play musical chairs with all insurance overages. We left Federated for Zurich and saved more than “HALF” the old premium. Zurich charges for the number of employees whereas other companies always asked for gross sales in addition to number of employees. After two years with Zurich, I have had zero surprises and highly recommend that company. Automobile insurance is another hard to swallow item. I use State Farm and received a discount when I told them I was considering another provider. I’ve been with the same State Farm agent for years to include my home, cars and personal items, but would leave them today if another solid company offered same overages for reduced premiums. I pay $1,300/yr for my 2013 Jaguar XJL and also have a smart car, Porsche, Viper and remote broadcast trailer with State Farm. all my cars are low mileage drivers with two stored as Classics.
Want to save money on insurance? Bid your needs out to three companies.
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I pass on this one. am reminded of many offers that tout relieving time-pressure from a busy day only to learn nobody can properly address real reviews as each one has different and specific circumstances. My team and i meet to discuss each review and to determine what we might have done better to make it a better review and/or to celebrate the win.
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I’ll send it as soon as we finished modifying the formula to include hours billed vs. hours clocked.
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Opps…here’s another point to ponder. Say your service advisor makes less than $47.476 per year salary. While his total pay (including monthly paid bonuses) may ultimately meet the $47,476 rate, his =bonus pay is not 100% applicable. Facts is…ONLY 10% OF ALL MONTHLY BONUSES can be applied to the weekly paycheck under this new law.
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Re: My statement above. To be clear, a tech producing 15 hours at $25/hr would gross $375 (granted this is low, but it does happen at times). Under this new law, you must pay him at least $8.05 per hour for the first 4o hours plus $12.05 per hr for all hours over 40. At our shop, techs arrive at 7:15am clock out for lunch 1 hour then clock out to leave work at 5:45pm, which equates to 52.5 hours per week or 12.5 overtime hours.
That’s where we get the 52.5 total hours and the $473.00 paycheck. Stay with me. So, for every week that a tech does not produce at least more than $473, the company subsidizes the tech, regardless of whether or not the following week that tech made $1500 based on hours produced. Confusing…not really, but the law says every employee must clock in and out so commissioned techs are included. As for office staff, how many of you pay more than $47,475 annually? And of all office personnel, how many work more than 40 hours per week? -
All flat rate techs will have to be paid by the hour. i have a spread sheet conversion formula as created yesterday by my CPA. The problem with this law is if you have a tech who had a bad week and only turned 15 hours, which at $25/hr…or perhaps a lube tech at a lower rate. The lowest pay check you can give him is $473.00. This figure is based on 52.5 hours which is the norm for our shop. 7:15am – 1 hr lunch – 5:45pm punch out. That’s 40 hours minimum wage plus 12/5hrs at 1.5 min wage.
Questions? This law begins December 1st, 2016.
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I now have a spread sheet with mathematical formulas to figure how to shift commission technicians over to hourly employees which every shop will be FORCED to do December 1st, 2016.
How many are interested?
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UPDATE: I have discussed this opportunity with Jake from Auto Profits Masters (he called me) and better understand the opportunity this company is offering. While it appears not a perfect fit for my company at this time, I do believe their plan is worth investigating. What I most appreciate was the response from my comment and how quickly it came from Auto Profit Masters.
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After signing the e-mail requirement to acquire this “Guide” download and then reviewing its contents, I am still am in the dark as to how best to address this situation. I was a bit disappointed as (I thought) it might provide me with an answer…instead asks me to buy something promoting the position of increasing my sales. Really?
As I previously stated in my post re this new law some time back, I have a meeting with my CPS (today as a mater of fact) to address exactly how best to manage this law. I will be happy to share the facts afterwards. All free to my colleagues across the nation.
Bobby Likis
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Another thought. If we pay Fred $30 per hour and he produces 40 hours, his gross is $1,200. But when/if he clocks 44 hours, we must then adjust his base rate to compensate for the “overtime” $45 per hour rate. His overtime rate will float whenever he clocks more than 40 hours per week, which means in reality he has no standard base rate. The challenge with this law is it forces small business to go through additional steps for each full time employee grossing less than $47,476 per year.
I am disappointed that there have been no comments here other than Tom’s re this law…as this law is national and will affect every business in America staring 01/01/2017. I assume our colleagues are not familiar…but they soon will be. I certainly don’t want to waste anyone’s time here…mine included!
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Tom, I have a meeting scheduled soon so will better understand how this new law affects my business.
Here’s what I do know. The new law includes all technicians’ pay…including vacation pay. Where we currently pay each tech for the number of labor hours produced, that formula just got complicated. The challenge is each tech must be paid an hourly rate so if we paid Fred (as we currently do) $30 per hour and he produces 40 hours, he grosses $1,200. Having said that, if he clocked in 44 hours, we must pay him $45 per hour for each of the 4 hours he clocked. The bottom line is that Fred’s hourly rate must be continually adjusted to make sure his overtime hours combined with his base rate of pay don’t exceed his actual $30/hr rate. That’s not to say that we cannot figure this out..it simply forces our office manager to review each week’s payroll for each technician and compare it with the specific number of hours clocked. Billed hours establish the actual total pay, but the numbers must work when the DOL audits as we have been told they are strongly going to do. I’m not concerned with techs’ pay as my guys always make more than $47,476 per year, but its the math that will be confusing…at first.
Why the change? Walmart! Walmart Corporate stopped employees from clocking in when they arrived early to make sure they did not exceed 40 hour work weeks even tho they worked more than 40. I get that. But for those thousands of support staffers who may work more than 40 hours per week and are being paid less than $47,476 per year, they will see an automatic increase in pay, which equates to additional taxes the Government captures from the retail industry and affects small company profits. When I learn more, I will post.
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At Car Clinic Service / PreRepair, we separate tire sales and mount & balance labor. We also break out tire sales on our ROWriter balance sheet due to the lower GM, with a targeted GM goal of 25% GM for tire sales. Tire sales is currently not a large part of our business.
Bobby Likis, Owner
Car Clinic Service / PreRepair -
Thx, Larry, Appreciate your input.
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The company that I was referring to in my above comments is AutoRepair Local. Questions? Reach out to me anytime.
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Thx, Jacob,
We paid $15/call with almost zero return. We did get one job ($1,200) over the 3-mth period…nowhere near what this marketing plan touted. And during our extended back & forth discussions with this company’s agents in our attempt to capture older calls (we were told they were deleted after 35 days), we talked with at least 4 different people…none of whom were authorized to make any value added decisions. No more “Local” for me…never again!
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Agreed! For those who have invested a lifetime in the business, the end result will be extrication from the business. This weekend I approached a smart younger shop owner who operates a very successful local area BMW repair shop and suggested several shop owners might reach an agreement to specialize in BMW, Audi, Mercedes and Porsche lines. He shifted gears immediately saying the local car count could not meet the demands of such a specialty group. Unfortunately I had to agree. Yet he gave me the distinct impression (and said so in several statements during our discussion) that he believed that niche marketing will ultimately become the future of shop operations. By that time, I’ll be on the Amalfi Coast in Italy. Consumers will face a rude awakening. We already qualify our clients. We offer no loss-leaders…we spend more face time with our customers than any shop I know of including my three very successful friends who own shops in Dallas and GA. Our car count is roughly 200/mth and RO average somewhere between $465 – $590. When we open a hood, we own that job so we may as well get paid for our efforts. Thank you for this site. I hope more shop owners will realize the opportunity your team provides.
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Only two comments here…after several days exposure…really? I imagine there would have been many more had the subject been wrapped around some SEMA show car topic that included modified vehicles or ones with loud audio blaring rap songs. I know of no young people entering the automotive service profession other than those attracted by Speed TV or Velocity and they don’t serve the typical American car owner…consumer. Where are all the sincere car guys who love to solve problems and really have connections to automobiles. I attended a NARTSH (National Association Radio Talk Show Host) where Larry King made a statement when he was asked to give a speech. He was quite funny and told several stories but his main topic as agreed to by his invitation we to present the future of the Merchant Marine’s future. After some 45 minutes on stage and with everyone rolling in their seats with laughter from his wild tales of the Mafia in Miami..he darted off stage and got in his car to leave. The President of the local MM Chapter ran out after him and asked why he never addressed the future of the MM during his speech to which he answered. “That’s because there ain’t no future to the MM” then drove off. I feel the same way about repair shop profession. Don’t shoot the messenger.
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Great question. I do not have any facts or data to correctly answer, but am certain just by the nature of younger generation individuals who use Social Media and their iThings to communicate that they are not people who love cars as we did when I grew up. I do have information re more Americans (of all ages) spurning licenses. in 1983, 87% of 19-year-olds had their licenses, but that number dropped to 69% 30 years later. I can also state that our younger Car Clinic Service customers don’t really care about knowing what’s wrong with their cars…more so how little can we spend to get it back on the road. They do appear to be concerned with safety items, which is a positive attitude. As for our profession, no doubt the OEMs and dealers are selling vehicles with maintenance attached in order to retain their new car buyers. I’ve had at least 5 of our service customers who bought new cars come in to tell me they apologize saying they would see me after their new cars were out of the warranty period. This should worry me, but doesn’t. My team and I know that dealers’ service personnel will drive these newfound customers away with their easy-come-easy-go attitude. And we’ll be there to care for them.
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Quite candidly, our industry has the fewest applicants and is the most difficult to fulfill of all staffing – at least that is how it is in northeast Florida. We offer 5 day workweeks with clean (epoxy painted clean) floors, paid Holidays, sick leave, uniforms and $40/hr for billed work…and still cannot find qualified people. Futures? Anyone have an opinion as to what futures hold for the aftermarket service & repair industry?
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After successfully operating my auto repair business for 43 years with zero “specials,” I cannot endorse any consumer marketing message that (I feel) devalues our industry. Car-count via “discount” simply does not fit my business model.
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Our shop does a bit over $1M/yr. We, too, are faced with cleaning challenges and I am very aware of what dollars spent bring the highest impact. Still…a clean facility requires Team effort.
We schedule an all-hands on deck shop scrub quarterly, which helps influence each of our four technicians to maintain cleaner bays throughout the week. This quarterly cleaning includes equipment as well. Regardless, it is each tech’s responsibility to leave each tool used clean and/or to report needed maintenance.
In addition, we also pay a cleaning service to come every Friday to thoroughly clean the customer center, restrooms and offices. Our office manager has the daily responsibility of making sure the customer center stays well-maintained. Our system does well…but the shop is never as clean as when we first built it nor does it meet my expectations. Compromise is the key to all the above.
